with the year ending June 30, 1946, $200,000,000, to be apportioned to the States as hereinafter provided. This authorization shall terminate one year after the President shall have declared the emergency due to the war to have ceased, or one year after the Congress by concurrent resolution shall have so declared.

(b) For the purpose of more nearly equalizing public elementary and public secondary school opportunities among and within the States, there is hereby authorized to be appropriated for the fiscal year ending June 30, 1946, and for each fiscal year thereafter, $100,000,000, to be apportioned to the States as hereinafter provided.

APPORTIONMENT

SEC. 3. The funds appropriated under section 2 of this Act shall be apportioned to the respective States by the United States Commissioner of Education (hereinafter called the "Commissioner"), in the following manner:

(A) The amount apportioned to each State from the funds appropriated under the authorization of section 2 (A) shall be an amount which bears the same ratio to the total amount made available as the average daily attendance (for the latest year for which data are available in the office of the Commissioner) of pupils attending all types of public elementary schools (including kindergartens and nursery schools) and public secondary schools (including through the fourteenth grade) in that State bears to the total of such average daily attendance for all the States.

(B) From not less than 98 per centum of the funds appropriated under section 2 (B) the amount apportioned to each State shall be an amount which bears the same ratio to the total amount made available as the index of financial need of such State bears to the sum of the indexes of financial need of all the States. The index of financial need of the respective States shall be computed as follows: (1) For each State the Commissioner shall compute the percentage that the number of inhabitants five to seventeen years of age, inclusive, in that State is of the number of such inhabitants in the United States, excluding Alaska, Hawaii, Puerto Rico, American Samoa, the Virgin Islands, and Guam.

(2) For each State the Commissioner shall compute the percentage that the total estimated income payments in that State is of the total estimated income payments in the United States, excluding Alaska, Hawaii, Puerto Rico, American Samoa, the Virgin Islands, and Guam.

(3) For each State the Commissioner shall compute the excess, if any, of the first-mentioned percentage over 65 per centum of the second-mentioned percentage. This excess, if any, for each of the respective States shall be the index of financial need: Provided, That as soon as feasible after the enactment of this Act, and annually therafter at such time as shall be agreed upon, the Director of the Bureau of the Census shall certify to the Commissioner the estimated number of inhabitants five to seventeen years of age in each State, and the Secretary of Commerce or his designated agent shall certify to the Commissioner the total estimated income payments in each State in the latest year for which estimates have been made: Provided further, That the first three annual apportionments shall be based on the indexes of financial need first determined and thereafter the apportionment for each year shall be based on the indexes of financial need determined the third preceding fiscal year.

From not to exceed 2 per centum of the funds appropriated under section 2 (B) such sums as may be necessary shall be apportioned by the Commissioner to Alaska, Hawaii, Puerto Rico, American Samoa, the Virgin Islands, and Guam according to their respective needs for additional funds for public elementary and public secondary schools upon the basis of joint agreements made with their respective State educational authorities.

CERTIFICATION AND PAYMENT

SEC. 4. The Commissioner shall certify regularly the amounts allotted under this Act to each State that has accepted the provisions of this Act to the Secre tary of the Treasury, who shall, through the Division of Disbursement of the Treasury Department and prior to audit or settlement by the General Accounting Office, pay to the treasurer or corresponding official of such State the amount certified for each fiscal year in four equal installments, as soon after the first day of each quarter as may be feasible, beginning with the first quarter of the fiscal year for which appropriations made under the authorization of this Act are available. Each such treasurer shall account for the moneys received as a trustee of funds of the United States, and shall pay out such funds only on the requisition of the State educational authority.

AVAILABILITY OF APPROPRIATIONS

SEC. 5. (A) The funds paid to a State from the funds appropriated under section 2 (A) of this Act shall be available for disbursement by that State to local public-school jurisdictions, or other State public-education agencies, for the payment of salaries of teachers and other school employees in public elementary schools (which may include kindergartens and nursery schools) and public secondary schools (which may include through the fourteenth grade) for any or all of the following purposes: (1) To keep public schools open for a term of not less than one hundred and sixty days or to make suitable provisions for the education of the pupils affected by closed schools, (2) to raise substandard salaries, (3) to reduce overcrowded classes by the employment of additional teachers, (4) to adjust the salaries of teachers and other school employees to meet the increased cost of living during the emergency.

(B) In order more nearly to equalize educational opportunities, the funds paid to a State from the funds appropriated under section 2 (B) of this Act shall be available for disbursement by that State to local public-school jurisdictions, or other State public-education agencies, for all types of expenditures for public elementary schools (which may include kindergartens and nursery schools) and public secondary schools (which may include through the fourteenth grade). (C) A State may use not to exceed 1 per centum of the funds received by it under this Act to pay the expenses of the State department of education necessary for the efficient administration of the funds received under this Act.

(D) No provision of this Act shall be construed to delimit a State in its definition of its program of public education: Provided, That the funds paid to a State under this Act shall be expended only by public agencies and under public control.

STATE ACCEPTANCE PROVISIONS

SEC. 6. (A) In order to qualify for receiving funds appropriated under this Act, a State

(1) through its legislature, shall (a) accept the provisions of this Act and provide for the administration of funds to be received; (b) provide that the State treasurer, or corresponding official in the State, shall serve as trustee for the funds paid to that State under this Act; (c) provide that its State educational authority shall represent the State in the administration of funds received; (d) provide for an audit by the State educational authority of the expenditure of funds received and apportioned to local school jurisdictions, or other State public-educational agencies, and for a system of reports from local school jurisdictions and other public-educational agencies of the State to such authority; (e) provide that the State educational authority shall make reports to the Commissioner with respect to the expenditure of funds received and the progress of education on forms to be provided by the Commissioner; (f) in States where separate public schools are maintained for separate races, provide for a just and equitable apportionment of such funds for the benefit of public schools maintained for minority races, without reduction of the proportion of State and local moneys expended for educational purposes during the fiscal year ended in 1944 for public schools for minority races: Provided, That in any State in which the legislature has not taken the action specified in this section, the chief executive of such State may, until such action has been taken or until six months after the adjournment of the first regular session of the legislature in such State following the date of the enactment of this Act, whichever first occurs, take such action for such period as is required by this Act to be taken by legislative enactment;

(2) either through its legislature, or through its State educational authority, if the legislature so directs, provide for apportioning the funds received under this Act in such manner as to comply with the provisions of section 5 of this Act; and

(3) shall transmit through its State educational authority to the Commissioner official notice of acceptance and certified copies of the legislative enactments and the official regulations that may be issued by the State educational authority in connection with such funds. Any amendments of such enactments and revisions of official regulations shall in like manner be transmitted to the Commissioner.

(B) The funds appropriated under the authorization of this Act shall be allotted only to those States which, during the fiscal year preceding the fiscal Fear for which the apportionment is made, have provided from State revenues

for all public elementary and public secondary-school purposes not less than either the total amount, or the amount per pupil in average daily attendance, actually spent for such purposes in the fiscal year ended in 1944: Provided, That if the State fails during any year to comply with the conditions specified in this paragraph due to acts of God, or other circumstances over which the State has no control, and if such failure is not due to action or failure to act by the legislative or executive authorities of that State, the provisions of this paragraph shall not apply.

(C) The funds allotted to any State from the funds appropriated under section 2 (A) of this Act shall be paid by the State educational authority only to those local school jurisdictions that from State and local funds (which shall not be interpreted to include funds made available under this Act) pay average annual salaries to their teachers not less than the average annual salaries paid as of February 1, 1945, or the nearest prior date when school was in session: Provided, That for any local school jurisdiction that fails to comply with the provisions specified in this paragraph due to acts of God, or other circumstances over which such local school jurisdiction has no control, and if such failure is not due to actions of State or local tax assessing, levying, or appropriating bodies or officials, the State may provide the funds necessary to overcome such failure from funds received under section 2 (B) of this Act. The State educational authority shall not make payment to any local school jurisdiction that fails to comply with the requirements of this paragraph until after investigation he has determined that there are extenuating circumstances as set forth above.

AUDITING

SEC. 7. The Commissioner shall cause an audit to be made of the expenditure of funds under this Act by each State educational authority. If the Commissioner, after notice and hearing, finds that any portion of such funds is expended by any State in a manner contrary to the provisions of this Act, or shall otherwise be lost or unlawfully used, an equal amount shall, after reasonable notice, be withheld from the next ensuing payment to any such State unless such amount is replaced by such State and expended for the purposes originally intended: Provided, That the State educational authority shall have the right to appeal, within thirty days, from the decision of the Commissioner to withhold funds to a United States district court and such court shall have jurisdiction as to both fact and law.

SEC. 8. In auditing the expenditure of funds allotted under this Act to the Virgin Islands, American Samoa, and Guam, as provided in this Act, the Commissioner is authorized to utilize the services of employees of any Federal department or agency by agreement with the head of such department or agency.

PENALTIES

SEO. 9. The Secretary of the Treasury shall suspend payments under this Act to any State whenever the Commissioner, after notice and hearing, certifies that any such State has failed to replace funds received under this Act which are lost, or unlawfully used, or expended in a manner contrary to the provisions of this Act or has failed to make required reports with reasonable promptness: Provided, That after the Commissioner has so certified to the Secretary of the Treasury the State educational authority shall have the right to appeal, within thirty days, from such certification to a United States district court and such court shall have jurisdiction as to both fact and law. Upon certification of the Commissioner that any such State has rectified such failure, the Secretary of the Treasury shall transmit to such State the amounts so suspended. The sums authorized to be allotted to any State under this Act shall, when certified for payment, remain available for not to exceed one fiscal year after the fiscal year for which such certification was made.

AUTHORIZATION FOR ADMINISTRATION AND RESEARCH

SEC. 10. For services and other expenses necessary to the administration of this Act, and for the making of necessary surveys and other studies in connection with the best utilization of the grants to States authorized in this Act, there is hereby authorized to be appropriated for each fiscal year an amount not to exceed one-half of 1 per centum of the total amount authorized to be appropriated for each fiscal year under the provisions of section 2 of this Act. Any of the

funds appropriated under the authorization of this section may be allocated by the Commissioner to State departments of education for surveys or other studies pertinent to the best uses of the funds received under this Act. Such allocations shall be made by joint agreement between the Commissioner and the chief State educational authority. The amounts thus allocated shall be certified to the Secretary of the Treasury by the Commissioner, and shall thereupon be paid to the cooperating State department of education. Suitable provision for audits, reports, and repayment to the United States of amounts unexpended, lost, or misapplied shall be incorporated into the joint agreement.

REPORTING

SEC. 11. The Commissioner shall publish annually a full and complete report showing the status of education in the United States. Each such report shall include an analysis and summary of the legislative and administrative provisions adopted by each State for the expenditure of funds received through this Act, and also statistical information showing the accomplishments of the respective States through the expenditure of funds received under this Act. In all such reports relating to the status of education in States where separate educational facilities are maintained by law for any minority racial group, data relating to such separate educational facilities shall be separately reported. The Commissioner shall also make an annual report in writing to the Congress, giving an account of all money received and allocated by him under this Act.

MISCELLANEOUS

SEC. 12. The Commissioner is authorized to make such rules and regulations in conformity to the provisions of this Act as may be necessary to facilitate its administration.

DEFINITIONS

SEO. 13. As used in this Act

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

(b) The term "legislature" means the State or Territorial legislature or other comparable body, except that in the District of Columbia it shall mean the Board of Education, and in American Samoa and the Virgin Islands it shall mean the Governor.

(c) The term "minority race" or "minority racial group" shall mean any race or racial group that constitutes a minority of the population of the continental United States.

(d) A just and equitable apportionment, allotment, or distribution of the funds provided under this Act for the benefit of a minority racial group in a State which maintains by law separate educational facilities for such minority racial group, means any plan of apportionment, allotment, or distribution which results in the expenditure, for the benefit of such minority racial group, of a proportion of said funds not less than the proportion that each such minority racial group in such State bears to the total population of that State.

(e) 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.

SEPARABILITY

SEC. 14. If any provision of this Act or application thereof to any State, person, or circumstance is held invalid, the remainder of the Act, and the application of such provisions to other States, persons, or circumstances shall not be affected thereby.

The CHAIRMAN. The reporter will note the attendance in the record. Senator HILL. Mr. Chairman, might I state in that connection that Senator La Follette called me a few minutes ago and said he was

detained at his home today on account of a very severe cold. He was disappointed not to be here, but he wanted the committee and the witnesses to know why he could not be here.

The CHAIRMAN. I might say also a number of hearings are being held this morning and it is impossible for the Senators who would like to be here to be present at the commencement of these hearings. They will, of course, read the record and be with us at subsequent hearings. The first witness this morning is Dr. H. M. Ivy, chairman, legislative commission, National Education Association.

STATEMENT OF DR. H. M. IVY, CHAIRMAN, LEGISLATIVE COMMISSION, NATIONAL EDUCATION ASSOCIATION

The CHAIRMAN. Give your full name and official position, Doctor, please.

Dr. Ivy. Mr. Chairman, I am H. M. Ivy, superintendent of schools, Meridian, Miss., and chairman of the legislative commission of the National Education Association.

Mr. Chairman, the National Education Association desires to express its emphatic endorsement of S. 181, to be cited as the "Educational Finance Act of 1945," and to urge its enactment into law at the earliest possible date.

The National Education Association with its 325,000 members, together with its 48 State and numerous directly related local organizations, represents 800,000 of the 875,000 men and women connected with public education in this Nation. For many years legislation of this type has been considered, and the features of this bill are approved by an overwhelming majority of the teachers and others who have taken the time to study its provisions and become aware of the needs it is planned to meet.

The legislative commission of the National Education Association is charged with the responsibility of throwing behind this bill the full strength of the entire organization and its affiliates, and it considers this bill as the No. 1 measure of importance educationally to assist in the achievement of national security now, as well as in the future.

In support of this bill, Mr. Chairman, we desire to present to you Dr. John K. Norton, of Columbia University, a nationally known educator, who will demonstrate some of the reasons proving the necessity for such legislation.

Mr. Chairman, I desire to yield to Dr. Norton.

Senator HILL. Mr. Chairman, before Dr. Norton proceeds with the demonstration of his charts, it might be well to have either Dr. Norton or Dr. Ivy just in a word summarize what the bill does. In other words, we have the two funds-the $200,000,000 fund and the $100,000,000 fund. Some of us have lived with the problem a good many years and are familiar with all the details of the bill, but it might be well to have it summarized for us.

Dr. Ivy, suppose you just, very briefly, summarize just what the bill does? You need not go into the details.

Dr. Ivy. This bill consists, roughly, of two parts. The first is the equalization part that proposes $100,000,000 to be distributed to States based on their educational load directly and inversely in proportion to their financial ability to carry that educational load. The first