educational purposes, there may be separate arrangements for identification and certification in accordance with the provisions of subparagraphs 5 (a) (8) of this Act.

REPORT TO CONGRESS

SEC. 9. The Commissioner shall provide for an annual audit of expenditures made under this Act and shall include in his annual report for transmission to Congress a full report of the administration of this Act, including the essential facts about the various programs carried on under this Act, a detailed statement of appropriations and disbursements, a summary and analysis of legislative and administrative provisions adopted by each State for the expenditure of funds received under this Act, and statistical information showing the accomplishments of the several States through the expenditure of such funds.

DEFINITIONS

SEC. 10. As used in this Act

(a) The term "State" means the several States, the District of Columbia, Alaska, Hawaii, the Virgin Islands, and Puerto Rico.

(b) The term "legislature" means the State or Territorial legislatures, or other comparable body, except that in the District of Columbia it shall mean the Board of Commissioners.

(c) The term "scholarship" means a financial award made by the State educational agency to a person who is a resident of the State and who is enrolled or eligible to enroll as a student in attendance for work in the eleventh year or above at an educational or training institution.

(d) The term "loan" means a money grant without security made by the State educational agency to a needy person of ability who, but for such grant, cannot devote substantially full time as a student in attendance for work in the eleventh year or above at an educational or training institution and cannot continue his education without financial aid, except that such person shall execute a promissory note payable to the United States.

(e) The term "student" means a person who is devoting essentially full time to educational work in attendance at an educational or training institution and maintaining a scholastic record considered satisfactory by such institution.

(f) The term "State educational agency" means the State department of education, State board of education, or similar State agency, or State officer empowered by legislation as the sole agency for preparing and carrying out or supervising the carrying out of the State plan under this Act and having all the necessary power to administer the provision of the plan under this Act.

(g) The term "Commissioner" means the United States Commissioner of Education within the Federal Security Agency.

(h) The term "educational or training institution" means any public high school or any nonpublic nonprofit tax-exempt school of similar grade, or any public or nonprofit tax exempt junior college, technical institute, vocational school, college, university, research institution, or other higher educational institution meeting the standards promulgated by a State educational agency in which any such institution is located (or any such institution located in a foreign country meeting the standards promulgated by the Commissioner), including the submission of such reports as may be reasonably required by such agency (or the Commissioner as the case may be).

EFFECTIVE DATE

SEC. 11. This Act shall take effect upon passage.

[S. 1157, 80th Cong., 1st Sess.]

A BILL To promote the general welfare by providing funds to assist the several States in paying adequate salaries to teachers in public schools

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That for the purpose of assisting the States in improving their systems of free public education by grants-in-aid to supplement the salaries of teachers in public schools, there is hereby authorized to be appropriated for the fiscal year ending June 30, 1948, and for each fiscal year thereafter such sums as may be necessary to carry out the provisions of this Act.

GRANTS TO STATES

SEC. 2. The Commissioner shall grant to each State having a plan approved under section 3 of this Act such sums as may be necessary to enable such State thereafter

(a) to compensate teachers in its public schools for increases in the cost of living occurring after January 1, 1941, by increasing the rate of the annual salary of each such teacher (1) by such amount if any as may be necessary, when added to the salary paid from funds of such State or any political subdivision thereof, or both, at the rate in effect on July 1, 1947, for teachers occupying like positions and having like qualifications and experience, to produce an aggregate annual salary which exceeds by $800 the amount of the salary received on January 1, 1941, from such State or political subdivision, or both, by teachers occupying like positions and having like qualifications and experience; or (2) in the case of any teacher occupying a position which did not exist on January 1, 1941, by such amount not in excess of $800 as may be necessary (as determined, with the approval of the Commissioner, by the State educational agency designated under section 3 of this Act) to place the annual salary of such teacher upon a parity with other teachers occupying like positions and having like qualifications and experience; and (b) after making any salary increase pursuant to section 2 (a) of this Act, to increase the rate of the annual salary of each teacher in its public schools by such amount if any as may be necessary to produce an aggregate annual salary of $2,400, in the case of a teacher occupying a position for which the satisfactory completion of a course of four years or more at an accredited college or university is a qualifying requirement, or $1,800, in the case of a teacher occupying a position for which the satisfactory completion of such course is not a qualifying requirement.

STATE PLANS

SEC. 3. (a) In order to be eligible to receive grants pursuant to section 2 of this Act a State shall

(1) accept the provisions of this Act and provide for the administration of funds to be received;

(2) provide that the State treasurer, or corresponding fiscal official in the State, shall serve as trustee for the funds paid to the State under this Act;

(3) designate or establish a single State educational agency which shall prepare a plan to carry out the provisions of this Act within such State, and which shall carry into execution or supervise the execution of such plan;

(4) provide for a periodical audit by the State treasurer, or corresponding fiscal official in the State, of accounts of the State educational agency with respect to the expenditure of funds received and disbursed as authorized by this Act;

(5) provide that the State treasurer, or corresponding fiscal official in the State, and the State educational agency shall submit to the Commissioner such annual and other reports in such form and containing such information as he may from time to time reasonably require;

(6) provide that funds received by the State under this Act shall be expended exclusively for the purpose of supplementing the salaries of teachers in public schools of such State;

(7) provide for the expenditure from funds of such State or any political subdivision thereof, or both, during any fiscal year for which a grant is made pursuant to section 2 of this Act of an amount for the payment of the annual salary for each teaching position which is not less than the amount paid for such position during the preceding fiscal year, or if no such position existed in the preceding fiscal year, the amount paid (as determined, with the approval of the Commissioner, by the State educational agency designated under section 3 of this Act) in such fiscal year for teachers occupying like positions and having like qualifications and experience;

(8) provide that receipt of funds by such State pursuant to section 2 of this Act shall not be used as a basis for the reduction of the annual rate of salary paid for any teaching position in its public schools below the rate in effect for such position on July 1, 1947; and

(9) provide that the provisions of such plan shall be administered without discrimination against any person on account of his race, creed, color, sex,

religion, or economic status, except that in States which require by law the segregation of races for educational purposes, separate administrative arrangements may be provided for such purposes, but such arrangements shall be in full accordance with the provisions of this Act.

(b) Acceptance of the provisions of this Act by any State pursuant to section 3 (a) of this Act shall be for a period of at least one or more full fiscal years, and shall be by action of its legislative body. If such legislature (1) does not meet in time to give such acceptance prior to the beginning of the fiscal year ending June 30 of 1948 or any subsequent year, or (2) meets in time to give such acceptance but fails to do so, the chief executive of such State, if authorized to do so under the constitution and laws of such State, may give such acceptance provisionally and may take such other action as may be necessary to fulfill the requirements of this Act. Thereupon the Commissioner shall grant to such State such sums as may be necessary to enable it to carry out the purposes of section 2 of this Act until acceptance of the provisions of this Act is given by the legislature of such State, or until a date six months after the adjournment of the first regular session of such legislature beginning after the date of enactment of this Act, whichever is earlier.

(c) The State plans submitted as required by subsection (a) of this section shall be examined by the Commissioner, and if he shall find that they conform to the requirements of this Act he shall approve them.

PAYMENTS TO STATES

SEC. 4. (a) The Commissioner, under the supervision of the Federal Security Administrator, is authorized to administer the provisions of this Act, and with the approval of the Administrator, to promulgate such rules and regulations as may be necessary to carry out the provisions of this Act.

(b) Prior to the beginning of each quarter of each fiscal year the Commissioner shall estimate the sum to which each State which has accepted the provisions of this Act will be entitled under the provisions of this Act for such quarter, and shall certify to the Secretary of the Treasury (1) the name of the State educational agency or fiscal agent designated by each State to receive such payment and (2) the amount so estimated, reduced or increased, as the case may be, by any sum by which the Commissioner shall find that his estimate for any prior quarter was greater or less than the amount to which such State was entitled for such quarter. At the beginning of each quarter the Secretary of the Treasury shall, through the Fiscal Service of the Treasury Department and prior to audit or settlement by the General Accounting Office, pay to each such State the amount so certified, beginning with the first quarter of the fiscal year for which appropriations made under the authorization of this Act are available.

(c) The amount so paid to any State shall be available for disbursement by that State to any political subdivision thereof or any local public-school jurisdiction or authority which is authorized to disburse funds in payment of the salaries of teachers employed in their respective public schools.

(d) The Commissioner shall cause an annual audit to be made of the expenditure of funds under this Act by each State. If the Commissioner, after reasonable notice and opportunity for hearing to the State educational agency, shall find that in the administration of any State plan there is a failure to comply substantially with any of the provisions of such plan, he shall (1) notify such State agency that no further payment will be made to the State until he is satisfied that there is no longer any failure of the State to comply, and (2) make no further certification to the Secretary of the Treasury for the payment of funds to such State under this Act until he shall be so satisfied.

GENERAL PROVISIONS

SEC. 5. No department, agency, officer, or employee of the United States shall exercise any direction, supervision, or control over any school with respect to which any funds are expended pursuant to this Act, nor shall any term or condition of any agreement under this Act relating to any grant made under this Act Authorize any department, agency, officer, or employee of the United States to direct, supervise, or control in any way the administration, personnel, curriculum, instruction, methods of instruction, or materials of instruction with respect to any such school.

REPORT TO CONGRESS

SEC. 6. The Commissioner shall transmit annually to the Congress a full report concerning the administration of this Act, including a description of the essential features of the several State plans carried on under this Act, a detailed statement of appropriations and disbursements made thereunder, a statement of the result of each annual audit made of the expenditure of funds under this Act by each State, a summary and analysis of legislative and administrative provisions adopted by each State for the expenditure of funds received under this Act, and statistical information showing the accomplishments achieved by the several States through the expenditure of such funds.

SEC. 7. As used in this Act

DEFINITIONS

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

(b) The term "legislature" includes the State or Territorial legislative or other comparable body, except that in the District of Columbia it shall mean the Board of Commissioners.

(c) The term "State educational agency" means (1) the State superintendent of public instruction, commissioner of education, or similar chief State school officer designated by competent authority, or (2) a board of education controlling the State department of education duly authorized to prepare and execute or to prepare and supervise the execution of the State plan under this Act, except that in the District of Columbia it shall mean the Board of Education.

(d) The term "Commissioner" means the United States Commissioner of Education within the Federal Security Agency.

(e) The term "public school' means a free public elementary or secondary school supported exclusively by public funds and controlled by the government of any State, political subdivision thereof, or other local public-school jurisdiction or authority.

(f) The term "teacher" includes (1) persons engaged in the instruction of pupils and (2) principals and supervisors or heads of department units within any public school, but does not include other persons engaged solely in the supervision of administration of instruction or education.

SEPARABILITY

SEC. 8. If any provision of this Act or application thereof to any State, person, or circumstance, is held invalid, the remainder of this Act and the application of such provision to other States, persons, or circumstances shall not be affected thereby.

Senator PEPPER. Mr. Chairman, may I ask that the clerk of the committee be requested to address, since we are a little tardy in getting these bills before the committee, to those who already have been heard and to some who will appear, copies of these bills, 1157 and 1131, and to invite any reaction that they might care to express? Senator AIKEN. The committee staff, I am sure, will be glad to do that.

We thank you for your attention this morning.

(The replies received prior to publication of the hearings appear in the appendix.)

Since Senator Pepper started his testimony, Senator Murray has found it possible to come before the committee and will have something to say in regard to these bills at this time.

Senator Murray.

STATEMENT BY HON. JAMES E. MURRAY, A UNITED STATES SENATOR FROM THE STATE OF MONTANA

Senator MURRAY. Mr. Chairman and Members of the Committee: I am very happy to appear before this committee today in support of the Senate bill which Senator Pepper has just been discussing.

I am afraid that after listening to the very able statement which he has made many of the things that I may say here have already been more completely covered by the Senator from Florida.

However, I would like to present my views completely for the record.

Senator AIKEN. That may be done, Senator; and I am sure that the Senator from Florida, Senator Pepper, made a very complete statement because of the uncertainty as to whether you would be able to appear here this morning.

Senator MURRAY. I am sure that his statement covers every phase of the problem and has covered it so thoroughly and competently that I should not take up your time with anything repetitious. But I will be pleased to have my complete statement in the record.

Senator AIKEN. Your statement will be incorporated in the record. Senator MURRAY. I wish to point out at this time how S. 1157 meets directly the basic issues involved which other measures that have been proposed meet only indirectly. General Federal aid is imperative, but it does not meet this issue directly.

S. 1157 provides for a cost-of-living increase for teachers on a Nation-wide basis. The amount of this increase is designed to compensate for the difference in the cost of living between January 1, 1941, and July 1, 1947, and would produce an aggregate annual salary from local, State, and Federal funds which exceed by $800 the amount of the salary received on January 1, 1941.

As Senator Pepper has pointed out, there are many States in the Union capable of handling this problem without Federal aid; but there are sections of the country which have not been benefited by the great prosperity that has prevailed in this country as a result of the war and even prior to the war. There are certain States in the country that lack a balanced economy-take my State, Montana, as an example.

As a result of the lack of a proper economic balance out there, we are losing population. The population of the State, Montana, is less today than it was 30 years ago. We have had no industrial development there at all and as a result the State is not in a position as other States, States that have grown industrially, to take care of these problems.

I believe that the teachers of the Nation are just as entitled to receive a cost-of-living increase as workers in industry or the professions. Furthermore, I am convinced that such a step by the Federal Government would produce immediate and favorable effects on our system of public education and would reverse the migration of teachers from the classroom.

The second major provision of S. 1157 would establish a minimum wage for teachers in public schools throughout the Nation. This minimum wage would be $2,400 per year in the case of a teacher occupying a position for which the satisfactory completion of a course of 4 years or more at an accredited college or university is a qualifying requirement, or $1,800 in the case of a teacher occupying a position for which the satisfactory completion of such a course is not a qualifying requirement.

This provision would serve as a shot of adrenalin to our imperiled public educational system. It would at once place the teaching of our youth on a sounder professional basis and America might expect