As indicated in table 32, the total of $6,131,000 appropriated for this program in the 1959-60 school year will be distributed among 52 participating States and Territories. Federal appropriations for 3 other years are also reported. Separate amounts for individual States are given in table 31 for the 1959-60 school year. They are reported to show the full amount of the allotment for each State on the basis of the $7.5 million authorized. State amounts for the 1958-59 school year are included in table 3 of chapter 2.

Table 32.-FEDERAL FUNDS APPROPRIATED, STATE AND LOCAL FUNDS USED FOR MATCHING, AND NUMBER OF STATES AND TERRITORIES PARTICIPATING IN THE DEVELOPMENT OF LIBRARY SERVICES IN RURAL AREAS: 1956-57 TO 1959-60

SCHOOL SUPPORT IN FEDERALLY AFFECTED AREAS

Activities of the Federal Goverment in numerous localities over the Nation have produced important changes affecting public school services in these areas. Both increases in school enrollments and reductions in taxable valuations due to the Federal purchase of property have continued to burden certain communities in financing public school services. In recognition of the school finance problens facing these federally affected school districts, funds have been allocated to over 4,500 school districts since 1950-51 under Public Laws 815 and 874 and the extensions to these laws.

The Federal legislation has identified three categories of children for whom the Federal Government assumes partial responsibility by providing funds for educational services. These groups have been designated "A," "B," and "C." The "A" children are those whose parents live and work on Federal property; "B" children are those whose parents live or work on Federal property; and "C" children are those whose parents have migrated to an area because of Federal contract activity but who do not work or live on the Federal property.

CURRENT EXPENSE

Under certain conditions specified in Public Law 874, approved September 30, 1950, the U.S. Commissioner of Education is authorized to make contributions toward "maintenance and operation," the term used in the law to identify "current expenses." Section 2 provides for payments in lieu of taxes for real property acquired in a local school district by the Federal Government since 1938 if the assessed valuation of the property purchased amounts to 10 percent or more of the assessed valuation of all real properties in the district, and if the loss of revenue caused by withdrawal of the property from the tax list constitutes a continuing financial burden on the local school district.

Sections 3 and 4 of the act provide for payments to school districts which suffer a financial burden due to (1) the provision of educational services for childern whose parents are employed on Federal property or who reside thereon; and (2) sudden and substantial increases in enrollment because of Federal activities. Specific formulas for use in determining the amounts school districts are entitled to receive are included in the Federal legislation.

These formulas are based on the number of childern in each category and the rate per child to be paid from Federal funds. "A" children justify Federal allocations to the extent of the full local contribution rate per child, and "B" children are included at half this rate. Payments for "C" children are limited to the actual deficit in local current revenues, but may not exceed the per pupil cost for each federally connected pupil. Eligibility is limited to school districts which have the required percents of federally connected pupils in attendance. Also authorized are Federal arrangements for the full cost of operation of schools for children residing on Federal property where local educational agencies are either not able or lack jurisdiction to provide the required educational services for such children.

For each of the participating school districts, local contribution rates are calculated on the basis of current school expenditures in comparable communities within the State. The basic local contribution rate required for Federal payment is specified in Public Law 248, passed by Congress in 1953. This rate was established at half the State average current expenditure per pupil in average daily attendance for the second preceding year. An alternative basic rate for Federal payment authorized under the provisions of Public Law 85-620 is half the national average current expenditure per pupil in the continental United States in the second preceding year but not to exceed the average per pupil expenditure in the State.

For each participating school administrative unit, a portion of the Federal allotment may actually be paid during the following school year. This is due to the fact that the total assistance may finally be

calculated on the basis of a final report submitted after the close of the year. As a result, the cash disbursements for some years may be less than the "entitlements" while the disbursements for other years are greater than the entitlements.

Table 33.-FEDERAL FUNDS APPROPRIATED AND DISBURSED FOR CURRENT EXPENSES OF SCHOOLS IN FEDERALLY AFFECTED SCHOOL DISTRICTS: 1950-51 TO 1959-60

Table 34.-FEDERAL FUNDS DISBURSED TO THE STATES AND TERRITORIES FOR ASSISTANCE ON CURRENT EXPENDITURES OF SCHOOLS IN FEDERALLY AFFECTED SCHOOL DISTRICTS: 1957-58

1 Includes the following paid to other Federal agencies for eduacating children on Federal properties: Air Force, $1,135,628; Army, $3,026,490; Navy, $950,813; Interior, $6,482; Veterans, $6,525; and Commerce, $13,159.

Data on total disbursements for this program for the period from 1950-51 through 1959-60 are summarized in table 33. The amounts disbursed to each State in 1957-58 are presented in table 34. Similar State-by-State amounts for 1958-59 are reported in column 6 of summary table 3. In addition to the amounts for the States and Territories, a "national" amount for payments to other Federal agencies is listed in column 4 of table 2. This total of $17, 047,134 is composed of $6,800,524 allotted for current operating expenses and $10,246,610 paid for new school facilities for the 1958-59 school year. Details on entitlements for individual school districts and the States, and other items of related information for this program may be obtained from the Annual Reports of the Commissioner of Education on the Administration of Public Laws 874 and 815.

SCHOOL CONSTRUCTION

Federal assistance for the construction of school buildings in federally affected school districts was provided in title II of Public Law 815 approved by the Eighty-first Congress on September 30, 1950. This act was designed to assist local school districts in erecting necessary school facilities to house enrollment increases brought about by the enrollment of children whose parents were employed in federally related enterprises. Further shifts in population and school enrollment caused by Federal activities in various school districts have required the extension of the provision of Public Law 815 by each Congress since the original enactment.

Eligibility under the Public Law 815, as amended, is based upon the increase in average daily membership of federally connected children during a 2-year increase period. This period is measured from July 1957 to June 1959, July 1958 to June 1960, or July 1959 to June 1961. The rate per pupil in each State is computed in terms of the average per pupil cost of constructing school facilities in that State. Amounts authorized are computed in accordance with a formula based upon varying percentage payments for "A," "B," and "C" children. Funds approved for projects cannot exceed the amount needed to provide school facilities for the number of federally connected pupils or the number of pupils who otherwise would have no school housing, whichever is smaller.

The Commissioner of Education is required to rank the requested school construction projects in the order of relative urgency of need when appropriated funds are insufficient to pay the Federal share of the cost of approvable projects. This is accomplished through a priority index that is based upon the percent of federally connected pupils eligible for payment and the percent of "unhoused children" in each district.

Section 14 of Public Law 815 as amended authorizes the construction of school facilities in needy school districts which have been unable to qualify for funds under Public Law 815 because school enrollments have not increased sufficiently during a 2-year period, but which have large numbers of school children who reside on Federal property for whom school facilities are not available. Such districts are chiefly those that educate children residing on tax-exempt Indian lands in the Western States.

Effectiveness of the assistance for school construction in the federally affected school districts is evident from the large number of school administrative units which have participated. Numbers of school districts qualifying for assistance under the several congressional authorizations are reported in table 35. The sum would not represent the total number of different districts qualifying since some districts have qualified for construction of facilities under more than one law.

Table 35.-NUMBER OF SCHOOL DISTRICTS QUALIFYING FOR FEDERAL ASSISTANCE ON SCHOOL CONSTRUCTION UNDER THE SEVERAL CONGRESSIONAL AUTHORIZATIONS: 1950-51 TO APRIL 22, 1960

Disbursements of Federal funds for the construction of school facilities under all authorizations listed in table 35 are summarized in table 36 for the entire period since the enactment of Public Law 815. Table 37 reports the number of projects in the States and Territories for which Federal funds were reserved by October 2, 1959, for the construction of school facilities in federally affected school districts. State-by-State disbursements for the 1958-59 school year are listed in column 7 of summary table 3.

Federally affected public school districts receive most of the funds authorized by Public Law 815 and its amendments, as indicated in column 3 of table 36. However, part of the funds according to section 10 of Public Law 815, as amended, may be used for the construction