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Impact Aid: Most School Construction Requests Are Unfunded and Outdated

HRD-90-90 Published: Jul 12, 1990. Publicly Released: Jul 12, 1990.
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Highlights

Pursuant to a legislative requirement, GAO reviewed the federal school construction program for school districts affected by federal activities.

Recommendations

Matter for Congressional Consideration

Matter Status Comments
Congress should amend Public Law 81-815 to require that all federal payments to eligible school districts with federally connected enrollment increases be calculated on the basis of state average per pupil school construction costs in the year a project is funded.
Closed – Not Implemented
All sections of P.L. 81-815 that related to this recommendation were repealed in October 1994 when ESEA was reauthorized. Congress does not plan to appropriate funding for school construction in FY 1996.
Federal funds are limited in relationship to the current backlog of eligible unfunded projects. For this reason, Congress may want to explore an alternative way to meet the school construction needs of federally impacted school districts. Such an approach could involve allocating on a pro-rata basis a portion of the federal share of project costs of districts above a certain needs threshold when program appropriations are insufficient to fully fund all eligible projects.
Closed – Not Implemented
All sections of P.L. 81-815 related to this recommendation were repealed in October 1994 when ESEA was reauthorized. Congress does not plan to appropriate funding for school construction in FY 1996.

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of Education The Secretary of Education should require school districts to apply annually for school construction assistance to ensure that project requests reflect school districts' current enrollments of federally connected children and estimated school construction costs.
Closed – Implemented
Having received Office of Management and Budget approval on November 21, 1991, Education is using a new form to require school districts to annually update the status of unfunded school construction projects.

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