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Mr. ROSE. Mr. Albert, and members of this committee, I am intrigued to find out because I think if I made a contribution to education it has been by informing the various Congressmen through their constituents of just what the need is in education. It is their responsibility then to decide what they want to do about it, but I plan in the next 2 weeks to be able to tell any Congressman on this committee or in the Congress how much of this construction is in his own congressional district. Then when he has that information he may choose to support a supplemental appropriation or next year's appropriation, or whatever he wishes to do about it. It is not a pressure operation whatever; it is an information operation.

While I recognize this committee has no direct responsibility for appropriations I would like to call your attention to the fact that only approximately $23 million was appropriated by the 89th Congress to fund the applications under the 1-year extension enacted through the efforts of this committee. Thus, I would encourage you to use any influence you may have to prevail on the members of the Health, Education, and Welfare Appropriations Subcommittee, urging them to give careful consideration to financing a substantial part of the present entitlements under the extension of Public Law 815 as enacted by the Congress under your leadership.

School facilities are absolutely essential if the legislation being considered here today is to make the maximum contribution possible to the educational programs in the immediate future. The school administrators of the schools filing applications hope to appear before this subcommittee in behalf of a supplemental appropriation for Public Law 815 at an early date in order that the construction of the most urgently needed and planned facilities may be completed early in fiscal year 1968. Likewise a supplemental appropriation is necessary if those applicants who became eligible for entitlements due to this committee reducing the qualifying requirements of Public Law 874 during the 89th Congress. We solicit your help for supplemental appropriations in both of these areas.

In support of amendments to "Disaster authority in Public Law 874 and 815" the Commissioner made two suggestions in appendix H, which I think might be applicable in a more general way to these two public laws as follows:

With reference to extension of this authority he said:

Authority to provide disaster assistance under Public Laws 815 and 874 should be extended until June 30, 1972. The 5-year extension is necessary in order to give continuity to the program.

He did not mention anything about Mr. Perkins' suggestion to extend Public Law 874 itself until 1972.

While I agree with the Commissioner's suggestion, I seriously doubt that this particular provision of this legislation is more important to American education than Public Law 815 and 874. Thus, I would not only favor the Commissioner's recommendation but strongly urge the committee to give serious consideration to extending both public laws even longer than the 1 or 2 years suggested previously in my testimony.

Regarding the present level and limitations of disaster assistance under Public Law 874, the Commissioner says—

The phrase "during the last full fiscal year" would be eliminated from section 7 of Public Law 874. This section authorized Federal assistance on a continuing basis to finance a school program equivalent to that maintained the last full year prior to the disaster. This is not practical, because school programs are improving each year.

I totally agree to the elimination of this restrictive level of assistance. Likewise, I would ask that the committee consider removing or changing a similar but much more damaging and limiting provision for determining the rate of payment under section 3 of Public Law 874. The rate under this section is presently determined from fiscal data of the second preceding year, which is even more inequitable than the restriction, "during the last full year" in section 7 of the law.

Fifteen years ago when the education for a pupil was being purchased for approximately $100 in many States, and even less than $100 in many States, and was not increasing at any rapid pace this restriction to section 3 payments under Public Law 874 pose no particular problem. However, when education is now averaging over $400 per pupil and increasing by $15 or $20 per year in many States, a 2-year lag in the fiscal data used in determining funds available places the schools depending on Federal impact money in a very disadvantageous position insofar as providing a normal education is concerned.

A great many of the schools of Oklahoma voted the extra 10 mils last year and many voted this year; yet it will be 2 years before that figure will be involved in what part the local contribution rate the Federal Government will pay because of this 2-year lag.

When the "second previous year" restriction was included in Public Law 874, it was thought that the fiscal data would not be available for use the year following which is not the case at the present time with the present methods of accounting. I believe all fiscal data for the previous year is available well in advance of final payment for the current year.

The U.S. Office of Education regulation permits applications to be filed prior to March 30 of the current year which is 9 months after the close of the previous year.

Certainly this fiscal data is available in all cases prior to final payments which is well over a year from the beginning date of the current year. I would certainly suggest that the Commissioner's conclusion "that this is not practicable because school programs are improving each year" is just as basically sound for section 3 in Public Law 874 as it is to section 7.

Especially do I urge consideration of an amendment of Public Law 874 modifying the plan of determining the rate of payment since the adoption of the amendment by the 89th Congress which determines the rate of payment by "school grouping" within a State rather than by comparable schools. I believe that the most equitable correction of this inequity in determining rates is to eliminate the 1-year lag in the fiscal data used. However, if this cannot be done, I would suggest that the effective date of the amendment enacted during the 89th Con

gress, requiring that rate of payments be based upon grouping similar schools within a State, be either eliminated or further deferred until June 30, 1968.

I think some real work should be done in this rate of payment part of the legislation. I do not think there is only one way of doing it, but I think it should have a real good look at it by the Congress.

Another way that impact area schools might avoid serious loss of funds under Public Law 874 which are absolutely essential might be through providing that no applicant would receive a lower rate of payment under section 3 than it had received the previous year. This would allow for an orderly adjustment to any new method of calculating the rate of payment without seriously reducing the funds available to purchase an educational program.

In conclusion, I would like to offer my support to Mr. Pucinski's bill H.R. 6558

To consider children living in federally assisted public housing as federally connected children for purposes of educational assistance to federally impacted

areas.

Under many of the low-rent housing programs financed under the Federal Housing Act of 1937, a school district can be completely overrun with children in a very short time with no compensating tax base to provide for their education. Such low-rent housing is badly needed, and yet if it must be obtained through sacrificing the education of the children involved, there is a grave question as to its ultimate value.

After long years of experience with this committee, I have every confidence that the legislation you report to the Congress will be well thought out and ultimately enacted by the U.S. Congress. I thank you for the opportunity of being a part of this effort to improve American education in both public and private schools.

Do you want me to present the other witnesses, Mr. Ford?
Mr. FORD. Thank you, Mr. Rose.

Before you do that, I would like to afford the gentleman from Washington the opportunity of introducing a guest he noted in the group.

Mr. MEEDS. Thank you, Mr. Chairman. It is a real pleasure to welcome before this committee again and to commend to this committee's consideration one of our very, very capable school administrators from the State of Washington, Mr. T. Olai Hageness, who is superintendent of a heavy impact district.

Mr. Hageness has been in that district for a number of years, has met the problems which confront educators in his position in a heavily impacted area with its high turnover rate and low tax valuation rate, has met the challenges of education in that district as well if not better than any person in the State of Washington. He has done a tremendous job with the school district under some very adverse circumstances and has become a real expert, like Oscar Rose, on Public Law 874 because it is almost his bread and butter.

It is a pleasure for me as a Member of Congress to have been associated with Mr. Hageness on this committee before concerning this

type of legislation, and I am sure that his testimony will bear great weight with us because he speaks with the voice of considerable experience.

Mr. HAGENESS. Thank you, Congressman Meeds for those kind words. I am honored, too, to be classed with Mr. Rose here in my knowledge of this subject.

I am T. Olai Hageness, superintendent of Clover Park School District No. 400, Pierce County, Wash.

It is a privilege to appear before your committee to testify in behalf of Public Law 89-10. The several provisions of that law are doing much to upgrade education and to alleviate educational deficiencies of many underprivileged youth. Clover Park School District is participating in the program to the extent eligible. In 196566 the district received $121,861 under titles I and II, and in the current year, 1966-67, anticipates about $105,433.

Valuable as these grants are in enriching the district's educational program, much more vital to the district's basic operation is Public Law 874, providing operational assistance to federally impacted districts.

Clover Park School District, located in a prime Federal impact area has received such Federal impact funds for 25 years. Within or adjacent to the district are Fort Lewis, McChord Air Force Base, U.S. Veterans Hospital at American Lake, Madigan General Hospital, and the U.S. Penitentiary on McNeil Island. In addition, there are other Federal activities farther removed but employing residents of the district.

School enrollment is 14,500 in grades kindergarten through 12, of which 8,932 (62 percent) are federally connected-3,961 living on Federal property and 4,971 living off Federal property with parents employed on Federal property. Enrollment is growing rapidly, up from 3,100 in 1950. Present growth is about a classroom per week. The district is primarily a suburban, residential area with little industry. About one-half of the district lies within Fort Lewis and McChord Air Base and is not taxable. As a result, the school district's per pupil valuation for tax purposes is less than half the statewide average for first-class districts. Therefore, in spite of consistent support from the district's voters they have never voted down a school tax-there is no way the district can maintain a comparable program with its neighbors without additional help. That the district enjoys a good reputation for basic academic excellence is in large part due to Federal assistance received over the years beginning in 1941 and continuing since then.

The district's 1966-67 entitlement is $1,510,486 under Public Law 874 and $1,933,500 under Public Law 815.

Chart I shows enrollment growth from 1950 to the present and estimated to 1970 and the corresponding degree of Federal impact. (The chart follows:)

Chart I shows enrollment growth from 1950 to the present and estimated to 1970 and the corresponding degree of Federal impact.

CHART I

CLOVER PARK ENROLLMENT SHOWING FEDERAL IMPACT

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