(10) Provide that the State shall set standards for services and programs under this act. It is required that the same good quality of health services be made available to children without regard to race, color, creed, or nationality. It is expected that all personnel rendering health services will be properly qualified and will be supervised by qualified members of their own profession.

Subsection (b) provides that the Federal Security Administrator shall approve any State plan which complies with the requirements for such plans as provided in subsection (a).

Operation of State plans

Section 7: Provides that the Federal Security Administrator shall, after giving reasonable notice and opportunity for hearing, withhold certification of payments under this act to any State in which he finds. failure to comply substantially with any provision governing State plans as required by this act. This section also provides that State plans under this act must be in full operation not later than October 1,

1952.

Right of appeal

Section 8: Gives the States the right to appeal the Federal Security Administrator's action with respect to the approval of State plans or the withholding of certification of payments. Such appeal is to the United States court of appeals and the judgment of the court is subject to review by the Supreme Court of the United States.

Definitions

Section 9: Contains certain essential definitions of terms used in the

act.

Separability

Section 10: Is a separability clause providing that provisions of the act held invalid to any State, person, or circumstance, does not affect the application of such provisions to other States or persons or the application of other provisions of the act.

APPROXIMATE ALLOTMENTS TO STATES AND STATE MATCHING

REQUIREMENTS

The following table contains a State distribution of the $35,000,000, authorized to be appropriated in this bill, in accordance with the allotment formula provided therein. The table also indicates the amount of State and local funds required for matching purposes, assuming that each State fully utilizes its Federal allotment. The table shows the allotment percentages, and per capita income data for the 3-year period 1944-46, based upon the latest available statistics.

MARCH 25 (legislative day, MARCH 18), 1949.-Ordered to be printed

Mr. THOMAS, from the Committee on Labor and Public Welfare, submitted the following

REPORT

(To accompany S. 246]

The Committee on Labor and Public Welfare, to whom was referred the bill (S. 246) to authorize the appropriation of funds to assist the States and Territories in financing a minimum foundation education program of public elementary and secondary schools, and in reducing the inequalities of educational opportunities through public elementary and secondary schools, for the general welfare, and for other purposes, having considered the same, report favorably thereon, with amendments, and recommend that the bill, as amended, be adopted.

The amendments made by the committee are shown by the italicized words in the bill as printed below:

A BILL To authorize the appropriation of funds to assist the States and Territories in financing a minimum foundation education program of public elementary and secondary schools, and in reducing the inequal. ities of educational opportunities through public elementary and secondary schools, for the general wel. fare, and for other purposes

Omit the part struck through and insert the part printed in italic

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may be cited as the "Educational Finance Act of 1949"

SEC. 2. Nothing contained in this Act shall be construed to authorize any department, agency, officer, or employee of the United States to exercise any direction, supervision, or control over, or to prescribe any requirements with respect to any school, or any State educational institution or agency, with respect to which any funds have been or may be made available or expended pursuant to this Act, nor shall any term or condition of any agreement or any other action taken under this Act, whether by agreement or otherwise, relating to any contribution made under this Act to or on behalf of any school, or any State educational institution or agency, or any limitation or provision in any appropriation made pursuant to this Act, seek to control in any manner, or prescribe requirements with respect to, or authorize any department, agency, officer, or employee of the United States to direct, supervise, or control in any manner, or prescribe any

requirements with respect to, the administration, the personnel, the curriculum, the instruction, the methods of instruction, or the materials of instructions, nor shall any provision of this Act be interpreted or construed to imply or require any change in any State constitution prerequisite to any State sharing the benefits of this Act.

APPROPRIATION AUTHORIZED

SEC. 3. For the purpose of more nearly equalizing public elementary-school and public secondary-school opportunities among and within the States, there is hereby authorized to be appropriated without any limitation of such appropriation or condition inconsistent with or contrary to the terms or purposes of this Act for the fiscal year ending June 30, 1950, and for each fiscal year thereafter, the sum of $300,000,000 to be distributed among the States as hereinafter provided

APPORTIONMENT

SEC. 4. Ninety-eight Ninety-seven per centum of the funds appropriated under section 3 of this Act for each fiscal year shall be distributed among the States, excluding those enumerated in paragraph (G) of this section, in the following

manner:

(A) Multiply (a) the number of children from five to seventeen years of age, inclusive, in each State, as determined by the Department of Commerce, for the third calendar year next preceding the year in which ends the fiscal year for which the computation is made by (b) $45 50.

(B) Multiply (a) the average of the annual income payments for each State, as determined by the Department of Commerce, for the third, fourth, fifth, sixth, and seventh calendar years next preceding the year in which ends the fiscal year for which the computation is made by (b) 1 per centum.

(C) Subject to the succeeding provisions of this section, the amount of the Federal allotment for any State shall be (a) the amount, if any, by which the amount calculated under paragraph (A) exceeds the amount calculated under paragraph (B) with respect to such State, or (b) $5 multiplied by the number of children in such State from five to seventeen years of age, inclusive, as determined under paragraph (A), whichever is greater.

(D) Determine the percentage ratio of (a) the amount spent in each State from revenues derived from State or and local sources for current expenditures for public elementary-school and public secondary-school education for the third fiscal year next preceding the fiscal year for which the computation is made, to (b) the average of the annual income payments for each State, as determined under paragraph (B) of this section. When the percentage ratio thus determined for any State is less than 2.25 for the first two years, thereafter 2.5, the amount of the Federal Allotment to such State, as computed under paragraph (C), shall be proportionately reduced; except that in no case shall the amount of the Federal allotment for any State be less than $5 multiplied by the number of children in such State from five to seventeen years of age, inclusive, as determined under paragraph (A).

(E) Determine the percentage ratio of (a) current expenditures in each State from revenues derived from State or and local sources for public elementary-school and public secondary-school education for the year next preceding the year for which the computation is made, as estimated on the basis of reports submitted by the State for such purpose, to (b) the average of the annual income payments for each State, as determined by the Department of Commerce, for the three most recent calendar years for which annual income data are available. When for any fiscal year beginning after June 30, 1953, the percentage ratio thus determined for any State is less than 2.0, such State shall be ineligible to receive any part of the funds appropriated pursuant to section 3 of this Act for such fiscal year, unless the esti mated current expenditures under clause (a) of this paragraph is an amount equal to or greater than $120 multiplied by the number of pupils in average daily at tendance for such fiscal year as determined on the basis of reports submitted by the State for such purpose. Any State thus determined to be ineligible shall remainr ineligible until such time as revised estimates, determined as provided under this paragraph, produce a percentage ratio equal to or greater than 2.0, or an amount equal to or greater than $120 multiplied by the number of pupils in average daily attendance the Federal allotment for such fiscal year shall be $5 multiplied by the number of children in such State from five to seventeen years of age, inclusive, as determined under paragraph A.

(F) In the event 98 97 per centum of the funds appropriated for any fiscal year pursuant to section 3 of this Act is insufficient to pay to all eligible States