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EDUCATION FUNDING

EDUCATION FUNDING. Looking Back, Looking Forward. Joel Packer, CEF Executive Director: JPacker@cef.org. CEF. The Committee for Education Funding (CEF) is the oldest and largest education coalition.

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EDUCATION FUNDING

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  1. EDUCATION FUNDING Looking Back, Looking Forward Joel Packer, CEF Executive Director: JPacker@cef.org

  2. CEF • The Committee for Education Funding (CEF) is the oldest and largest education coalition. • We represent over 85 national organizations and institutions from PreK through graduate education – including SSWAA. • For more information: www.cef.org • Follow us on Twitter: www.twitter.com/edfunding

  3. Investing in Education

  4. Rising K-12 Enrollments Source: CEF based on NCES Projections of Education Statistics to 2019

  5. Rising Higher Education Enrollments Source: CEF based on NCES Projections of Education Statistics to 2019

  6. Unemployment Linked to Educational Attainment Source: CEF based on BLS data

  7. Median Earnings and Tax Payments of Full-Time Year-Round Workers Ages 25 and Older, by Education Level, 2008 Sources: The College Board, Education Pays 2010, Figure 1.1; U.S. Census Bureau, 2009; Internal Revenue Service, 2008; Davis et al., 2009; calculations by the authors.

  8. The Public Opposes Education Cuts If you had to choose one, which of the following domestic programs would you be willing to reduce in order to cut government spending? Source: January 2011 New York Times/CBS News Poll

  9. The Public Opposes Education Cuts Please tell me if you would favor or oppose substantial changes to the program. Source: March 2011 Bloomberg News National Poll

  10. The Need to Invest • National Commission on Fiscal Responsibility and Reform: “…we must invest in education, infrastructure, and high-value research and development to help our economy grow, keep us globally competitive, and make it easier for businesses to create jobs.”

  11. The Need to Invest • Federal Reserve Chairman Bernanke: “Cost-effective K-12 and post-secondary schooling are crucial to building a better workforce... Research increasingly has shown the benefits of early childhood education and efforts to promote the lifelong acquisition of skills for both individuals and the economy as a whole. The payoffs of early childhood programs can be especially high.”

  12. Fiscal Year 2011 Over six months late

  13. Congress Fails It’s One Job • In February 2010, President Obama’s FY 11 budget proposed a $3.5 billion (+7.6%) increase for the Department of Education. • In 2010, the previous Congress failed to pass any of the required 12 Appropriations bills.

  14. March 4 CR • Enacted in December 2010. • Froze all FY 11 education funding at FY 10 levels. • Provided $5.7 billion for Pell shortfall to maintain $5,550 maximum award. • Expired on March 4, 2011.

  15. House-Passed Long-Term CR • On February 19, the House passed HR 1, a CR for the remainder of FY 11. • It cut ED programs by $11.55 billion or 16.1%!

  16. House-Passed Long-Term CR • 60 programs eliminated, including literacy, school libraries, school leadership, Promise Neighborhoods, education technology grants, math/science partnerships, Arts Education, parent information centers, school counseling, mental health integration, alcohol abuse reduction, tech-prep, SEOG, LEAP.

  17. House-Passed Long-Term CR • 13 more cut, including Pell, Title I, School Improvement Grants, after school, teacher quality state grants, aid for minority-serving institutions. • Head Start cut by $1.1 billion (-15%). • IDEA frozen.

  18. HR 1473 – Final CR • Negotiated final bill cuts education by $1.3 billion. • Program increases – President’s priorities: • Race to The Top = $700 million with $500 million for Early Learning Challenge Fund. • Investing in Innovation = $150 million • Promise Neighborhoods = +$20 million (total of $30 million) • Head Start (in HHS) = $+340 million

  19. HR 1473 – Final CR • Selected program cuts and eliminations: • All programs cut by 0.2% • Striving Readers = -$200 million (eliminated) • Even Start = -$66.5 million (eliminated) • Literacy Through School Libraries = -$19.1 million (eliminated) • Teacher Quality State Grants = -$480 million (-16.3%) • Education technology state grants = -$100 million (eliminated)

  20. HR 1473 – Final CR • School Counseling = -$2.6 million (-4.7%) • Civic education = -$33.8 million (-97%) • Javits gifted and talented = -$7.5 million (eliminated) • Career and technical education = -$140 million (-11%)

  21. The Deficit and the Debt Ceiling

  22. Source: Coalition on Human Needs

  23. Source: Coalition on Human Needs

  24. Budget Threats • Set low funding caps for “discretionary” programs in annual spending (“appropriations”) bills. • House FY 12 allocation for Labor-HHS-ED = cut of 11.6% below FY 11 and 3.9% below FY 08.

  25. Squeeze on Discretionary Spending Source: CEF based on CBO data

  26. Budget Threats • Restructure “mandatory” programs (programs that don’t need annual appropriations) • E.g., block grant Medicaid, Food Stamps (passes costs on to states, reduces individual protections)

  27. Budget Threats • Change budget rules (e.g., global spending cap, balanced budget amendment, spending‐only enforcement). • Hold must‐pass bill to increase debt ceiling hostage to demand deep program cuts & budget rule changes.

  28. Budget Threats • Eliminate authorizations • HR 1891 reported by Education and the Workforce Committee eliminates 42 programs from ESEA including school leadership, school counseling, alcohol abuse reduction and high school graduation initiative. • Would cut $412 million below FY 11.

  29. Two Budgets – Competing Visions House-Passed FY 12 V. President's FY 12 Budget

  30. House FY 12 Budget Resolution • Would cut Education 18.7% ! • Would move us backwards on: • closing achievement gaps • increasing achievement • increasing high graduation, college attendance and college completion rates

  31. President Obama’s FY 12 Budget Compared to Final FY 11 CR: • Increases Education by $9.1 billion (+13.3%) • Not counting Pell, increase = $3.4 billion (+7.5%)

  32. Education Department Funding In billions

  33. President Obama’s FY 12 Budget • Increases for Administration priorities: • Race to the Top = +$201 million (+28.9%) • Early Learning Challenge Fund =+$150 million (+100.4%) • Promise Neighborhoods = +$120 million (+400%)

  34. Elementary/Secondary Education • Other ESEA program increases: • Title I = $300 million for new rewards program • School Turnaround Grants = +$65.4 million (+12.2%) • 21st Century Community Learning Centers = +$112 million (+9.7%) • Magnet Schools = +$10 million (+10%)

  35. ESEA Funding • Proposes to consolidate 38 existing programs into nine new funding streams • All but one would be competitive grants • Consolidations contingent on ESEA reauthorization • Education Technology State Grants is eliminated 37

  36. Migrant Education Neglected/Delinquent Education for Homeless Impact Aid Elementary/Secondary Education • English Language State grants • Rural Education • Indian Education Programs Frozen

  37. ESEA Consolidations 39

  38. ESEA Consolidations 40

  39. ESEA Consolidations 41

  40. ESEA Consolidations 42

  41. ESEA Consolidations 43

  42. Special Education - IDEA • IDEA State Grants = +$223 million (+1.9%) • Federal share of special ed costs would fall to 16.5% • Federal Share per student = $1,765

  43. Career, Technical and Adult Education • Career and Technical Education state grants would be further cut to $1 billion ($123 million cut, -10.9%)

  44. Pell Grants • Pell maximum award of $5,550 maintained • Total Pell funding = $41.2 billion

  45. House Budget Resolution The Ryan Plan

  46. House Budget Resolution • FY 12 Budget Resolution passed the House on 4/15 by a vote of 235-193. • Party line vote (except four Republicans voted no). • Assumes all of the education cuts and program eliminations contained in HR 1.

  47. House Budget Resolution • Further reduces funding for education and related programs, resulting in a cut of $17.7 billion (-18.7 percent) in FY 2012. • The cuts grow to more than 25 percent over time and total $250 billion over ten years. • Cuts the Pell grant maximum award to $3,040 (-45%).

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