A Resolution Opposing the Current Use of Impact Aid’s Equalization Formula in Fund Distribution.

WHEREAS, the National Indian Education Association (NIEA) was established in 1969 for the purpose of advocating, planning, and promoting the unique and special education needs of American Indian and Alaska Native people; and

WHEREAS, NIEA, as the largest national Indian organization of educators, administrators, parents, and students in the United States, provides a forum to discuss and act upon issues affecting the education of Native people; and

WHEREAS, through its unique political relationship with Indian nations and tribes, the federal government has established education program resources to meet the educational needs of American Indians and Alaska Natives residing both on and off their reserved homelands; and

WHEREAS, Impact Aid was first authorized in 1950 by Public Law 81-874, as amended by Public Law 103-382, Title VIII of the Elementary and Secondary Education Act (ESEA), and provides payment to local educational agencies (LEAs) to replace lost tax revenues associated. with students connected to federal lands, including Indian children living on Indian lands and children of military personnel; and

WHEREAS, since 1950 a state could generally not reduce aid to an LEA based on its receipt of Impact Aid funds; and

WHEREAS, since 1973 an amendment was made to the Impact Aid law, which currently exists, that allows a state to reduce aid “if such State has in effect a program of State aid that equalizes expenditures for free public education among LEAs in such State;” and

WHEREAS, a state is deemed to “equalize” if the per pupil funding of the school at the 95th percentile exceeds the per pupil expenditure of the school at the 5th percentile by no more than 25 percent (the disparity test); and

WHEREAS, the “equalization” provision unfairly reduces funding to the impacted school districts it is intended to benefit by ignoring capital expenditures and capital needs; and

WHEREAS, impacted school districts cannot raise adequate revenues in local tax dollars for severe capital needs; and

WHEREAS, Impact Aid funds flow through the State to the richer non-impacted school districts, saving them tax dollars on operating costs and allowing them to devote their tax dollars to capital needs; and

WHEREAS, the utilization of the Impact Aid equalization formula does not consider the special needs of impacted school districts and provides insufficient funding to meet those special needs of Indian students.

NOW THEREFORE BE IT RESOLVED THAT THE NATIONAL INDIAN EDUCATION ASSOCIATION considers the aforementioned situations, with regard to the distribution of Impact Aid funds through the current “equalization” formula, as creating a undue hardship for those Indian students attending schools in states where the equalization formula is in use; and

BE IT FURTHER RESOLVED THAT THE NATIONAL INDIAN EDUCATION ASSOCIATION concurs that Congress should repeal the equalization formula, or, at a minimum, amend it to require appropriate consideration of capital needs.

SUBMITTED BY: Caleb Roanhorse (Navajo Nation)

CERTIFICATION

I do hereby certify that the foregoing resolution was duly considered and passed by the NlEA Board of Directors at its March 10, 1998 meeting in Washington, D.C., at which a quorum was present.