EXPERIENCE OF THE BUREAU OF COMMUNITY FACILITIES, FWA, IN ADMINISTERING SCHOOL CONSTRUCTION PROGRAMS

Allegations by certain groups that allotments of Federal funds by a Federal agency directly to local school agencies may lead to Federal interference in local educational matters, upsetting State plans for school construction, and arbitrary Federal action, is without foundation and is completely disproved by past experience. The Federal Works Agency has, during the past 16 years under the Public Works Administration, Works Progress Administration, and the Lanham Act program, administered programs involving over $1,200,000,000 of Federal funds to thousands of local school districts for the construction of over 17,000 school buildings involving a total cost of 2.5 billion dollars.

Under the Lanham Act, the Bureau of Community Facilities, Federal Works Agency, provided over $83,000,000 directly to local school agencies for the construction of approximately 6,800 schoolrooms during the war period. Prior to the war period, the Public Works Administration allotted $574,632,578 of Federal funds directly to local school agencies for construction, repair, and renovation of 12,703 school buildings. During the 1947-48 period, this Agency also administered a program involving approximately $85,000,000 of Federal funds to provide from surplus structures 17,000,000 square feet of educational plant facilities to enable institutions of higher learning to provide for the increased veteran enrollment under the GI bill of rights. Many more school buildings have been constructed under these programs by the Bureau of Community Facilities, FWA, than have been constructed by all other Federal agencies combined.

In these programs the State educational agency and the United States Office of Education made a finding of need for or were consulted regarding the proposed facilities before the allotment of Federal funds was made by the Federal Works Agency. These programs have been highly satisfactory to the school agencies that received help and have been economically administered because the professional educational agencies made the educational determinations and the construction and engineering functions were performed by a construction agency. Also, this administrative pattern assures that local projects will conform to State requirements for school construction and places the responsibility for seeing that the construction is accomplished directly on the school officials who are responsible by law in every State for such functions. There has been no attempt to control or interfere in educational matters in the expenditures of these large sums of money.

BASIS FOR APPORTIONMENT OF FEDERAL FUNDS

In order to have a workable program the formula for apportionment of Federal funds among the States should be realistic yet achieve equalization between the wealthier and poorer areas of the country. Several types of distribution formulas are included in the various bills. Distribution on the basis of the proportion the school-age population in each State bears to the total school-age population in the United States is the most simple and direct. Population studies show that the poorer areas of the country have the highest proportion of school-age children. Thus, this basis of apportionment will achieve substantial equalization. There is merit in having adiscretionary fund available for grants to local school agencies on the basis of comparative need regardless of the State in which located. Such a provision would permit further equalization in accordance with the need and make it possible to meet the problem of those districts where the need is particularly severe.

Some of the proposals provide that Federal funds meet a flat 50 percent of the cost of any specific project whereas others provide for variable matching grants for specific projects within a State. The 50-percent-Federal-funds limitation has the advantage of being definite and simple, but there are substantial differences in the extent of the need and ability of the local school districts within each State to meet that need and we believe these circumstances make it necessary to provide for variable Federal grants for specified projects. In no event, however, should Federal funds be used to provide more than 75 percent of any one project. Provision should be made for loans at low interest rates to districts that cannot provide the local share of the cost, in order that these districts will not be deprived of essential educational facilities. State funds in those States where such funds are made available for school plant construction should be counted toward the local share of the cost of any project.

STATE PLANS

I do not believe that any State plan should be elaborate or in great detail, nor do I feel that a complete and detailed study or inventory of all school facilities and needs in the State is necessary before any construction work can be started. I believe that sufficient information on the needs is already available in each State to set up a State plan under which actual operation can be started without undue delay. To take the time required to make a complete inventory of facilities and develop a State plan of operation complete in all details, including a priority list of projects, would in my opinion delay the beginning of actual construction by perhaps 2 years in some cases. The need is critical and a start should be made as soon as possible.

We will be pleased to submit suggestive language to carry out these recommendations or, if the committee desires, members of my staff will work with other groups and with the committee staff in preparing the proposed language to carry out the objectives I have set forth.

SPECIAL PROBLEMS

Some of the proposals before this committee provide Federal assistance for construction of school plant facilities only in those areas of the country where the need has been created by activities of the Federal Government. Some of the bills recognize this special problem and provide that it be met as a part of an over-all long-range program of Federal assistance for school plant construction, while others do not recognize this need as a special problem.

The Bureau of Community Facilities administered a Federal assistance program under the Lanham Act for the provision of necessary community facilities and services during the war period in those communities in need because of war or defense activities. That program gave us a very considerable amount of information regarding the needs and problems in those communities where Federal activities increased the burden on the local school districts and experience in working with them in the provision of community facilities, including school facilities. As a result of that experience, the chairman of the Public Buildings and Grounds Subcommittee of the House Public Works Committee, Eightieth Congress, second session, requested the Bureau of Community Facilities to make a study of the needs in these Federally affected areas last fall and report the findings to the Congress when it convened in the present session. That study was made and the report transmitted to the chairman of the House and Senate Public Works Committees in February of this year.

The information we have assembled shows that activities of the Federal Government have created such a serious and urgent need in a small number of school districts in the country that special consideration is needed in order to enable these districts to continue to provide normal school services for their children. Since we have been informed that a long-range Nation-wide program of Federal assistance for school-plant construction at this time is not in accordance with the program of the President, but that he would not object to a program this year restricted to clearly demonstrated emergency cases of Federally caused need, this committee may wish to recommend legislation at this time specifically to meet this special problem. I have copies of the report mentioned above, a brief statement regarding the emergency need in these areas, and some comments on the bills that have been introduced to meet this need which I will be pleased to present if the committee desires.

SURVEY OF EMERGENCY SCHOOL CONSTRUCTION REQUIREMENTS FOR AREAS AFFECTED BY FEDERAL AGENCY ACTIVITIES

Bureau of Community Facilities, Federal Works Agency

During the last session of Congress there was considerable discussion of the serious school-construction problem faced by many localities throughout the United States, and particular emphasis was placed on those areas where the problem was doubly complicated because of activities of the Federal Government. Hearings were held on several bills designed to offer aid for school construction to such federally impacted communities, but none were passed. On June 14, Chairman J. Harry McGregor of the Subcommittee on Buildings and Grounds. wrote to General Fleming indicating that it was the wish of the Committee on Public Works that a survey be made of "emergency needs relative to construction

of school facilities in areas where such circumstances are brought about by the influx of population caused by activities of our Federal departments." The letter concludes: "It is our hope, in the event such an emergency exists, that general legislation can be enacted during the next session of the Congress." This report is based on the survey requested by the Public Works Committee and, in the Opinion of the Federal Works Agency, clearly indicates a situation to exist which merits the closest attention of the Congress.

As a first step in instituting the survey, the central office of the Bureau of Community Facilities (FWA) conferred with the United States Office of Education (FSA): this agency was most helpful and wrote to all State departments of education, asking their support and help for the field investigations to be carried out by the division and district Engineers of the Bureau. Working together with the educational authorities, the Bureau's field staff was able to establish a list of areas where Federal activities were known to have placed a heavy burden on local school systems. Each of these school districts was then surveyed. Data were secured on total immediate school, construction needs in these districts. Steps were then taken to ascertain the portion of these total needs attributable to Federal activities, and what part of the total problem the school districts can reasonably be expected to work out for themselves.

NUMBER OF SCHOOL DISTRICTS SURVEYED

After screening and éliminating reports where the Federal impact was too slight to merit inclusion, information on 422 districts was forwarded from the field to the central office of the Bureau. Here the reports were furthered screened, resulting in the elimination of 27 more districts. The attached tables therefore relate to 395 school districts. Generally speaking, the Federal action creating a special problem in these 395 districts may be said to be direct in nearly 300 districts; that is, arising from federally owned buildings or installations. In approximately 100 districts the Federal impact may be said to be less direct; that is, arising from defense or war plants not owned by the Federal Government but engaged in work for the Federal Government.

GEOGRAPHICAL COVERAGE

The 395 reporting school districts are situated in 39 States, the District of Columbia, and Alaska. The greatest concentrations are to be found in California (86), Texas (38), Washington (34), Michigan (24), Pennsylvania (23), Georgia (15), Arkansas (14), Virginia (12), and Arizona (11). Ten or less school districts are involved in each of the remaining States. While the geographical coverage is very broad, concentrations in certain States are natural and reflect the concentration of defense and industrial activities during and subsequent to World War II. The reporting areas are very largely those where the Federal Government did help during World War II to some extent in providing housing and community facilities under the Lanham Act.

Table I shows clearly the great increase in school attendance in the reporting districts, the greatly increasing percentage of attendance attributable to Federal activities, and the absolute failure of school plant in the areas to keep up with the increasing school attendance. Thus table I lists the number of school districts reporting for each State and the average daily attendance figures for four periods; namely, the last normal year, the 1947-48 school year, the estimated 1948-49 school year and the estimated 1949-50 school year. Each of these average daily attendance figures shows not only the total attendance but that part of the attendance which is the result of Federal activities. The following national totals show the increase in average daily attendance.

During the last normal year, out of a total attendance of 972,001, in these 395 districts, approximately 78,182, or 8 percent, were due to Federal activities. During the current 1948-49 year, total attendance has increased to 1,418,871,

of which approximately 375,567, or 26 percent, are due to Federal activities. Estimated figures for next year indicate not only an over-all increase but a percentagewise increase in the proportion of enrollments due to Federal activities.

Table I also shows that the square feet of floor space available as of June 30, 1948, was 48,347,931. The last two columns indicate the cost of facilities provided from the last normal year through June 1948. It may be noted that the local communities have spent approximately three and one-half times as much as the Federal Government in providing additional facilities during this period. The Federal funds shown are those allocated under the Lanham Act during the war years when schools as well as other facilities were constructed as Federal or non-Federal projects in order to relieve the impact of war migrations to these areas.

VOLUME AND COST OF NEEDED FACILITIES

Table II sets forth the recommendations of the Division Engineers of the Bureau on the volume and cost of facilities presently needed in the reporting school districts to meet their greatly increased enrollments. These recommendations were made after a pruning of the volume and cost estimates submitted by the school districts. The recommendations of the district engineers for the 395 districts include a total of 25,247,947 square feet of space, of which 11,956,485 square feet are needed for enrollments due to Federal activities. The cost of providing presently needed facilities is $348,132,416, of which $171,018,560 is the cost of providing the share of the additional facilities required because of Federal activities.

FUNDS AVAILABLE TO SCHOOL DISTRICTS

Table II also includes a column showing the maximum amount of funds which can be raised by the school districts to meet their immediate school-construction needs. These funds include all sources of revenue, inculding cash on hand, taxes to be collected, and funds which could be raised from bond issues within the legal limit of bonded indebtedness. They also include State aid where such might be provided. A study of the reports received indicates that many of the communities have insufficient funds to construct that part of their presently needed school plant not attributable to Federal activities, let alone that part attributable to such activities.

The final column of table II shows the amount still required after all local sources of funds are exhausted. In short, the survey indicates that a total of $136,000,000 is required over and above present and anticipated revenues of the school districts.

TYPES OF FEDERAL ACTIVITIES CAUSING INCREASED ENROLLMENTS

Table III analyzes the types of Federal activities which have brought about the increased enrollments in the 395 districts. It will be noted that some school districts are affected by the activities of two or more Federal installations. Generally speaking, the great majority of the Federal impacts noted are occasioned by activities of the Army, Navy, and Air Force Departments and defense work in private plants.

CONCLUSION

It should be emphasized that this report and the survey on which it is based are limited strictly to school-construction needs in areas especially affected by Federal activities. The 395 districts reporting are those which have an extra school construction problem occasioned by Federal agency activity, over and above the general difficulties in this connection now prevalent in so much of the United States. There may well be many additional school districts in the Nation with similar problems which have not reported their needs.

As is well known, there is a great need for new school plant all over the United States, a need arising primarily from lags in such construction both before and during World War II and the great increase in school population now beginning to hit the school system. We do not know precisely how large the over-all needs for school plant are for the country as a whole. But we do know from various studies made by the United States Office of Education, various State agencies, and our own field actitivities, that the volume of plant required exceeds $7,000,000,000 and that many localities do not have the fiscal capacity to cope with the problem. As has been indicated, the 395 districts surveyed are in some respect the most critical of all, for, in addition to the difficulties now being generally experienced all over the country, they are subject to the added difficulties occasioned by Federal governmental activities in their midst. Their needs are indeed acute, and they have every right to such aid as the Federal Government finds it can give.

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