Department of Education

IMPACT AID

Fiscal Year 2014 Budget Request

CONTENTS

Page

Appropriations Language.......................................................................................................... D-1

Appropriation Adjustments and Transfers ................................................................................ D-2

Summary of Changes ............................................................................................................... D-3

Authorizing Legislation.............................................................................................................. D-4

Appropriations History............................................................................................................... D-5

Summary of Request ................................................................................................................ D-6

Activities: ................................................................................................................................... D-8

Payments for federally connected children: ......................................................................... D-8

Basic support payments......................................................................................................D-8

Payments for children with disabilities ..............................................................................D-17

Facilities maintenance.......................................................................................................... D-21

Construction ......................................................................................................................... D-23

Payments for Federal property............................................................................................. D-29

State Tables*............................................................................................................................. D-34

IMPACT AID.............................................................................................................................. D-34

IMPACT AID.............................................................................................................................. D-35

* State tables reflecting final 2013 allocations and 2014 estimates will be posted on the Department’s Web page at: 

http://www2.ed.gov/about/overview/budget/statetables/index.html#update.
IMPACT AID

D-1

Appropriations Language

NOTE

No new language is included for this account. All programs are authorized under the expired Elementary and 

Secondary Education Act; when new authorizing legislation for the Elementary and Secondary Education Act is enacted, a 

budget for these programs will be proposed.
IMPACT AID

D-2

Appropriation Adjustments and Transfers

(dollars in thousands)

Appropriation/Adjustments/Transfers 2012 2013 2014

Discretionary:

DiscretionaryAppropriation ...................................................... $1,293,631 $1,291,186 $1,224,239

Discretionary Across-the-board reduction (P.L. 112-74).......... -2,445 0 0

Discretionary Across-the-board increase (P.L. 112-175)......... 0 +7,902 0

Total, adjusted discretionary appropriation... 1,291,186 1,299,088 1,224,239
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D-3

Summary of Changes

(dollars in thousands)

2012............................................................................................... $1,291,186

2014............................................................................................... 1,224,239

Net change ............................................................ -66,947

Decreases: 2012 base

Change 

from base

Program:

Program Eliminate funding for Payments for Federal Property, 

which are payments made without regard to the presence 

of federally connected children. $66,947 -$66,947

Subtotal, decreases -66,947

Net change -66,947
IMPACT AID

D-4

Authorizing Legislation

(dollars in thousands)

Activity

2013

Authorized

footnote

2013

Estimate

footnote

2014

Authorized

footnote

2014

Request

footnote

Payments for federally connected children:

Payments for federally connected children:Basic support payments (ESEA-VIII-8003(b) and (e)) 01 $1,153,540 01 $1,153,540

Payments for federally connected children:Payments for children with disabilities

(ESEA-VIII-8003(d)) 01 48,413 01 48,413

Facilities maintenance: (ESEA-VIII-8008) 01 4,845 01 4,845

Construction (ESEA-VIII-8007) 01,2 17,4413 01 17,4414

Payments for Federal property (ESEA-VIII-8002) 01 66,947 05 0

Total definite authorization

Total appropriation 1,291,186 1,224,239

Portion of request subject to reauthorization 1,224,239

Total appropriation including 0.612 percent ATB increase 1,299,088

1

 The GEPA extension expired September 30, 2008; reauthorizing legislation is sought for FY 2014. 2

 The statute provides that 40 percent of the funds appropriated for Construction under section 8007 shall be used to make formula payments under 

section 8007(a) and 60 percent shall be used to make competitive awards under section 8007(b). 3

 The 2013 estimate is based on 2012 appropriations language making Construction funds available for competitive awards only. 4 The Administration proposes that the Construction funds requested in fiscal year 2014 be available for competitive awards only. 5 The GEPA extension expired September 30, 2008; no appropriations language or reauthorizing legislation is sought for FY 2014.
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D-5

Appropriations History

(dollars in thousands)

Year

Budget 

Estimate

to Congress

House 

AllowanceFootnote

Senate 

Allowance Footnote Appropriation

2005 $1,229,527 $1,250,893 $1,229,527 $1,243,862

2006 1,240,862 1,240,862 1,240,862 1,228,453

2007 1,228,453 N/A1 N/A1 1,228,453

2008 1,228,100 1,278,453 1,248,453 1,240,717

2009 1,240,718 1,290,7182 1,240,7182 1,265,718

Recovery Act Supplemental (P.L.

111-5) 0 100,000 100,000 100,000

2010 1,265,718 1,290,718 1,265,7183 1,276,183

2011 1,276,183 1,276,1834 1,296,1833 1,273,6315

2012 1,276,183 1,308,6316 1,273,6316 1,291,186

2013 1,224,239 1,291,1867 1,291,1867 1,299,0898

2014 1,224,239

________________________________

1 This account operated under a full-year continuing resolution (P.L. 110-5). House and Senate allowances are shown as 

N/A (Not Available) because neither body passed a separate appropriations bill. 2 The levels for the House and Senate allowances reflect action on the regular annual 2009 appropriations bill, which 

proceeded in the 110th Congress only through the House Subcommittee and the Senate Committee. 3 The level for the Senate allowance reflects Committee action only. 4 The level for the House allowance reflects the House-passed full-year continuing resolution. 5 The level for appropriation reflects the Department of Defense and Full-Year Continuing Appropriations Act, 2011 (P.L. 

112-110). 6 The level for the House allowance reflects an introduced bill; the level for the Senate allowance reflects Senate 

Committee action only. 7 The level for the House and Senate allowances reflect action on the regular annual 2013 appropriations bill, which 

proceeded in the 112th Congress only through the House Subcommittee and the Senate Committee. 8 The amount shown includes the 0.612 percent across-the-board increase provided by P.L. 112-175, in effect through 

March 27, 2013.
DEPARTMENT OF EDUCATION FISCAL YEAR 2010 PRESIDENT'S BUDGET

Summary of 

Request

Click here for accessible version 

(in thousands of dollars) 2014

Category 2012 2013 President's

Account, Program and Activity Code Appropriation Appropriation Budget Amount Percent

Impact Aid

 1. Payments for federally connected children:

(a) Basic support payments (ESEA VIII, section 8003(b)) D 1,153,540 1,153,540 1,153,540 0 0.000%

(b) Payments for children with disabilities (ESEA VIII, section 8003(d)) D 48,413 48,413 48,413 0 0.000%

 2. Facilities maintenance (ESEA VIII, section 8008) D 4,845 4,845 4,845 0 0.000%

 3. Construction (ESEA VIII, section 8007) D 17,441 17,441 17,441 0 0.000%

 4. Payments for Federal property (ESEA VIII, section 8002) D 66,947 66,947 0 (66,947) -100.000%

Total D 1,291,186 1,291,186 1,224,239 (66,947) -5.185%

Across-the-board 0.612% increase applied to discretionary appropriation, provided in P.L. 112-175. 7,902

Total 1,291,186 1,299,088 1,224,239 (66,947) -5.185%

NOTES: D = discretionary program, M = mandatory program; FY = fiscal year 

- FY 2013 discretionary appropriation amounts are based on P.L. 112-175, the Continuing Appropriations Resolution, 2013, that provided appropriations through March 27, 2013. FY 2013 mandatory amounts are 

either specifically authorized levels, or are based on FY 2013 President's Budget Policy, updated for more recent estimates of mandatory costs, or FY 2014 President's Budget Policy, as applicable.

- Programs authorized by the Elementary and Secondary Education Act for which funds are requested or that are proposed for consolidation in FY 2014 are proposed under new authorizing legislation. 

- Multiple programs affected by the proposed ESEA reauthorization have been renamed and moved among accounts, some of which also have been renamed. 

- Account totals and programs shown within accounts in FY 2012 and FY 2013 have been adjusted for comparability with the FY 2014 President's Budget.

Detail may not add to totals due to rounding.

2014 President's Budget 

Compared to 2012 Appropriation

D-6
IMPACT AID

D-7

Summary of Request

The Impact Aid program provides financial assistance to school districts affected by Federal 

activities. The presence of certain children living on Federal property across the country can 

place a financial burden on the local educational agencies (LEAs) that educate them because 

such property is exempt from local property taxes, denying LEAs access to the primary source of 

revenue used by most communities to finance education. Impact Aid helps replace the lost local 

revenue that would otherwise be available to LEAs to pay for the education of these children.

The Administration requests $1.2 billion in fiscal year 2014 for Impact Aid payment authorities, 

including:

• $1.154 billion for Basic Support Payments on behalf of federally connected children. 

These funds provide grants for both regular Basic Support Payments and Basic Support 

Payments for Heavily Impacted LEAs.

• $48.4 million for Payments for Children with Disabilities. These payments are made on 

behalf of federally connected children with disabilities in order to help eligible LEAs meet the 

mandate under the Individuals with Disabilities Education Act to provide a free appropriate 

public education to all children with disabilities.

• $4.8 million for Facilities Maintenance. The Department of Education owns and maintains 

16 school facilities that originally were built to enable LEAs and the Department of Defense 

to educate federally connected students. The request would enable the Department of 

Education both to continue to transfer these schools to LEAs and to make emergency 

repairs to the remaining school buildings.

• $17.4 million for Construction payments to LEAs, with the money to be used only for the 

competitive portion of the program. LEAs generally pay for most of their school construction 

costs using local, as opposed to State and Federal, resources and rely on property taxes to 

finance these costs. Competitive grants assist federally affected LEAs that do not have 

access to those local resources in making emergency repairs and renovations and 

modernizing schools.

No funds are requested for Payments for Federal Property. This authority provides payments 

to LEAs without regard to the presence of federally connected children and, therefore, do not 

necessarily support the provision of educational services for these children.

The Impact Aid programs are among the Elementary and Secondary Education programs 

subject to reauthorization. The Administration is proposing minor changes to these programs.
IMPACT AID

D-8

Activities:

Payments for federally connected children:

Basic support payments

(Elementary and Secondary Education Act, Title VIII, section 8003(b) and (e))

(dollars in thousands)

FY 2014 Authorization: 0 1

Budget Authority: 

Change

2012 2013 2014 from 2012

$1,153,540 $1,153,540 2 $1,153,540 0 _____________________

1

 The GEPA extension expired September 30, 2008. Reauthorizing legislation is sought for FY 2014. 2

 Excludes a 0.612 percent across-the-board increase provided in P.L. 112-175.

PROGRAM DESCRIPTION

Impact Aid Basic Support Payments compensate local educational agencies (LEAs) for the 

expense of educating federally connected children. In communities across the country, the 

presence of Federal activities can both increase the number of students and decrease the local 

property tax base, which is the major source of revenue for education in most LEAs. Basic 

Support Payments go into the general funds of these LEAs, which use them for such expenses 

as teacher salaries, computers, curricular materials, regular and special instruction programs, 

and utilities.

The Impact Aid statute authorizes Basic Support Payments to LEAs on behalf of the following 

categories of federally connected students:

(A) students who live on Federal property with a parent employed on Federal property 

situated in whole or in part within the boundaries of the LEA, or with a parent who is a foreign 

military officer accredited by a foreign government;

(B) students who live on Federal property and who have a parent on active duty in the 

uniformed services of the United States;

(C) students who live on certain Indian lands;

(D) students who do not live on Federal property but who have a parent on active duty in 

the uniformed services of the United States, or a parent who is a foreign military officer 

accredited by a foreign government;

(E) students who reside in a low-rent housing project assisted under the United States 

Housing Act of 1937;

(F) students who live on Federal property but otherwise do not fit into any of the categories 

described above; and
IMPACT AID

Basic support payments

D-9

(G) students who do not reside on Federal property but who have a parent employed on 

Federal property situated in whole or in part in the same State as the LEA.

An LEA that claims students living on Indian lands under category (C) is required to consult with 

the parents and tribes of these children concerning their education and to ensure that these 

children receive equal educational opportunities. The LEA must develop and file with the 

Department a set of Indian policies and procedures describing how it meets this requirement. 

Children living on Indian lands receive a weight of 1.25 in the Basic Support Payments formula, 

higher than the weights assigned to other categories of federally connected children. These 

children often are disadvantaged and live in isolated rural areas, factors that can result in 

increased costs to the school districts that serve them.

The law authorizes two different types of Basic Support Payments: Regular Basic Support 

Payments and Basic Support Payments for Heavily Impacted LEAs. Under the statutory 

payment formula, funds are used first to make the maximum payment for each of the heavily 

impacted LEAs. The remaining funds are used to make regular Basic Support Payments.

Regular Basic Support Payments (section 8003(b)(1))

An LEA is eligible for Basic Support Payments only if the total number of eligible federally 

connected students described above is at least 400 in average daily attendance or 3 percent of 

total average daily attendance. In order to receive payments on behalf of students in categories 

(F) and/or (G) (also referred to as "civilian b's"), an LEA must have at least 1,000 such students 

in average daily attendance, or the number of such students must equal or exceed 10 percent of 

the total average daily attendance in that LEA.

To determine the maximum payment an LEA may receive, the statute specifies weights for each 

category of federally connected students. The formula multiplies this weighted student count by 

the greatest of four local contribution rates (LCRs), which are intended to represent the local 

share of the cost of educating these students, to determine the LEA's maximum payment. The 

four LCR options are:

• one-half of the U.S. average per-pupil expenditure for education;

• one-half of the State per-pupil expenditure (SPPE);

• the LCR of comparable LEAs in the State; and

• the product of the SPPE and the local contribution percentage (the percentage of education 

expenditures that comes from the local level) in the State.

If appropriations are insufficient to make maximum payments in full, the formula reduces 

maximum payments by multiplying them by a percentage, called the Learning Opportunity 

Threshold (LOT) percentage, which is the sum of:

• the percentage of the LEA’s students in average daily attendance who are federally 

connected; and

• its maximum payment under the Basic Support Payments formula as a percentage of total 

current expenditures.
IMPACT AID

Basic support payments

D-10

The sum of these two percentages may not exceed 100 percent. In addition to this maximum 

LOT, LEAs with an enrollment of fewer than 1,000 students and a per-pupil expenditure below 

the State or national average receive a minimum LOT of 40 percent. A LOT percentage, when 

multiplied by a maximum payment, results in a LOT payment. If the appropriation is insufficient 

to provide LOT payments in full, the formula ratably reduces these payments. If the level of 

funding exceeds the level needed to fund LOT payments fully, but is insufficient to provide 

maximum payments to all LEAs, the formula ratably increases these payments above the LOT. 

These ratably increased LOT payments, however, may not exceed an LEA’s maximum payment.

Basic Support Payments for Heavily Impacted LEAs (section 8003(b)(2))

The eligibility criteria and payment formulas for Basic Support Payments for Heavily Impacted 

LEAs are particularly complex. There are two sets of eligibility criteria. One set is for LEAs that 

received these payments in fiscal year 2000 and the second, more stringent set is for all other 

eligible LEAs. The latter LEAs were not eligible to receive payments until fiscal year 2002. 

LEAs that received a payment in fiscal year 2000 and fail to meet the eligibility criteria in a 

subsequent year continue to receive a Basic Support Payment for Heavily Impacted LEAs in the 

first year that they fail to meet the criteria.

The “heavily impacted” maximum payments are based on a formula that is similar to the regular 

Basic Support Payments but that produces much larger payments for the eligible LEAs. Under 

the formula for heavily impacted LEAs, LEAs receive funds on behalf of students in categories 

(F) and (G) (also referred to as civilian “b’s”) even if the number of those students falls below the 

threshold of 1,000 or 10 percent that applies to regular Basic Support Payments. Moreover, 

many recipients’ payments are based on substantially higher weights for federally connected 

students than apply to regular payments for the same types of students. Heavily impacted LEAs 

receive higher weights for their federally connected students based on the number of students in 

the LEA, the composition of the students within the LEA, or a combination of the two. For 

instance, federally connected students receive weights ranging from .05 to 1.35 under the 

regular Basic Support Payments formula, but receive a weight of 1.75 per student under the 

Basic Support Payments for Heavily Impacted LEAs formula, provided that the LEA has 100 or 

fewer federally connected students.

The local contribution rates (LCRs) are also much higher under the heavily impacted formula. 

They are the higher of:

• 80 percent of the U.S. average per-pupil expenditure for education; or

• 80 percent of the SPPE.

Heavily Impacted LEAs receive their maximum Heavily Impacted payments so long as funding is 

sufficient to cover the maximum payments for these LEAs and funds are sufficient to fully fund 

LOT payments for regular LEAs under section 8003(b)(1). If the appropriation is insufficient to 

provide LOT payments in full for regular LEAs under section 8003(b)(1), Basic Support 

Payments to heavily impacted LEAs are ratably reduced by the same percentage as payments 

to regular LEAs.

The authorizing law also makes an LEA meeting certain unique criteria eligible for Basic Support 

Payments for Heavily Impacted LEAs. A school district is eligible under this provision if:
IMPACT AID

Basic support payments

D-11

• its boundaries are identical to island property designated by the Secretary of the Interior as 

being held in trust by the Federal Government,

• it has no taxing authority, and

• it received a regular Basic Support Payment in fiscal year 2001.

Funding levels for the past 5 fiscal years were:

Fiscal Year (dollars in thousands)

2009 ................................................................................... $1,128,535

2010 ..................................................................................... 1,138,000

2011 ..................................................................................... 1,135,724

2012 ..................................................................................... 1,153,540

2013 ..................................................................................... 1,153,5401

_________________

1 Excludes a 0.612 percent across-the-board increase provided in P.L. 112-175.

FY 2014 BUDGET REQUEST

For 2014, the Administration requests $1.2 billion for Basic Support Payments, the same as the 

2012 level, for an Impact Aid Basic Support Payments program that would be implemented 

consistent with the Administration’s ESEA reauthorization proposal. The Administration is 

proposing minor changes to this authority, most notably basing payment calculations on currentyear data rather than prior-year data for districts that experience enrollment increases of greater 

than 100 students or 10 percent of their total federally connected students as a direct result of 

global rebasing. Allowing the use of current-year data in these limited cases would allow the 

Department to make payments that reflect the burden for an LEA with large enrollment 

increases. Another change would provide continued eligibility for students affected by the 

deployment or death of their military parents, ensuring greater consistency and support for 

children adversely affected by ongoing military action overseas.

The request recognizes that the so-called “a” students (Indian, military, and civilian) – primarily 

students who reside on Indian lands or who reside on and whose parents work on Federal 

property – represent a major financial expense for LEAs that must educate them. Because 

federally owned land and Indian lands are exempt from local taxes, LEAs lack the ability to raise

funds to educate these students using property taxes, which are the primary source of local 

revenue for public education costs.

Although the presence of the so-called “b” students (military, civilian, and low-rent housing) 

residing on, or whose parents work on, private property does not create the same financial 

burden for LEAs, it is still significant. The families of military “b’s” pay property taxes on their 

residences but typically pay little in sales tax and, often, because of the Soldiers and Sailors 

Relief Act, do not pay income taxes to their State or locality of residence. While all types of “b” 

students either reside on, or have parents who work on, property that the district cannot tax, the 

education of children who reside in low-rent housing is costly to districts because these children 

bring to schools all the issues associated with poverty.
IMPACT AID

Basic support payments

D-12

The 2014 request level would be sufficient to maintain the Department’s commitment to almost 

950,000 federally connected students. While LEAs may expend their payments for either 

current operations or capital costs, the program’s formula is designed to compensate LEAs for 

current expenditures for educating federally connected students. Most districts report that they 

use Basic Support Payments for payroll and general operating expenditures.

The Basic Support Payments program is authorized by the Elementary and Secondary 

Education Act of 1965 and is, therefore, subject to reauthorization.

PROGRAM OUTPUT MEASURES (amounts in whole dollars)

Measures 2012 2013 2014

All eligible LEAs

All eligible LEAs:Number of LEAs receiving payments 1,184 1,184 1,184

All eligible LEAs:Range of payments $66-

54,747,995

$66-

54,747,995

$66-

54,747,995

Regular LEAs

Regular LEAs:Number of LEAs receiving payments 1,159 1,159 1,159

Regular LEAs:Range of payments $66-

46,491,294

$66-

46,491,294

$66-

46,491,294

Heavily impacted LEAs

Heavily Impacted LEAs:Number of LEAs receiving payments 25 25 25

Heavily Impacted LEAs:Range of payments $1,004,295-

54,747,995

$1,004,295-

54,747,995

$1,004,295-

54,747,995

Number of federally connected students

Federally connected students:In regular LEAs 887,737 887,737 887,737

Federally connected students:In heavily impacted LEAs 53,711 53,711 53,711

Federally connected students:In all eligible LEAs 941,448 941,448 941,448

Total payments for students

Payments:In regular LEAs $920,098,727 $920,098,727 $920,098,981

Payments:In heavily impacted LEAs $233,440,955 $233,440,955 $233,441,019

Average payment per student

Average payment:In all LEAs $1,225 $1,225 $1,225

Average payment:In regular LEAs $1,036 $1,036 $1,036

Average payment:In heavily impacted LEAs $4,346 $4,346 $4,346
IMPACT AID

Basic support payments

D-13

Measures 2012 2013 2014

Percentage of LEAs 

by size of payment

$1-4,999 6.3% 6.3% 6.3%

$5,000-49,999 33.4% 33.4% 33.4%

$50,000-499,999 38.0% 38.0% 38.0%

$500,000 or more 22.3% 22.3% 22.3%

Total dollar amount of payments 

by size of payment

$1-4,999 $219,151 $219,151 $219,151

$5,000-49,999 $8,293,201 $8,293,201 $8,293,203

$50,000-499,999 $83,412,192 $83,412,192 $83,412,215

$500,000 or more $1,061,615,138 $1,061,615,138 $1,061,615,431

Average payment per child 

by percentage of federally

connected children

0-19 percent $177 $177 $177

20-39 percent $729 $729 $729

40-59 percent $2,772 $2,772 $2,772

60-79 percent $4,923 $4,923 $4,923

80 percent or more $6,998 $6,998 $6,998

Number of students

“a” students 1 223,521 223,521 223,521

Indian “a” students 113,801 113,801 113,801

Military “a” students 106,910 106,910 106,910

Civilian “a” students 2,810 2,810 2,810

“b” students 2 720,149 720,149 720,149

Military “b” students 267,537 267,537 267,537

Low-rent housing “b” students 225,649 225,649 225,649

Civilian “b” students 225,702 225,702 225,702

Total payments

“a” students 1 $1,009,003,402 $1,009,003,402 $1,009,003,681

Indian “a” students $600,620,118 $600,620,118 $600,620,284

Military “a” students $402,394,105 $402,394,105 $402,394,216

Civilian “a” students $5,989,179 $5,989,179 $6,015,181

“b” students 2 $144,536,280 $144,536,280 $144,536,319

Military “b” students $106,636,331 $106,636,331 $106,636,360

Low-rent housing “b” students $14,568,718 $14,568,718 $14,568,722

Civilian “b” students $23,331,231 $23,331,231 $23,331,237
IMPACT AID

Basic support payments

D-14

Measures 2012 2013 2014

Average payments per child

“a” students 1 $4,514 $4,514 $4,514

Indian “a” students $5,278 $5,278 $5,278

Military “a” students $3,764 $3,764 $3,764

Civilian “a” students $2,132 $2,132 $2,132

“b” students 2 $201 $201 $201

Military “b” students $399 $399 $399

Low-rent housing “b” students $65 $65 $65

Civilian “b” students $103 $103 $103

Cost of fully funding 

maximum payments $2,104,709,235 $2,104,709,235 $2,104,709,235

_________________

NOTE: 2013 excludes a 0.612 percent across-the-board increase provided in P.L. 112-175. All figures are 

estimates based on student count and payment data from 2012.

1 “a” students are generally those students who live on Indian lands or whose parents both live and work on 

Federal property, as defined in subsections 8003(a)(1)(A)-(C). 2 “b” students are generally those students who either reside on Federal land with their parents or whose 

parents work on Federal land, as defined in subsections 8003(a)(1)(D)-(G). 

PROGRAM PERFORMANCE INFORMATION

Performance measures

This section presents selected program performance information, including, for example, GPRA 

goals, objectives, measures, and performance targets and data; and an assessment of the 

progress made toward achieving program results. Achievement of program results is based on 

the cumulative effect of the resources provided in previous years and those requested in 

FY 2014 and future years, as well as the resources and efforts invested by those served by this 

program.

Goal: To provide appropriate financial assistance for federally connected children who 

present a genuine burden to their school districts

Objective: Properly compensate districts for revenue lost due to a Federal presence.

Measure: The percentage of Basic Support Payment recipients (excluding districts that receive 

payments for “heavily impacted” districts) that have per-pupil expenditures between 80 and 

120 percent of their State average per-pupil expenditure.
IMPACT AID

Basic support payments

D-15

Year Target Actual

2009 65 62.7

2010 65 63.1

2011 65 63.2

2012 67

2013 67

2014 67

Measure: The percentage of Basic Support Payment recipients designated as “heavily 

impacted” districts that have per-pupil expenditures between 80 and 120 percent of their State 

average per-pupil expenditure.

Year Target Actual

2009 60 60.7

2010 60 69.6

2011 60 64.0

2012 75

2013 75

2014 75

Additional information: These measures, developed by the Department in 2008, serve as 

proxies for how well Impact Aid payments make up for the revenue lost due to the presence of 

federally connected students. Districts spending more than 20 percent above or below the State 

average are likely being under- or over-compensated. In 2011, 63.2 percent of regular districts 

spent more than 120 percent of the State average while 64 percent of heavily impacted districts 

spent more than 120 percent of the State average. Targets were set using 2006 data as the 

baseline. Data compiled for 2011 show that the target was met for heavily impacted districts but 

not for the regular districts, though there was an improvement over 2009. Data for 2012 will be 

available in May 2013.

Efficiency measures

Measure: The number of requests to forgive overpayments of Basic Support Payments.

Year Target Actual

2009 10 7

2010 10 1

2011 10 5

2012 10 4

2013 10

2014 10

Additional information: This performance measure provides a proxy for calculating the extent 

to which the Department’s payments to nearly 1,200 LEAs are accurate. The data show that the 
IMPACT AID

Basic support payments

D-16

accuracy of payments has not been a recent problem. In 2012, the number of requests received 

from LEAs for overpayment forgiveness was below the target ceiling of 10 requests.

Measure: The percentage of eligible applicants that receive initial Basic Support Payments 

within 60 days after the enactment of an appropriation.

Year Target Actual

2009 90 95

2010 90 87

2011 90 93

2012 90 91

2013 90

2014 90

Additional information: This measure tracks the timeliness of Basic Support Payments made 

by the Department. The Department has successfully met and exceeded the performance target

in 3 of the past 4 years, including fiscal year 2012.

Other Performance Information

A study of the Impact Aid program published in 2007 examined the financial burdens that school 

districts face due to a Federal presence and how well Impact Aid funds are targeted to those 

affected districts. While targeting of funds to the districts with the greatest financial need was 

found to be poor overall, the analysis found better results with models that excluded heavily 

impacted districts and districts with Indian lands.

The Department contracted for additional analyses in 2008, published in 2010, that expanded on 

the previous study by examining the extra costs of educating students living on Indian lands, 

determining the impact of the Local Contribution Rates (LCRs) on the formula allocations, and 

developing an improved model to track the performance of the funding formula. The study found 

that districts serving students living on Indian lands face higher costs of education associated 

with higher need, due to many of the same challenges that districts serving other low-income 

populations face as well as challenges unique to Native American populations, including 

geographic isolation and unique cultural needs. In looking at the various local contribution rate 

options that exist in the current Basic Support Payments formula, the study found that the 

elimination of the National Average Per-Pupil spending as a local contribution rate would narrow 

the difference in per-pupil spending between Impact Aid districts and comparable non-Impact 

Aid districts but would not improve the targeting of funds to districts with the greatest need.
IMPACT AID

D-17

Payments for children with disabilities

(Elementary and Secondary Education Act, Title VIII, section 8003(d))

(dollars in thousands)

FY 2014 Authorization: 0 1

Budget Authority: 

Change

2012 2013 2014 from 2012

$48,413 $48,413 2 $48,413 0 _____________________

1

 The GEPA extension expired September 30, 2008. Reauthorizing legislation is sought for FY 2014. 2

 Excludes a 0.612 percent across-the-board increase provided in P.L. 112-175.

PROGRAM DESCRIPTION

The Individuals with Disabilities Education Act (IDEA) mandates that local educational agencies 

(LEAs) provide a free appropriate public education to students with disabilities, whose 

educational costs are generally higher than those of other students. Payments for Children with 

Disabilities provides supplemental assistance to LEAs that are deprived of local revenue due to 

a Federal presence by providing a portion of the cost of educating federally connected students 

with disabilities that, in other LEAs, is met with local funds.

ESEA section 8003(d)(1) authorizes payments to LEAs that meet the eligibility requirements 

under the Basic Support Payments authority for the following categories of federally connected 

students who are eligible for services under the IDEA:

(A) students who live on Federal property with a parent who is a foreign military officer 

accredited by a foreign government;

(B) students who live on Federal property and who have a parent on active duty in the 

uniformed services of the United States;

(C) students who live on Indian lands; and

(D) students who do not live on Federal property but who have a parent on active duty in 

the uniformed services of the United States or a parent who is a foreign military officer 

accredited by a foreign government.

Available funds are paid to LEAs based on the number of eligible students with disabilities 

enrolled in each LEA, except that a student in category (D) receives one-half of the weight 

provided for students in categories (A), (B), and (C). Funds are ratably distributed based on the 

weighted student count.
IMPACT AID

Payments for children with disabilities

D-18

LEAs that receive payments under this authority must use the funds to provide the students who 

are counted with a free appropriate public education in accordance with the IDEA. These

payments are intended to help pay the "excess costs" of educating these students (that is, those 

costs that are greater than what is spent on educating a student without a disability).

Funding levels for the past 5 fiscal years were:

Fiscal Year (dollars in thousands)

2009 ........................................................................................ $48,602

2010 .......................................................................................... 48,602

2011 .......................................................................................... 48,505

2012 .......................................................................................... 48,413

2013 .......................................................................................... 48,4131

_________________

1 Excludes a 0.612 percent across-the-board increase provided in P.L. 112-175.

FY 2014 BUDGET REQUEST

For 2014, the Administration requests $48.4 million for Payments for Children with Disabilities,

the same as the 2012 level. These payments would be made on behalf of federally connected 

children with disabilities in order to help eligible LEAs meet the mandate under the Individuals 

with Disabilities Education Act (IDEA) to provide a free appropriate public education to all 

children with disabilities. The Payments for Children with Disabilities program is authorized by 

the Elementary and Secondary Education Act of 1965 and is, therefore, subject to 

reauthorization. The Administration is not proposing changes to this authority.

Payments for Children with Disabilities help federally affected LEAs provide the special 

education services required by the Individuals with Disabilities Education Act. A Department 

publication, What Are We Spending on Special Education Services in the United States, 1999-

2000, estimated the cost of educating a student with a disability to be about twice the amount 

needed for the typical regular education student with no special needs. In 2014, using the 

national average per-pupil expenditure as the measure of excess cost of educating a federally 

connected student with a disability, the combination of IDEA funds and Payments for Children 

with Disabilities would provide, on average, 24 percent of the excess cost to eligible LEAs. The 

supplemental funding under this authority is justified because federally affected LEAs are unable 

to tax Federal property even though they educate children with disabilities who reside with their 

parents on Federal lands.
IMPACT AID

Payments for children with disabilities

D-19

PROGRAM OUTPUT MEASURES (amounts in whole dollars)

Measures 2012 2013 2014

Number of LEAs receiving payments 890 890 890

Range of payments $517-

1,209,129

$517-

1,209,129

$517-

1,209,121

Percentage of LEAs 

by size of payment

$1-4,999 21.0% 21.0% 21.0%

$5,000-19,999 32.3% 32.3% 32.3%

$20,000-99,999 33.9% 33.9% 33.9%

$100,000 or more 12.8% 12.8% 12.8%

Total dollar amount of payments 

by size of payment

$1-4,999 $476,694 $476,694 $476,694

$5,000-19,999 $3,226,936 $3,226,936 $3,226,914

$20,000-99,999 $14,099,386 $14,099,386 $14,099,291

$100,000 or more $30,610,310 $30,610,310 $30,610,104

Number of “a” students eligible 1 30,629 30,629 30,629

Number of “b” students eligible 2 24,839 24,839 24,839

Total eligible students 55,468 55,468 55,468

Total funding for “a” students $34,446,064 $34,446,064 $34,445,833

Total funding for “b” students $13,967,261 $13,967,261 $13,967,167

Average payment per “a” student $1,125 $1,125 $1,125

Average payment per “b” student $562 $562 $562

Average total payment per student 3 $873 $873 $873

Average IDEA Grants to States

funding per student $1,766 $1,766 $1,767

Total average Federal

funding per student $2,639 $2,639 $2,640

_________________

NOTE: 2013 excludes a 0.612 percent across-the-board increase provided in P.L. 112-175. All figures are 

estimates based on student count and payment data from 2012.

1 “a” students are generally those students who live on Indian lands or whose parents both live and work on 

Federal property, as defined in subsections 8003(a)(1)(A)-(C). 2 “b” students are generally those students who either reside on Federal land with their parents or whose 

parents work on Federal land, as defined in subsections 8003(a)(1)(D)-(G). 3 Impact Aid Payments for Children with Disabilities.
IMPACT AID

Payments for children with disabilities

D-20

PROGRAM PERFORMANCE INFORMATION

Performance measures

This section presents selected program performance information, including, for example, GPRA 

goals, objectives, measures, and performance targets and data; and an assessment of the 

progress made toward achieving program results. Achievement of program results is based on 

the cumulative effect of the resources provided in previous years and those requested in 

FY 2014 and future years, as well as the resources and efforts invested by those served by this 

program.

Efficiency measures

Measure: The number of requests to forgive overpayments of Payments for Children with 

Disabilities.

Year Target Actual

2009 10 7

2010 10 1

2011 10 5

2012 10 4

2013 10

2014 10

Additional information: This performance measure provides a proxy for calculating the extent 

to which the Department’s payments to nearly 1,200 LEAs are accurate. The data show that the 

accuracy of payments has not been a recent problem.

Measure: The percentage of eligible applicants who receive initial Payments for Children with 

Disabilities within 60 days after the enactment of an appropriation.

Year Target Actual

2009 90 95

2010 90 87

2011 90 93

2012 90 91

2013 90

2014 90

Additional information: This measure tracks the timeliness of Payments for Children with 

Disabilities made by the Department. The Department has successfully met the performance 

target in 3 of the past 4 years, including the most recent year, fiscal year 2012.
IMPACT AID

D-21

Facilities maintenance

(Elementary and Secondary Education Act, Title VIII, section 8008)

(dollars in thousands)

FY 2014 Authorization: 0 1

Budget Authority: 

Change

2012 2013 2014 from 2012

$4,845 $4,845 2 $4,845 0 _____________________

1

 The GEPA extension expired September 30, 2008. Reauthorizing legislation is sought for FY 2014. 2

 Excludes a 0.612 percent across-the-board increase provided in P.L. 112-175.

PROGRAM DESCRIPTION

The Department of Education (ED) makes awards under section 8008 of the Elementary and 

Secondary Education Act (ESEA) for emergency repairs and for comprehensive capital 

improvements to schools that ED owns but that local educational agencies (LEAs) use to serve 

federally connected military dependent students. In addition, the law mandates that the 

Secretary transfer these facilities to the appropriate LEAs or other entities as soon as 

practicable. ED may not charge LEAs for the use of these school buildings, and ED must gain 

an LEA's consent to accept them. Subject to these restrictions, ED may make the transfers on 

such terms as the Secretary deems appropriate. Funds for this program are available until 

expended.

Currently, the Department owns 32 schools that are on military bases and serve students whose 

parents are in the armed forces. Either the Department of Defense (DoD) or LEAs operate 

these schools. Since 1983, DoD has assumed financial responsibility for maintenance and 

renovation of many of these school facilities, which DoD operates as Domestic Dependents 

Elementary and Secondary Schools (DDESSs). The DoD is currently responsible for 

19 facilities while ED continues to be directly responsible for the other 13, which LEAs operate 

and use to educate military dependent students.

Funding levels for the past 5 fiscal years were:

Fiscal Year (dollars in thousands)

2009 .......................................................................................... $4,864

2010 ............................................................................................ 4,864

2011 ............................................................................................ 4,864

2012 ............................................................................................ 4,845

2013 ............................................................................................ 4,8451

_________________

1 Excludes a 0.612 percent across-the-board increase provided in P.L. 112-175.
IMPACT AID

Facilities maintenance

D-22

FY 2014 BUDGET REQUEST

For 2014, the Administration requests $4.8 million for Facilities Maintenance, the same as the 

2012 level. These funds would be used to upgrade and transfer school facilities currently owned 

by ED to local educational agencies (LEAs), which can manage school buildings in their 

communities more effectively than the Federal Government. In addition, funds would be used to 

provide emergency repairs, such as correcting health and safety hazards, in school facilities 

owned by ED that have not yet been transferred. The Facilities Maintenance program is 

authorized by the Elementary and Secondary Education Act of 1965 and is, therefore, subject to 

reauthorization. The Administration is not proposing changes to this authority.

Since fiscal year 2008, ED has completed the transfer to the Department of Defense (DoD), at 

no cost to ED, titles to 40 facilities that the DoD operates as Domestic Dependents Elementary 

and Secondary Schools (DDESSs), bringing the remaining number of schools owned by ED 

down to the current 32. ED is in the final stages of transferring to DoD the titles to the remaining 

19 facilities funded and operated by DoD.

LEAs operate the 13 remaining school facilities for which ED will continue to be responsible. In 

many instances, these facilities are deteriorated, are overcrowded, or otherwise do not meet 

current standards. Most LEAs are unwilling to accept the schools unless ED provides sufficient 

funds to the LEA to correct the problems. The estimated total cost for repairs and renovations to 

all 13 schools is approximately $65.0 million, a per-school cost of approximately $5.0 million.

PROGRAM OUTPUT MEASURES

Measures 2012 2013 2014

Number of properties receiving 

emergency repairs 3 1-2 1-2

Number of facilities transferred (owned by 

ED and operated by LEAs) 3 3 3

PROGRAM PERFORMANCE INFORMATION

The Department’s measure of progress for this program is the number of schools removed from 

the inventory of ED-owned facilities through transfers to LEAs. (The measure does not include 

no-cost transfers to DoD, as the maintenance of those schools is not supported through the 

program. However we will continue to track these DoD transfers until all of that inventory is 

accepted by DoD.) Since 1999, the number of schools for which the Department is responsible 

has decreased by 75 percent, from 53 to 13, thus reducing its responsibility for maintenance and 

renovation.
IMPACT AID

D-23

Construction

(Elementary and Secondary Education Act, Title VIII, section 8007)

(dollars in thousands)

FY 2014 Authorization: 0 1

Budget Authority: 

Change

2012 2013 2014 from 2012

$17,441 $17,441 2 $17,441 0

_________________

1 The GEPA extension expired September 30, 2008. Reauthorizing legislation is sought for FY 2014. 2

 Excludes a 0.612 percent across-the-board increase provided in P.L. 112-175.

PROGRAM DESCRIPTION

The Department makes formula and competitive grants under Section 8007 to support school 

construction in local educational agencies (LEAs) that educate federally connected students or 

have federally owned land. The authorizing law provides that 40 percent of appropriated funds 

must be used for formula grants under section 8007(a) and 60 percent for competitive grants 

under section 8007(b). However, Congress has routinely overridden this statutory requirement, 

instead funding only formula grants in fiscal years 2006, 2007, 2010, and 2011 and only 

competitive grants in fiscal years 2008, 2009 and 2012.

Formula grants (section 8007(a))

Three categories of LEAs are eligible for formula Construction grants:

• those in which the number of students living on Indian lands is at least 50 percent of the 

LEA’s total average daily attendance and that receive a regular Basic Support Payment;

• those in which the number of students with a parent in the uniformed services is at least 

50 percent of the LEA’s total average daily attendance and that receive a regular Basic 

Support Payment; and

• those that receive Basic Support Payments for Heavily Impacted LEAs.

One-half of the formula funds is paid to eligible LEAs on behalf of students residing on Indian 

lands and one-half is paid to eligible LEAs on behalf of students whose parents are in the 

uniformed services. Payments are determined by distributing half of the available funds among 

eligible LEAs based on each LEA’s share of the total weighted count of students living on Indian 

lands, as specified in the regular Basic Support Payments formula, and half of the available 

funds among eligible LEAs based on each LEA’s share of the total weighted count of students 

whose parents are in the uniformed services, as specified in the regular Basic Support 

Payments formula.
IMPACT AID

Construction

D-24

Competitive grants (section 8007(b))

The authorizing statute establishes the following priorities for awarding competitive construction 

grants:

First priority is given to emergency grants for school districts that are eligible to receive payments 

under the Impact Aid Construction formula and either have little or no bonding capacity or are 

eligible to receive payments as a “heavily impacted” school district under the Basic Support 

Payments formula.

Second in priority are emergency grants for:

• school districts that receive a payment under the Basic Support Payment formula and: 

(1) have at least 40 percent federally connected students residing on Indian lands or 

40 percent federally connected military students; (2) are at 75 percent or more of their limit of 

bonded indebtedness; and (3) have an equalized assessed value of property per student 

that is below the State average, and

• schools that: (1) are not operated by an LEA that would otherwise be eligible for an 

emergency grant; (2) have at least 40 percent federally connected students residing on 

Indian lands or 40 percent federally connected military students; and (3) are operated by an 

LEA that has used 75 percent or more of its limit of bonded indebtedness and has an 

equalized assessed value of property per student that is below the State average.

Third in priority are modernization grants for school districts that: (1) receive any type of Impact 

Aid payment; (2) are either “heavily impacted” or have little or no bonding capacity; and (3) have 

school facility needs resulting from the presence of the Federal Government.

Fourth in priority are modernization grants for: 

• school districts that either: (1) have at least 40 percent federally connected students residing 

on Indian lands or 40 percent federally connected military students; (2) have used 75 percent 

or more of their limit of bonded indebtedness; and (3) have an equalized assessed value of 

property per student that is below the State average; or (1) receive an Impact Aid Payment 

for Federal Property; (2) have used 75 percent or more of their limit of bonded indebtedness; 

and (3) have an equalized assessed value of property per student that is below the State 

average, and

• schools that: (1) are not operated by an LEA that would otherwise be eligible for a 

modernization grant; (2) have at least 40 percent federally connected students residing on 

Indian lands or 40 percent federally connected military students; and (3) are operated by an 

LEA that has used 75 percent or more of its limit of bonded indebtedness and has an 

equalized assessed value of property per student that is below the State average.

Construction funds are awarded on a competitive basis under the four priorities listed above. 

Within each of the four priorities, grants are awarded based on:

• the LEA’s level of bonded indebtedness,
IMPACT AID

Construction

D-25

• the assessed value of real property per student in the LEA compared to the average 

assessed value of real property per student in the State,

• the tax rate for school purposes in the LEA compared to the average rate in the State,

• funds available for capital expenditures,

• the percentage of property that is not taxable due to a Federal presence, and

• the number and percentage of certain types of federally connected students.

In addition, emergency grants are awarded, in part, based on severity of emergency, and 

modernization grants are awarded, in part, based on the severity of the need for modernization.

Competitive grant funds for certain LEAs may not exceed: (1) 50 percent of the total cost of the 

project assisted; or (2) $4.0 million during any 4-year period. Since 2002, competitive grants 

have been awarded to districts only under the first priority. When the appropriation for 

Construction has included funding for competitive grants, funds have been made available for 

2 years.

Funding levels for the past 5 fiscal years were:

Fiscal Year (dollars in thousands)

2009 ........................................................................................ $17,509

Recovery Act........................................................................... 100,000

2010 .......................................................................................... 17,509

2011 .......................................................................................... 17,509

2012 .......................................................................................... 17,441

2013 .......................................................................................... 17,4411

_________________

1 Excludes a 0.612 percent across-the-board increase provided in P.L. 112-175.

FY 2014 BUDGET REQUEST

For fiscal year 2014, the Administration requests $17.4 million for Construction, the same as the 

2012 level. These funds would be awarded consistent with the Administration’s reauthorization 

proposal for the Elementary and Secondary Education Act, which would eliminate the formula 

component of the program. By sending out funds through a competitive process, the 

Department can ensure that districts with the greatest needs receive meaningful amounts of 

funding to make emergency repairs.

Because school construction is primarily financed from local funds, and because federally 

affected local educational agencies cannot tax certain lands, LEAs with large percentages of 

federally connected students need supplemental funds for construction. The competitive grants 

enable eligible districts to undertake emergency renovations and modernizations. Past projects 

have included replacement of elementary schools; purchase of water filtration systems; 

replacement of heating, ventilation, and air conditioning systems; repair of electrical systems; 
IMPACT AID

Construction

D-26

and replacement of faulty windows and roofs. The program is well targeted because the 

eligibility pool is limited to some of the poorest districts in the Nation that are also heavily 

dependent on Federal funding for their operating and maintenance expenses.

PROGRAM OUTPUT MEASURES (amounts in whole dollars)

Measures 2012 2013 2014

Formula Grants 0 0 0

 ants:Number of LEAs receiving formula 

payments 0 0 0

 rants:Average LEA payment 0 0 0

 rants:Range of payments 0 0 0

 rants:Average payment per student 0 0 0

Competitive Grants $17,440,974 $17,440,974 $17,441,000

e Grants:Number of LEAs receiving competitive 

awards 11-12 8-12 8-12

e Grants:Range of payments $483,000-

2,700,000

$50,000-

5,000,000

$50,000-

5,000,000

e Grants:Peer review of new award applications $5,000 $5,000 $5,000

_________________

NOTE: 2013 excludes a 0.612 percent across-the-board increase provided in P.L. 112-175. 

PROGRAM PERFORMANCE INFORMATION

Performance measures

This section presents selected program performance information, including, for example, GPRA 

goals, objectives, measures, and performance targets and data; and an assessment of the 

progress made toward achieving program results. Achievement of program results is based on 

the cumulative effect of the resources provided in previous years and those requested in 

FY 2014 and future years, as well as the resources and efforts invested by those served by this 

program.

Goal: To provide appropriate financial assistance for federally connected children who 

present a genuine burden to their school districts.

Objective: Improve the quality of public school facilities used to educate federally connected 

children.
IMPACT AID

Construction

D-27

Measure: The percentage of participating LEAs reporting that the overall condition of their 

school buildings is adequate.

Year Target Actual

2009 67 69

2010 70 70

2011 70 71

2012 70 74

2013 70

2014 70

Additional information: LEAs that received formula or competitive construction payments in 

the previous year are asked to rate the quality of their buildings on a 6-point scale in their 

application for Impact Aid Basic Support payments. The Department has met or exceeded the 

performance target in each of the past 4 years.

Efficiency measures

Measure: The average number of days elapsed between the initial Impact Aid competitive 

construction award and the LEAs’ awarding of contracts.

Year Target Actual

2009 250 347

2010 250 N/A

2011 250 N/A

2012 250

2013 250

2014 250

Additional information: This efficiency measure is a measure of the speed with which LEAs 

award construction contracts after the Department makes the initial competitive construction 

awards. There are no data for 2010 or 2011 because the competitive grant program was not 

funded in those years. Targets for 2009, 2012, 2013 and 2014 have been set for 250 days. 

Data for 2012 are not available yet because not all of the LEAs that received a competitive grant 

have awarded contracts.
IMPACT AID

Construction

D-28

Measure: The percentage of all formula construction payments made by July 31 of the 

application year.

Year Target Actual

2009 70 N/A

2010 90 91

2011 90 98

2012 90 N/A

2013 90

2014 90

Additional information: Prior to 2007, formula construction payments were not made until the 

end of the fiscal year. Since then, the Department has attempted to make awards earlier in the 

year so that LEAs will have access to funds during the summer, when most construction projects 

take place. Data are not shown for 2009 and 2012 because no funding was appropriated for 

formula grants for those years. The Department has exceeded the target in each of the past 

2 years in which funding for formula construction grants has been appropriated.
IMPACT AID

D-29

Payments for Federal property

(Elementary and Secondary Education Act, Title VIII, section 8002)

(dollars in thousands)

FY 2014 Authorization: 0 1

Budget Authority: 

Change

2012 2013 2014 from 2012

$66,947 $66,947 2 $0 -$66,947 _____________________

1

 The GEPA extension expired September 30, 2008. No appropriations language or reauthorizing legislation is 

sought for FY 2014. 2

 Excludes a 0.612 percent across-the-board increase provided in P.L. 112-175.

PROGRAM DESCRIPTION

The Department of Education makes Payments for Federal Property under section 8002(b) to 

LEAs that have lost at least 10 percent of the assessed value of their tax base due to the 

acquisition, since 1938, of real property by the United States Government. Section 8002 of the 

ESEA was recently amended by Section 563 of the National Defense Authorization Act (NDAA) 

for fiscal year 2013 (P.L. 112-239), making changes with respect to applications submitted for 

fiscal years 2010 through 2015. The NDAA amendments sunset after fiscal year 2015, at which 

point the program would revert to current law. The following descriptions explain formula 

calculations under the underlying ESEA statute and under NDAA amendments. 

ESEA Statute (applicable before fiscal year 2010 and after fiscal year 2015)

If fully funded, the funding formula would provide payments by multiplying the current levied local 

real property tax rate of the LEA (or, in financially dependent school districts, an imputed real 

property tax rate) by the estimated current aggregate assessed value of the Federal property, as 

determined by the local tax assessor, based on the highest and best use of adjacent property.

However, when full funding is not provided, as in recent years, payments are based on a “holdharmless” formula designed to preserve historic funding levels for individual LEAs.

• First, a “foundation payment” is made to eligible LEAs (e.g. those that are not substantially 

compensated by revenues from Federal property, and that meet the other eligibility criteria) 

that were eligible for a section 8002 payment for any fiscal year from 1989 to 1994 in an 

amount that is equal to 38 percent of the maximum payment for which they were eligible for 

1994 (or, for LEAs not eligible in 1994, the latest year for which they were eligible).

• Second, payments are made to 1995 grant recipients in an amount equal to the product of: 

(1) the difference between the appropriation level in 1995 and the total amount of foundation 

payments in the current year; and (2) the LEA’s pro rata share of the assessed value of 

eligible Federal property for fiscal year 1995.
IMPACT AID

Payments for Federal property

D-30

• Third, a special payment is made to the Highland Falls–Ft. Montgomery Central School 

District, New York, if it continues to meet the annual eligibility requirements.

• Fourth, 25 percent of the remaining funds is distributed based on pro-rata shares of the 

foundation payments under the first step, and 75 percent is distributed based on pro rata 

shares of maximum payments for the current year.

Payments for Federal Property may not exceed either of two different caps placed on these 

payments. The first cap limits the combination of these payments and payments received under 

the Basic Support Payments program (8003(b)) to an LEA’s maximum regular Basic Support 

Payment or the maximum Payment for Federal Property, whichever is greater. The second cap 

reduces the payment in the event that the combination of the calculated payment and any 

revenue the LEA received from the Federal property exceeds the maximum payment. In the 

event that funds are reduced due to either of these caps and the formula is subject to the holdharmless provisions, the reduced funds are redistributed under the fourth payment step.

NDAA Amendments (applicable in fiscal years 2010 through 2015)

If fully funded, the formula would provide payments by multiplying the current levied local real 

property tax rate of the LEA (or, in financially dependent school districts, an imputed real 

property tax rate) by the current estimated taxable value of the Federal property.

When, as in recent years, full funding is not provided, payments are based on a “hold-harmless” 

formula designed to preserve historic funding levels for individual LEAs.

• First, a “foundation payment” is made to eligible LEAs (e.g. those that are not substantially 

compensated by revenues from Federal property, and that meet the other eligibility criteria)

that were also eligible in fiscal year 2009 in an amount that is equal to the greater of 90 

percent of the payment the LEA received in FY 2009 and 90 percent of the average payment 

that the LEA received in fiscal years 2006, 2007, 2008, and 2009.

• Second, a special payment is made to the Highland Falls-Ft. Montgomery Central School 

District, New York, if it continues to meet the annual eligibility requirements.

• Third, from the remaining funds, a “foundation payment” is made to eligible LEAs that were 

not eligible in fiscal year 2009. The foundation payment for newly eligible LEAs since 2009 

is calculated as 90 percent of the eligible LEA’s maximum payment multiplied by the ratio of 

the appropriation to the total of all LEAs’ maximum payments in the most recent year in 

which payments have been completed.

• Fourth, any remaining funds are distributed based on pro rata shares of maximum payments 

for the current year.

Under the NDAA amendments, the two caps on payments described earlier would only apply to 

remaining funds under the fourth step for “old districts” (those with FY 2009 eligibility), whereas a 

“new district” (those with post-2009 eligibility) would be limited by both caps under the third step 

in their first year of eligibility and under the fourth step for all years of eligibility.
IMPACT AID

Payments for Federal property

D-31

Funding levels for the past 5 fiscal years were:

Fiscal Year (dollars in thousands)

2009 ........................................................................................ $66,208

2010 .......................................................................................... 67,208

2011 .......................................................................................... 67,074

2012 .......................................................................................... 66,947

2013 .......................................................................................... 66,9471

_________________

1 Excludes a 0.612 percent across-the-board increase provided in P.L. 112-175.

FY 2014 BUDGET REQUEST

The Administration requests no funds for Payments for Federal Property in 2014. The 

Administration’s policy is to use available Impact Aid funds to help pay for the education of 

federally connected children. Payments for Federal Property compensates LEAs for lost 

property tax revenue due the presence of Federal lands without regard to whether those districts 

educate any federally connected children as a result of the Federal presence.

When this authority was established in 1950, its purpose was to provide assistance to LEAs in 

which the Federal Government had imposed a substantial and continuing burden by acquiring a 

considerable portion of real property in the LEA. The law applied only to property acquired since 

1938 because, in general, LEAs had been able to adjust to acquisitions that occurred before that 

time. The Administration believes that the majority of LEAs receiving assistance under this 

program have now had sufficient time – more than 60 years – to adjust to the removal of the 

property from their tax rolls.

In addition, many LEAs receiving funds under this authority do not meet the basic eligibility 

criteria established in the authorizing statute, typically because they consist of two or more LEAs 

that consolidated, at least one of which originally met the eligibility criterion of a loss of 

10 percent of the aggregate assessed value of real property removed from the tax rolls. In such 

cases, the consolidated LEAs are no longer demonstrably burdened by the historic loss of 

taxable property, and thus are not able to demonstrate a need for Federal funds.
IMPACT AID

Payments for Federal property

D-32

PROGRAM OUTPUT MEASURES (amounts in whole dollars)

Measures 2012 2013 2014

Number of LEAs receiving payments 216 216 0

Average payment $318,795 $318,795 0

Range of payments $150-

5,000,000

$150-

5,000,000

0

_________________

NOTE: 2013 excludes a 0.612 percent across-the-board increase provided in P.L. 112-175. 

PROGRAM PERFORMANCE INFORMATION

Performance measures

This section presents selected program performance information, including, for example, GPRA 

goals, objectives, measures, and performance targets and data; and an assessment of the 

progress made toward achieving program results. Achievement of program results is based on 

the cumulative effect of the resources provided in previous years, as well as the resources and 

efforts invested by those served by this program.

Goal: To provide appropriate financial assistance for federally connected children who

present a genuine burden to their school districts.

Objective: Manage Section 8002 Payments for Federal Property to disburse funds accurately 

and efficiently under the statutory formula.

Measure: The percentage of eligible Section 8002 applicants reviewed during the year.

Year Target Actual

2009 33.3 0

2010 33.3 0

2011 33.3 14

2012 33.3 N/A

2013 33.3 N/A

Additional information: This performance measure is no longer applicable as the result of 

changes in regulations as well as changes resulting from amendments made in the National 

Defense Authorization Act. The goal for the old measure was for the Department to review and 

verify assessed values for one-third of all applicants each year. The target had not been met in 

the past 4 years. This program is proposed for termination.
IMPACT AID

Payments for Federal property

D-33

Measure: The percentage of initial payments to eligible LEAs that are made by the end of the 

second quarter.

Year Target Actual

2009 75 9

2010 75 39

2011 75 66

2012 75 86

2013 75

Additional information: The long-term goal for the second measure is to make 75 percent of 

initial payments to eligible LEAs by the end of the second quarter. The Department has made a 

steady improvement since 2009 and exceeded the target for the first time in 2012, increasing the 

percentage of payments made by the end of the second quarter from 9 percent to 86 percent. 

This program is proposed for termination.
D-34

State Tables

IMPACT AID

Basic Support Payments

State or 2008 Recovery Act 2009 2010 Change from

Other Area Actual Estimate Estimate Estimate 2009 Estimate

Alabama 2,888,702 0 3,734,655 3,734,655 0 

Alaska 105,845,735 0 115,096,829 115,096,829 0 

Arizona 156,307,140 0 165,303,818 165,303,818 0 

Arkansas 325,423 0 452,259 452,259 0 

California 52,360,597 0 60,894,902 60,894,902 0 

Colorado 12,254,891 0 15,189,963 15,189,963 0 

Connecticut 5,054,122 0 6,379,834 6,379,834 0 

Delaware 45,160 0 53,678 53,678 0 

District of Columbia 1,252,790 0 1,693,536 1,693,536 0 

Florida 7,949,242 0 9,235,085 9,235,085 0 

Georgia 20,090,657 0 21,298,167 21,298,167 0 

Hawaii 37,137,795 0 35,690,239 35,690,239 0 

Idaho 7,181,607 0 6,433,673 6,433,673 0 

Illinois 19,205,385 0 18,457,840 18,457,840 0 

Indiana 140,111 0 142,884 142,884 0 

Iowa 393,787 0 647,285 647,285 0 

Kansas 20,547,706 0 24,481,373 24,481,373 0 

Kentucky 553,075 0 759,794 759,794 0 

Louisiana 7,373,155 0 9,403,288 9,403,288 0 

Maine 2,524,439 0 2,783,792 2,783,792 0 

Maryland 4,356,327 0 5,740,727 5,740,727 0 

Massachusetts 778,310 0 860,741 860,741 0 

Michigan 3,874,995 0 4,705,117 4,705,117 0 

Minnesota 14,482,252 0 17,534,611 17,534,611 0 

Mississippi 1,718,032 0 1,871,618 1,871,618 0 

Missouri 21,362,193 0 20,685,495 20,685,495 0 

Montana 41,012,608 0 42,043,348 42,043,348 0 

Nebraska 19,619,699 0 17,044,438 17,044,438 0 

Nevada 3,264,890 0 4,413,495 4,413,495 0 

New Hampshire 12,061 0 10,824 10,824 0 

New Jersey 13,682,873 0 13,290,586 13,290,586 0 

New Mexico 89,785,419 0 104,766,351 104,766,351 0 

New York 15,440,559 0 21,587,174 21,587,174 0 

North Carolina 12,760,504 0 16,456,301 16,456,301 0 

North Dakota 26,838,244 0 30,454,393 30,454,393 0 

Ohio 2,098,363 0 2,444,548 2,444,548 0 

Oklahoma 36,250,227 0 44,577,161 44,577,161 0 

Oregon 2,543,024 0 3,203,960 3,203,960 0 

Pennsylvania 1,188,467 0 1,538,475 1,538,475 0 

Rhode Island 2,275,632 0 2,099,155 2,099,155 0 

South Carolina 1,844,787 0 2,027,700 2,027,700 0 

South Dakota 45,115,827 0 46,385,299 46,385,299 0 

Tennessee 3,283,632 0 3,939,771 3,939,771 0 

Texas 88,093,879 0 85,707,439 85,707,439 0 

Utah 8,224,905 0 10,288,544 10,288,544 0 

Vermont 5,094 0 5,003 5,003 0 

Virginia 34,152,861 0 45,427,119 45,427,119 0 

Washington 47,039,079 0 54,824,191 54,824,191 0 

West Virginia 18,612 0 17,919 17,919 0 

Wisconsin 12,158,774 0 13,307,622 13,307,622 0 

Wyoming 10,803,696 0 11,058,726 11,058,726 0 

American Samoa 0 0 0 0 0 

Guam 41,484 0 71,547 71,547 0 

Northern Mariana Islands 0 0 0 0 0 

Puerto Rico 0 0 1,797,111 1,797,111 0 

Virgin Islands 166,253 0 215,597 215,597 0 

Freely Associated States 0 0 0 0 0 

Indian set-aside 0 0 0 0 0 

Undistributed (non-State allocations) 81,809,815 0 0 0 0 

 Total 1,105,534,896 0 1,128,535,000 1,128,535,000 0 
D-35

IMPACT AID

Payments for Children with Disabilities

State or 2008 Recovery Act 2009 2010 Change from

Other Area Actual Estimate Estimate Estimate 2009 Estimate

Alabama 170,640 0 198,970 198,970 0 

Alaska 2,566,410 0 2,663,423 2,663,423 0 

Arizona 4,785,902 0 5,333,076 5,333,076 0 

Arkansas 105,280 0 99,806 99,806 0 

California 3,461,302 0 3,851,404 3,851,404 0 

Colorado 768,850 0 941,801 941,801 0 

Connecticut 197,690 0 204,766 204,766 0 

Delaware 21,230 0 30,020 30,020 0 

District of Columbia 20,740 0 19,229 19,229 0 

Florida 1,419,210 0 1,489,613 1,489,613 0 

Georgia 914,690 0 969,535 969,535 0 

Hawaii 1,283,200 0 1,265,116 1,265,116 0 

Idaho 300,870 0 303,720 303,720 0 

Illinois 394,820 0 344,712 344,712 0 

Indiana 0 0 0 0 0 

Iowa 22,220 0 32,069 32,069 0 

Kansas 782,620 0 940,158 940,158 0 

Kentucky 115,160 0 125,892 125,892 0 

Louisiana 433,590 0 457,036 457,036 0 

Maine 133,770 0 161,048 161,048 0 

Maryland 634,682 0 641,868 641,868 0 

Massachusetts 53,750 0 44,880 44,880 0 

Michigan 207,920 0 216,522 216,522 0 

Minnesota 708,790 0 888,410 888,410 0 

Mississippi 175,480 0 199,686 199,686 0 

Missouri 448,080 0 496,922 496,922 0 

Montana 1,283,572 0 1,377,147 1,377,147 0 

Nebraska 529,240 0 561,047 561,047 0 

Nevada 426,130 0 491,187 491,187 0 

New Hampshire 920 0 0 0 0 

New Jersey 242,804 0 285,519 285,519 0 

New Mexico 3,204,620 0 3,498,373 3,498,373 0 

New York 289,030 0 337,877 337,877 0 

North Carolina 1,347,920 0 1,506,438 1,506,438 0 

North Dakota 810,976 0 866,884 866,884 0 

Ohio 158,030 0 168,442 168,442 0 

Oklahoma 2,767,050 0 3,017,029 3,017,029 0 

Oregon 169,720 0 137,248 137,248 0 

Pennsylvania 26,330 0 28,129 28,129 0 

Rhode Island 67,480 0 41,861 41,861 0 

South Carolina 358,780 0 369,353 369,353 0 

South Dakota 1,443,620 0 1,541,305 1,541,305 0 

Tennessee 297,100 0 333,170 333,170 0 

Texas 3,099,420 0 3,331,896 3,331,896 0 

Utah 460,840 0 544,624 544,624 0 

Vermont 0 0 0 0 0 

Virginia 3,531,224 0 4,236,074 4,236,074 0 

Washington 2,344,183 0 2,727,249 2,727,249 0 

West Virginia 6,010 0 8,861 8,861 0 

Wisconsin 818,740 0 926,274 926,274 0 

Wyoming 308,240 0 346,331 346,331 0 

American Samoa 0 0 0 0 0 

Guam 0 0 0 0 0 

Northern Mariana Islands 0 0 0 0 0 

Puerto Rico 0 0 0 0 0 

Virgin Islands 0 0 0 0 0 

Freely Associated States 0 0 0 0 0 

Indian set-aside 0 0 0 0 0 

Undistributed (non-State allocations) 4,482,954 0 0 0 0 

 Total 48,601,829 0 48,602,000 48,602,000 0 

IMPACT AID
D-36

Construction

State or 2008 Recovery Act 2009 2010 Change from

Other Area Actual Estimate Estimate Estimate 2009 Estimate

Alabama 0 0 0 0 0 

Alaska 0 4,432,099 0 0 0 

Arizona 0 7,189,010 0 0 0 

Arkansas 0 0 0 0 0 

California 0 1,428,374 0 0 0 

Colorado 0 1,031,392 0 0 0 

Connecticut 0 0 0 0 0 

Delaware 0 0 0 0 0 

District of Columbia 0 0 0 0 0 

Florida 0 0 0 0 0 

Georgia 0 1,611,497 0 0 0 

Hawaii 0 0 0 0 0 

Idaho 0 94,216 0 0 0 

Illinois 0 654,425 0 0 0 

Indiana 0 0 0 0 0 

Iowa 0 0 0 0 0 

Kansas 0 1,489,656 0 0 0 

Kentucky 0 0 0 0 0 

Louisiana 0 173,832 0 0 0 

Maine 0 57,077 0 0 0 

Maryland 0 0 0 0 0 

Massachusetts 0 0 0 0 0 

Michigan 0 23,776 0 0 0 

Minnesota 0 651,740 0 0 0 

Mississippi 0 0 0 0 0 

Missouri 0 1,180,740 0 0 0 

Montana 0 1,589,675 0 0 0 

Nebraska 0 850,841 0 0 0 

Nevada 0 0 0 0 0 

New Hampshire 0 0 0 0 0 

New Jersey 0 239,931 0 0 0 

New Mexico 0 4,254,203 0 0 0 

New York 0 620,394 0 0 0 

North Carolina 0 0 0 0 0 

North Dakota 0 1,184,020 0 0 0 

Ohio 0 0 0 0 0 

Oklahoma 0 108,809 0 0 0 

Oregon 0 0 0 0 0 

Pennsylvania 0 0 0 0 0 

Rhode Island 0 0 0 0 0 

South Carolina 0 0 0 0 0 

South Dakota 0 1,655,113 0 0 0 

Tennessee 0 0 0 0 0 

Texas 0 6,760,548 0 0 0 

Utah 0 19,197 0 0 0 

Vermont 0 0 0 0 0 

Virginia 0 0 0 0 0 

Washington 0 1,477,424 0 0 0 

West Virginia 0 0 0 0 0 

Wisconsin 0 415,012 0 0 0 

Wyoming 0 405,711 0 0 0 

American Samoa 0 0 0 0 0 

Guam 0 0 0 0 0 

Northern Mariana Islands 0 0 0 0 0 

Puerto Rico 0 0 0 0 0 

Virgin Islands 0 0 0 0 0 

Freely Associated States 0 0 0 0 0 

Indian set-aside 0 0 0 0 0 

Undistributed (non-State allocations) 17,508,685 60,401,288 17,509,000 17,509,000 0 

 Total 17,508,685 100,000,000 17,509,000 17,509,000 0