1/ One percent of the total appropriation for Science and Mathematics Education is reserved for the Outlying Areas and Indian schools. Of the remainder, 10 percent is reserved for the Secretary's Discretionary Fund and 90 percent is distributed to the 50 States, D.C., and Puerto Rico on the basis of the 5- to 17-year-old population. No State receives less than 0.5 percent of the amount available to the States.

2/ Upon adoption of the Compact of Free Association, amounts allocated for the Trust Territory will no longer be available, except amounts for the Republic of Palau.

WEDNESDAY, APRIL 24, 1985.

IMPACT AID

WITNESSES

LAWRENCE F. DAVENPORT, ASSISTANT SECRETARY FOR ELEMENTARY AND SECONDARY EDUCATION

LOIS A. BOWMAN, DEPUTY ASSISTANT SECRETARY FOR ELEMENTARY AND SECONDARY EDUCATION

WILLIAM J. PHILLIPS, ACTING DEPUTY DIRECTOR FOR STATE AND LOCAL EDUCATIONAL PROGRAMS, OFFICE OF ELEMENTARY AND SECONDARY EDUCATION

W. STANLEY KRUGER, ACTING DIRECTOR, DIVISION OF IMPACT AID, OFFICE OF ELEMENTARY AND SECONDARY EDUCATION

SALLY H. CHRISTENSEN, DIRECTOR, BUDGET SERVICE, OFFICE OF PLANNING, BUDGET AND EVALUATION

LAWRENCE L. BROWN, DIRECTOR, DIVISION OF ELEMENTARY, SECONDARY, AND VOCATIONAL ANALYSIS, OFFICE OF PLANNING, BUDGET AND EVALUATION

CATHERINE SCHAGH, PROGRAM ANALYST, DIVISION OF ELEMENTARY, SECONDARY, AND VOCATIONAL ANALYSIS, OFFICE OF PLANNING, BUDGET AND EVALUATION

Mr. NATCHER. At this time, we take up the request for Impact Aid. We have before the committee Assistant Secretary for Elementary and Secondary Education, Dr. Lawrence F. Davenport. Dr. Davenport, who do you have with you there at the table?

Mr. DAVENPORT. I have Mrs. Sally Christensen to my right and Mr. Lonny Brown, and to my left is Stan Kruger, Acting Director of Impact Aid; and next to him is Bill Phillips, Acting Deputy Director of State and Local Programs; and Lois Bowman, Deputy Assistant Secretary for Elementary and Secondary Education.

OPENING STATEMENT

Mr. NATCHER. We are delighted to have all of you before the committee at this time. We will be pleased to hear from you.

Mr. DAVENPORT. Mr. Chairman, if my total statement could be put in the record, I will summarize here.

Mr. Chairman, and members of the committee, we appreciate this opportunity to appear before you to discuss the 1986 appropriation request for Impact Aid. The President's budget contains a request of $543 million for Impact Aid program activities under Public Law 81-874.

This request recognizes the urgent need to curtail expenditures in order to control the Federal deficit while maintaining the Federal Government's commitment to compensate school districts for the

cost of educating children when enrollments and the availability of revenues from local sources have been adversely affected by Federal activities.

The request includes $533 million for maintenance and operations activities under Sections 2 and 3, and $10 million for Section 7, disaster assistance.

The 1986 request is $152 million less than the 1985 appropriation. Most of this decrease is due to the Administration's decision to propose the elimination of payments for "b" children. These are children who reside or whose parents work on Federal property and whose presence creates no significant burden for local school districts.

In keeping with the policy of focusing Federal aid on those school districts that are the most heavily burdened by the effects of Federal activities, payments will be made only to districts that enroll students whose parents both live and work on Federal property, and thus do not generate local property tax revenues.

My colleagues and I will be happy to respond to any questions you may have.

[The statement of Mr. Davenport follows:]