The Commission on Educational Reconstruction, which I now represent, at a meeting in December 1944 adopted a set of nine principles and proposals regarding Federal aid to education. Those principles and proposals, later unanimously adopted by the executive council of the American Federation of Teachers, read as follows:

1. Federal aid for education is essential to the welfare and security of the Nation, and every effort must be made to unite the social forces of the Nation to secure funds for this purpose.

2. Education is primarily a State responsibility and its operation and management must be explicitly reserved to the States. The conditions under which Federal funds are made available to the States must not be permitted to endanger the State's control of its educational program.

3. A minimum of $300,000,000 annually is needed to assist the States in financing their systems of public education and to raise substandard conditions in public education throughout the Nation; said funds to be allocated among the States on a basis of the relative need of the States; 75 percent of said funds to be used to increase teachers' salaries.

4. A minimum of $100,000,000 annually of Federal funds is needed for educational facilities and services to improve education at all levels; said funds to be allocated among the States on a basis of relative need.

5. A minimum of $150,000,000 annually is required to assist in keeping youth in school; said funds to take the form of aid to needy students and to be allocated among the States on the basis of the total number of youth between the ages 14 to 20, inclusive, in the several States.

6. The full protection of the rights and privileges of minority races must be guaranteed in this legislation.

7. The right of a State to determine what is a public school within its confines shall be fully recognized.

8. Provisions must be made for encouraging and assisting the States in effecting building plans and programs which will result in locating and constructing buildings for educational purposes in a manner that will meet the essential educational needs of the community.

9. A part-time national board should be appointed by the President to formulate policies for the distribution of funds to the States and to review the operation of the program; the administrative functions of said Board to be performed by the United States Office of Education.

A careful reading of S. 717 indicates that it is in complete accord in most particulars with the principles just stated. That is why we favor the passage of this bill. We believe that the bill is sound in principle. We believe, however, that as a result of this hearing the bill can be improved in some of its details. In view of the fact that, prior to today, no hearing has been held on this bill or on any similar bill, we are happy to have an opportunity to endorse this bill in principle.

Bill S. 717 proposes a fundamental, comprehensive and, we think, reasonable attack on the problems of financing education in the United States. It contains elements, that in our judgment, make it the best bill for Federal aid ever presented to the Congress. Our judgment is based on the following facts:

1. This bill recognizes that the conditions confronting the nation in the world today, both at home and abroad, require the general improvement and raising of the standards of the work of the schools. 2. It recognizes that the Nation as a whole must share responsibility with the States and local communities for the support of the education of the young.

3. It recognizes that the Federal Government should make special and substantial provision for aiding schools in the poorer States and communities.

4. It authorizes the appropriation of funds to raise the economic status and condition of public-school teachers, recognizing that Federal aid for this purpose is essential to the improvement of educational standards.

5. It guarantees that at least 75 percent of the funds to support the current educational programs of schools must be used for teachers' salaries in public schools, in order to improve instruction and to attract to, and retain in, the profession persons who are adequately qualified to teach children and youth.

6. It guarantees special services to all children-to children in nonpublic as well as to children in public schools.

7. It authorizes funds for scholarships and other aids to needy and worthy youth in all States who cannot attend school without such assistance.

8. It prohibits, in the use of Federal funds, discrimination against children and youth because of race or creed.

9. Nonpublic schools are recognized as a legitimate part of the educational system of the Nation.

10. The extension of Federal aid to education is achieved with the preservation of the rights of the States to control their schools.

11. The bill guarantees that Federal funds will be used to supplement and not to supplant State and local funds.

In its present form, S. 717 is a splendid bill, yet because of certain difficulties encountered in its preparation, particularly a lack of common understanding of the meaning of the expression, "services to children," our Commission unanimously believes that some of the provisions of the bill need clarification, particularly those relating to services included under title III. We believe that services under this title should be confined entirely to services rendered directly to children. A majority, although not all of the members of our Commission, believe that all of the expenditures authorized under title II should be limited to aid to public schools. On every point except this one, our Commission is unanimous, including the unanimous conviction that none of the funds authorized under any title of this bill should be used for the payment of salaries in nonpublic schools.

Senator DONNELL. Dr. Reeves, I did not understand clearly what you said there, as to what proportion of the Commission believes that all of the funds in title II should be used for public schools.

Mr. REEVES. I merely said the majority of the Commission.

Senator DONNELL. I did not understand that you said the majority of the Commission favored the use of all of the funds for expenditures authorized under title II.

Mr. REEVES. Yes.

Senator DONNELL. Could I ask one more question, please, Mr. Chairman?

Senator WALSH. Certainly, Senator Donnell.

Senator DONNELL. I realize you would like to present this continuously, and I hesitate to ask this, but I understood in the declaration of view of the Commission which you mentioned, that the Commission took the view that moneys to be used for educational facilities, and so forth, should be allocated on the basis of need, $100,000,000 a year. Am I correct in that?

Mr. REEVES. That is correct. With the Senator's permission, I will be glad later to give you my interpretation of the answers to the questions you asked Mr. Woll.

Senator DONNELL. Yes, sir.

Mr. REEVES. My interpretation is that every part of the bill allocates money on the basis of need, not only need of the children but

need of the States.

May I proceed?

Senator WALSH. Yes.

Mr. REEVES. There are a number of clarifications that need to be made, and with the permission of the committee I should like to reserve discussion of this point that I have just made, with reference to the fact that not all members of our Commission agreed with the majority, and I should also like to reserve to a later time the clarification on the particular points of the bill that we think ought to be made.

Senator WALSH. That may be done.

Mr. REEVES. S. 717 is based upon the sound principle that aid should be made available to the States only on the basis of need. In addition, it includes some of the best educational features of the former youth programs of the Civilian Conservation Corps and the National Youth Administration. Those programs did much to provide educational advantages for youth prior to the war. This bill, S. 717, however, differs from the youth programs of the depression years and this is an important difference-in that aid to youth in public schools is to be administered not by the Federal Government (as it was in the NYA program), but by State authorities through their local schools. With the inclusion of these important features, we believe that S. 717 more nearly meets the educational needs of children and youth than has any other bill ever introduced into the Congress in the history of our Nation.

You will note that the purpose of this bill as stated is:

To authorize the appropriation of funds to assist the States in more adequately financing education and in removing substandard conditions in education; to aid in establishing and maintaining education services; to eradicate illiteracy; to preserve and promote the national security in peace and in war; to raise the educational level of the Nation; and to promote the general welfare.

The general provisions of the bill (Title I, Section 1) guarantee that State control of education will be maintained and that local and State initiative and responsibility will be encouraged. The following responsibilities in the conduct of education are reserved explicitly to the States and to their local subdivisions:

1. The organization and administration of schools.

2. The determination of the processes of education.

3. The control and determination of the curricula of the schools. 4. The decision as to methods of instruction to be employed in the schools.

5. The selection of personnel employed by the State and its agencies. 6. The selection of textbooks and materials of instruction. Furthermore, this section provides that the act

shall not be construed in any way to delimit a State in the definition of its educational program.

The only controls given to the Federal Government (title I, sec. 2-6) relate to fiscal matter such as the determination of the relative

needs of the States; the allocation of funds to the States on the basis of such needs; the approval through a joint agreement with State educational authorities of suitable provisions for audits, reports, and repayment to the Federal Government of amounts unexpended, lost, or misapplied; and, in States where a trustee is to be appointed for disbursing funds to non-public schools, the appointment of such trustees from lists of not fewer than three persons nominated by the governors of such States.

The National Board of Apportionment provided for in this bill is authorized to make rules and regulations to facilitate its administration, but the Board is prohibited from making any rules or regulations that are in conflict with provisions of this bill with reference to State control of the educational program.

The National Board can make no rules or regulations that take away from the States the control which this bill reserves to them in connection with the conduct of education. My interpretation of this bill is that it prohibits the Federal Government from controlling education in either public or non-public schools.

S. 717 would authorize appropriations for three general purposes. The first purpose, set forth in title II, authorizes an appropriation of $300,000,000 to be distributed to States to equalize educational opportunity and to raise the level of education in States that need assistance.

The second purpose of the bill, set forth in title III, authorizes an appropriation of $100,000,000 for certain educational facilities and services for children.

The third purpose of the bill, as set forth in title IV, authorizes an appropriation of $150,000,000 to provide needy persons between the ages of 14 and 20, inclusive, with the means to continue their education.

I shall now turn to a discussion of certain specific provisions of S. 717, and shall present some of the reasons therefor.

TITLE I. GENERAL PROVISIONS

Title I of this bill accomplishes the following purposes:

1. Provides the administrative machinery for the distribution of funds.

2. Guarantees State control of education.

3. Establishes in the Federal Security Agency a National Board of Apportionment composed of five representative citizens to be appointed by the President with the advice and consent of the Senate.

4. Provides that the United States Commissioner of Education shall serve as Secretary of the National Board and as its administrative officer.

5. Authorizes joint agreements between the States and the Federal Government for surveys and other studies.

6. Provides for audits, and for reports showing how the status of education in each of the States has been improved by the use of the Federal funds.

7. Provides State acceptance terms which must include protection for racial minorities and making funds available to every section of a State in need thereof.

8. Requires publication of plans for the allocation and distribution of Federal funds by Federal and State authorities.

9. Makes possible adjustments and special grants to meet emergencies which may arise in a State.

10. Provides for a review of the plans for the construction and equipment of buildings for educational purposes to be built with the aid of Federal funds.

This is the first time, so far as I know, that a provision (title I, sec. 6) has been included in any bill for Federal aid to education to the effect that the State educational authority shall approve all plans for the construction or equipment of public school buildings for educational purposes to be built with the aid of Federal funds.

The purpose of this provision is to encourage the States to plan for the location and suitability of school buildings, paid for in part by the Federal Government, in order that Federal funds may not be wasted either through the construction of buildings of a type not suitable to community needs, or through the location of buildings in places where they cannot adequately serve community needs.

Our Commission believes that the purpose of section 6 of title I is highly important. However, we have discovered that since this bill was made public, a number of persons have been confused by the administrative provisions set forth. We hope that the committee will revise this section so as to provide that the State educational authority passes on plans for both public and nonpublic schools.

TITLE II. FUNDS TO RAISE SUBSTANDARD EDUCATIONAL CONDITIONS

Title II of this bill authorizes the appropriation of $300,000,000 to assist the States in more adequately financing their systems of public education; to eradicate illiteracy; to keep public schools open for a term of not less than nine months; to reduce overcrowded classes by the employment of additional teachers; and to make possible the payment of adequate salaries for teachers in public elementary schools (including kindergartens), public junior and senior high schools, and public junior colleges.

This title provides that not less than 75 percent of such funds shall be used to supplement, and not to supplant, the appropriations currently made by States and their subdivisions for the payment of salaries of teachers in the public schools.

The distribution of funds under title II is based directly on the educational loads of the States and inversely in proportion to the financial ability of the States to carry their educational loads. These funds are designed to assist those schools, and only those schools, that need assistance in order to maintain satisfactory educational programs.

Of the $300,000.000 authorized under title II, 75 percent must go for teachers' salaries in public schools. As the bill now reads, the other 25 percent may be used for any type of current expenditure in public schools and for educational expenditures other than teachers' salaries in nonpublic schools.

It is in connection with this provision of funds to nonpublic schools, and in this connection only, that our Commission is not unanimous in its opinion. Some of our members desire to have this provision