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. 5. The United States Commissioner of Education shall certify regularly the amounts allotted under this Act to each State that has accepted the provisions of this Act to the Secretary 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, and shall pay out such funds only on the requisition of the State educational authority.

AVAILABILITY OF APPROPRIATIONS

SEC. 6. (A) In order more nearly to equalize educational opportunities, the funds paid to a State from the funds appropriated under section 3 of this Act shall be available for disbursement by that State or local public school jurisdictions, or other State public education agencies, for all types of current expenditures (excluding interest, debt service, and capital outlay) for public elementaryschool and public secondary-school education

(B) 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, except that in any State in which funds derived from State or local revenues are disbursed to nonpublic educational institutions for expenditure for any of the purposes for which funds paid to such State under this Act may be expended, funds so paid to such State may be disbursed to and expended by such institutions for such purposes; but the amounts disbursed during any fiscal year to any such institution from funds paid to a State under this Act shall not exceed an amount which bears the same ratio to the amount disbursed to such institution during such fiscal year from funds derived from State or local revenues as the aggregate of amounts disbursed by such State during such fiscal year from funds paid to such State under this Act bears to the aggregate of amounts expended during such fiscal year for current expenditures (excluding interest, debt service, and capital outlay) for public elementary-school and public secondary-school education in such State from funds derived from State and local revenues.

STATE ACCEPTANCE PROVISIONS

SEC. 7. (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 receive the funds paid to that State under this Act and shall be required to report to Congress, through the United States Commissioner of Education, on or before the 1st day of November of each year, a detailed statement of the amount so received and of its disbursement; (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 progress of education on forms to be provided by the Commissioner, which reports said Commissioner shall convey to the Congress with recommendations for such revisions of this Act as in his judgment the Congress should consider, with particular reference to recommendations arising from changing conditions in our national economy; (f) in States where separate publice 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 1947 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 in such manner as to comply with the provisions of section 6 of this Act a plan of apportioning the funds authorized in section 3 of this Act that will make available, not later than the fourth year of the operation of this Act and each year thereafter, from all sources, to all local school jurisdictions not less than $40 per annum per pupil in average daily attendance for current expenditures (excluding interest, debt service, and capital outlay) for the maintenance of a program of elementary- and secondary-school education. The plan shall provide that in local school jurisdictions where separate schools are maintained for separate races current expenditures (excluding interest, debt service, and capital outlay) for the schools maintained for each separate racial group shall be not less than $40 per annum per pupil in average daily attendance; and

(3) shall transmit through its State educational authority to the United States Commissioner of Education 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 amendment of such enactments and revisions of official regulations shall in like manner be transmitted to said 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 year for which the apportionment is made, have provided from State revenues for all public elementary-school 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 1947. The funds allotted to any State from the funds appropriated under section 3 of this Act shall be paid by the State 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 monthly salaries to their teachers not less than the average monthly salaries paid as of February 1, 1947, or the nearest prior date when school was in session.

RIGHT OF APPEAL

SEC. 8. In the event a question arises at any time with any State educational agency, in any State eligible to share the benefits of this Act, involving the administration of this Act in relation to the purposes for which it is intended, such State educational agency shall have the right to appeal such question, with such statements and evidence as in its judgment are appropriate, to the United States Commissioner of Education: Provided, That within ninety days after such appeal, if not satisfactorily terminated, the State educational agency shall have the right to appeal to a United States district court and such court shall have jurisdiction as to both fact and law.

SEC. 9. As used in this Act

DEFINITIONS

(A) The term "State" shall include the several States, the District of Columbia, Alaska, and Hawaii, Puerto Rico, the Canal Zone, 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 re sults 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.

(F) Annual income payments for each State, as determined by the Department of Commerce, shall be defined as the total amount of income in cash and in kind received by residents of each State, from business establishments and governmental agencies, consisting of (1) wages and salaries after deduction of enployees' contributions to social security, railroad retirement, railroad unemploy· ment insurance, and Government retirement programs; (2) proprietors' incomes, representing net income of unincorporated establishments, including farms, before owners' withdrawals; (3) property income, including dividends, interests, and net rents and royalties; and (4) other income payments including direct relief, work relief, labor income items such as pensions, compensation for injuries, and social insurance benefits, mustering-out payments to veterans, and family allowance payments and voluntary allotments to dependents of military personnel (allocated to State of dependents' residence).

SEPARABILITY

SEC. 10. 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 provision to other States, persons, or circumstances shall not be affected thereby.

Mr. MORTON. In conclusion, let me touch upon the basic political philosophy involved in this measure. I have heard it stated that if the Congress starts something like this, it will have no end. Uncle Sam does not have the touch of Midas and cannot support every worthy cause that comes down the road. In my opinion, such arguments are of no weight in consideration of the bill now before you. The Federal Government has found it necessary to spend billions of dollars in furthering the development of agriculture in our Nation, because agriculture is the cornerstone of our economy.

Uncle Sam has for years aided the States in the development of a unified highway system in the interests of our national commerce. Airplanes respect no State lines, and the Federal Government has spent millions for airport development in the past 20 years.

Mr. George J. Hecht, publisher of Parents' Magazine, recently made the following statement:

If children were cattle, they would be getting a much squarer deal from Uncle Sam. The Federal Government appropriates many times as much money for the welfare of cattle, hogs, and other farm animals, as it does for the education of children. Furthermore, while the Federal Government appropriates nothing toward the salaries and training of teachers, it votes, annually, many millions for the education of farmers and for agricultural extension workers to be sent to every State in the Union to teach farmers how to care for their cattle. I think most of the Members of Congress recently received a copy of a joint resolution passed by the Legislature of the State of Indiana, stating that if Indiana could keep its tax dollars, it wanted no further Federal aid. I might say that if we, in Kentucky, were permitted to retain the funds now collected by the Federal Government

from income and excise taxes, we, too, would be well satisfied. Based on our population, Kentucky stands near the top in contribution to the Federal Treasury.

I trust that this bill will have favorable action by the committee, and I appreciate the opportunity of appearing in its behalf.

Mr. McCOWEN. Because of the number of witnesses this morning we will limit our questioning to 3 minutes, as usual. Mr. Landis.

Mr. LANDIS. Mr. Morton, did the last session of the Kentucky Legislature do anything toward education in Kentucky?

Mr. MORTON. Yes, sir.

Mr. LANDIS. What did they do?

Mr. MORTON. We have increased, in the last 4 years, by $18,000,000. Our legislature meets every second year. We put $18,000,000 more into education in the past two sessions of the present administration than under the previous administration. That is about $4,500,000 a year.

Mr. LANDIS. Do you have a minimum on teachers' salaries? If so, do you know what the minimum is?

Mr. MORTON. We have a very bad situation in that we are not allowed, under our constitution, to equalize sufficiently, and the State only puts into a county what the county can put in there, plus 10 percent of what the State puts in as an equalization. In some of the poorer counties it is down to seven or eight hundred dollars.

Mr. LANDIS. Indiana passed a bill adding $400 to each teachers' salary. I was just wondering what the minimum was in Kentucky. The information we received from Mississippi and Georgia was that they had practically doubled their teachers' salaries. Still, I don't know whether that means every county is taken care of on that basis or not. Or, perhaps it is an average.

Mr. MORTON. Sixty-two percent of our income goes to education, excluding the gasoline tax.

Mr. LANDIS. Sixty-two percent?

Mr. MORTON. Yes, sir.

Mr. LANDIS. You have some Federal revenue, that is, the taxes in your State go largely to the Federal Government, that you have no opportunity to get that back.

Mr. MORTON. Yes, sir; excise taxes.

Mr. LANDIS. I would like to know what the average is in Kentucky for teachers. If someone could give us those figures I would like to have them. Probably the NEA has them.

Mr. MORTON. Do you mean, sir, the minimum

Mr. LANDIS. I mean, what does the lowest paid teacher get in Kentucky?

Mr. MORTON. From the State, or in salary?

Mr. LANDIS. In salary.

Mr. MORTON. In 1945, in Crittenden County, it was $506. In Jefferson County it was $2,032, average. The minimum in Crittenden County was $506.

Mr. LANDIS. I wonder how much that will be increased by the law passed in the last session of your legislature. Perhaps you can find that out and submit it to the committee.

Mr. MORTON. Yes sir, I will submit it for the record.

(The information is as follows:)

Average salaries of superintendents, principals, and teachers in the public secondary schools of Kentucky:

1941-42_

1942-43.

1943-44.

1944-45

$936 1, 014

1, 158

1, 226

The above figures were obtained from the NEA, which does not have figures for 1945-46.

Total Federal aid to Kentucky for fiscal years 1945 and 1946:

19451946.

Mr. McCOWEN. Mr. Schwabe.

$23, 688, 906 22,723, 128

Mr. SCHWABE. Mr. Morton, I would be interested in your understanding of the responsibility and duty of the Federal Government toward education of our children. Do you think that it is the responsibility and duty of the Federal Government to educate our school children?

Mr. MORTON. Not assuming the entire burden; no, sir. I think the Government has the responsibility in the States that do spend much more than the national average in percentage of their per-capita income for education, in States where the child population is heavy, to equalize opportunity by helping the educational program in those States.

Mr. SCHWABE. You are more interested in having equalization than anything else, is that it?

Mr. MORTON. Well, I am interested in better education in those States where they are trying to raise themselves by their bootstraps. For instance, in Kentucky, we talk about getting new industries. In this day and age you have to have an educated population before industry will come there, because it required educated men and women to do the work.

Mr. SCHWABE. I do not get what you mean by raising themselves by their bootstraps. Are you referring to the State or the Federal Government?

Mr. MORTON. The State. Without any aid whatsoever, we will solve this problem how? By increasing the per-capita income of the people in Kentucky. Then we can put more money into education. In order to do that, we require education to develop our State. We must have an educated people. So, I say in that we are attempting to raise ourselves by our bootstraps.

Mr. SCHWABE. The Federal Government perhaps takes a much larger portion of the tax dollar of the people of Kentucky than does the State of Kentucky. It seems to me the Federal Government is the one that is trying to raise itself by its own bootstraps already.

Mr. McCowEN. Mr. Gwinn.

Mr. GWINN. Mr. Morton, I am wondering if Kentucky may not be one of those border States where, if we resort to Federal aid, the Federal Government might take more money out of that State than it will send back to you. There are States that are moving into that position surprisingly fast. Have you got any figures on that?

Mr. MORTON. Of course, the Federal Government does take a great deal more money out of Kentucky than comes back.

Mr. GWINN. I am talking about education now. Assuming that it takes $150,000,000 or $300,000,000 out of all of the citizens in all the