[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2335 Introduced in House (IH)]
108th CONGRESS
1st Session
H. R. 2335
To provide for general revenue sharing and assistance for education for
States and their local governments.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 4, 2003
Mr. Owens introduced the following bill; which was referred to the
Committee on Education and the Workforce, and in addition to the
Committee on Government Reform, for a period to be subsequently
determined by the Speaker, in each case for consideration of such
provisions as fall within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To provide for general revenue sharing and assistance for education for
States and their local governments.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Emergency Targeted Revenue Sharing
Act of 2003''.
SEC. 2. FINDINGS.
Congress finds the following:
(1) Federal grants to State and local governments predate
the Constitution. Early grants included land grants for public
schools and universities. Later, Congress created financial
grants to the States with matching requirements and conditions,
including grants for highway construction, vocational
education, public health, and maternity care.
(2) During the Nixon Administration, the emphasis of
Federal grants-in-aid programs was shifted from categorical
grants to block grants and general revenue sharing, which sent
funds to State and local governments with virtually no
programmatic requirements. Revenue sharing is not a new or
radical proposal.
(3) Despite this long history of assistance to State and
local governments, the Federal Government is not providing
sufficient aid to the States in their current fiscal crisis.
The State fiscal crisis is twice as severe as the crisis in the
early 1990s, with States carrying fiscal year 2004 budget
deficits totaling roughly $100,000,000,000. Yet continuing
decreases in Federal taxes for the wealthiest Americans leave
significantly fewer Federal revenues to help the States provide
basic services for their residents.
(4) To meet residents' needs, States have been forced to
increase income, property, and sales taxes for middle-income
and working families, in addition to raising taxes on
businesses. States also have had to cut funding for health
care, education, child care, public safety, and other programs.
At least 18 States have planned or are considering cuts in
spending on elementary and secondary education, resulting in
shortened school years and teacher layoffs. Cuts in State aid
have caused many colleges and universities to lay off faculty
and raise tuition.
(5) Federal spending for the war and occupation of Iraq is
further straining the Federal Government's ability to aid the
States, undermining financial assistance for education, public
housing, Medicaid, Temporary Assistance for Needy Families, and
other important programs.
(6) Defense appropriations will grow rapidly and
uncontrollably, continuing to crowd out spending for vital
human needs at the Federal and State levels. Homeland security
is directly threatened by cuts in police, fire, and hospital
budgets.
(7) The Federal Government must help the States to avert
greater fiscal damage because it has more economic tools
available than the States. Unlike the Federal Government, 49
States have some form of a balanced budget requirement, forcing
States to reduce expenditures, increase revenues, or use both
of these options to close their budget gaps.
(8) To live up to its historic obligations and provide
relief at a time of economic disaster, the Federal Government
immediately should enact a program of emergency targeted
revenue sharing, with assistance for schools and education
given first priority.
SEC. 3. EDUCATION FINANCIAL ASSISTANCE FOR STATES AND THEIR LOCAL
GOVERNMENTS.
(a) Appropriation.--There is authorized to be appropriated and is
appropriated to carry out this section $14,500,000,000 for fiscal year
2003, $12,500,000,000 for fiscal year 2004, and $12,500,000,000 for
fiscal year 2005.
(b) Payment.--The Secretary of the Treasury shall pay to each State
an amount equal to the amount allotted to the State under subsection
(c).
(c) Allotments.--From the amounts appropriated under subsection (a)
for each fiscal year, the Secretary of the Treasury shall allot to each
of the States as follows, except that no State shall receive less than
\1/2\ of 1 percent of such amount:
(1) State level.--50 percent shall be allotted among such
States on the basis of the relative school-age population of
each such State, as determined by the Secretary of the
Treasury, in consultation with the Secretary of Education, on
the basis of the most recent decennial census.
(2) Local government level.--50 percent shall be allotted
among such States as determined under paragraph (1) for
distribution by the State to the various units of general local
government within such States on the basis of the relative
school-age population of each such unit within each such State,
as determined by the Secretary of the Treasury, in consultation
with the Secretary of Education, on the basis of the most
recent decennial census.
(d) Use of Funds by State and Local Governments.--Funds received
under this section may be used only for ordinary and necessary
maintenance and operating expenses, and ordinary and necessary capital
expenditures authorized by law, for primary, secondary, or higher
education.
(e) Effective Date.--Not later than 45 days after the date of
enactment of this Act, the Secretary of the Treasury shall make
payments to States under this section for fiscal year 2003. The
Secretary of the Treasury shall make subsequent fiscal year payments
not later than one year following the prior fiscal year's payments
under this section.
SEC. 4. GENERAL REVENUE SHARING WITH STATES AND THEIR LOCAL
GOVERNMENTS.
(a) Appropriation.--There is authorized to be appropriated and is
appropriated to carry out this section $14,500,000,000 for fiscal year
2003, $12,500,000,000 for fiscal year 2004, and $12,500,000,000 for
fiscal year 2005.
(b) Payment.--The Secretary of the Treasury shall pay to each State
an amount equal to the amount allotted to the State under subsection
(c).
(c) Allotments.--From the amounts appropriated under subsection (a)
for each fiscal year, the Secretary of the Treasury shall allot to each
of the States as follows, except that no State shall receive less than
\1/2\ of 1 percent of such amount:
(1) State level.--50 percent shall be allotted among such
States on the basis of the relative population of each such
State, as determined by the Secretary of the Treasury on the
basis of the most recent decennial census.
(2) Local government level.--50 percent shall be allotted
among such States as determined under paragraph (1) for
distribution by the State to the various units of general local
government within such States on the basis of the relative
population of each such unit within each such State, as
determined by the Secretary of the Treasury on the basis of the
most recent decennial census.
(d) Effective Date.--Not later than 45 days after the date of
enactment of this Act, the Secretary of the Treasury shall make
payments to States under this section for fiscal year 2003. The
Secretary of the Treasury shall make subsequent fiscal year payments
not later than one year following the prior fiscal year's payments
under this section.
SEC. 5. DEFINITIONS.
In this Act:
(1) State.--The term ``State'' means any of the several
States, the District of Columbia, and the Commonwealth of
Puerto Rico.
(2) Unit of general local government.--
(A) In general.--The term ``unit of general local
government'' means--
(i) a county, parish, township, city, or
political subdivision of a county, parish,
township, or city, that is a unit of general
local government as determined by the Secretary
of Commerce for general statistical purposes;
and
(ii) the District of Columbia, the
Commonwealth of Puerto Rico, and the recognized
governing body of an Indian tribe or Alaskan
native village that carries out substantial
governmental duties and powers.
(B) Treatment of subsumed areas.--For purposes of
determining a unit of general local government under