Resulting from a House Appropriation Subcommittee's interest in the need for adequate school facilities for reservation American Indian children in public school districts, a survey of the construction aid needs of all eligible districts was conducted. Objectives were to: analyze and interpret data from school districts in the 23 States participating in the Johnson-O'Malley Act program; evaluate closely related and concomitant information pertaining to enrollment growth, Indian impacts, resources ability factors, with a priority basis to follow; and develop general policy and guidelines for use by the Bureau of Indian Affairs in funding construction in areas of high Indian enrollment and for meeting backlogs which along with the regularized program will provide a total Federal policy to improve Federal interaction with Indian impacted public school districts. Questionnaires were sent to some 458 public school districts; 162 districts in 21 states responded. Some findings were: immunity of Indian reservation lands from taxation is an important factor in the school district's ability to finance needed facilities; based on the widely accepted ability measure, the amount of taxable evaluation behind each child, Indian related school districts are much "poorer" in comparison with similar type districts in their States; and unused bonding capacity is a vital factor in most school districts' ability to share the cost of constructing facilities for the education of reservation based Indian children. (NQ)