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Dr. DAWSON. Yes. As a matter of fact, it takes about a minimum of $300,000,000 to do the job that seems to be needed to be done immediately. Now, that $200,000,000 apportioned to the States on the basis of average daily attendance would give a maximum to any State of $7. That is the same as the maximum under the equalization feature of the bill. For example, it figures out in Alabama $6 on the emergency fund and $7 on equalization.

In Connecticut it would be $7, because they have a higher ratio of average daily attendance. Connecticut would get $7 out of the emergency fund and nothing out of the equalization fund, so it seems to average out in a fairly equitable manner.

Senator HILL. Doctor, you said, in the first part of your testimony, with respect to Federal control, that this danger of Federal control lay in the fact, perhaps, of our failure to provide the right kind of Federal aid and that some emergency might arise which would bring about Federal aid, the necessity being so great that the Federal Government would step in and then when you had that kind of Federal aid arising out of compulsion you would get some form of Federal control.

Isn't it true that during the depression we paid the salaries of over 100,000 teachers in this country through WPA, and, of course, when the Federal Government paid those salaries the Federal Government fixed the salaries, and not the States?

Dr. DAWSON. Yes, sir. Nobody knows more about that than I do because when I first came to Washington I was a Federal official whose job it was to find out how much money the States needed and to try to get money down to pay those rural teachers. Six thousand schools, attended by one-eighth of all the children in the United States, were closed short of a normal term in 1933-34 because there wasn't any money to pay teachers' salaries. There were over 104,000 rural school teachers who were paid by the Government out of relief funds. The Government did not do what it should have done. It should have turned the money over to the State departments of education to be spent through regular educational channels.

It placed 103,000 teachers technically on relief, a disgrace to civilization, in order to keep the schools open. I could cite you instances of Federal control which would make you really angry.

Senator HILL. Each one of those instances have come about where we haven't provided for Federal aid to come through the State systems, such as this bill provides, isn't that true?

Dr. DAWSON. Yes. They came because of the lack of adequate financial resources in the community. Now, as long as we have several thousand children living in a community, in a poverty-stricken area, and can't get the financial resources, you can mark it down that the State or Federal Government or somebody else is likely to furnish the facilities independent of a public-school system and have some control. We have had experience with that in the last 10 years. The tendency has been to meet some of these problems that we have refused to meet at the community level by turning the money over to some governmental agency other than one regularly responsible for the administration of education. The result has been invariably the operation of education by a Federal agency.

Senator FULBRIGHT. I don't recall whether you emphasized the experience under the Land-Grant College Acts. Isn't it a fact that there has been no question about Federal interference?

Dr. DAWSON. I have never heard of any, and I have read all the reports and studies made on that question. I was astonished not long ago to read a report from the chancellor of one of the midwestern landgrant colleges to the effect that all good citizens ought to pitch in to help defeat the Thomas-Hill bill because it was a proposal to Hitlerize the schools of America.

Well, I wrote the gentleman a letter to the effect that I never had had the pleasure of meeting him. If I had I think I would remember him, but I am quite sure that he would not have the nerve to face me personally and tell me that I am trying to Hitlerize the schools of America. Furthermore, if I were in his place I would either resign my job, I would have my board of trustees turn the land-grant money back to the Treasury, or I would work 24 hours a day until I got the Federal statute repealed.

Senator ELLENDER. Any other questions?

Thank you, Doctor.

(The material submitted by Dr. Dawson is as follows:)

THE APPORTION MENT OF GRANTS AMONG THE STATES

The emergency fund received under the authorization of section 2 (A) would be apportioned by the United States Commissioner of Education to all of the States in proportion to the number of pupils in average daily attendance in each of them. The number of pupils in average daily attendance in the respective States and the percentage of the national total in each of the respective States is shown in table 1. For example, there are 561,642 pupils in average daily attendance in the State of Alabama. This number is 2.5639 percent of the total number of such pupils in the United States. Thus, Alabama would receive 2.5639 percent of whatever funds are available under section 2 (A).

The data as to the average daily attendance in the respective States would be collected annually by the United States Office of Education. Such data are already collected biannually by the United States Office of Education by uniform rules and regulations subscribed to by all the States.

From the funds made available under section 2 (B), not to exceed 2 percent would be set aside for apportionment to the Territories and insular possessions, namely, Alaska, Hawaii, Puerto Rico, American Samoa, the Virgin Islands, and Guam, the apportionment being made by the United States Commissioner of Education according to the respective needs of the Territories and possessions as determined by the Commissioner. The chief reason for placing the Territories and possessions in a category different from the States is that the necessary statistical data as to income in the Territories and possessions are not available. There seems to be no serious objection to the United States Commissioner of Education determining the financial needs of the Territories and possessions and making allocations accordingly.

From not less than 98 percent of the $100,000,000 made available under section 2 (B) apportionments will be made to the respective States by the United States Commissioner of Education according to an objective formula for finding the financial need of the respective States. Financial need is determined statistically by two factors: (1) The number of inhabitants from 5 to 17 years of age in the respective States; and (2) the financial ability of the respective States as measured by the total estimated income payments in each of the States. The basic statistics as to the number of children 5 to 17 years of age are to be furnished by the Bureau of Census. The basic statistics as to the total estimated income are to be furnished by the Secretary of Commerce. Such estimates are made annually in the Bureau of Foreign and Domestic Commerce, United States Department of Commerce, and constitute the most reliable data available on this subject.

The calculation of the index of financial need provided under section 3 (B) is shown for the respective States in table 2. By reference to table 2 it can be seen that the calculations for the State of Alabama, used here for illustrative purposes, would be as follows:

1. Total number of persons 5 to 17 years old in the United States, 29,805,259.

2. Amount of income payments in the United States, $91,622,000,000.
3. Number of persons 5 to 17 years old in Alabama, 805,939.

4. Amount of income payments in Alabama, $985,000,000.

5. Percent of persons 5 to 17 years old in Alabama, 2.7040 percent.
cent item 3 is of item 1.)

(Per

6. Percent of income payments in the United States which is received in Alabama, 1.0751 percent. (Percent item 4 is of item 2.)

7. Sixty-five percent of item 6, 0.6988 percent.

8. Index of financial need for Alabama, 2.0052 percent. (Item 5 minus item 7.)

9. Sum of indexes of financial need for all States (computed for the respective States as in item 8), 37.2501 percent.

10. Percent of Federal aid fund which Alabama would receive, 5.3831 percent. (Percent item 8 is of item 9.)

11. Amount of funds to be received by Alabama, $5,275,438 (5.3831 percent of $98,000,000).

The estimated amounts that would go to each of the States are shown in table 3. It should be borne in mind that these amounts are estimates based on latest available data. As statistics on population, average daily attendance, and income payments change, there will be corresponding changes in the amounts going to the respective States. However, small changes in the relative amounts going to the States would be expected.

It is especially important to note that section 3 carries the following proviso: "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." The purpose of this proviso is to give State educational authorities notice 3 years in advance of a change in the amount of the allotments for their respective States, thus avoiding abrupt changes in school budgets.

TABLE 1.-Statistical data necessary for the distribution of funds under secs. 2 (A) and 3 (A) of S. 637, 78th Cong., 1st sess.

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TABLE 2.-Standard data necessary for the distribution of funds under secs 2 (B) and 3 (B) of 8. 637, 78th Cong., 1st sess.

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985, 000, 000

289, 000, 000

Continental United States...$91, 622, 000, 000 100.0000 65.0000 29,805, 259 100. 0000 37. 2501 100. 0000

Alabama.

Arizona

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Arkansas.

.6196

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California..

3.6481

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1 From Survey of Current Business, U. 8. Department of Commerce, Bureau of Foreign and Domestic Commerce.

73384-45-pt. 1-12

TABLE 3.-Estimated allotments to States under proposed Federal-aid bill, 8. 637

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Amount of school revenue that would have been available per person, 5–17 years, if pending Federal aid bill had been in effect in 1941-42 1

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Source: Figures in column 2 based upon preliminary data for 1941-42 from the U. S. Office of Education,

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