I 
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 Representa-
tives 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 govern-
ments predate the Constitution. Early grants in-
cluded land grants for public schools and univer-
sities. Later, Congress created financial grants to 
the States with matching requirements and condi-
tions, including grants for highway construction, vo-
cational education, public health, and maternity 
care. 
(2) During the Nixon Administration, the em-
phasis 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 require-
ments. Revenue sharing is not a new or radical pro-
posal. 
(3) Despite this long history of assistance to 
State and local governments, the Federal Govern-
ment 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 to-
taling roughly $100,000,000,000. Yet continuing de-
creases in Federal taxes for the wealthiest Ameri-
cans leave significantly fewer Federal revenues to 
help the States provide basic services for their resi-
dents.
(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, re-
sulting 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 occupa-
tion of Iraq is further straining the Federal Govern-
ment’s ability to aid the States, undermining finan-
cial assistance for education, public housing, Med-
icaid, Temporary Assistance for Needy Families, and 
other important programs. 
(6) Defense appropriations will grow rapidly 
and uncontrollably, continuing to crowd out spend-
ing 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. Un-
like 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 ap-
propriated 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 deter-
mined by the Secretary of the Treasury, in consulta-
tion 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 GOVERN-
MENTS.—Funds received under this section may be used 
only for ordinary and necessary maintenance and oper-
ating expenses, and ordinary and necessary capital ex-
penditures 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 ap-
propriated 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 popu-
lation of each such State, as determined by the Sec-
retary of the Treasury on the basis of the most re-
cent 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 deter-
mined 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 gen-
eral 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 Sec-
retary 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 this section, the rules 
under section 6720(c) of title 31, United States 
Code, shall apply.
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