SENATE REPORT TO ACCOMPANY THE FISCAL YEAR 2005 APPROPRIATIONS BILL FOR THE DEPARTMENTS OF LABOR, HHS AND EDUCATION
IMPACT AID
Appropriations, 2004………………………………………............. $1,229,527,000
Budget estimate, 2005……………………………………............... $1,229,527,000
Committee recommendation……………………………………….. $1,229,527,000
The Committee recommends an appropriation of $1,229,527,000 for impact aid for the Department of Education. The comparable funding level for fiscal year 2004 and the budget request both are $1,229,527,000 for the impact aid account.
Impact aid provides financial assistance to school districts for the costs of educating children when enrollments and the availability of revenues from local sources have been adversely affected by the presence of Federal activities. Children who reside on Federal or Indian lands generally constitute a financial burden on local school systems because these lands do not generate property taxes – a major revenue source for elementary and secondary education in most communities. In addition, realignments of U.S. military forces at bases across the country often lead to influxes of children into school districts without producing the new revenues required to maintain an appropriate level of education.
The Committee notes that the administration is working to develop an “analysis plan” to measure the performance of the Impact Aid program. The Committee is committed to utilizing performance outcome information to assess the effectiveness of Federal programs and to determine the appropriate funding levels. Therefore, the Committee requests a copy of the “analysis plan” as soon as it is available, and also expects appropriate discussion of activities related to the plan to be included in the fiscal year 2006 Justifications of Appropriation Estimates to the Congress.
Basic Support Payments.—The Committee recommends $1,063,687,000 for basic support payments. The comparable funding level for fiscal year 2004 and the budget request both are $1,063,687,000. Under this statutory formula, payments are made on behalf of all categories of federally connected children, with a priority placed on making payments first to heavily impacted school districts and providing any remaining funds for regular Basic Support Payments.
Payments for Children with Disabilities.—Under this program, additional payments are made for certain federally connected children eligible for services under the Individuals with Disabilities Education Act. The Committee bill includes $50,369,000 for this purpose. The comparable funding level and the budget request both are $50,369,000.
Facilities Maintenance.—This activity provides funding for emergency repairs and comprehensive capital improvements to certain school facilities owned by the Department of Education and used by local educational agencies to serve federally connected military dependent students. The Committee recommends $7,901,000. The comparable funding level for fiscal year 2004 and the budget request both are $7,901,000 for this purpose. Funds appropriated for this purpose are available until expended.
Construction.—Formula and competitive grants are awarded to eligible LEAs for emergency repairs and modernization of school facilities. The Committee recommends $45,936,000 for this program. Funds appropriated for the construction activity are available for obligation for a period of 2 years. The comparable fiscal year 2004 funding level and the budget request both are $45,936,000 for construction activities.
Payments for Federal Property.—These payments compensate local educational agencies in part for revenue lost due to the removal of Federal property from local tax rolls. Payments are made to LEAs that have a loss of tax base of at least 10 percent of assessed value due to the acquisition since 1938 of real property by the U.S. Government. The Committee recommends $61,634,000 for this activity. The comparable funding level for fiscal year 2004 and the budget request both are $61,634,000 for this program.