| PublicationDate: 11/1/95 Summary: FISCAL YEAR 1996 DEPARTMENT OF EDUCATION BUDGET Impact of House and Senate Appropriations Action Author: CSB - SFA Customer Support Branch Updates on Legislation, Budget, and Activities --------------------------------------------------------------------------- FISCAL YEAR 1996 DEPARTMENT OF EDUCATION BUDGET Impact of House and Senate Appropriations Action --------------------------------------------------------------------------- Comparison with 1995 Revised Appropriation Overall Department Budget: The House version of the appropriations bill would reduce 1996 total discretionary funding for Department of Education programs by $3.7 billion or 15 percent -- from a 1995 post-rescission level of $24.5 billion to $20.8 billion in 1996. The Senate bill would provide $22.3 billion, a cut of $2.2 billion, or 9 percent, below the 1995 level. Either bill would constitute the largest single-year cut in history for Federal education programs. Reductions of this magnitude can only be seen as the first step toward the elimination of effective Federal support for education, and as an attack on programs that will improve academic achievement, create safer school environments, improve the quality of our teachers, promote parental involvement, and provide innovative technology in our classrooms. By contrast, the President has requested $26.1billion for education in 1996, an increase of $1.6 billion or 6.5 percent over the 1995 level. Goals 2000 (-$372 million in House bill, -$62 million in Senate bill): The House bill would eliminate all Goals 2000 funding -- a cut of $372 million from 1995 and $750 million less than the President's 1996 budget request -- severely undermining State and local efforts to reform elementary and secondary education and achieve the National Education Goals. This would terminate funding just at the point when communities and States have completed their planning and begun to implement comprehensive reforms based on their own high academic standards. An estimated 17,000 schools would be denied funding designed to help them better use their resources to improve teaching and learning. The House also would eliminate funding for the new Parental Assistance Centers -- 28 new centers designed to strengthen the involvement of parents in the education of their children. These Centers received their first year of planned four-year awards this summer. Title I Grants for Disadvantaged Students (-$1.1 billion in House bill, -$679 million in Senate bill): The House would slash support for helping poor children reach the same challenging academic standards as other students by over $1.1 billion or 17 percent from 1995. This cut would deny assistance to more than 1.1 million educationally disadvantaged students. In addition, this cut includes a $113 million or 17 percent reduction in Concentration Grants from 1995 while providing no funds for the Targeted Grants included in the President's 1996 budget request. While the President has requested increased funding and greater targeting of those funds on communities with the highest concentrations of poor children, the House bill would both cut funding and reject greater targeting. Safe and Drug-Free Schools (-$266 million in both bills): Both bills would cut Federal support for drug-free schools and communities programs by $266 million, or nearly 60 percent, sharply reducing drug abuse and violence prevention activities currently serving about 39 million students in 97 percent of the Nation's school districts. Further, the House and Senate would eliminate all support for national dissemination, demonstration, and innovation efforts -- which have produced educational and informational materials that are extremely popular with educators and parents -- as well as all funding for prevention efforts at colleges and universities. School-to-Work Opportunities (-$27.5 million in House bill, level funding in Senate bill): The House would cut funds to States ready to implement school-to-work systems by $20.6 million or 18 percent from the 1995 level, and by $90 million or nearly half from the President's 1996 budget. These systems are already starting to help smooth the transition for youth from schools to rewarding careers and further education and training. Under the President's budget, with combined funds from ED and DOL, 27 States would be entering their second or third years of 5-year Federal commitments, and 15 additional States would begin their 5-year grants. Technology for Education (+$2.5 million in both bills, but $58 million below the President's 1996 budget request): The Senate would provide only $15 million of the $50 million requested for the K-12 Technology Learning Challenge, denying at least 14 communities the opportunity to form partnerships with business and higher education to develop new and effective applications of technology in schools. Neither the House nor the Senate bill funds the $20 million Adult Technology Learning Challenge, which would support innovative approaches to using technology for adult education. In addition, the House bill eliminates the $25 million Star Schools distance education program; the $7 million Ready to Learn program, which helps fund television programming designed to enhance the development of young children; and the $1.1 million Telecommunications Demonstration Project for Mathematics, which supports professional development for teachers. Eisenhower Professional Development State Grants (-$201 million in House bill, +$24 million in Senate bill): The House bill includes an 80 percent reduction in Federal support for State and local efforts to prepare educators to teach to high standards in the core academic subjects. Funding would fall from $251 million in 1995 to just $50 million in 1996. States would lose an average of $3.9 million, compared to an average gain of $9.3 million under the President's $735 million request. Bilingual Education (-$104 million in House bill, -$34 million in Senate bill): The House would cut Federal support for the education of limited English proficient students by nearly $104 million or 66 percent from the 1995 level, and $147 million or 74 percent from the President's 1996 budget. This clear attempt to eventually eliminate this program -- as called for in the House Budget Resolution passed earlier this year -- would deny services to almost 240,000 children and eliminate support for bilingual teacher training and research. Special Education Special Purpose Funds (-$162 million in House bill, -$8.6 million in Senate bill): The House reduction would eliminate funding for over 1,000 research, demonstration, technical assistance, and training projects that support State and local efforts to provide early intervention and special education services to children with disabilities. These projects include training programs for 23,000 new special education teachers and other personnel who work with children with disabilities. Vocational Education Basic State Grants (-$173 million in House bill, -$83 million in Senate bill): The House would cut Basic State Grant funding by $173 million or 18 percent, denying assistance needed by communities and States to prepare youth and adults to pursue productive careers in a changing economy. Adult Education (-$20 million in House bill, -$7.7 million in Senate bill): The House would consolidate most Adult Education funding under the Basic State Grant -- as proposed by the Administration -- but would reduce overall funding from the 1995 level by $20 million or 7 percent, eliminating services to 78,000 adults. Pell Grants (-$450 million in House bill, -$747 million in Senate bill): The House would raise the Pell Grant maximum award by $100 to $2,440, but also raise the minimum grant to $600, with a net impact of eliminating awards for over 228,000 low-income postsecondary students. The Senate is counting on the availability of surplus funds from prior years to avoid raising the minimum award. Perkins Loans (-$158 million in House bill, -$58 million in Senate bill): The House would terminate new Perkins Loan Federal Capital Contributions -- a $158 million reduction that would eliminate loans to approximately 150,000 needy college students. State Student Incentive Grants (-$63 million in House bill, -$32 million in Senate bill): The House abruptly eliminates this $63 million State-matched, need-based postsecondary grant program, denying awards to 212,000 needy college students. Direct Student Loan Administration (-$230 million from permanent appropriation in House bill, -$172 million in Senate bill): Both House and Senate bills would make arbitrary cuts in funds needed to support general student aid administration and oversight -- increasing the risk of waste and abuse -- while making it difficult to implement the Direct Student Loan program. Funding provided under this account for administration of guaranteed student loans also would be severely reduced. Byrd Honors Scholarships (-$29 million in House bill, level funding in Senate bill) : The House would terminate this program, denying $1,500 merit-based scholarships to over 19,400 students. Department Discretionary Programs: The House would implement a new overall policy of eliminating or consolidating discretionary grant programs that support research, demonstration, training, technical assistance, and evaluation activities that help States, communities, and higher education institutions improve education at all levels. The bill would eliminate $300 million to $400 million for such activities, while providing merely a small $20 million increase in Education Research that might be used for similar projects. This new approach essentially ends one of the oldest, most efficient, and cost-effective Federal roles in education: supporting State and local development and dissemination of effective educational practices throughout the Nation. Budget Service November 1, 1995 |