FEDERAL EDUCATION FUNDING

1. FEDERAL EDUCATION FUNDING Caps, Cuts, Freezes and Sequesters 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. • For more information: www.cef.org • Follow us on Twitter: www.twitter.com/edfunding

3. Today’s Presentation • What is the CEF Budget Response? • Why Invest in Education? • What happened in Fiscal Years 2011 and 2012? • Sequestration’s Impact on Education in FY 2013 • The FY 14 Omnibus • Summary of President Obama's FY 15 Budget for Education • K12 Programs • Career, Technical and Adult Education • Higher Education • Education Research • Children's Programs

4. CEF Budget Response • 230-page analysis of the President's FY 2015 Budget includes: • CEF's position on the budget • Summary/analysis of the President's Budget • Education budget cuts since FY 2010 • Funding table for FY 12, FY 13, FY 14 and President’s FY 15 budget • The Need To Invest In Education • Analysis of 80 education and children's programs: • Impact of the President's budget • Impact of sequestration

5. CEF Membership Directory • Listing of information about our members: • Organization name/address/web address/key contacts/emails/phone numbers. • Both publications are available on the CEF website: www.cef.org

6. THE NEED TO INVEST IN EDUCATION 6

7. MORE STUDENTS AND MORE STUDENTS IN POVERTY

8. Rising K-12 Enrollments 8 Source: CEF based on NCES Projections of Education Statistics to 2022

9. Rising Higher Education Enrollments 9 Source: CEF based on NCES Projections of Education Statistics to 2022

10. More Children in Poverty 10

11. More Students in High-Poverty Schools Percentage distribution of public school students, by school poverty level: School years 1999-2000 and 2010-11 Source: NCES: Condition of Education 2013

12. More Hispanic Students 12

13. STATE AND LOCAL BUDGET CUTS

14. Fewer Local Education Employees 345,000 fewer jobs thousands 14 Source: CEF based on BLS seasonally adjusted employment data

15. Per Student Public Education Spending Decreased in 2011

16. State Funding for PreK Has Declined Source: The State of Preschool 2012: State Preschool Yearbook The National Institute for Early Education Research

17. State Funding for Higher Education Has Declined

18. EARNINGS LINKED TO LEARNING

19. Unemployment Linked to Educational Attainment Source: CEF based on BLS; The Employment Situation -- February 2014 Table A-4.

20. Earnings Based on Learning Source: Georgetown University Center on Education and the Workforce; The College Payoff

21. Estimated Cumulative Full-Time Earnings (in 2011 Dollars) Net of Loan Repayment for Tuition and Fees, by Education Level SOURCES: U.S. Census Bureau, 2012, Table PINC-03; Baum and Ma, 2012; calculations by the authors.

22. THE PUBLIC OPPOSES EDUCATION CUTS

23. The Public Opposes Education Cuts Would you approve or disapprove of reducing federal funding for education as a way to reduce the size of the national debt? 23 Source: Pew Research Center for the People & the Press, October, 2012

24. Two-thirds Want To Protect Education From Sequester Cuts Source: CEF/FEI Poll, December 2012

25. THE FEDERAL BUDGET AND EDUCATION

26. Fiscal Year 2014 Outlays 26 Source: CEF based on OMB data

27. FY 14 Department of Education Discretionary Funding 27 Source: CEF based on Education Department data

28. $80 BILLION IN CUTS SINCE FY 2010

29. FISCAL YEARS 2011/2012 $1.5 BILLION IN NON-PELL CUTS

30. Final FY 11 and 12 Appropriations • FY 11 cut ED (other than Pell) by $1.2 billion. • Teacher Quality grants cut 16%, Career/Tech grants cut 11%, ED tech eliminated, LEAP eliminated • FY 12 total ED funding cut by $233 million. • All programs cut by 0.189% across-the-board cut.

31. FISCAL YEARS 2011/2012 $75 BILLION IN STUDENT AID CUTS

32. 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.

33. FISCAL YEAR 2013 LARGEST EDUCATION CUTS EVER!

34. Sequestration = Largest Education Cuts Ever! • FY 13 = fixed percentage across-the-board (ATB) cuts. • NDD cut was 5% = $2.5 billion from ED. • 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.

35. FY 13 Impact of Sequestration 35

36. FISCAL YEAR 2014 PARTIAL SEQUESTER REPLACEMENT

37. 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.

38. 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.

39. 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

40. FY 2014 Omnibus: Increases • Title I (+4.5%) • 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

41. Education Department Funding In billions

42. FISCAL YEAR 15 FREEZE OR LESS

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

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

45. Cumulative Deficit Reduction FY 2015-2024 Sources: CEF Calculations based on President's FY 2015 Budget Summary tables, Table S–3.

46. Fiscal Year 2015Budget Request

48. The President’s FY 2015 Budget • 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) • Replaces the sequester long-term.

49. The President’s FY 2015 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 - most current programs are frozen (Title I, IDEA, SIG, after school, English Language Acquisition grants, Rural Ed, Indian Ed, charters, magnets, CTE state grants, Adult Ed state grants, SEOG, Work-Study, TRIO, GEAR UP, aid to HBCUs and other MSIs).

50. Proposed Mandatory Spending In billions (FY 15 - FY 24)