James M. Jeffords: “today I am introducing the ``Educational Assistance for Military Connected Children Act of 2000,'' legislation that…”

“today I am introducing the ``Educational Assistance for Military Connected Children Act of 2000,'' legislation that would transfer from the Department of Education to the Department of Defense financial responsibility for impact aid payments used to support the education of military dependents. The impact aid program is authorized as Title VIII of the Elementary and Secondary Education Act (ESEA) of 1965. Unlike other ESEA programs, however, impact aid payments are not used to support specific educational activities. Rather, these payments serve as general aid to local educational agencies to replace tax dollars which are foregone as the result of the presence of the Federal government. For example, Federal property--such as military installations--is not subject to property taxes. In addition, under the terms of the Soldiers' and Sailors' Civil Relief Act of 1940, many military personnel do not pay taxes in the States and localities where their children attend school. Replacing lost revenues that would otherwise have been available to support local schools is an obligation of the Federal government in those cases where the revenue loss is directly related to Federal action. The Department of Education, through the impact aid program, provides nearly $1 billion each year for this purpose.”