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FEDERAL EDUCATION FUNDING

FEDERAL EDUCATION FUNDING. Caps, Cuts, Sequesters, Shutdowns and Squeezes. Joel Packer, Executive Director The Committee for Education Funding Jpacker@cef.org. Committee For Education Funding. The Committee for Education Funding (CEF) is the oldest and largest education coalition.

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FEDERAL EDUCATION FUNDING

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  1. FEDERAL EDUCATION FUNDING Caps, Cuts, Sequesters, Shutdowns and Squeezes Joel Packer, Executive Director The Committee for Education FundingJpacker@cef.org

  2. Committee For Education Funding • The Committee for Education Funding (CEF) is the oldest and largest education coalition. • We represent 114 national organizations and institutions from PreK through graduate education including CEC. • For more information: www.cef.org • Follow us on Twitter: www.twitter.com/edfunding

  3. Trench Warfare! • Since January 2011 Republicans and Democrats have had multiple battles over the budget and deficit. • Republicans are opposed to revenue increases. • Liberal Democrats are opposed to entitlement cuts. • Education and other nondefense programs have borne the brunt of the cuts.

  4. Fiscal Year 2014 Outlays 4 Source: CEF based on OMB data

  5. FISCAL YEARS 2011/2012 $1.5 BILLION IN CUTS

  6. Final FY 11/12 Appropriations • FY 2011 cut ED (other than Pell) by $1.2 billion. • K12: Teacher Quality grants cut 16%, Career/Tech grants cut 11%, ED tech eliminated. • Only 0.2% cut to IDEA state grants • FY 2012 total ED funding cut by $233 million. • All programs cut by 0.189% across-the-board cut.

  7. Pell/Student Aid Cuts Enacted • Both FY 11 and FY 12 maintained the Pell maximum award of $5,550. • Maintaining Pell maximum was paid for with a variety of restrictions and limitations on student loans and Pell. • Pell grants have been cut by $53 billion. • 145,000 students have lost their Pell grant. • Interest subsidies on graduate loans eliminated = $18.1 billion cut.

  8. FISCAL YEAR 2013 LARGEST EDUCATION CUTS EVER!

  9. Sequestration = Largest Education Cuts Ever! • FY 13 = fixed percentage across-the-board (ATB) cuts. • NDD cut was 5% = $2.5 billion from ED. • IDEA state grants cut =$620 million • Pell grants exempt from across-the-board cuts. • Head Start in HHS cut $401 million. • Final ED non-Pell grant funding now lower than in FY 04. • FY 14-21 – no longer ATB cut; further lowers discretionary caps. • Squeezes education $; Pell no longer exempt.

  10. FY 13 Impact of Sequestration 10

  11. FISCAL YEAR 2014 PARTIAL SEQUESTER REPLACEMENT

  12. Budget Deal • House Budget Chair Ryan and Senate Budget Chair Murray in December agreed to the Bipartisan Budget Act: • Partially replaced the sequester cuts to discretionary programs for FY 2014 and FY 2015. • Paid for by extending mandatory sequester cuts into FY 2022 and FY 2023 and other small mandatory cuts and user fees.

  13. FY 2014 Omnibus • Based on BBA, in January Congress passed Consolidated Appropriations Act of 2014. • In aggregate only restores 2/3rds of ED sequester cuts. • Big winner was preschool: • Head Start: sequester cut fully restored plus $100 million • Early Head Start-Child Care Partnerships: $500 million • New preschool Race To The Top: $250 million.

  14. FY 2014 Omnibus • Programs frozen at sequester levels: • SIG • High School Graduation Initiative • Rural Education • Indian Education • Promise Neighborhoods • Investing in Innovation • IDEA Preschool grants

  15. FY 2014 Omnibus: Increases • Title I (+4.5%) • Impact Aid (+5.3%) • Teacher Quality Grants (+0.5%) • After school (+5.3%) • ELL Grants (+4.3%) • IDEA State Grants (+4.5%) • IDEA infants and families (+4.5%) • Career/technical ED state grants (+5.0%) • GEAR UP (+5.3%) • TRIO (+5.3%) • SEOG (+5.3%) • Work-Study (+5.3%) • First in the WorldNew $75 million

  16. Education Department Funding In billions

  17. FISCAL YEAR 15 FREEZE OR LESS

  18. FY 2015 Caps • FY 15 NDD cap only increases by 0.1%. • FY 16 NDD cap only increases above FY 15 by 0.1%. • President's Budget adheres to Ryan-Murray cap of $1.014 trillion. • Proposes $56 billion Opportunity, Growth and Security initiative. • 50% defense/50% NDD; paid for with $28 billion in mandatory cuts and $28 billion in revenues. • Includes funds for Early Head Start-Child Care partnerships ($800 million), Preschool Development Grants ($250 million), ConnectEDucators ($300 million), Promise Neighborhoods ($200 million)

  19. NDD Cap LevelsBudget Authority in Billions Source: CEF Calculations based on CBO and OMB data

  20. Fiscal Year 2015Budget Request

  21. FY 15 Education Budget • ED receives $1.3 billion (+1.9%) increase - largest of any nonsecurity agency! • Excluding Pell, ED’s total is $45.8 billion, a 3% increase. • Increases mostly for new programs • K12 programs frozen: • Title I • IDEA State Grants • IDEA preschool grants • IDEA National activities • SIG

  22. FY 15 Education Budget • More K12 and related programs frozen: • Migrant/Delinquent Ed • State assessment grants • Rural Education • Indian education • 21st Century Community Learning Centers • Charter school grants • Magnet Schools • English Language Acquisition grants • Career and technical education State grants • Adult Education State grants • Regional Education Labs

  23. FY 15 Education Budget • PreK and K12 Discretionary programs increased: • Early Head Start-Child Care Partnerships =+$150 million (+30%) (HHS) • Preschool Development grants = +$250 million (+100%) • Promise Neighborhoods = +$43 million (+76%) • Race to the Top – Equity and Opportunity (new) = $300 million • “designed to drive meaningful changes in how States and LEAs identify and close persistent educational opportunity and achievement gaps” • Investing in Innovation = +$23.4 million (+16.5%) • STEM Innovation = +$170 million (+114%) • High School Redesign (new) = $150 million • “promote the whole school transformation of the high school experience in order to provide students with challenging and relevant academic and career-related learning experiences that prepare them to transition to postsecondary education and careers”

  24. FY 15 Education Budget • K12 Discretionary programs increased: • ConnectEDucators (new) = $200 million • “competitive funds to LEAs and LEA consortia to support educators’ use of technology and data to personalize learning and to provide better CCR-aligned instruction.” • Teacher Incentive Fund = +$31.2 million (+10.8%) • School Leadership = +$9.2 million (+35.9%) • IDEA Results Driven Accountability Incentive Grants(new) = $100 million • “competitive grants to States to implement State Systemic Implementation Plans to improve results for children with disabilities ages birth through 21.” • IDEA Grants for infants and families = +$3.3 million (+0.8%)

  25. 302(b) Allocations • House 302(b) allocation for Labor-HHS-ED is $1.1 billion below FY 2014 (-0.7%) • Senate allocation is a freeze at FY 2014 • Both subcommittees have to deal with extra $1.4 billion needed for Unaccompanied Alien Children and $270 million for non-profit student loan servicers. • House and Senate Labor-HHS-Education Appropriations Subcommittee and full committee markups • Senate: Subcommittee tomorrow, full committee on Thursday • House: by end of June? • CR likely until lame duck

  26. Ryan FY 2015 Budget Slashes Non Defense Discretionary In billions of $ Source: CEF Calculations based on CBO and OMB data and Ryan Budget

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