I 

109TH CONGRESS 

2D SESSION H. R. 4851 

To provide for general revenue sharing and assistance for education for 

States and their local governments. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 2, 2006 

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. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Emergency Targeted 

5 Revenue Sharing Act of 2006’’. 

6 SEC. 2. FINDINGS. 

7 Congress finds the following: 

8 (1) Federal grants to State and local govern9 ments predate the Constitution. Early grants inVerDate Aug 31 2005 19:56 Mar 04, 2006 Jkt 049200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H4851.IH H4851

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1 cluded land grants for public schools and univer2 sities. Later, Congress created financial grants to 

3 the States with matching requirements and condi4 tions, including grants for highway construction, vo5 cational education, public health, and maternity 

6 care. 

7 (2) During the Nixon Administration, the em8 phasis of Federal grants-in-aid programs was shifted 

9 from categorical grants to block grants and general 

10 revenue sharing, which sent funds to State and local 

11 governments with virtually no programmatic require12 ments. Revenue sharing is not a new or radical pro13 posal. 

14 (3) Despite this long history of assistance to 

15 State and local governments, the Federal Govern16 ment is not providing sufficient aid to the States in 

17 their current fiscal crisis. The State fiscal crisis is 

18 twice as severe as the crisis in the early 1990s, with 

19 States carrying fiscal year 2007 budget deficits to20 taling roughly $100,000,000,000. Yet continuing de21 creases in Federal taxes for the wealthiest Ameri22 cans leave significantly fewer Federal revenues to 

23 help the States provide basic services for their resi24 dents. 


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1 (4) To meet residents’ needs, States have been 

2 forced to increase income, property, and sales taxes 

3 for middle-income and working families, in addition 

4 to raising taxes on businesses. States also have had 

5 to cut funding for health care, education, child care, 

6 public safety, and other programs. At least 18 

7 States have planned or are considering cuts in 

8 spending on elementary and secondary education, re9 sulting in shortened school years and teacher layoffs. 

10 Cuts in State aid have caused many colleges and 

11 universities to lay off faculty and raise tuition. 

12 (5) Federal spending for the war and occupa13 tion of Iraq is further straining the Federal Govern14 ment’s ability to aid the States, undermining finan15 cial assistance for education, public housing, Med16 icaid, Temporary Assistance for Needy Families, and 

17 other important programs. 

18 (6) Defense appropriations will grow rapidly 

19 and uncontrollably, continuing to crowd out spend20 ing for vital human needs at the Federal and State 

21 levels. Homeland security is directly threatened by 

22 cuts in police, fire, and hospital budgets. 

23 (7) The Federal Government must help the 

24 States to avert greater fiscal damage because it has 

25 more economic tools available than the States. UnVerDate Aug 31 2005 19:56 Mar 04, 2006 Jkt 049200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H4851.IH H4851

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1 like the Federal Government, 49 States have some 

2 form of a balanced budget requirement, forcing 

3 States to reduce expenditures, increase revenues, or 

4 use both of these options to close their budget gaps. 

5 (8) To live up to its historic obligations and 

6 provide relief at a time of economic disaster, the 

7 Federal Government immediately should enact a 

8 program of emergency targeted revenue sharing, 

9 with assistance for schools and education given first 

10 priority. 

11 SEC. 3. EDUCATION FINANCIAL ASSISTANCE FOR STATES 

12 AND THEIR LOCAL GOVERNMENTS. 

13 (a) APPROPRIATION.—There is authorized to be ap14 propriated and is appropriated to carry out this section 

15 $14,500,000,000 for fiscal year 2007, $12,500,000,000 

16 for fiscal year 2008, and $12,500,000,000 for fiscal year 

17 2009. 

18 (b) PAYMENT.—The Secretary of the Treasury shall 

19 pay to each State an amount equal to the amount allotted 

20 to the State under subsection (c). 

21 (c) ALLOTMENTS.—From the amounts appropriated 

22 under subsection (a) for each fiscal year, the Secretary 

23 of the Treasury shall allot to each of the States as follows, 

except that no State shall receive less than 1 24 ⁄2 of 1 percent 

25 of such amount: 


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1 (1) STATE LEVEL.—50 percent shall be allotted 

2 among such States on the basis of the relative 

3 school-age population of each such State, as deter4 mined by the Secretary of the Treasury, in consulta5 tion with the Secretary of Education, on the basis 

6 of the most recent decennial census. 

7 (2) LOCAL GOVERNMENT LEVEL.—50 percent 

8 shall be allotted among such States as determined 

9 under paragraph (1) for distribution by the State to 

10 the various units of general local government within 

11 such States on the basis of the relative school-age 

12 population of each such unit within each such State, 

13 as determined by the Secretary of the Treasury, in 

14 consultation with the Secretary of Education, on the 

15 basis of the most recent decennial census. 

16 (d) USE OF FUNDS BY STATE AND LOCAL GOVERN17 MENTS.—Funds received under this section may be used 

18 only for ordinary and necessary maintenance and oper19 ating expenses, and ordinary and necessary capital ex20 penditures authorized by law, for primary, secondary, or 

21 higher education. 

22 (e) EFFECTIVE DATE.—Not later than 45 days after 

23 the date of enactment of this Act, the Secretary of the 

24 Treasury shall make payments to States under this section 

25 for fiscal year 2007. The Secretary of the Treasury shall 


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1 make subsequent fiscal year payments not later than one 

2 year following the prior fiscal year’s payments under this 

3 section. 

4 SEC. 4. GENERAL REVENUE SHARING WITH STATES AND 

5 THEIR LOCAL GOVERNMENTS. 

6 (a) APPROPRIATION.—There is authorized to be ap7 propriated and is appropriated to carry out this section 

8 $14,500,000,000 for fiscal year 2007, $12,500,000,000 

9 for fiscal year 2008, and $12,500,000,000 for fiscal year 

10 2009. 

11 (b) PAYMENT.—The Secretary of the Treasury shall 

12 pay to each State an amount equal to the amount allotted 

13 to the State under subsection (c). 

14 (c) ALLOTMENTS.—From the amounts appropriated 

15 under subsection (a) for each fiscal year, the Secretary 

16 of the Treasury shall allot to each of the States as follows, 

except that no State shall receive less than 1 17 ⁄2 of 1 percent 

18 of such amount: 

19 (1) STATE LEVEL.—50 percent shall be allotted 

20 among such States on the basis of the relative popu21 lation of each such State, as determined by the Sec22 retary of the Treasury on the basis of the most re23 cent decennial census. 

24 (2) LOCAL GOVERNMENT LEVEL.—50 percent 

25 shall be allotted among such States as determined 


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1 under paragraph (1) for distribution by the State to 

2 the various units of general local government within 

3 such States on the basis of the relative population 

4 of each such unit within each such State, as deter5 mined by the Secretary of the Treasury on the basis 

6 of the most recent decennial census. 

7 (d) EFFECTIVE DATE.—Not later than 45 days after 

8 the date of enactment of this Act, the Secretary of the 

9 Treasury shall make payments to States under this section 

10 for fiscal year 2007. The Secretary of the Treasury shall 

11 make subsequent fiscal year payments not later than one 

12 year following the prior fiscal year’s payments under this 

13 section. 

14 SEC. 5. DEFINITIONS. 

15 In this Act: 

16 (1) STATE.—The term ‘‘State’’ means any of 

17 the several States, the District of Columbia, and the 

18 Commonwealth of Puerto Rico. 

19 (2) UNIT OF GENERAL LOCAL GOVERNMENT.— 

20 (A) IN GENERAL.—The term ‘‘unit of gen21 eral local government’’ means— 

22 (i) a county, parish, township, city, or 

23 political subdivision of a county, parish, 

24 township, or city, that is a unit of general 

25 local government as determined by the SecVerDate Aug 31 2005 19:56 Mar 04, 2006 Jkt 049200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H4851.IH H4851

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1 retary of Commerce for general statistical 

2 purposes; and 

3 (ii) the District of Columbia, the 

4 Commonwealth of Puerto Rico, and the 

5 recognized governing body of an Indian 

6 tribe or Alaskan native village that carries 

7 out substantial governmental duties and 

8 powers. 

9 (B) TREATMENT OF SUBSUMED AREAS.— 

10 For purposes of determining a unit of general 

11 local government under this section, the rules 

12 under section 6720(c) of title 31, United States 

13 Code, shall apply. 

Æ 


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