DEPARTMENTS OF LABOR, HEALTH AND HUMAN
SERVICES, EDUCATION, AND RELATED AGENCIES
APPROPRIATIONS FOR 2004

HEARINGS

BEFORE A

SUBCOMMITTEE OF THE

COMMITTEE ON APPROPRIATIONS

HOUSE OF REPRESENTATIVES

ONE HUNDRED EIGHTH CONGRESS
FIRST SESSION

SUBCOMMITTEE ON THE DEPARTMENTS OF LABOR, HEALTH AND
HUMAN SERVICES, EDUCATION, AND RELATED AGENCIES

RALPH REGULA, Ohio, Chairman

C. W. BILL YOUNG, Florida

ERNEST J. ISTOOK, JR., Oklahoma
ROGER F. WICKER, Mississippi

ANNE M. NORTHUP, Kentucky

RANDY "DUKE" CUNNINGHAM, California

KAY GRANGER, Texas

JOHN E. PETERSON, Pennsylvania

DON SHERWOOD, Pennsylvania

DAVE WELDON, Florida

MICHAEL K. SIMPSON, Idaho

DAVID R. OBEY, Wisconsin
STENY H. HOYER, Maryland
NITA M. LOWEY, New York
ROSA L. DELAURO, Connecticut
JESSE L. JACKSON, JR., Illinois
PATRICK J. KENNEDY, Rhode Island
LUCILLE ROYBAL-ALLARD, California

NOTE. Under Committee Rules, Mr. Young, as Chairman of the Full Committee, and Mr. Obey, as Ranking
Minority Member of the Full Committee, are authorized to sit as Members of all Subcommittees.

CRAIG HIGGINS, SUSAN ROSS FIRTH, MEG THOMPSON, SUE QUANTIUS,
FRANCINE MACK-SALVADOR, and NICOLE KUNKO, Subcommittee Staff

PART 7

TESTIMONY OF MEMBERS OF CONGRESS AND OTHER
INTERESTED INDIVIDUALS AND ORGANIZATIONS

88-377

Printed for the use of the Committee on Appropriations

U.S. GOVERNMENT PRINTING OFFICE

WASHINGTON: 2003

RODNEY P. FRELINGHUYSEN, New Jersey JOHN W. OLVER, Massachusetts

JAMES W. DYER, Clerk and Staff Director

DEPARTMENTS

OF LABOR, HEALTH AND

HUMAN SERVICES, EDUCATION, AND RELATED AGENCIES

APPROPRIATIONS

FOR

2004

TESTIMONY OF MEMBERS OF CONGRESS AND OTHER INTERESTED INDIVIDUALS AND ORGANIZATIONS

TUESDAY, MAY 6, 2003.

PROJECTS

WITNESS

HON. CHET EDWARDS, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF TEXAS

Mr. REGULA. The hearing will come to order.

The gentleman from Texas, Mr. Edwards?

Mr. EDWARDS. Mr. Chairman, we passed the impact aid budget by unanimous consent with the support of the Chairman this morning.

Mr. Chairman, I will submit for the record my written testimony. [The information follows:]

TESTIMONY OF THE HONORABLE CHET EDWARDS 11th DISTRICT, TEXAS

Tuesday, May 6, 2003
Tuesday, May 13, 2003

Before the House Labor, Health and Human Services,

And Education Appropriations Subcommittee

Mr. Chairman:

Thank you for allowing me to testify today on the funding of the Impact Aid program in the FY 2004 Labor- HHS appropriations bill. I appreciate your and the subcommittee's interest in the Impact Aid program.

As you know, Impact Aid is based on a simple concept - shared responsibility between federal, state, and local governments. The federal government did not establish this program as a special benefit, but rather to fulfill a responsibility to local communities and schools. Although the federal government is the single largest property holder in the United States, it pays no local property taxes. For over 50 years, the Impact Aid program has provided different methods of reimbursement for federally connected schools. If Impact Aid was reduced or eliminated, it would shift a federal responsibility to local governments that would be unable to handle this burden.

Let me state it for the record: Impact Aid is a federal payment in lieu of taxes. It is funding that compensates school districts for the tax burden they shoulder because of the federal government's presence in their communities.

Nearly 10 percent of the U.S. Army's active duty personnel are stationed at Fort Hood, Texas, in my congressional district. As a direct result, federally impacted students compose 54 percent of the student population in Copperas Cove Independent School District (ISD) and 58 percent of the student population in Killeen ISD. Both of these school districts are currently below the state average in property wealth and have property tax rates above the state average. Without

Impact Aid dollars, a homeowner in Copperas Cove with a $75,000 house would see a $1,050 property tax increase, and a homeowner in Killeen with a $75,000 house would see a $615 property tax increase to compensate for the lack property tax revenue because of the federal presence. Even with Impact Aid funds, both districts spend below the state average per pupil, which is considerably lower than the national average. If these two school districts lost Impact Aid funds, it would be legally impossible for them to increase tax rates to levels required to make up lost funds.

Reducing the Impact Aid program would be disastrous for more than just the 1.2 million children served by the program. Significant changes would also harm an estimated 13 million children whose families are not federally dependent, but who attend a financially-strapped school due to the large numbers of students enrolled from military installations or local Indian lands. There are 51 school districts in the country in which 25% or more their students are children from military installations. There are 200 school districts in which 25% or more of their students are children from local Indian lands. These school districts would be forced to absorb the financial responsibility for educating these children. If federal agencies, the Department of Defense and the Bureau of Indian Affairs, are held responsible for educating Impact Aid students, the cost to the federal government could potentially be even higher than what is currently expended in Impact Aid.

Furthermore, I fear that cuts in the Impact Aid program would not only impair the quality of military children's education, it would also devastate military morale, undermine re-enlistment rates, adversely affect recruitment and retention and consequently reduce our military readiness. It is difficult enough keeping our seasoned soldiers in our military forces. Should their children's education be jeopardized, it might become virtually impossible.

In the past, the President, too, has recognized the significance of the Impact Aid program, by including it in his No Child Left Behind education proposal; however, I was quite alarmed to learn that the President proposed massive cuts to this program in his FY 2004 budget request submitted on February 4th of this year. I worked with my colleagues on the Budget Committee and I want to continue working with you, my colleagues on the Appropriations Committee, to say that we must neither eliminate, nor cut Impact Aid funding. I believe we have a duty to educate all children, but especially now, when our men and women are defending this nation and democracy, it is morally wrong to cut education for our military children.