economic conditions can well result in a profit to the Government, since even after deducting the cost of the money and the service charge to be paid, the 4 percent annual interest to be paid on the market should leave at least a 1 percent annual income return to the Government. Even assuming adverse economic conditions, the risk of loss will not appreciably increase, since the Government is committed by its guaranty to pay up to 50 percent or $4,000, whichever is lesser, on each loan guaranteed. CONCLUSION In view of the foregoing, your committee urgently recommends approval of S. 2790 as reported. TH CONGRESS 2d Session } SENATE { REPORT No. 1702 ROVIDING ASSISTANCE TO CERTAIN LOCAL SCHOOL AGENCIES OVERBURDENED WITH WAR-INCURRED, OR POSTWAR NATIONAL-DEFENSE-INCURRED, ENROLLMENTS JUNE 15, 1948.-Ordered to be printed Mr. TAFT, from the Committee on Labor and Public Welfare, submitted the following REPORT [To accompany S. 2795] The Committee on Labor and Public Welfare, to whom was referred bill (S. 2795) to provide assistance to certain local school agencies erburdened with war-incurred, or postwar national-defense-incurred, ollments, having considered the same, report favorably thereon, h amendments, and recommend that the bill, as amended, do pass. The amendments made by the committee are as follows: On page 1, line 7, after the word "that", strike out the following: )". In page 2, line 4, after the word "facilities", strike out the remainder he sentence and insert a period. On page 2, line 11, after the word "of", strike out "$7,000,000" and rt in lieu thereof "$5,000,000". EXPLANATION OF COMMITTEE AMENDMENTS he amendments made by the committee are designed to restrict eral assistance under this act to those schools which received 1 assistance during the fiscal year 1948 and which are still in need uch assistance. The funds authorized by the bill as reported are cient to meet the estimated needs of those schools. It was the ion of the committee that the present program should not be inded to include so-called "new" cases, and that every effort ld be made by the States and local communities to meet these ›lems hereafter through their own resources. HISTORY OF THE LEGISLATION During World War II the Congress, recognizing the burden placed on some communities by military projects, provided funds under the Lanham Act to assist those communities overburdened with defenseincreased school enrollments in constructing new school-plant facilities and in maintaining and operating their schools. Because the primary purpose of the Lanham Act was to aid in the maximum prosecution of the war effort, that program was discontinued after the surrender of Japan, except for assisting in maintenance and operation of schools. The war-incurred school population remained in many of these defense areas after the war and the Congress continued this program, on a reduced basis, each year since that time in order to aid the communities in making the transition from war to peacetime conditions. Federal assistance for the 1946-47 school year was continued under the authority of an amendment to the Lanham Act, and $7,000,000 was appropriated for this purpose. For the fiscal year 1948 the authorization was given under Public Law No. 317, Eightieth Congress, known as the Landis Act. This law authorized the appropriation of $5,000,000 to assist those schools that had received assistance for maintenance and operation for the year ending June 30, 1947, and were still in need. A total of $4,500,000 was appropriated to carry out the purpose of the authorization. PRESENT NEED FOR LEGISLATION During the 1948 fiscal year, 139 of the 193 schools that were eligible under the authorizing legislation were found, by the Bureau of Community Facilities, Federal Works Agency, to be in need of Federal assistance for the maintenance and operation of their schools. Fiftyfour schools that were eligible for Federal assistance did not receive aid because they were able to provide a normal school program with their own resources and assistance from State funds. The Bureau of Community Facilities, Federal Works Agency, made a survey through its division offices to determine the number of local school agencies that would need Federal assistance during the fiscal year 1949, and the anticipated amount of assistance needed. This survey showed that a total of 144 of the schools which were eligible for assistance during the fiscal year 1948 expected to need assistance during the fiscal year 1949. The table submitted by the Bureau of Community Facilities, Federal Works Agency, showing by States the number of schools affected, the total costs of their school programs, the amount of funds that can be provided by the schools themselves, and the anticipated deficits, together with a list of those communities which are expected to need assistance in the fiscal year 1949, is presented below: |