President Obama’sFY 2013 Education Budget Robert L. Moran Director of Federal Relations American Association of State Colleges and Universities
Overall Education funding • Title I programs $14.5 billion • Education Improvement grants $1.2 billion • IDEA $11.6 billion • Higher Education $3.2 billion • Pell Grants $22.8 billion
Breakdown of Higher Education Funding • Pell Grant Program $22.8 billion • Title III Programs $431 million • Title V Programs $109 million • TRIO $840 million • GEARUP $302 million • Race to the Top $1 billion • First in the World $55.5 million
Pell Grant Program • President continues to support Pell Grants • Maintaining level funding • Directs savings from 3 proposals to future program needs • Perkins Loan Program $8.6 billion • Restructure GA payments $3.2 billion • Restrict subsidized loans to students under 150% of time $1.8 billion
Technology in Budget • Effective Teachers and Leaders State Grants (New) • Budget request: $2.5 billion “The initiative also would support State and local efforts to use technology and interdisciplinary approaches…” “…funds would be used to strengthen the use of technology across the core academic content areas…” • Investing in Innovation (I3) grants • Budget request: $150 million “…pursue breakthrough developments in educational technologies and learning systems,…” • Numerous references to STEM education
Higher education proposals • Tuition Sensitivity: revamp the formulas for campus based programs. • Race to the Top: College Affordability and Completion Fund • First in the World Grants • Tax proposals
Tuition Sensitivity • Campus based programs • Supplementle Education Opportunity Grants (SEOG) • Federal Work Study Program • Perkins Loan Program
Tuition Sensitivity • Revamped formulas would focus on rewarding institutions that: • Have or keep tuition levels low; • Provide good value; and • Enroll and graduate low-income students.
Race to the Top:College Affordability and Completion Fund • $1 billion fund to award grants to states that: • Significantly restructure state formulas for support payments to institutions of higher education to strengthen and improve productivity; • Improve alignment between K-12 and higher education; and • Commit to maintaining or increasing state funding for higher education.
First in the World • Fund for the Improvement of Postsecondary Education (FIPSE) • Request: $55.5 million • “…to support exemplary, locally developed projects that are models for innovative reform and improvement in postsecondary education. The 2013 request would provide $55.5 million for the First in the World (FITW) initiative, which would apply the lessons of the successful K-12 Investing in Innovation (i3) program to the challenge of improving college completion, particularly for minority and low-income students. First in the World would provide “venture capital” to encourage innovative approaches to improving college completion, research support to build the evidence of effectiveness needed to identify successful strategies, and resources to scale up and disseminate strategies we already know are successful. Up to $20 million of FITW funds would be dedicated to projects involving minority-serving institutions…”
Higher Education Tax Provisions • American Opportunity Tax Credit • Budget proposes to permanently extend • Loan forgiveness for borrowers after 25 years in repayment • Income Based Repayment/Income Contingent Repayment