There are no statutory requirements  mandating that school districts report on the use of these funds. DOD  Impact Aid has three distinct funding components for school districts with  military dependent students. The program provided 162,570 sessions during fiscal year 2010. Little Is Known About the Specific Use and Effectiveness of DOD Impact Aid and There Are No National Data on Military Dependent Students as a Group

		Most School Districts Put DOD Impact Aid Supplemental Funds Into Their General Fund for Overall Expenses and Specific Uses Are Generally Not Tracked

Little is known about the specific use and effectiveness of DOD Impact Aid  Supplemental funds because most school districts place the aid into their  general fund to support salaries, maintenance, and operation of schools. In  our survey of school districts that received DOD Impact Aid Supplemental  funds in any year from 2001 through 2009, of the 87 school districts that  reported receiving funds for the 2009–2010 school year, 85 percent put at  least some of their award in their general fund. Military Dependent Students’ Frequent Moves and Educating Military Dependents with Special Needs are Primary Challenges for School Districts, and Various Strategies Help Address These Challenges

		Military Dependent Students’ Mobility and Students with Special Needs Were Primary Educational Challenges Reported by School Districts

Officials at three quarters of the school districts responding to our survey  reported that issues associated with military dependent students’ frequent  moves to new schools were moderately, very, or extremely challenging. Mobility increased academic needs due to differences  in state and district curricula, lack of connectedness with school, and  behavioral issues in the classroom. DOD and Education’s Collaborative Practices Have Assisted Military Dependent Students, Their Schools, and Families

DOD and Education have developed and implemented practices that  facilitate their collaboration on efforts to assist military dependent  students, their schools, and families. Officials from both agencies have  made eight joint site visits, beginning in 2008, to high-growth military  installations to better understand the specific education issues arising  from mission changes and growth. Currently, school districts and states are not  required to collect academic achievement data for military dependent  students, as they are for certain other groups of students, including  economically disadvantaged students and students with disabilities. Recommendation for Executive Action

To better understand the needs of military students and the effectiveness  of strategies to assist them, we recommend the Secretary of Education, in  collaboration with the Secretary of Defense, determine whether to require  school districts to identify military dependent students as a distinct  subgroup for reporting on their academic outcomes, such as test scores  and high school graduation rates. This should include determining  whether the Department of Education needs to obtain any additional  legislative authority for this requirement, and seeking it from Congress, if  necessary. DoDEA provided oral concurrence with our  recommendation. GAO staff who made major contributions to this  report are listed in appendix V.

Appendix I: Objectives, Scope, and Methodology

Our review focused on (1) what is known about the use and effectiveness  of Department of Defense (DOD) Impact Aid funds, (2) the challenges  faced by school districts in serving military dependent students and  strategies they have in place to address these challenges, and (3) how  DOD and the Department of Education (Education) have coordinated their  assistance to districts. Survey of School Districts that Received DOD Impact Aid Supplemental Funds from 2001 to 2009

We designed and implemented a Web-based survey to gather information  on the use and effectiveness of DOD Impact Aid funds and the challenges  faced by school districts in serving military dependent students. The findings from these five  states and seven districts cannot be projected nationwide, but we believe  they illustrate valuable perspectives on the challenges of serving military  dependent students, and assistance from DOD and other sources to help  address the challenges. Coordinate the DOD and Education Impact Aid programs.
Why GAO Did This Study

Since the early 1990s, Congress has supplemented the Department of Education's (Education) Impact Aid program by providing funds for the Department of Defense's (DOD) Impact Aid program to compensate school districts with a high number of military dependent students. The National Defense Authorization Act for Fiscal Year 2010 required GAO to review the use of these funds. GAO reviewed (1) what is known about the utilization and effectiveness of DOD Impact Aid funds, (2) the challenges faced by school districts in serving military dependent students, and (3) how DOD and Education have collaborated on their assistance. To address these issues, GAO conducted a Web-based survey of all 154 school districts that received DOD Impact Aid in any year from 2001 to 2009, with a response rate of 77 percent. GAO also interviewed officials from DOD and Education and seven school districts in five states, ranging in school district size, location, and percentage of military dependent students. The findings from these visits cannot be projected nationwide, but illustrate valuable perspectives.

What GAO Found

DOD Impact Aid has three distinct funding components, with more than three quarters of the funds provided through the DOD Impact Aid Supplemental program. Eighty five percent of the 87 responding school districts that received funds for the 2009-2010 school year reported placing these funds into their general fund to use for overall maintenance and operations. Because there are no reporting requirements on districts' use of the funding, it is difficult to assess how the funds are used and to what extent military dependent students benefit. Further, there are no data available on these students that could be used to assess their academic achievement or educational outcomes, or determine where funding needs are greatest. Such reporting requirements exist for certain other groups of students, such as economically disadvantaged students and students with disabilities. Federal agency officials acknowledged this need for information, and Education has begun discussing how to address this need. School districts GAO contacted reported that issues related to the mobility of military dependent students and serving students with special needs were among the greatest challenges they faced in serving these students. Mobility increased academic needs due to differences in state and district curricula and behavioral and emotional issues in the classroom. To address challenges in serving military dependent students, school districts reported adopting a range of strategies, including additional counseling for students with a deployed parent and flexibility on academic requirements for newly transferred students. Guided by a memorandum of understanding signed in 2008, DOD and Education have implemented practices that facilitate their collaboration to assist military dependent students, according to practices GAO has identified that enhance collaboration. For example, beginning in 2008, the departments completed eight joint site visits to high-growth military installations, which helped them advise school districts on preparation for an influx of military dependent students. To monitor these collaborative efforts, DOD and Education have developed a strategic plan that tracks their progress.

What GAO Recommends

GAO recommends that the Secretary of Education determine whether to require school districts to report data on the academic outcomes of military dependent students, and if so, to determine the need for any additional legislative authority. Education agreed with GAO's recommendation, and DOD provided oral concurrence.