This transcript of testimony concerns the reauthorization of the Magnet School Assistance Program and the Impact Aid Program. The proposed Magnet School Expansion Act of 1987 would increase aid to this program, which has been successful as a means of desegregating school systems across the nation. Witnesses, including members of Congress, school superintendents, and members of boards of education, testified on the success of magnet schools, the need for more funding, and the preference of this method over bussing for desegregation. Suggestions were made on how to improve the distribution of funds. The second part of the session addressed the need to continue special funding of school districts to compensate them for local and federal activities. These funds are needed since areas with a high federal presence do not have enough taxable property to generate adequate revenues for schools. Witnesses compared high impact districts with similar ones that do not have a federal presence to show the extent to which the impacted district may be at a disadvantage. Many tables, graphs, and illustrations were offered as evidence to demonstrate the need for the continuance both of these aid programs. (VM)