Estimate included by Senate in Second Supplementeal Appropriation Act, 1960- Total funds available 1960_. Estimate for 1961---. Total change.... Increases: For the maintenance and operation of schools on Federal property.. Decreases: For assistance to local educational agencies in the maintenance and operation of schools... Net decreases.. EXPLANATION OF CHANGES $163, 957, 000 22, 343, 000 186, 300, 000 126, 695, 000 59, 605, 000 The budget estimate was based on estimated requirements under proposed legislation. The House allowance provides estimated requirements under existing legislation. Summary of Public Law 874 estimated entitlements, by State, fiscal years 1960 and 1961 (based on data as of Mar. 1, 1960), Apr. 12, 1960 "For an additional amount for providing school facilities and for grants to local educational agencies in federally affected areas, as authorized by the Act of September 23, 1950, as amended (20 U.S.C., ch. [14] 19), including not to exceed [$1,000,000] $900,000 for necessary expenses during the current fiscal year of technical services rendered by other agencies, [$61,135,000] $44,390,000, to remain available until expended: Provided, That no part of this appropriation shall be available for salaries or other direct expenses of the Department of Health, Education, and Welfare." Enacted appropriation, total estimated funds available 1960–– Total change_- $61, 135, 000 44, 390, 000 16,745, 000 EXPLANATION OF CHANGES The budget estimate was based on total requirements under proposed legislation. The House allowance provides full requirements under existing legislation. Dr. DERTHICK. Now, Mr. Chairman, you have just had a discussion with the Secretary of the Department on the proposal for payments to school districts under Public Laws 815 and 874. I can file my statements on that. I believe the issues are well understood and perhaps will not need further comment unless you have questions or unless Senator Byrd will have some questions. Senator BYRD. No questions. Thank you. Senator HILL. I think the Secretary went into that point pretty fully. Dr. DERTHICK. Yes. Senator HILL. Do you concur with that, Senator Byrd? Senator BYRD. Yes. Dr. DERTHICK. I think he covered all the points and my statements here also cover the points. PREPARED STATEMENT Senator HILL. Well, we will put your statements in in full at this point. (The statement referred to follows:) STATEMENT OF COMMISSIONER OF EDUCATION ON PAYMENTS TO SCHOOL DISTRICTS The amount requested for Federal financial assistance for the maintenance and operation of schools in federally affected areas for fiscal year 1961 is $126.695,000. This estimate is based on amendments proposed by H.R. 7140 which will (1) eliminate properties that are owned by the Federal Government but are leased to private individuals or companies and subject to taxation; (2) discontinue assistance for increased enrollments of children resulting from contract activities of the Federal Government; and (3) reduce the rate of payment for children who reside with a parent who is employed on Federal property within or outside of the applicant school district. It is estimated that the $126,695,000 requested for fiscal year 1961 will provide for payment of full entitlements to eligible school districts affected by activities of the Federal Government under terms of proposed amendments. Full entitlement will be paid for the cost of schools operated on Federal installations for children of parents who live and work on Federal property. Under existing legislation which continues the program through fiscal year 1961, total requirements are estimated at $187,310,000. Current information is indicating that these estimates are not wholly accurate. As more complete information becomes available, the matter will be presented to the President for his consideration. EFFECT OF HOUSE COMMITTEE ACTION The House Committee on Appropriations has recommended an increase of $60,615,000 over the President's budget for "Payments to school districts." This increase is contrary to the fiscal policy of the President and its elimination is recommended. STATEMENT OF COMMISSIONER OF EDUCATION ON ASSISTANCE FOR SCHOOL CONSTRUCTION The amount requested for fiscal year 1961 for Federal financial assistance for the construction of schools in federally affected areas is $44,390,000. This estimate is based on the enactment of amendments proposed by H.R. 7140 which would discontinue construction aid for increases in enrollment of children because of the employment of parents on (1) properties that are owned by the Federal Government but are leased to private individuals, or companies, and subject to taxation; and (2) due to contract activities of the Federal Government. These amendments also reduce the rate of payment for children who reside with a parent who is employed on Federal property located within or outside of the applicant school district. It is estimated that the $44,390,000 will provide for full payment of construction grants to eligible federally-impacted school districts to build additional school facilities needed to accommodate federally-connected enrollment increases through June 30, 1961, under the terms of the proposed amendments. Included in the requested appropriation for fiscal year 1961 is the amount of $900,000 for technical services to be rendered by the Housing and Home Finance Agency. A separate brief statement explaining this item has been prepared by the Housing and Home Finance Agency. Under existing legislation, total requirements are estimated at $63,392,000. 54563-6022 |