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McGrath, Earl J., Commissioner of Education, Federal Security Agency,

tables submitted by:

Estimates by States of public elementary and secondary school plant

needs_

Ability and effort of States to support a foundation educational
program..

Miller, Hon. Bert H., a United States Senator from the State of Idaho,
letter of, transmitting information sheets concerning Lapwai and
Pocatello school districts__

Morton, M. B., superintendent, Butler Township schools, Montgomery
County, Vandalia, Ohio, statement of

Myers, Hon. Francis J., a United States Senator from the State of Pennsyl-
vania, letters and data submitted by, in re Mead Township school
district, Meadville, Pa__.

Patten, Hon. Harold A., a Representative in Congress from the State of
Arizona, table submitted by, "Data pertaining to schools wishing to
qualify for Lanham Act funds".

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Livonia Township school district, Wayne County, Mich., statement sub-
mitted by

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School District No. 64, Lake County, North Chicago, Ill., statement sub-
mitted by

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FEDERAL ASSISTANCE FOR CONSTRUCTION OF

PUBLIC SCHOOLS

THURSDAY, JUNE 2, 1949

UNITED STATES SENATE,

SUBCOMMITTEE OF THE COMMITTEE ON

LABOR AND PUBLIC WELFARE, Washington, D. C. The subcommittee met, pursuant to call, at 10:15 a. m., in room G-48, the Capitol, Senator Hubert H. Humphrey, chairman of the subcommittee, presiding.

Present: Senator Humphrey.

Senator HUMPHREY. We open hearings this morning on Senate bills 137, 287, 1263, 1670, and 1699, having to do with construction for educational purposes. The bills will be inserted in the record at this point.

(S. 137, S. 287, S. 1263, S. 1670, and S. 1699 are as follows:)

[S. 137, 81st Cong., 1st sess.]

A BILL To authorize the making of grants and loans to the States to assist in providing adequate public elementary and secondary school facilities

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That in order to assist the States to provide adequate educational facilities in their public elementary and secondary school systems, the Reconstruction Finance Corporation is authorized to make grants totaling $300,000,000 and loans totaling $300,000,000 to the States as hereinafter provided.

ALLOCATION OF FUNDS

SEC. 2. (a) Ninety-eight per centum of the funds made available for grants and for loans under this Act shall be made available to the States, excluding those enumerated in subsection (b) in the same proportion as the number of children from five to seventeen years of age in each State during the calendar year preceding the date of enactment of this Act bears to the total number of children from five to seventeen years of age in the United States, including the District of Columbia, during such calendar year.

(b) Two per centum of the funds made available for grants and for loans under this Act shall be made available for grants and for loans to Alaska, Hawaii, the Canal Zone, Puerto Rico, American Samoa, the Virgin Islands, and Guam according to their respective needs for additional funds for public elementary and secondary school facilities upon the basis of joint agreements with their respective State educational authorities.

(c) The Secretary of Commerce shall certify to the Reconstruction Finance Corporation the number of children from five to seventeen years of age in each of the States during the calendar year preceding the date of enactment of this Act.

TERMS OF LOANS AND GRANTS

SEC. 3. (a) Loans to States under this Act shall be for such period of time, not in excess of twenty years, as each State may elect, and shall bear interest at a rate of 22 per centum per annum. Each loan to a State shall be secured by

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bonds of the school district or other taxing unit in the jurisdiction of which the proceeds of such loan are to be utilized. No loan shall be made which exceeds 50 per centum of the total cost as furnished to the Reconstruction Finance Corporation by the State educational authority, of the educational facilities for which the proceeds of such loan are to be used.

(b) No funds shall be paid to a State as a grant under this Act which exceed 50 per centum of the total cost of the educational facilities for which such funds are to be expended.

PAYMENT OF GRANTS

SEC. 4. (a) Upon receipt of the information prescribed in section 2 (c) from the Secretary of Commerce, the Reconstruction Finance Corporation shall determine the total amount of funds to which each State is entitled as grants under this Act. Upon notification by the educational authority of a State that it has approved a proposed educational facility for a grant under this Act and upon submission by the State educational authority of a statement of the cost of providing such facility, the Corporation shall, within the limitations prescribed by section 3, pay to the treasurer or corresponding official of such State the amount to which such State is entitled pursuant to this Act as assistance in providing such facility. Such treasurer or corresponding official shall pay out such funds only on the requisition of the State educational authority.

(b) The eligibility of a State to receive grants under this Act shall not be conditioned upon its applying for, or qualifying for, loans under this Act.

APPLICATION FOR LOANS

SEC. 5. Upon receipt of the information prescribed in section 2 (c) from the Secretary of Commerce, the Board of Directors of the Reconstruction Finance Corporation shall determine the total amount of funds for which each State is eligible as loans under this Act. Upon application submitted by the educational authority of a State stating that it has approved a proposed educational facility for a loan under this Act and giving the cost of providing such facility, the Corporation is authorized, in conformity with section 3, to loan to such State an amount not in excess of the amount to which such State is entitled pursuant to this Act as assistance in providing such facility. The treasurer or corresponding official of such State shall pay out such funds only on requisition of the State educational authority.

CANCELLATION OF NOTES OF CORPORATION

SEC. 6. The Secretary of the Treasury shall, at such times as the Reconstruction Finance Corporation may request, cancel notes of the Reconstruction Finance Corporation in an amount equal to the amounts disbursed by it under section 4 of this Act, plus interest accrued on the amount of such notes from the date or dates on which the Corporation disbursed such amounts.

SEC. 7. As used in this Act

DEFINITIONS

(a) The term "State" means the several States, the District of Columbia, Alaska, Hawaii, Puerto Rico, the Canal Zone, American Samoa, the Virgin Islands, and Guam.

(b) The term "State educational authority" means, as the State legislature may determine, (1) the chief State school officer (such as the State superintendent of public instruction, commissioner of education, or similar officer), or (2) a board of education controlling the State department of education; except that in the District of Columbia it shall mean the Board of Education, and in American Samoa, Guam, and the Virgin Islands, it shall mean the Governor.

(c) The term "educational facility" or "educational facilities" means elementary and secondary school buildings, and appurtenances and permanent equipment necessary to the proper functioning of such school buildings.

NONINTERFERENCE IN STATE EDUCATIONAL POLICY

SEC. 8. Nothing contained in this Act shall be construed to authorize any department, agency, officer, or employee of the United States to exercise any direction, supervision, or control over, or to prescribe any requirements with respect to any school, or any State educational institution or agency, with respect to which any funds have been or may be made available or expended pursuant to

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