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Winter 00/01 (v4#3)

Federal budget finally approved:
Education Spending a Top Priority

Over two months after the scheduled deadline, the U.S. Congress passed a budget that gives the U.S. Department of Education its largest increase ever. The 2001 spending package allocates a $6.5 billion increase to the Department, an 18 percent increase from the 2000 fiscal year and a 76 percent increase since 1993.

"When many said a lame-duck session would not accomplish anything, the President refused to give up on some urgent priorities such as funding for public schools, tax incentives for struggling communities, and vitally needed assistance for hospitals and other health care providers," said Representative Charles B. Rangel.

Spending on the federal class size reduction (CSR) initiative increased from $1.3 billion to $1.6 billion for fiscal year 2002. The 23 percent increase will pursue President Bill Clinton’s goal of hiring 100,000 teachers to reduce class sizes in the early grades by 2005.

There has been a policy change in the CSR program to allow more "flexibility." In the 2000-01 school year, school districts that employed a teaching force consisting of at least 10 percent of uncertified teachers could use all of their federal CSR funding on professional development activities, but only with a waiver from the Department of Education, in certain cases, the state. In the 2001-02, school year eligible districts no longer need a waiver as long as at least 10 percent of their teachers are uncertified.

The New York City Board of Education expects to receive $82 million of the federal CSR allocation. That amount has increased form the $66 million that the city received last year.

A brand new emergency school renovation initiative will allocate $1.2 billion to repair thousands of schools across the county. This initiative will target high-needs districts, and Rep. Rangel’s office expects New York City to get a "substantial share" of the funding. NYC could receive as much as $45 million for emergency repairs. Funding for school renovation is direly needed. Although the new initiative is a step in the right direction, it does not begin to address the need.

Many advocates had hoped that the Congress would have passed the Rangel/Johnson bill that would have allowed states, and in some cases districts, to float bonds with the interest paid by the federal government. Although the bill did not pass, Ways and Means Democrat Press Secretary Dan Maffei is quite optimistic about the bill’s chances next year in the 107th Congress.

The bill would leverage up to $25 billion for school construction, according to Maffei. "There is a $300 billion need. $1.2 billion is a drop in the bucket.

The Rangel/Johnson bill is a down payment."

Initiatives directed towards raising school accountability and improving teacher quality gained substantially. Funding for turning around low-performing schools increased by 70 percent to $225 million. The President’s teacher quality initiatives received a 52 percent increase, bring the allocation to $567 million.

The spending package allocates $125 million to help create "smaller, safer and more successful high schools" among the county’s largest schools. This funding can be used to create schools within schools and to establish "career academies." Charter schools will receive a $45 million increase to create 450 new or redesigned public charter schools, bringing the number of federally supported charters to 2,800 since the beginning of the Clinton administration.

Several programs that target high-needs children from preschool to college saw their allocations increase. Head Start funding increased by $933 million, the largest one-year increase in the history of the program. Title I increased from $7.9 billion to $8.6 billion. Special education got the biggest boost, increasing state grants from $4.9 billion to $6.3 billion.

The GEAR UP initiative, which targets disadvantaged sixth and seventh graders and encourages and prepares them for college, will be funded at $295 million, allowing the program to reach 1.2 million students. The largest presidential proposed increase for any program was for the TRIO/Key Elements of College Completion Challenge Grants which prepares and motivates low-income and first-generation college students to go to college and stay in college. Pell Grants, student aid awarded to needy students, have been increased, raising the maximum award available by 63 percent.

Education was a winner in the FY 2001 budget, but Congress has failed to address the schools facilities crisis, which is particularly acute in the nation’s cities. To our surprise, staffers are optimistic about the eventual passage of the Rangel/Johnson bill, even under the Bush presidency.

Since its inception as a coalition, EPP has advocated for more of a federal role in funding education. President Clinton has succeeded in articulating a rationale for Congress to act, albeit for

discrete programs. President-elect Bush’s platform has advocated a restructuring of education. In the future, federal funds might be used to encourage privatization efforts, such as funding vouchers or EMOs (educational maintenance organizations).

 

Highlights from the Federal Budget
ACCOUNT, PROGRAM, OR ACTIVITY TOTAL FY 2001 APPROPRIATION (FOR 2001-02) SCHOOL YEAR PERCENT CHANGE FROM 2000 APPROPRIATION
Learning Centers /Technology   $8.7 M 13.9%
Goals 2000   0 -100%
*School to Work Opportunities   0 -100%
Education for the Disadvantaged (Title I) (All Title 1 programs) $9.5 B 9.6%
  1. Grants to Local Education Agencies (total of a and b) $8.6 B 8.3%
  a) Basic Grants $7.2 B 6.7%
  (b)Concentration Grants $1.36 B 17.7%
School Improvement Programs (All SchoolImprovement Programs) $4.87 B 61.9%
  Class Size Reduction $1.6 B 24.8%
  School Renovation $1.2 B 100%
  Charter Schools $1.9 M 31%
Special Education   $7.4 B 23.3%
Rehabilitation Services and Disability Research   $2.8 B 3.6%
Vocational and Adult Education   $1.8 B 8.6%

*An identical amount is included in the budget for Department of Labor.

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