| The Administration does not object to House passage of H.R. 3616, 
        but will work with the Senate to address several objectionable features 
        of the bill, including its failure to include key elements of the 
        President's proposal for reauthorizing the Impact Aid program. This 
        program provides assistance to school districts that are financially 
        burdened by the presence of Federal property or Federal activities 
        within their jurisdictions.  The Administration is concerned that H.R. 3616:  
          Fails to include the President's proposal to make the formula for 
          payments on behalf of federally connected children (e.g., children 
          from families living and working on nontaxable Federal property) more 
          equitable among districts by more accurately reflecting the current 
          costs of educating those children. 
          Continues to authorize payments for a category of federally 
          connected children (so-called "b" children), whose parents either live 
          or work on Federal property, even though they impose little burden on 
          communities relative to other federally connected children. 
          Uses past payment amounts and other extraneous factors in the 
          formulas for allocating payments for Federal property and for 
          federally connected children. All available funds should be 
          distributed based on objective data that measure the level of current 
          need within a school district, not past need. 
          Allows some school districts to treat children who live on taxable 
          property that was once Federal property as if they still lived on 
          Federal property. 
          Contains an inequitable and complex system for making payments to 
          the small number of school districts identified as the most heavily 
          affected by Federal activities. 
          Further dilutes the effect of the school construction portion of 
          the Impact Aid program by expanding the number of eligible districts 
          and failing to target limited funds to the neediest areas. |