DODDS was created pursuant to section 1402 of Public Law 95-561, the Defense Dependents’ Education Act of 1978, which directed the Secretary of Defense to establish and operate a program to provide a free public education through secondary school for dependents in overseas areas (20 U.S.C. 921). DODDS is a support organization within DOD whose mission is to educate every child authorized transportation overseas by DOD regardless of location or needs of the child. Due to the downsizing of the military overseas, DODDS enrollments have decreased from 160,000 for school year 1990-91 to 88,569 for school year 1994-95, and the number of DODDS schools decreased from 270 to 191. DODDS elementary and secondary schools are located in 14 countries worldwide and are administered by three regions and 12 district offices. The DODDS schools we visited were, indeed, American schools overseas. The facilities, resources, teachers, and curriculum were what one would find in a typical American school in the states. In addition, because the schools were located on military bases, they were very much a part of the community in which they were located. Students who were overseas on unaccompanied tours could not live in base housing and therefore the school was a link to the base—and American—community. The Secretary of Defense has authority, granted by Public Law 95-561, to allow classes or categories of students, other than space-required students, to enroll in DODDS. The Secretary may also establish priorities among such classes, waive the tuition, and issue other regulations as deemed necessary. No limit has been established for the number of space-available children who can be enrolled in DODDS, and no regulatory criteria have been established on how space-available is to be determined. However, the July 29, 1985, Conference Report instructed DOD not to include the cost of educating tuition-free, space-available students in its budget requests. Section 1402 of Public Law 95-561, which created DODDS, defines a dependent as any minor who has not completed secondary school; who is the child, stepchild, adopted child, ward, or spouse of a sponsor, or who is a resident in the household of a sponsor who legally stands in place of parents to the minor; and who receives one-half or more of his or her support from this sponsor. DOD regulations define “space-available” as student accommodations that may be made available in DODDS schools if the Director of DODDS or a designee determines that a school has adequate staff and other resources to permit the enrollment of nonspace-required students. DOD regulations establish categories of space-available students. All space-available children fall into the two broad categories of tuition-paying or tuition-free. Tuition-paying students can be either federally connected, such as dependents of State Department or other U.S. government agency sponsors, or nonfederally connected, including dependents of retired military or foreign national sponsors. Ninety-six percent of tuition-free, space-available students are the dependents of DOD military or civilian sponsors who are not authorized government transportation and housing overseas for their dependents. The remaining 4 percent fall into the category of special cases and include students whose sponsors died while on active duty. The designation “tuition-free” for the class of students with sponsors on unaccompanied tours was made by the Director of DODDS in 1982. DODDS classified and prioritized space-available students within the categories specified in the regulations as shown: Tuition-paying, federally connected: Sponsors employed by U.S. government agencies, interests, and foreign services. Tuition-paying, nonfederally connected: Sponsors are U.S. citizens, foreign nationals, or retired military. Tuition-free: Sponsors are DOD military or civilians overseas, but their dependents are not authorized overseas. For a more detailed explanation of these classifications, see appendix I. Neither the statute nor regulations address the issue of how available space is to be determined in schools. Our interviews showed that, in practice, the school principal usually determines whether space is available, using pupil-teacher ratios by grade level as criteria. With the exception of those in Korea, the schools we visited were generally able to meet the demand for space-available enrollments. Military drawdowns in Europe have enabled the schools to easily accommodate those few students who applied for admission. DODDS schools in Japan and Okinawa were often already overcrowded with space-required students, but the demand for space-available enrollment was also low. We were told the high cost of living in these areas often prohibits service personnel from bringing their families unless they have approved housing. In addition, the military services’ policies are to send members to these locations on accompanied tours, which classifies their children as space-required in the schools. Also, other private schools are available in these areas. In Korea, however, the situation is different. The military commanders there told us that because many tours require the service members to be stationed in dangerous locations without accommodations for dependents, about 90 percent of the U.S. military personnel in Korea are on unaccompanied tours. Nevertheless, because the cost of living is very low, it is feasible for a service member to support dependents on the local economy. This occurs more commonly in those families where the spouse is a Korean national. In addition, private schools in Korea are expensive, and Korean law prohibits American dependents from attending Korean public schools. As a result, many of these children, for whom there is no available space in DODDS schools, do not attend any school. In Korea, three of the six DODDS schools have space-available, tuition-free enrollments ranging from 180 to 220 students—14 to 34 percent of total school enrollments. DODDS officials told us they enrolled as many students as possible in Korea because these children are without practical alternatives. Currently, there is no count of children on unaccompanied tours, but base officials estimate there are hundreds and possibly thousands. Because of the large number of children in Korea on unaccompanied tours who are not attending any school at all, military commanders told us that dealing with serious behavior problems such as vandalism, theft, and drug abuse takes up an increasing amount of the post commanders’ time. Although the commander must take over these discipline problems from the Korean police, the commander has no direct authority over the civilian dependents—post commander authority lies only over the military sponsor. In addition to the problems that occur in Korea, the commanders feel a social responsibility because children sent back to the United States who have missed several years of school will likely have problems in the future. For example, the command found one 14-year-old dependent who had not attended school for 7 years. The sponsor was subsequently ordered to return to the United States. The July 1985 Conference Report instructed DOD to treat differently the two classes of space-available students in its budgeting process. This report states that DOD is allowed to take into account the cost of additional teachers, supplies, and other resources, except for construction of facilities, for tuition-paying students in its request for funds. DOD may not, however, take into account the extra costs for educating the tuition-free, space-available children. Since there is no limit to the number of space-available children who may be enrolled in the schools, this budgeting process would allow for as many space-available, tuition-paying children as would apply, without authorizing new facilities, but would limit the number of tuition-free students to a true space-available criterion. In fact, however, DOD does take into account the extra costs for educating space-available, tuition-free students in requesting funds, because it estimates its costs on the basis of the total student population of the previous year, including the space-available, tuition-free students. Requiring these students to pay tuition would produce a savings of between $21 million and $23 million. However, some solution to the difficult situation in Korea would have to be achieved in conjunction with enforcing such a requirement. Otherwise, realizing these savings would most likely keep even more children from attending school. According to the DODDS Student Information Management System (SIMS), for school year 1994-95 DODDS enrolled 88,569 students in 191 schools in 14 countries worldwide. About 6 percent, or 5,478, of these students were enrolled as space-available. Figure 1 shows the percentage of space-available students by category within DODDS’ total enrollment. We analyzed enrollment data for each of the DODDS regions, districts, and schools to determine space-available enrollments by major category and subcategory. The following table summarizes the distribution of space-available students within each of the three DODDS regions. The distribution of space-available enrollments was generally consistent between the European and Pacific regions—about 5 percent overall and ranging from about 1 to 3 percent for each of the categories of students. The Panama Region, however, has 22.3 percent space-available enrollment primarily due to a higher number of tuition-free dependents of DOD civilians. However, as stated earlier, in 1999, the schools in Panama will be turned over to Panama for operation, according to the terms of the Panama Treaty. Because these schools are operated in accordance with the terms of the Treaty and because of their temporary status in DODDS, we did no further analysis of their enrollments. A detailed analysis of space-available enrollments at individual schools, districts, and regions is in appendix II. Most DODDS schools—about 75 percent—have space-available enrollments of 5 percent or less. However, for varying reasons relating to military policy or interests, a few schools have space-available enrollments of 16 percent or more. Four of these schools have space-available enrollments of 65 percent or more. Four schools—one in Bahrain; two in Bonn, Germany; and one in Ankara, Turkey—have space-available enrollments of 65 percent or more. Each of these schools maintains these enrollments for specific reasons dictated by military policy. DODDS provided the following explanations. Bahrain: The Bahrain school was established by DOD in the late 1970s. It has 958 students, of which 726 are space-available (75.8 percent). Bahrain was and still is a strategic area for U.S. military in the Persian Gulf region. In exchange for the rights for the U.S. Navy to port its ships in Bahrain, the Bahrain government asked DOD to establish and operate an American school for dependents of Bahrain government officials. The establishment of the school was cleared through both the State Department and DOD. Bonn: The Bonn elementary school has a total enrollment of 163 students, of which 82.2 percent (134 students) are space-available, and the high school has 259 students, of which 78.8 percent (204 students) are space-available. These schools were established before DODDS was created, when the DOD schools were still the responsibility of the individual military services. The State Department asked DOD to establish the schools for the large numbers of State Department dependents located in Bonn, formerly the capital of West Germany, when Germany was a divided nation. The schools have remained open, despite the military drawdown in the area, to continue educating State Department and other U.S. government agencies’ dependents remaining in Bonn since Germany’s reunification. Ankara: Because the military is gradually moving out of the area, the ratio between space-required and space-available students has changed greatly in Ankara in the past few years. As of September 1994, the enrollment was 190 students, of which 65 percent (124 students) were space-available. Currently, the State Department relies on the DODDS school because there are no alternative English-speaking schools available. In addition to these four schools, seven schools—three in the European Region and four in the Pacific Region—have space-available enrollments of 18 to 36 percent. Nearly two-thirds of these students are tuition-paying, which allows DODDS to include them in the budget process, thus allowing them space. Almost all of the remaining tuition-free students are in schools in Korea, where, as we discussed, DODDS attempts to enroll as many students as possible. Space-available enrollments in DODDS schools are generally very low and do not present a problem for the school systems. However, in Korea a problem exists at several levels—at the program, military command, and social levels. In trying to attend to the education of dependents on unaccompanied tours, DODDS has enrolled a relatively large number of these children. First, at the program level, DODDS has not followed the stipulations of Conference Report 99-235, which prohibit DOD from requesting funds for teachers and resources to educate space-available, tuition-free students. However, the situation is not straightforward. If DODDS does not include these students in its budget, more students will probably do without an education in Korea because DODDS will receive less funding. Second, at the local military command level, the many children who do not attend school may require increased time and resources to address growing behavior problems. The command does not have the authority to keep noncommand-sponsored dependents out of Korea because it only has authority over the actions of the sponsor, not the civilian dependents. Finally, on a social level, leaving children uneducated raises a social and ethical dilemma for DODDS and the military. Sending children back to the United States after they have missed years of schooling places them at an educational disadvantage when they do return to school. Alternative solutions exist, however, such as (1) allowing DODDS to request resources in special situations, such as that in Korea, for space-available, tuition-free students, or (2) having the military take strong measures to discourage noncommand-sponsored dependents in areas such as Korea. Each alternative has costs—financial, military readiness, or legislative—that need to be fully identified before the Congress and DOD can make an informed decision. We recommend that the Secretary of Defense propose to the Congress alternatives, and their costs, to bring DODDS into compliance with budgetary guidelines that prohibit DOD from requesting funds for space-available, tuition-free students and that consider the compliance, disciplinary, and social problems that currently exist. The Department of Defense stated that, contrary to our position, it views itself as being in compliance with congressional budget guidance. DOD stated that it has never requested an appropriation based upon any enrollment data but instead bases its request on factors such as workyears, needed for teachers and other positions; and the number of schools. We recognize that the DOD budget request is based on these factors. However, at least one of the factors used, workyears, is based on total enrollment. More specifically, DODDS includes space-available, tuition-free students in the total enrollment information it provides DOD for budget purposes. For this reason, we continue to believe our recommendation is valid. The full text of DOD’s comments is included in appendix III. We will send copies of this report to agency officials and to other interested parties. We will also make copies available to others on request. Major contributors to this report are listed in appendix IV. If you have any questions about this report, please call me on (202) 512-7014. The enrollment categories for students in DODDS overseas schools are listed here along with a description of the types of students included in each category. Minor dependents of U.S. military personnel (Army, Navy, Marines, and Air Force), when those dependents are authorized transportation at U.S. government expense. (1A-D) Although the Coast Guard is not part of DOD, Coast Guard dependents attend DODDS on a space-required, tuition-free basis by special arrangement. (1E) Minor dependents of DOD civilian employees who are full time; are paid from appropriated funds; are entitled to a housing allowance at the “with dependents” rate, that is, whose dependents have been transported to the overseas areas or are authorized such transportation, at U.S. government expense; and are U.S. citizens or are lawfully accorded permanent residence in the United States. (1F) Minor dependents of Nonappropriated Funds Institutions employees, such as post exchange employees on base, who are full time, are U.S. citizens or valid green card holders, are overseas pursuant to a transportation agreement, and are receiving a housing allowance at the “with dependents” rate. (1J) Minor dependents of DOD sponsors who are assigned to the Military Assistance or Foreign Military Sales Programs. The agency pays this tuition in order to collect the full cost of the program. (1G&H) Minor dependents of foreign national citizens who are enrolled in schools operated by the former Canal Zone Government. These students are space-required because their schools were incorporated into DODDS as a result of the Panama Canal Treaty of 1979. The Panama Canal Commission pays the tuition. (1I) Minor dependents of U.S. government employees, provided the employee is a U.S. citizen or a person lawfully accorded permanent residence in the United States and is entitled to a housing allowance at the “with dependents” rate, or who has been identified by his or her agency as being eligible for educational benefits on a tuition-paying basis. Includes U.S. government employees who are covered by an Economy Act Agreement between the Department of State and DOD, or any component of such an agency and DOD. Examples: Dependents of U.S. citizen employees of all U.S. government agencies other than DOD, such as the State Department, Agency for International Development, Department of Agriculture, Federal Aviation Administration, Customs Service, General Services Administration, and the Smithsonian Institution. This also includes U.S. citizen employees of certain international organizations, such as the North Atlantic Treaty Organization and the United Nations. (2A) Minor dependents of DOD Nonappropriated Funds Institutions employees who are U.S. citizens (or persons lawfully accorded permanent residence in the United States), are full-time employees, are not overseas pursuant to a transportation agreement, but are receiving a housing allowance at the “with dependents” rate. (2B) Minor dependents of U.S. citizens who are employees of organizations overseas that serve significant defense-related interests and/or that have executed contracts or other agreements with the U.S. government that authorize dependent education in DODDS on a tuition-paying basis. For example: employees of permanent party American Red Cross, United Service Organizations, Boy and Girl Scouts, post exchange concessionaire contractors, and Stars and Stripes. Also, university education personnel, U.S. government contractor personnel, and technical representatives, when the contract authorizes dependent education in DODDS on a tuition-paying basis. (2C) Dependents of host nation or third-country national military or civilian personnel assigned or attached to the U.S. military services overseas at international or major DOD commands, when recommended by the major overseas commander. For example: third-country national military and civilian personnel service with U.S. armed forces overseas, North Atlantic Treaty Organization, United Nations, Canadian, or other allied forces. (2D) Minor dependents of DOD military sponsors (Army, Navy, Marines, Air Force, and Coast Guard) who are stationed in an overseas area to which their dependents are not authorized transportation at U.S. government expense, but to which the sponsors have elected to transport their dependents at their own expense. (3A-E) Minor dependents of DOD civilian sponsors who are U.S. citizens (or persons lawfully accorded permanent residence in the United States) who are full time, are paid from appropriated funds, but who are not entitled to a housing allowance at the “with dependents” rate. (3F) Minor dependents of sponsors who have been granted a waiver of tuition costs by the Secretary of Defense (or designee). Includes dependents of military or DOD civilian sponsors who die while, or within 180 days of being, on active duty or while drawing compensation. Also includes U.S. citizens or green card holders who are employees of the U.S. Mission or U.S. Embassy in Berlin. (3G) Other minor dependents of U.S. citizens. Examples are persons who would be space-available, tuition-paying, and federally connected but lack entitlement to a housing allowance at the “with dependents” rate or a contract providing for education benefits. (4A) Minor dependents of foreign national citizens for whom the Secretary of Defense determines that enrollment is in the national interest. Includes all foreign national dependents attending Ankara, Bahrain, and Bonn schools unless excluded by the Department of State. (4B) All U.S. citizens not included in other categories, for example, U.S. retired military personnel. (4C) Dependents of local or third-country nationals when no significant U.S. interest is involved. (4D) European Region (total schools = 143) (continued) (continued) (continued) (continued) Pacific Region (total schools = 34) (continued) Panama/Islands Region (total schools = 14) (continued) Total (191 schools) DOD military (3A-3E) DOD civilian (3F) DOD special (3G) (continued) DOD military (3A-3E) DOD civilian (3F) DOD special (3G) (continued) DOD military (3A-3E) DOD civilian (3F) DOD special (3G) (continued) DOD military (3A-3E) DOD civilian (3F) DOD special (3G) (continued) DOD military (3A-3E) DOD civilian (3F) DOD special (3G) (continued) DOD military (3A-3E) DOD civilian (3F) DOD special (3G) (continued) DOD military (3A-3E) DOD civilian (3F) DOD special (3G) U.S. government (2A) DOD NAFI (2B) U.S. organizations supporting DOD (2C) Foreign nationals supporting DOD (2D) Foreign nationals (4B) Other U.S. (4C) Other foreign (4D) (continued) U.S. government (2A) DOD NAFI (2B) U.S. organizations supporting DOD (2C) Foreign nationals supporting DOD (2D) Foreign nationals (4B) Other U.S. (4C) Other foreign (4D) (continued) U.S. government (2A) DOD NAFI (2B) U.S. organizations supporting DOD (2C) Foreign nationals supporting DOD (2D) Foreign nationals (4B) Other U.S. (4C) Other foreign (4D) (continued) U.S. government (2A) DOD NAFI (2B) U.S. organizations supporting DOD (2C) Foreign nationals supporting DOD (2D) Foreign nationals (4B) Other U.S. (4C) Other foreign (4D) (continued) U.S. government (2A) DOD NAFI (2B) U.S. organizations supporting DOD (2C) Foreign nationals supporting DOD (2D) Foreign nationals (4B) Other U.S. (4C) Other foreign (4D) (continued) U.S. government (2A) DOD NAFI (2B) U.S. organizations supporting DOD (2C) Foreign nationals supporting DOD (2D) Foreign nationals (4B) Other U.S. (4C) Other foreign (4D) (continued) U.S. government (2A) DOD NAFI (2B) U.S. organizations supporting DOD (2C) Foreign nationals supporting DOD (2D) Foreign nationals (4B) Other U.S. (4C) Other foreign (4D) Larry Horinko, Assistant Director, (202) 512-7001 Mary E. Roy, Evaluator-in-Charge, (202) 512-7072 Joan A. Denomme, Evaluator, (202) 512-7050 Damaris Delgado-Vega, Attorney Thomas J. Laetz, Evaluator Mary W. Freeman, Evaluator Michael D. Rohrback, Evaluator Daniel J. Tikvart, Evaluator The first copy of each GAO report and testimony is free. Additional copies are $2 each. Orders should be sent to the following address, accompanied by a check or money order made out to the Superintendent of Documents, when necessary. Orders for 100 or more copies to be mailed to a single address are discounted 25 percent. U.S. General Accounting Office P.O. Box 6015 Gaithersburg, MD 20884-6015 Room 1100 700 4th St. NW (corner of 4th and G Sts. NW) U.S. General Accounting Office Washington, DC Orders may also be placed by calling (202) 512-6000 or by using fax number (301) 258-4066, or TDD (301) 413-0006. Each day, GAO issues a list of newly available reports and testimony. To receive facsimile copies of the daily list or any list from the past 30 days, please call (301) 258-4097 using a touchtone phone. A recorded menu will provide information on how to obtain these lists.

Summary: Pursuant to a legislative requirement, GAO provided information on educating Department of Defense (DOD) dependents overseas, focusing on: (1) legislation that establishes eligibility and authorizes funding for students to enroll in DOD Dependents Schools (DODDS) as space becomes available; (2) the number of space-available students enrolled and their locations; and (3) the circumstances surrounding high space-available enrollments in some schools. GAO found that: (1) the Secretary of Defense is authorized to establish enrollment eligibility for space-available students and has categorized space-available students as either tuition-paying or tuition-free; (2) tuition-paying students can be either dependents of U.S. government agency sponsors or retired military and foreign national sponsors; (3) tuition-free, space-available students are the dependents of DOD sponsors who are not authorized government transportation and housing overseas for their dependents; (4) DOD is required to only include the cost of educating space-required and tuition-paying students in its budget request, but DODDS has not followed these instructions; (5) although tuition-free, space-available students only represent about 3 percent of the DODDS student population, the percentage is much higher in Korea; (6) in school year 1994-1995, space-available enrollments represented about 6 percent of total DODDS enrollment, almost half of which were tuition-free; and (7) although 75 percent of DODDS schools had space-available enrollments of 5 percent or less, four schools had enrollments of over 65 percent.