reasonably expend funds and incur obligations for the education of a particular number of federally connected children in a particular school year on the basis of assumption which later, and through no fault of the school district, turn out to be false. The adjustment provision serves to compensate for this increased burden to the school district, but there is no reason to extend the adjustment into subsequent years in which there has been no unexpected reduction in the number of federally connected children in the district.

We are advised by the Bureau of the Budget that there is no objection to the presentation of this report from the standpoint of the administration's program.

Sincerely,

ANTHONY J. CELEBREZZE,

Secretary.

88TH CONGRESS

2D SESSION

S. 2725

IN THE SENATE OF THE UNITED STATES

APRIL 9 (legislative day, MARCH 30), 1964

Mr. MORSE (for himself, Mr. BARTLETT, Mr. CLARK, Mr. COOPER, Mr. GRUENING, Mr. RANDOLPH, and Mr. YARBOROUGH) introduced the following bill; which was read twice and referred to the Committee on Labor and Public Welfare

A BILL

To amend Public Laws 815 and 874, Eighty-first Congress, to provide financial assistance in the construction and operation of public elementary and secondary schools in areas affected by a major disaster.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 3 That the Act of September 23, 1950, as amended (20 4 U.S.C. 631-645), is amended by inserting, immediately 5 after section 15 of that Act, the following new section:

6 "SCHOOL CONSTRUCTION ASSISTANCE IN MAJOR DISASTER

AREAS

8 "SEC. 16. (a) If the Commissioner determines with

9 respect to any local educational agency that

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"(1) (A) such agency is located in whole or in

part within an area which has suffered a major disaster as a result of any flood, drought, fire, hurricane, earth

quake, storm, or other catastrophe which, in the determination of the President pursuant to section 2 (a) of the Act of September 30, 1950 (42 U.S.C. 1855a (a)), is or threatens to be of sufficient severity and magnitude to warrant disaster assistance by the Federal Government, and

"(B) the Governor of the State in which such agency is located has certified the need for disaster assistance under this section, and has given assurance of

expenditure of a reasonable amount of the funds of the government of such State, or of any political subdivision thereof, for the same or similar purposes with respect to such catastrophe;

"(2) public elementary or secondary school facilities of such agency have been destroyed or seriously

damaged as a result of this major disaster;

"(3) such agency is making a reasonable tax effort

and is exercising due diligence in availing itself of State

and other financial assistance available for the replace

ment or restoration of such school facilities; and

"(4) such agency does not have sufficient funds

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available to it from State, local, and other Federal sources

(including funds available under other provisions of this

Act), and from the proceeds of insurance on such school

facilities, to provide the minimum school facilities needed

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for the restoration or replacement of the school facilities so destroyed or seriously damaged,

7 he may provide the additional assistance necessary to enable 8 such agency to provide such facilities, upon such terms and in 9 such amounts (subject to the provisions of this section) as 10 the Commissioner may consider to be in the public interest; 11 but such additional assistance, plus the amount which the 12 Commissioner determines to be available from State, local, 13 and other Federal sources (including funds available under 14 other provisions of this Act), and from the proceeds of 15 insurance, may not exceed the cost of construction incident 16 to the restoration or replacement of the school facilities 17 destroyed or damaged as a result of the disaster.

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"(b) There are hereby authorized to be appropriated for 19 each fiscal year such amounts as may be necessary to carry 20 out the provisions of this section. Pending such appropria21 tion, the Commissioner may expend from any funds hereto22 fore or hereafter appropriated for expenditure in accordance 23 with other sections of this Act such sums as may be neces

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1 sary for immediately providing assistance under this section,

2 such appropriations to be reimbursed from the appropriations 3 authorized by this subsection when made.

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"(c) No payment may be made to any local educational

agency under subsection (a) except upon application there6 for which is submitted through the appropriate State educa7 tional agency and is filed with the Commissioner in accord

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ance with regulations prescribed by him, and which meets 9 the requirements of section 6(b)(1). In determining the 10 order in which such applications shall be approved, the Com11 missioner shall consider the relative educational and financial 12 needs of the local educational agencies which have sub13 mitted approvable applications. No payment may be made 14 under subsection (a) unless the Commissioner finds, after 15 consultation with the State and local educational agencies, 16 that the project or projects with respect to which it is made 17 are not inconsistent with overall State plans for the con18 struction of school facilities. All determinations made by the 19 Commissioner under this section shall be made only after 20 consultation with the appropriate State educational agency 21 and the local educational agency.

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"(d) Amounts paid by the Commissioner to local edu23 cational agencies under subsection (a) may be paid in advance or by way of reimbursement and in such installments

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as the Commissioner may determine. Any funds paid to