[Appendix]
[Detailed Budget Estimates by Agency]
[Department of Education]
[From the U.S. Government Publishing Office, www.gpo.gov]
[[Page 395]]
DEPARTMENT OF EDUCATION
OFFICE OF ELEMENTARY AND SECONDARY EDUCATION
Federal Funds
General and special funds:
Education Reform
For carrying out activities authorized by the Goals 2000: Educate
America Act and the School-to-Work Opportunities Act, $691,000,000, of
which $476,000,000 for the Goals 2000: Educate America Act and
$200,000,000 for the School-to-Work Opportunities Act shall become
available on July 1, 1997, and remain available through September 30,
1998.
Note.--A regular 1996 appropriation for this account had not been
enacted at the time this budget was prepared. The 1996 amounts included
in this budget are based on the levels provided in three continuing
resolutions: P.L. 104-91, P.L. 104-92, and P.L. 104-99.
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0500-0-1-501 1995 actual 1996 est. 1997 est.
----------------------------------------------------------------------------
Obligations by program activity:
Goals 2000:
00.01 State and local education
systemic improvement.......... 221 479 476
00.02 Parental assistance............. 10 10 15
--------- --------- ----------
00.91 Subtotal, Goals 2000............ 231 489 491
01.01 School-to-work opportunities...... 63 190 200
--------- --------- ----------
10.00 Total obligations............... 294 679 691
----------------------------------------------------------------------------
Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested
balance......................... 56 265
22.00 New budget authority (gross)...... 494 414 691
22.20 Unobligated balance transferred... 10
22.30 Unobligated balance expiring...... -1
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 559 679 691
23.95 New obligations................... -294 -679 -691
24.40 Unobligated balance available, end
of year: Uninvested balance..... 265
----------------------------------------------------------------------------
New budget authority (gross), detail:
40.00 Appropriation..................... 494 414 691
----------------------------------------------------------------------------
Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Appropriation 89 322 494
73.10 New obligations................... 294 679 691
73.20 Total outlays (gross)............. -61 -507 -473
74.40 Unpaid obligations, end of year:
Obligated balance: Appropriation 322 494 712
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new current authority 6 50 83
86.93 Outlays from current balances..... 55 457 391
--------- --------- ----------
87.00 Total outlays (gross)........... 61 507 473
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 494 414 691
90.00 Outlays........................... 61 507 473
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Summary of Budget Authority and Outlays
[In millions of dollars]
1995 actual 1996 est. 1997 est.
Enacted/requested:
Budget Authority.................. 494 414 691
Outlays........................... 61 507 474
Adjustment to 1996 continuing
resolution levels:
Budget Authority.................. 257
Outlays........................... 31 175
------------------------------------
Total:
Budget Authority.................. 494 671 691
Outlays........................... 61 538 649
====================================
Funds help States and localities undertake comprehensive systemic
education reform and create State and local systems of school-to-work
transition for students.
Goals 2000:
State and local education systemic improvement.--State grants
support State and local education improvement efforts to help all
students reach challenging academic standards. At least 90 percent
of the funds are provided to local educational agencies. Forty-eight
States participated in the first year of funding. Funds also support
evaluation, research, and direct grants to local educational
agencies in urban and rural areas that enroll significant
proportions of students from disadvantaged backgrounds.
Parental assistance.--Centers in 28 States help provide parents
with knowledge and skills they need to participate effectively in
their children's education. The requested increase for 1997 would
support centers in 14 additional States.
School-to-Work Opportunities.--School-to-work programs are jointly
administered by the Departments of Education and Labor. An identical
amount is provided for the Department of Labor to support these
activities. Competitive, 5-year grants are awarded to States that have
completed and are ready to implement their school-to-work plans. Twenty-
seven States are currently in their first or second year of these
grants.
Direct grants are also provided to local communities for school-
to-work systems. By mid-1996 ninety-one local partnerships,
including 45 that are serving young people who live in urban and
rural areas characterized by high-poverty, will have received awards
and be setting up their systems. These funds also support a national
evaluation, research, and development activities to provide national
leadership and analysis of school-to-work opportunities initiatives.
Object Classification (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0500-0-1-501 1995 actual 1996 est. 1997 est.
----------------------------------------------------------------------------
25.1 Advisory and assistance services.. 4 9 9
25.2 Other services.................... 2 5 5
41.0 Grants, subsidies, and
contributions................... 288 665 677
--------- --------- ----------
99.9 Total obligations............... 294 679 691
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Education for the Disadvantaged
For carrying out title I of the Elementary and Secondary Education
Act of 1995. $7,679,000,000, of which $7,658,000,000 shall become
available on July 1, 1997 and shall remain available through September
30, 1998: Provided, That $5,430,213,000 shall be available for basic
grants under section 1124, of which up to $4,000,000 shall be available
October 1, 1996 to obtain updated local-educational-agency-level census
poverty data from the Bureau of the Census; $663,137,000 shall be
available for concentration grants under section 1124A; $1,000,000,000
shall be available for targeted grants under section 1125; and
$17,000,000 for part E shall be used to carry out sections 1501 and
1502.
Note.--A regular 1996 appropriation for this account had not been
enacted at the time this budget was prepared. The 1996 amounts included
in this budget are based on the levels provided in three continuing
resolutions: P.L. 104-91, P.L. 104-92, and P.L 104-99.
[[Page 396]]
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0900-0-1-501 1995 actual 1996 est. 1997 est.
----------------------------------------------------------------------------
Obligations by program activity:
Direct program:
Grants to local educational
agencies:
00.01 Basic grants.................. 5,965 4 5,430
00.02 Concentration grants.......... 663 663
00.03 Targeted grants............... 1,000
00.04 Set-aside for BIA/outlying
areas....................... 21 5 72
00.05 Capital expenses................ 45 20
00.06 Even start...................... 100 4 102
00.07 State agency programs........... 350 4 360
00.08 State school improvement........ 28 15
00.09 Demonstrations of innovative
practices..................... 10
00.10 Evaluation...................... 4 7
00.11 Migrant education............... 10
00.12 Unallocated amount under P.L.
104-99........................ 6,015
--------- --------- ----------
00.91 Total direct program.......... 7,186 6,032 7,679
01.01 Reimbursable program.............. 14
--------- --------- ----------
10.00 Total obligations............... 7,200 6,032 7,679
----------------------------------------------------------------------------
Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested
balance......................... 12 17
22.00 New budget authority (gross)...... 7,201 6,015 7,679
22.10 Resources available from
recoveries of prior year
obligations..................... 5
22.30 Unobligated balance expiring...... -1
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 7,217 6,032 7,679
23.95 New obligations................... -7,200 -6,032 -7,679
24.40 Unobligated balance available, end
of year: Uninvested balance..... 17
----------------------------------------------------------------------------
New budget authority (gross), detail:
Current:
40.00 Appropriation................... 7,228 6,015 7,679
41.00 Transferred to other accounts... -41
--------- --------- ----------
43.00 Appropriation (total)......... 7,187 6,015 7,679
Permanent:
68.00 Spending authority from
offsetting collections:
Offsetting collections (cash). 14
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 7,201 6,015 7,679
----------------------------------------------------------------------------
Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Appropriation 7,556 7,900 6,977
73.10 New obligations................... 7,200 6,032 7,679
73.20 Total outlays (gross)............. -6,821 -6,955 -6,551
73.40 Adjustments in expired accounts... -30
73.45 Adjustments in unexpired accounts. -5
74.40 Unpaid obligations, end of year:
Obligated balance: Appropriation 7,900 6,977 8,105
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new current authority 353 722 921
86.93 Outlays from current balances..... 6,467 6,224 5,627
86.97 Outlays from new permanent
authority....................... 2
86.98 Outlays from permanent balances... 9 3
--------- --------- ----------
87.00 Total outlays (gross)........... 6,821 6,955 6,551
----------------------------------------------------------------------------
Offsets:
Against gross budget authority and outlays:
88.00 Offsetting collections (cash)
from: Federal sources......... -14
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 7,187 6,015 7,679
90.00 Outlays........................... 6,807 6,955 6,551
---------------------------------------------------------------------------
Summary of Budget Authority and Outlays
[In millions of dollars]
1995 actual 1996 est. 1997 est.
Enacted/requested:
Budget Authority.................. 7,187 6,015 7,679
Outlays........................... 6,808 6,955 6,551
Adjustment to 1996 continuing
resolution levels:
Budget Authority.................. 1,313
Outlays........................... 158 893
------------------------------------
Total:
Budget Authority.................. 7,187 7,328 7,679
Outlays........................... 6,808 7,113 7,444
====================================
Grants to local educational agencies.--Funds will be allocated
through the Basic, Concentration, and Targeted grant formulas for local
programs that stress the achievement of challenging State education
standards, support schoolwide improvement, integrate Title I assessment
and curriculum with State systemic reforms, and target funds to high-
poverty schools. Up to $4.0 million in Basic Grant funds will be used to
continue work needed to obtain updated poverty data at the local
educational agency level from the Bureau of the Census, for use in
allocating Title I funds beginning in 1999, as required by the statute.
Capital expenses.--Funds are provided by formula to States to
support capital costs incurred by local educational agencies that are
associated with providing educational services to eligible children
attending non-public schools.
State agency migrant program.--Funds are provided by formula to
States for educational services to children of migratory farmworkers and
fishers. Funds and services are concentrated on children who have moved
within the past 36 months.
State agency neglected and delinquent program.--Funds are provided
by formula to States for educational services to children and youth
under age 21 in State neglected, delinquent, or adult correction
facilities. Services help institutionalized youth achieve to the same
challenging standards established for students in local public schools.
State school improvement.--Funds are provided by formula to States
to be used for technical assistance, incentives, and other strategies to
assist schools and districts to implement Title I programs that help
children meet challenging State education standards.
Demonstrations of innovative practices.--Funds will be used to test
and evaluate strategies and approaches for educating disadvantaged
children.
Evaluation.--Funds support national activities to evaluate Title I
programs and a national assessment of the program's effectiveness in
helping schools and children achieve to challenging State education
standards.
Reimbursable program.--Amounts in this activity consist of funds
appropriated in other accounts for consolidated grants to the insular
areas.
Object Classification (In millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0900-0-1-501 1995 actual 1996 est. 1997 est.
----------------------------------------------------------------------------
Direct obligations:
25.1 Advisory and assistance services 3 6
25.2 Other services.................. 8 9
41.0 Grants, subsidies, and
contributions................. 7,175 17 7,664
92.0 Undistributed................... 6,015
--------- --------- ----------
99.0 Subtotal, direct obligations.. 7,186 6,032 7,679
99.0 Reimbursable obligations.......... 14
--------- --------- ----------
99.9 Total obligations............... 7,200 6,032 7,679
---------------------------------------------------------------------------
Impact Aid
For carrying out programs of financial assistance to federally
affected schools authorized by Title VIII of the Elementary and
Secondary Education Act of 1965, $617,000,000, of which $550,000,000
shall be for basic support payments under section 8003(b), $40,000,000
shall be for payments for children with disabilities under section
8003(d), $20,000,000, to remain available until expended, shall be for
payments under section 8003(f), $4,000,000 shall be for construction
under section 8007, and $3,000,000, to remain available until expended,
shall
[[Page 397]]
be for facilities maintenance under section 8008: Provided, That
payments and eligibility under section 8003 shall be based only on
federally connected children described in sections 8003(a)(1)(B) and
8003(a)(1)(C): Provided further, That notwithstanding the provisions of
section 8003(b)(1)(B), any local educational agency that received a
payment based on federally connected children described in sections
8003(a)(1)(B) and 8003(a)(1)(C) for fiscal year 1996 shall be eligible
to receive a payment under sections 8003(b) and 8003(d) for fiscal year
1997: Provided further, That notwithstanding section 8003(b)(1)(C), the
maximum amount of the basic support payment shall be determined by
multiplying each local educational agency's weighted student units for
federally connected children described in sections 8003(a)(1)(B) and
8003(a)(1)(C) by the factor described under section 8003(b)(1)(C)(iv):
Provided further, That notwithstanding section 8003(b)(2), if funds
provided are insufficient to pay each local educational agency the full
amount of its payment calculated under section 8003(b)(1)(C), then
payments shall be ratably reduced: Provided further, That none of the
funds provided herein shall be used for payments under section 8003(e).
Note.--A regular 1996 appropriation for this account had not been
enacted at the time this budget was prepared. The 1996 amounts included
in this budget are based on the levels provided in three continuing
resolutions: P.L. 104-91, P.L. 104-92, and P.L. 104-99.
Program and Financing (In millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0102-0-1-501 1995 actual 1996 est. 1997 est.
----------------------------------------------------------------------------
Obligations by program activity:
Payments for federally connected children:
00.01 Basic support payments.......... 632 550
00.02 Supplemental payments for
children with disabilities.... 40 40
00.03 Payments for heavily impacted
districts..................... 40 20
--------- --------- ----------
00.91 Subtotal, payments for federally
connected children............ 672 40 610
01.01 Facilities maintenance............ 1 14 3
02.01 Construction...................... 4
03.01 Payments for Federal property..... 16
04.01 Payments for section 3(d)(2)(B)... 26 7
05.01 Disaster assistance............... 66
06.01 Construction (P.L. 81-815)........ 2 21
07.01 Unallocated amount under P.L. 104-
99.............................. 660
--------- --------- ----------
10.00 Total obligations............... 783 742 617
----------------------------------------------------------------------------
Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested
balance......................... 152 105 24
22.00 New budget authority (gross)...... 728 660 617
22.10 Resources available from
recoveries of prior year
obligations..................... 24
22.30 Unobligated balance expiring...... -16
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 888 765 641
23.95 New obligations................... -783 -742 -617
24.40 Unobligated balance available, end
of year: Uninvested balance..... 105 24 24
----------------------------------------------------------------------------
New budget authority (gross), detail:
40.00 Appropriation..................... 728 660 617
----------------------------------------------------------------------------
Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Appropriation 642 471 382
73.10 New obligations................... 783 742 617
73.20 Total outlays (gross)............. -808 -830 -693
73.40 Adjustments in expired accounts... -121
73.45 Adjustments in unexpired accounts. -24
74.40 Unpaid obligations, end of year:
Obligated balance: Appropriation 471 382 307
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new current authority 573 541 504
86.93 Outlays from current balances..... 235 289 189
--------- --------- ----------
87.00 Total outlays (gross)........... 808 830 693
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 728 660 617
90.00 Outlays........................... 808 830 693
---------------------------------------------------------------------------
Funds help to pay the operating costs of local educational agencies
that are affected by Federal activities. Payments would be made to local
educational agencies that educate children living on Indian lands and
military dependents living on Federal property.
Basic support payments.--Payments would be made on behalf of
approximately 337,000 federally connected children enrolled in over
1,200 school districts across the country. The request would provide an
average payment of $1,632 for each of these federally connected
children.
Supplemental payments for children with disabilities.--Payments
would be made for additional assistance to school districts educating
federally connected children with disabilities. Approximately 33,000
such children are enrolled in school districts across the country. The
request would provide approximately $1,200 in additional assistance for
the education of each of these children.
Payments for heavily impacted districts.--Increased payments would
be provided for certain heavily impacted school districts, including
school districts whose boundaries are the same as a military base, and
school districts that enroll high proportions of federally connected
children and meet certain fiscal requirements.
Facilities maintenance.--Funds would be used to provide emergency
repairs for school facilities that are owned by the Department of
Education.
Construction.--Formula-based payments for capital improvements would
be made to school districts that meet the statutory eligibility
criteria.
Object Classification (In millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0102-0-1-501 1995 actual 1996 est. 1997 est.
----------------------------------------------------------------------------
32.0 Land and structures............... 2 35 3
41.0 Grants, subsidies, and
contributions................... 781 47 614
92.0 Undistributed..................... 660
--------- --------- ----------
99.9 Total obligations............... 783 742 617
---------------------------------------------------------------------------
School Improvement Programs
For carrying out titles II, IV, V, IX, X and XIII of the Elementary
and Secondary Education Act of 1965; the Stewart B. McKinney Homeless
Assistance Act; the Civil Rights Act of 1964; and title V of the Higher
Education Act; $1,404,000,000, of which $1,154,000,000 shall become
available on July 1, 1997 and remain available through September 30,
1998: Provided, That of the amount appropriated, $610,000,000 shall be
for State grants for professional development under title II, part B of
the Elementary and Secondary Education Act; $40,000,000 shall be for
charter schools under title X, part C of such Act; and $120,000 shall be
for the report required under section 5207(a) of such Act.
Note.--A regular 1996 appropriation for this account had not been
enacted at the time this budget was prepared. The 1996 amounts included
in this budget are based on the levels provided in three continuing
resolutions: P.L. 104-91, P.L. 104-92, and P.L. 104-99.
Program and Financing (In millions of dollars)
----------------------------------------------------------------------------
Identification code 91-1000-0-1-501 1995 actual 1996 est. 1997 est.
----------------------------------------------------------------------------
Obligations by program activity:
Direct program:
Professional development and
program innovation:
00.01 Eisenhower professional
development State grants.... 250 508 610
00.02 Innovative education program
strategies State grants..... 347
Safe and drug-free schools and
communities:
00.03 State grants.................. 434 335 515
00.04 National programs............. 25 19 25
00.05 Safe schools.................. 20
00.06 Inexpensive book distribution... 10 9
00.07 Arts in education............... 11 10
00.08 Instruction in civics,
government and law............ 4
00.09 Christa McAuliffe fellowships... 2 2
00.10 Magnet schools assistance....... 112 95
00.11 Education for homeless children
and youth..................... 28 29
00.12 Women's educational equity...... 4 4
[[Page 398]]
00.13 Training and advisory services.. 21 14
00.14 Dropout prevention
demonstrations................ 12
00.15 Ellender fellowships............ 3
00.16 Education for Native Hawaiians.. 9 6
00.17 Foreign language assistance..... 11
00.18 Charter schools................. 6 6 40
00.19 Comprehensive regional
assistance centers............ 30 22 45
00.21 Unallocated amount under P.L.
104-99........................ 126
--------- --------- ----------
10.00 Total obligations............... 1,339 1,016 1,404
----------------------------------------------------------------------------
Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested
balance......................... 20 5
22.00 New budget authority (gross)...... 1,322 1,011 1,404
22.10 Resources available from
recoveries of prior year
obligations..................... 2
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 1,344 1,016 1,404
23.95 New obligations................... -1,339 -1,016 -1,404
24.40 Unobligated balance available, end
of year: Uninvested balance..... 5
----------------------------------------------------------------------------
New budget authority (gross), detail:
40.00 Appropriation..................... 1,328 1,011 1,404
41.00 Transferred to other accounts..... -6
--------- --------- ----------
43.00 Appropriation (total)........... 1,322 1,011 1,404
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 1,322 1,011 1,404
----------------------------------------------------------------------------
Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Appropriation 1,827 1,761 1,227
73.10 New obligations................... 1,339 1,016 1,404
73.20 Total outlays (gross)............. -1,391 -1,550 -1,161
73.40 Adjustments in expired accounts... -13
73.45 Adjustments in unexpired accounts. -2
74.40 Unpaid obligations, end of year:
Obligated balance: Appropriation 1,761 1,227 1,470
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new current authority 52 121 168
86.93 Outlays from current balances..... 1,339 1,429 993
--------- --------- ----------
87.00 Total outlays (gross)........... 1,391 1,550 1,161
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 1,322 1,011 1,404
90.00 Outlays........................... 1,391 1,550 1,161
---------------------------------------------------------------------------
Summary of Budget Authority and Outlays
[In millions of dollars]
1995 actual 1996 est. 1997 est.
Enacted/requested:
Budget Authority.................. 1,322 1,011 1,404
Outlays........................... 1,391 1,550 1,161
Adjustment to 1996 continuing
resolution levels:
Budget Authority.................. 308
Outlays........................... 37 209
------------------------------------
Total:
Budget Authority.................. 1,322 1,319 1,404
Outlays........................... 1,391 1,587 1,370
====================================
Note.--Excludes $5 million in budget authority in 1997 for
activities transferred to Office of Bilingual Education and Minority
Languages Affairs, Bilingual and Immigrant Education account.
Eisenhower professional development State grants.--Formula grants
are provided to States, local districts, and institutions of higher
education to support intensive, high-quality professional development in
the core academic subject areas.
Safe and drug-free schools and communities.--
State grants.--Formula grants are made to States and Outlying Areas
to assist in combatting school violence and drug use by the Nation's
children and youth.
National programs.--Funds support activities to promote safe and
disciplined academic environments and prevent the illegal use of drugs
and violence among students at all educational levels. Such activities
may include training, demonstrations, direct services to school
districts with severe drug and violence problems, program evaluation,
and development and dissemination of information and materials.
Other programs.--
Inexpensive book distribution.--Funds support reading motivation
activities, including the distribution of free books to children.
Arts in education.--Funds support Federal leadership activities in
arts education as well as the education activities of the Kennedy Center
and Very Special Arts.
Christa McAuliffe fellowships.--Fellowships are awarded to
outstanding teachers to enable and encourage them to continue their
education or to develop educational projects and programs.
Magnet schools assistance.--Grants are made to local educational
agencies to establish and operate magnet school programs that are part
of approved desegregation plans.
Education for homeless children and youth.--Funds are provided to
States, Outlying Areas, and the Bureau of Indian Affairs to provide
educational and support services that enable homeless children and youth
to enroll in, attend, and achieve success in school.
Women's educational equity.--Funds support implementation of gender-
equity practices at schools and colleges, as well as the development and
dissemination of educational materials that promote educational equity
for women and girls.
Training and advisory services.--Grants are made to State
educational agencies and regional desegregation assistance centers that
provide technical assistance to school districts in desegregating public
schools and developing effective methods of coping with special
educational problems associated with desegregation.
Education for Native Hawaiians.--Grants provide supplemental
education services to Native Hawaiians in the areas of family-based
education, special education, gifted and talented education, higher
education, curriculum development, teacher training and recruitment, and
community-based learning.
Charter schools.--The President is proposing a significant increase
in this program to support innovative education reform and public school
choice. Grants are awarded to State educational agencies and charter
schools to support the design and initial implementation of model
charter schools. These schools are created by teachers, parents, and
members of the community, and are exempt from certain local, State, and
Federal regulations.
Comprehensive regional assistance centers.--Funds are provided for
15 comprehensive regional technical assistance centers that provide
services to States, local educational agencies, schools, and other
recipients of Federal education funds to improve elementary and
secondary education programs.
Object Classification (In millions of dollars)
----------------------------------------------------------------------------
Identification code 91-1000-0-1-501 1995 actual 1996 est. 1997 est.
----------------------------------------------------------------------------
24.0 Printing and reproduction......... 1 1 1
25.1 Advisory and assistance services.. 1 1 2
25.2 Other services.................... 29 8 20
25.5 Research and development contracts 6
41.0 Grants, subsidies, and
contributions................... 1,302 881 1,381
92.0 Undistributed..................... 125
--------- --------- ----------
99.9 Total obligations............... 1,339 1,016 1,404
---------------------------------------------------------------------------
[[Page 399]]
Chicago Litigation Settlement
Program and Financing (In millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0220-0-1-501 1995 actual 1996 est. 1997 est.
----------------------------------------------------------------------------
Obligations by program activity:
10.00 Total obligations (object class
41.0)........................... 4 10
----------------------------------------------------------------------------
Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested
balance......................... 14 10
22.00 New budget authority (gross)......
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 14 10
23.95 New obligations................... -4 -10
24.40 Unobligated balance available, end
of year: Uninvested balance..... 10
----------------------------------------------------------------------------
New budget authority (gross), detail:
70.00 Total new budget authority (gross)
----------------------------------------------------------------------------
Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Appropriation 4 2 5
73.10 New obligations................... 4 10
73.20 Total outlays (gross)............. -6 -7 -5
74.40 Unpaid obligations, end of year:
Obligated balance: Appropriation 2 5
----------------------------------------------------------------------------
Outlays (gross), detail:
86.93 Outlays from current balances..... 6 7 5
--------- --------- ----------
87.00 Total outlays (gross)........... 6 7 5
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays........................... 6 7 5
---------------------------------------------------------------------------
Funds made available under this account were reappro- priated by the
Supplemental Appropriations Act, 1987 (Public Law 100-71) from funds
enjoined in United States of America v. Board of Education of the City
of Chicago. The funds were reappropriated for the specific purpose of
settling this case. The funds are used by the Chicago Board of Education
to implement Project CANAL (Creating A New Approach to Learning), the
project approved by the court to support the Board's desegregation
efforts.
The Department of Education provides these funds to the Chicago
Board of Education in annual increments upon receipt and approval of an
annual plan for Project CANAL activities.
Indian Education
For necessary expenses to carry out, to the extent not otherwise
provided, title IX, part A of the Elementary and Secondary Act of 1965
(ESEA), and section 215 of the Department of Education Organization Act,
$81,500,000; Provided, That $1,600,000 available pursuant to section
9123 of the ESEA shall remain available for obligation until September
30, 1998.
Note.--A regular 1996 appropriation for this account had not been
enacted at the time this budget was prepared. The 1996 amounts included
in this budget are based on the levels provided in three continuing
resolutions: P.L. 104-91, P.L. 104-92, and P.L. 104-99.
Program and Financing (In millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0101-0-1-501 1995 actual 1996 est. 1997 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Grants to local educational
agencies........................ 60 1 62
00.02 Special programs for Indian
children and adults and National
activities...................... 18 17
00.03 Federal Administration............ 3 3
00.04 Unallocated amount under P.L. 104-
99.............................. 61
--------- --------- ----------
10.00 Total obligations............... 81 62 82
----------------------------------------------------------------------------
Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested
balance......................... 1 1
22.00 New budget authority (gross)...... 81 61 82
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 82 62 82
23.95 New obligations................... -81 -62 -82
24.40 Unobligated balance available, end
of year: Uninvested balance..... 1
----------------------------------------------------------------------------
New budget authority (gross), detail:
40.00 Appropriation..................... 81 61 82
----------------------------------------------------------------------------
Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Appropriation 86 93 78
73.10 New obligations................... 81 62 82
73.20 Total outlays (gross)............. -71 -76 -68
73.40 Adjustments in expired accounts... -3
74.40 Unpaid obligations, end of year:
Obligated balance: Appropriation 93 78 92
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new current authority 4 9 12
86.93 Outlays from current balances..... 67 67 57
--------- --------- ----------
87.00 Total outlays (gross)........... 71 76 68
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 81 61 82
90.00 Outlays........................... 71 76 68
---------------------------------------------------------------------------
Summary of Budget Authority and Outlays
[In millions of dollars]
1995 actual 1996 est. 1997 est.
Enacted/requested:
Budget Authority.................. 81 61 82
Outlays........................... 71 76 69
Adjustment to 1996 continuing
resolution levels:
Budget Authority.................. 20
Outlays........................... 2 14
------------------------------------
Total:
Budget Authority.................. 81 81 82
Outlays........................... 71 78 83
====================================
The Indian Education program (Title IX, Part A of the Elementary and
Secondary Education Act) supports the efforts of local educational
agencies, State educational agencies, and Indian tribes and
organizations to improve teaching and learning for the Nation's American
Indian and Alaska Native children and adults.
Grants to local educational agencies.--Formula grants support local
educational agencies in their efforts to reform elementary and secondary
school programs that serve Indian students, with the goal of ensuring
that such programs are based on challenging State standards that are
used for all students. In 1995, 1,272 formula grants were made to local
educational agencies and certain tribal schools enrolling approximately
429,865 Indian students.
Special programs for Indian children.--Competitive grants are made
for a Demonstration Grants program, a Fellowship program, and a
Professional Development program.
Special programs for Indian adults.--Competitive grants are made to
State educational agencies, local educational agencies, Indian tribes,
institutions, and organizations for programs to improve educational
opportunities for Indian adults.
National Activities.--Funds support research, evaluation, data
collection, and related activities.
Federal administration.--Funds support the administrative expenses
of the Office of Indian Education and the National Advisory Council on
Indian Education.
Object Classification (In millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0101-0-1-501 1995 actual 1996 est. 1997 est.
----------------------------------------------------------------------------
11.1 Personnel compensation: Full-time
permanent....................... 2 2 2
25.2 Other services.................... 4 2
41.0 Grants, subsidies, and
contributions................... 75 1 78
[[Page 400]]
92.0 Undistributed..................... 59
--------- --------- ----------
99.9 Total obligations............... 81 62 82
---------------------------------------------------------------------------
Personnel Summary
----------------------------------------------------------------------------
Identification code 91-0101-0-1-501 1995 actual 1996 est. 1997 est.
----------------------------------------------------------------------------
1001 Total compensable workyears: Full-
time equivalent employment...... 35 30 30
---------------------------------------------------------------------------
OFFICE OF BILINGUAL EDUCATION AND MINORITY LANGUAGES AFFAIRS
Federal Funds
General and special funds:
Bilingual and Immigrant Education
For carrying out, to the extent not otherwise provided, bilingual,
foreign language, and immigrant education activities authorized by parts
A and C, and section 7203 of title VII of the Elementary and Secondary
Education Act, $261,700,000, of which $25,180,000 shall be for training
activities under subpart 3 of part A of title VII $5,000,000 shall be
for foreign language assistance, and $100,000,000 shall be for the
immigrant education program authorized by part C: Provided, That State
educational agencies may use all, or any part of, their part C
allocation for competitive grants to local educational agencies.
Note.--A regular 1996 appropriation for this account had not been
enacted at the time this budget was prepared. The 1996 amounts included
in this budget are based on the levels provided in the three continuing
resolutions: P.L. 104-91, P.L. 104-92, and P.L. 104-99.
Program and Financing (In millions of dollars)
----------------------------------------------------------------------------
Identification code 91-1300-0-1-501 1995 actual 1996 est. 1997 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Instructional services............ 117 118
00.02 Support services.................. 14 14
00.03 Training grants................... 25 25
00.04 Immigrant education............... 50 50 100
00.05 Foreign language assistance....... 5
00.06 Unallocated amount under P.L. 104-
99.............................. 105
--------- --------- ----------
10.00 Total obligations............... 206 155 262
----------------------------------------------------------------------------
Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 207 155 262
22.30 Unobligated balance expiring...... -1
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 206 155 262
23.95 New obligations................... -206 -155 -262
----------------------------------------------------------------------------
New budget authority (gross), detail:
40.00 Appropriation..................... 207 155 262
----------------------------------------------------------------------------
Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Appropriation 295 266 188
73.10 New obligations................... 206 155 262
73.20 Total outlays (gross)............. -225 -233 -183
73.40 Adjustments in expired accounts... -11
74.40 Unpaid obligations, end of year:
Obligated balance: Appropriation 266 188 267
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new current authority 7 19 31
86.93 Outlays from current balances..... 218 214 152
--------- --------- ----------
87.00 Total outlays (gross)........... 225 233 183
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 207 155 262
90.00 Outlays........................... 225 233 183
---------------------------------------------------------------------------
Summary of Budget Authority and Outlays
[In millions of dollars]
1995 actual 1996 est. 1997 est.
Enacted/requested:
Budget Authority.................. 207 155 262
Outlays........................... 225 233 183
Adjustment to 1996 continuing
resolution levels:
Budget Authority.................. 52
Outlays........................... 6 35
------------------------------------
Total:
Budget Authority.................. 207 207 262
Outlays........................... 225 239 218
====================================
Note.--Includes $5.0 million in budget authority in 1997 for
activities previously financed from Department of Education, Office of
Elementary and Secondary Education, School improvement account.
Bilingual education.--The 1994 reauthorization of the Elementary and
Secondary Education Act aligned bilingual education programs with the
broader educational reforms underway in States and communities. These
programs provide assistance to local educational agencies and other
entities to develop and enhance their capacity to provide high-quality
instructional programs to children and youth of limited English
proficiency. Programs are designed to teach English and to assist these
students to achieve to the same challenging State content and
performance standards expected of all children and youth. Aid is also
given to train educational personnel to serve limited English proficient
children, to build State capacity to improve educational services for
these children, and for information dissemination, studies, and
evaluations.
Foreign language assistance.--The foreign language assistance
program provides competitive grants to State and local educational
agencies to improve the quality of foreign language instruction for
elementary and secondary school students.
Immigrant education.--The immigrant education program provides
grants to school districts to help finance educational services for
immigrant students. Participation is limited to districts with 500
immigrant students or districts in which immigrant children represent at
least 3 percent of the enrollment. Awards are made to State educational
agencies, which make subgrants to eligible local educational agencies.
Proposed appropriation language would permit States to distribute these
funds on either a formula or discretionary grant basis.
Object Classification (In millions of dollars)
----------------------------------------------------------------------------
Identification code 91-1300-0-1-501 1995 actual 1996 est. 1997 est.
----------------------------------------------------------------------------
25.2 Other services.................... 2 1
41.0 Grants, subsidies, and
contributions................... 204 50 261
92.0 Undistributed..................... 105
--------- --------- ----------
99.9 Total obligations............... 206 155 262
---------------------------------------------------------------------------
OFFICE OF SPECIAL EDUCATION AND REHABILITATIVE SERVICES
Federal Funds
General and special funds:
Special Education
Note.--A regular 1996 appropriation for this account had not been
enacted at the time this budget was prepared. The 1996 amounts included
in this budget are based on the levels provided in three continuing
resolutions: P.L. 104-91, P.L. 104-92, and P.L. 104-99.
[[Page 401]]
Program and Financing (In millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0300-0-1-501 1995 actual 1996 est. 1997 est.
----------------------------------------------------------------------------
Obligations by program activity:
Direct program:
State grants:
00.01 Grants to States.............. 2,467 31
00.02 Chapter 1 handicapped program. 14
00.03 Preschool grants.............. 394 4
00.04 Grants for infants and
families.................... 242 303
--------- --------- ----------
00.91 Subtotal, State grants........ 3,117 338
Special purpose funds:
01.01 Deaf-blindness.................. 13
01.02 Serious emotional disturbance... 4
01.03 Severe disabilities............. 10
01.04 Early childhood education....... 25
01.05 Secondary and transitional
services...................... 24
01.06 Postsecondary education......... 9
01.07 Innovation and development...... 21
01.08 Media and captioning services... 19
01.09 Technology applications......... 11
01.10 Special studies................. 4
01.11 Personnel development........... 91
01.12 Parent training................. 14
01.13 Clearinghouses.................. 2
01.14 Regional resource centers....... 7
01.15 Architectural barriers removal.. 1
--------- --------- ----------
01.91 Subtotal, Special purpose
funds....................... 254 1
02.01 Unallocated amount under P.L. 104-
99.............................. 3,093
--------- --------- ----------
10.00 Total obligations............... 3,370 3,432
----------------------------------------------------------------------------
Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested
balance......................... 444 339
22.00 New budget authority (gross)...... 3,253 3,093
22.10 Resources available from
recoveries of prior year
obligations..................... 13
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 3,710 3,432
23.95 New obligations................... -3,370 -3,432
24.40 Unobligated balance available, end
of year: Uninvested balance..... 339
----------------------------------------------------------------------------
New budget authority (gross), detail:
40.00 Appropriation..................... 3,253 3,093
----------------------------------------------------------------------------
Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Appropriation 3,787 3,952 3,898
73.10 New obligations................... 3,370 3,432
73.20 Total outlays (gross)............. -3,177 -3,486 -2,798
73.40 Adjustments in expired accounts... -16
73.45 Adjustments in unexpired accounts. -13
74.40 Unpaid obligations, end of year:
Obligated balance: Appropriation 3,952 3,898 1,100
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new current authority 137 309
86.93 Outlays from current balances..... 3,040 3,177 2,798
--------- --------- ----------
87.00 Total outlays (gross)........... 3,177 3,486 2,798
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 3,253 3,093
90.00 Outlays........................... 3,177 3,486 2,798
---------------------------------------------------------------------------
Summary of Budget Authority and Outlays
[In millions of dollars]
1995 actual 1996 est. 1997 est.
Enacted/requested:
Budget Authority.................. 3,253 3,093
Outlays........................... 3,177 3,486 2,798
Legislative proposal, not subject to
PAYGO:
Budget Authority.................. 3,553
Outlays........................... 355
Adjustment to 1996 continuing
resolution levels:
Budget Authority.................. 249
Outlays........................... 25 149
------------------------------------
Total:
Budget Authority.................. 3,253 3,342 3,553
Outlays........................... 3,177 3,511 3,302
====================================
Legislation is pending authorizing programs under the Individuals
with Disabilities Education Act. When new authorizing legislation is
enacted, resources will be requested for the Special Education account.
See the ``Legislative proposal, not subject to PAYGO'' schedule for
additional details.
Program measures under the current program include:
1993 actual 1994 actual 1995 est.
Number of children served on December 1:
Ages 3 through 21..................... 5,279,490 5,466,517 5,622,000
Ages 3 through 5...................... 493,425 527,789 554,000
Birth through 2....................... 150,783 164,100 172,000
1990-1991 ac1991-1992 actual 1992-1993
actual
Educational Environment
Children provided special education in:
Regular classrooms with or without
resource rooms...................... 3,235,128 3,397,326 3,563,883
Separate classes...................... 1,194,012 1,160,943 1,219,867
Separate schools...................... 233,012 219,055 204,764
Residential facilities................ 38,095 40,893 40,466
Status of Exiting Students
Graduated with a diploma................ 101,959 100,742 103,801
Graduated through certification......... 29,733 30,839 34,732
Reached maximum age..................... 4,368 4,337 5,096
Dropped out of school................... 51,949 51,489 NA
Status unknown.......................... 35,220 41,961 NA
NA--Not available due to changes in data collection form.
Object Classification (In millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0300-0-1-501 1995 actual 1996 est. 1997 est.
----------------------------------------------------------------------------
25.2 Other services.................... 8
25.3 Purchases of goods and services
from Government accounts........ 1
25.5 Research and development contracts 3
41.0 Grants, subsidies, and
contributions................... 3,359
92.0 Undistributed..................... 3,432
--------- --------- ----------
99.9 Total obligations............... 3,370 3,432
---------------------------------------------------------------------------
Special Education
(Legislative proposal, not subject to PAYGO)
Program and Financing (In millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0300-2-1-501 1995 actual 1996 est. 1997 est.
----------------------------------------------------------------------------
Obligations by program activity:
State grants:
00.01 Grants to States................ 2,603
00.02 Preschool grants................ 380
00.03 Grants for infants and families. 316
--------- --------- ----------
00.91 Subtotal, State grants........ 3,299
Program support and improvement (proposed
legislation):
01.01 Research to practice............ 96
01.02 State improvement............... 37
01.03 Professional development........ 77
01.04 Parent training and information. 15
01.05 Technology development and
educational media services.... 30
--------- --------- ----------
01.91 Subtotal, Program support and
improvement................. 254
--------- --------- ----------
10.00 Total obligations............... 3,553
----------------------------------------------------------------------------
Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 3,553
23.95 New obligations................... -3,553
----------------------------------------------------------------------------
New budget authority (gross), detail:
40.00 Appropriation..................... 3,553
----------------------------------------------------------------------------
Change in unpaid obligations:
73.10 New obligations................... 3,553
73.20 Total outlays (gross)............. -355
74.40 Unpaid obligations, end of year:
Obligated balance: Appropriation 3,198
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new current authority 355
--------- --------- ----------
87.00 Total outlays (gross)........... 355
----------------------------------------------------------------------------
[[Page 402]]
Net budget authority and outlays:
89.00 Budget authority.................. 3,553
90.00 Outlays........................... 355
---------------------------------------------------------------------------
The resources in this schedule are proposed for later transmittal
under proposed legislation to authorize programs under the Individuals
with Disabilities Education Act.
State grants.--
Grants to States.--Formula grants are provided to States to assist
them in providing special education and related services to children
with disabilities aged 3 through 21 years old.
Preschool grants.--Formula grants provide additional funds to States
to further assist them in providing special education and related
services to children with disabilities aged 3 through 5 served under the
Grants to States program.
Grants for infants and families.--Formula grants are provided to
assist States to continue to implement statewide systems of coordinated,
comprehensive, multi-disciplinary interagency programs to provide early
intervention services to children with disabilities aged birth through 2
years old and their families.
Program support and improvement.--These funds support a variety of
research, demonstration, training, technical assistance, systems change,
and other activities.
The Department is in the process of developing performance
indicators that will provide information on the impact of special
education and early intervention on improving results for children with
disabilities.
Object Classification (In millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0300-2-1-501 1995 actual 1996 est. 1997 est.
----------------------------------------------------------------------------
25.1 Advisory and assistance services.. 2
25.2 Other services.................... 7
25.5 Research and development contracts 2
41.0 Grants, subsidies, and
contributions................... 3,542
--------- --------- ----------
99.9 Total obligations............... 3,553
---------------------------------------------------------------------------
Rehabilitation Services and Disability Research
For carrying out, to the extent not otherwise provided, the
Rehabilitation Act of 1973, the Technology-Related Assistance for
Individuals with Disabilities Act, and the Helen Keller National Center
Act, as amended, $2,512,587,000.
Note.--A regular 1996 appropriation for this account had not been
enacted at the time this budget was prepared. The 1996 amounts included
in this budget are based on the levels provided in three continuing
resolutions: P.L. 104-91, P.L. 104-92, and P.L. 104-99.
Program and Financing (In millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0301-0-1-506 1995 actual 1996 est. 1997 est.
----------------------------------------------------------------------------
Obligations by program activity:
Direct program:
00.01 Vocational rehabilitation State
grants........................ 2,054 2,108 2,176
00.02 Client assistance State grants.. 10 10
00.03 Training........................ 40 40
00.04 Special demonstration programs.. 32 2 19
00.05 Migratory workers............... 1 2
00.06 Recreational programs........... 3 3
00.07 Protection and advocacy......... 7 8
00.08 Projects with industry.......... 22 22
00.09 Supported employment State
grants........................ 37 38
00.10 Independent living.............. 71 75
00.11 Program improvement............. 2
00.12 Evaluation...................... 2 2
00.13 Helen Keller National Center.... 7 7
00.14 National Institute on Disability
and Rehabilitation Research... 70 70
00.15 Assistive technology............ 39 39
00.16 Unallocated Amount under PL 104-
99............................ 337
--------- --------- ----------
00.91 Total, direct program......... 2,395 2,447 2,513
01.01 Reimbursable...................... 2
--------- --------- ----------
10.00 Total obligations............... 2,397 2,447 2,513
----------------------------------------------------------------------------
Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested
balance......................... 4 2
22.00 New budget authority (gross)...... 2,395 2,445 2,513
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 2,399 2,447 2,513
23.95 New obligations................... -2,397 -2,447 -2,513
24.40 Unobligated balance available, end
of year: Uninvested balance..... 2
----------------------------------------------------------------------------
New budget authority (gross), detail:
Current:
40.00 Appropriation................... 2,393 2,444 2,513
Permanent:
68.00 Spending authority from
offsetting collections:
Offsetting collections (cash). 2
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 2,395 2,445 2,513
----------------------------------------------------------------------------
Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Appropriation 876 922 775
73.10 New obligations................... 2,397 2,447 2,513
73.20 Total outlays (gross)............. -2,335 -2,594 -2,609
73.40 Adjustments in expired accounts... -15
74.40 Unpaid obligations, end of year:
Obligated balance: Appropriation 922 775 679
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new current authority 1,621 1,882 1,934
86.93 Outlays from current balances..... 713 711 674
86.97 Outlays from new permanent
authority....................... 1
86.98 Outlays from permanent balances...
--------- --------- ----------
87.00 Total outlays (gross)........... 2,335 2,594 2,609
----------------------------------------------------------------------------
Offsets:
Against gross budget authority and outlays:
88.00 Offsetting collections (cash)
from: Federal sources......... -2
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 2,393 2,445 2,513
90.00 Outlays........................... 2,334 2,594 2,609
---------------------------------------------------------------------------
Vocational rehabilitation State grants.--The basic State grant
program provides Federal matching funds to State vocational
rehabilitation (VR) agencies to assist individuals with physical or
mental impairments to become gainfully employed. Services provided
include vocational evaluation, counseling, mental and physical
restoration, education, vocational training, work adjustment, job
placement, and post-employment services. Priority is given to serving
those with the most severe disabilities.
In 1995, there was a 5 percent increase in the total number of
eligible individuals in the VR system. In that year, 35 of the 82 VR
agencies could not serve all individuals determined to be eligible for
the program. Of those individuals whose cases were closed in 1995 after
receiving VR services, about 60 percent achieved an employment outcome
and an estimated 85 percent of these individuals entered the competitive
labor market or became self-employed.
The table below presents national estimates of the number of
eligible individuals in the VR system (individuals being served and
eligible individuals awaiting service) and estimates of the number of
individuals who achieved an employment outcome under the program.
ESTIMATES OF ELIGIBLE INDIVIDUALS AND INDIVIDUALS REHABILITATED
1994 1995
actual preliminary
Eligible individuals in the VR system... 1,193,661 1,251,710
[[Page 403]]
Severe disabilities, percent........... 73.9 75.2
Individuals achieving employment
outcomes............................... 203,035 209,450
Severe disabilities, percent........... 73.5 75.9
Client assistance State grants.--Formula grants are made to States
to provide assistance in informing and advising clients and applicants
of benefits available under the Rehabilitation Act and, if requested, to
pursue legal or administrative remedies to ensure the protection of the
rights of individuals with disabilities.
Training.--Grants are made to States and public or nonprofit
agencies and organizations, including institutions of higher education,
to increase the number of skilled personnel available for employment in
the field of rehabilitation.
Special demonstration programs.--Grants are made to develop
innovative methods and comprehensive service programs to assist
individuals with disabilities to achieve satisfactory vocational
outcomes. Supported employment projects, which provide grants to expand
or improve the provision of supported employment services to individuals
with the most severe disabilities, are included under this activity.
Migratory workers.--Grants are made to State VR agencies and other
nonprofit or local agencies to provide comprehensive vocational
rehabilitation services to migrant or seasonal farm workers with
disabilities.
Recreational programs.--Grants are made to provide individuals with
disabilities with recreation and related activities to aid in their
employment, mobility, independence, socialization, and community
integration.
Protection and advocacy of individual rights.--Formula grants are
made to State protection and advocacy systems to protect the legal and
human rights of individuals with disabilities.
Projects with industry.--Grants are made to a variety of public and
private organizations, including State VR agencies, community
rehabilitation programs, and labor organizations to provide training in
work settings to prepare individuals with disabilities for employment
and career advancement in the competitive labor market.
Supported employment State grants.--Formula grants are made to
assist States in developing programs with public and nonprofit
organizations to provide supported employment services for individuals
with the most severe disabilities who require on-going support services
to enter or retain competitive employment.
Independent living.--Grants are awarded to States and nonprofit
agencies for services designed to enable individuals with significant
disabilities to live and function more independently.
Program Improvement.--Funds would be used to promote broad-based
planning and coordination, improve accountability, and enhance the
Department's ability to address critical areas of national significance
in achieving the purposes of the Rehabilitation Act. Examples of program
improvement activities would include technical assistance activities of
national scope; the development of an effective data management and
reporting system, including program performance measures; and the
development of a dissemination and utilization strategy for
demonstration projects of national significance.
Evaluation.--Studies are conducted to evaluate the impact and
effectiveness of various programs authorized under the Rehabilitation
Act. The Department is conducting a multi-year national longitudinal
study of the Vocational rehabilitation State grants program.
Helen Keller National Center for Deaf-Blind Youths and Adults.--The
Center provides services to deaf-blind youths and adults and provides
training and technical assistance to professional and allied personnel
at its national headquarters center and through its regional
representatives and affiliate agencies.
National Institute on Disability and Rehabilitation Research.--The
Institute carries out a comprehensive and coordinated program of
rehabilitation research and related activities. Through grants and
contracts, it supports research and training centers, rehabilitation
engineering centers, research and demonstration projects, information
dissemination and utilization projects, and training activities.
Assistive technology.--Grants are made to States to support systems
change and advocacy activities designed to develop and implement
consumer-responsive comprehensive statewide programs of technology-
related assistance for individuals of all ages with disabilities.
Object Classification (In millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0301-0-1-506 1995 actual 1996 est. 1997 est.
----------------------------------------------------------------------------
Direct obligations:
25.1 Advisory and assistance services 4 5
25.2 Other services.................. 1 1
25.3 Purchases of goods and services
from Government accounts...... 2 2
25.5 Research and development
contracts..................... 2 2
41.0 Grants, subsidies, and
contributions................. 2,385 2,110 2,503
92.0 Undistributed................... 337
--------- --------- ----------
99.0 Subtotal, direct obligations.. 2,394 2,447 2,513
99.0 Reimbursable obligations.......... 2
99.5 Below reporting threshold......... 1
--------- --------- ----------
99.9 Total obligations............... 2,397 2,447 2,513
---------------------------------------------------------------------------
Special Institutions for Persons With Disabilities
american printing house for the blind
For carrying out the Act of March 3, 1879, as amended (20 U.S.C. 101
et seq.), $6,495,000.
Note.--A regular 1996 appropriation for this account had not been
enacted at the time this budget was prepared. The 1996 amounts included
in this budget are based on the levels provided in three continuing
resolutions: P.L. 104-91, P.L. 104-92, and P.L. 104-99.
Program and Financing (In millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0600-0-1-501 1995 actual 1996 est. 1997 est.
----------------------------------------------------------------------------
Obligations by program activity:
10.00 Total obligations (object class
41.0)........................... 7 5 6
----------------------------------------------------------------------------
Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 7 5 6
23.95 New obligations................... -7 -5 -6
----------------------------------------------------------------------------
New budget authority (gross), detail:
40.00 Appropriation..................... 7 5 6
----------------------------------------------------------------------------
Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Appropriation 1 1
73.10 New obligations................... 7 5 6
73.20 Total outlays (gross)............. -7 -5 -6
74.40 Unpaid obligations, end of year:
Obligated balance: Appropriation 1
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new current authority 6 5 6
86.93 Outlays from current balances..... 1 1
--------- --------- ----------
87.00 Total outlays (gross)........... 7 5 6
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 7 5 6
90.00 Outlays........................... 7 5 6
---------------------------------------------------------------------------
Summary of Budget Authority and Outlays
[In millions of dollars]
1995 actual 1996 est. 1997 est.
Enacted/requested:
Budget Authority.................. 7 5 6
Outlays........................... 7 6 6
[[Page 404]]
Adjustment to 1996 continuing
resolution levels:
Budget Authority.................. 1
Outlays........................... 1
------------------------------------
Total:
Budget Authority.................. 7 6 6
Outlays........................... 7 7 6
====================================
The Federal appropriation supports the production of free
educational materials for students below the college level who are
blind, research related to developing and improving products, and
advisory services to consumer organizations on the availability and use
of materials. In 1995, the portion of the Federal appropriation
allocated to educational materials represented approximately 40 percent
of the Printing House's total sales. The full appropriation represented
approximately 44 percent of the Printing House's total budget.
national technical institute for the deaf
For the National Technical Institute for the Deaf under titles I and
II of the Education of the Deaf Act of 1986 (20 U.S.C. 4301 et seq.),
$43,041,000, of which $336,000 shall be for the endowment program as
authorized under section 207 and shall be available until expended:
Provided, That from the total amount available, the Institute may at its
discretion use additional amounts for the endowment program, to remain
available until September 30, 1997.
Note.--A regular 1996 appropriation for this account had not been
enacted at the time this budget was prepared. The 1996 amounts included
in this budget are based on the levels provided in three continuing
resolutions: P.L. 104-91, P.L. 104-92, and P.L. 104-99.
Program and Financing (In millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0601-0-1-502 1995 actual 1996 est. 1997 est.
----------------------------------------------------------------------------
Obligations by program activity:
04.01 Unallocated amount under P.L. 104-
99.............................. 43 40 43
--------- --------- ----------
10.00 Total obligations (object class
41.0)......................... 43 40 43
----------------------------------------------------------------------------
Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 43 40 43
23.95 New obligations................... -43 -40 -43
----------------------------------------------------------------------------
New budget authority (gross), detail:
40.00 Appropriation..................... 43 40 43
----------------------------------------------------------------------------
Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Appropriation 3 2
73.10 New obligations................... 43 40 43
73.20 Total outlays (gross)............. -46 -38 -43
74.40 Unpaid obligations, end of year:
Obligated balance: Appropriation 2
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new current authority 43 38 40
86.93 Outlays from current balances..... 3 2
--------- --------- ----------
87.00 Total outlays (gross)........... 46 38 43
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 43 40 43
90.00 Outlays........................... 46 38 43
---------------------------------------------------------------------------
Summary of Budget Authority and Outlays
[In millions of dollars]
1995 actual 1996 est. 1997 est.
Enacted/requested:
Budget Authority.................. 43 40 43
Outlays........................... 46 38 42
Adjustment to 1996 continuing
resolution levels:
Budget Authority.................. 3
Outlays........................... 3
------------------------------------
Total:
Budget Authority.................. 43 43 43
Outlays........................... 46 41 42
====================================
This residential center provides postsecondary technical and
professional education for people who are deaf to prepare them for
employment, provides training, and conducts applied research into
employment related aspects of deafness. In 1995, Federal appropriations
represented 83 percent of the Institute's operating budget. Funds are
also provided for endowment matching grants.
gallaudet university
For the Kendall Demonstration Elementary School, the Model Secondary
School for the Deaf, and the partial support of Gallaudet University
under titles I and II of the Education of the Deaf Act of 1986 (20
U.S.C. 4301 et seq.), $80,030,000, of which $1,000,000 shall be for the
endowment program as authorized under section 207 and shall be available
until expended: Provided, That from the total amount available, the
University may at its discretion use additional amounts for the
endowment program, to remain available until September 30, 1997.
Note.--A regular 1996 appropriation for this account had not been
enacted at the time this budget was prepared. The 1996 amounts included
in this budget are based on the levels provided in three continuing
resolutions: P.L 104-91, P.L. 104-92, and P.L. 104-99.
Program and Financing (In millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0602-0-1-502 1995 actual 1996 est. 1997 est.
----------------------------------------------------------------------------
Obligations by program activity:
01.01 University programs............... 54
02.01 Pre-college programs.............. 25 22
03.01 Endowment grant................... 1
04.01 Unallocated amount under P.L. 104-
99.............................. 50 80
--------- --------- ----------
10.00 Total obligations (object class
41.0)......................... 80 72 80
----------------------------------------------------------------------------
Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 80 72 80
23.95 New obligations................... -80 -72 -80
----------------------------------------------------------------------------
New budget authority (gross), detail:
40.00 Appropriation..................... 80 72 80
----------------------------------------------------------------------------
Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Appropriation 7 3 4
73.10 New obligations................... 80 72 80
73.20 Total outlays (gross)............. -84 -71 -80
74.40 Unpaid obligations, end of year:
Obligated balance: Appropriation 3 4 4
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new current authority 80 68 75
86.93 Outlays from current balances..... 4 2 4
--------- --------- ----------
87.00 Total outlays (gross)........... 84 71 80
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 80 72 80
90.00 Outlays........................... 84 71 80
---------------------------------------------------------------------------
Summary of Budget Authority and Outlays
[In millions of dollars]
1995 actual 1996 est. 1997 est.
Enacted/requested:
Budget Authority.................. 80 72 80
Outlays........................... 84 70 79
Adjustment to 1996 continuing
resolution levels:
Budget Authority.................. 8
Outlays........................... 8
------------------------------------
Total:
Budget Authority.................. 80 80 80
Outlays........................... 84 78 79
====================================
[[Page 405]]
This institution provides college preparatory, undergraduate, and
continuing education programs for persons who are deaf, and graduate
programs related to deafness for students who are deaf and students who
are hearing. The University also conducts basic and applied research and
provides public service programs for persons who are deaf and persons
who work with them.
Gallaudet operates two pre-college programs on the main campus of
the University. The Kendall Demonstration Elementary School serves
students who are deaf from infancy through age 15, and the Model
Secondary School for the Deaf serves students who are deaf of high
school age. Both schools also develop and disseminate information on
effective educational techniques and strategies for teachers and
professionals working with students who are deaf or hard of hearing.
In 1995, the Federal appropriation represented 65.4 percent of the
University's operating budget, excluding Federal financial aid,
vocational rehabilitation, and competitive grants, and 98.7 percent of
the operating budgets of the related elementary and secondary schools.
Funds are also requested for endowment matching grants.
OFFICE OF VOCATIONAL AND ADULT EDUCATION
Federal Funds
General and special funds:
Vocational and Adult Education
For carrying out, to the extent not otherwise provided, the Carl D.
Perkins Vocational and Applied Technology Education Act, the Adult
Education Act, and the National Literacy Act of 1991, $1,420,000,000,
which shall become available on July 1, 1997 and shall remain available
through September 30, 1998.
Note.--A regular 1996 appropriation for this account had not been
enacted at the time this budget was prepared. The 1996 amounts included
in this budget are based on the levels provided in three continuing
resolutions: P.L. 104-91, P.L. 104-92, and P.L. 104-99.
Program and Financing (In millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0400-0-1-501 1995 actual 1996 est. 1997 est.
----------------------------------------------------------------------------
Obligations by program activity:
Vocational education:
Annual appropriations:
Basic grants:
00.01 Basic State grants.......... 979
00.02 Indian and Hawaiian natives
set-aside................. 15 15
00.03 Territorial set-aside....... 2 1
--------- --------- ----------
00.91 Subtotal, basic grants.... 996 16
01.01 Consumer and homemaking
education................... 1
01.02 State councils................ 9
01.03 Tech-prep education........... 110
01.04 Tribally controlled
postsecondary vocational
institutions................ 3
01.05 Bilingual vocational training. 3
National programs:
01.06 Research.................... 9 7
01.07 Demonstrations.............. 22
01.08 National Occupational
Information Coordinating
Committee................. 1 4
01.10 Vocational education programs. 1,120
--------- --------- ----------
01.91 Subtotal.................... 158 11 1,120
--------- --------- ----------
02.00 Total, annual appropriation. 1,154 27 1,120
03.01 Permanent appropriation....... 7 7 7
--------- --------- ----------
04.00 Total, vocational education. 1,161 34 1,127
Adult education:
05.01 State programs................ 252
05.02 Evaluation and technical
assistance.................. 5 3
05.03 National Institute for
Literacy.................... 5 5
05.04 State literacy resource
centers..................... 3
05.05 Workplace literacy
partnerships................ 19 13
05.06 Literacy training for homeless
adults...................... 10
05.07 Literacy programs for
prisoners................... 5 5
05.08 Adult education programs........ 300
--------- --------- ----------
05.91 Total, adult education........ 299 26 300
06.01 Unallocated amount under P.L. 104-
99.............................. 1,163
--------- --------- ----------
07.00 Total, direct program........... 1,460 1,223 1,427
08.01 Reimbursable program.............. 1
--------- --------- ----------
10.00 Total obligations............... 1,461 1,223 1,427
----------------------------------------------------------------------------
Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested
balance......................... 123 53
22.00 New budget authority (gross)...... 1,391 1,170 1,427
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 1,514 1,223 1,427
23.95 New obligations................... -1,461 -1,223 -1,427
24.40 Unobligated balance available, end
of year: Uninvested balance..... 53
----------------------------------------------------------------------------
New budget authority (gross), detail:
Current:
40.00 Appropriation................... 1,383 1,163 1,420
Permanent:
60.00 Appropriation................... 7 7 7
68.00 Spending authority from
offsetting collections:
Offsetting collections (cash). 1
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 1,391 1,170 1,427
----------------------------------------------------------------------------
Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Appropriation 1,682 1,639 1,375
73.10 New obligations................... 1,461 1,223 1,427
73.20 Total outlays (gross)............. -1,482 -1,487 -1,289
73.40 Adjustments in expired accounts... -20
74.40 Unpaid obligations, end of year:
Obligated balance: Appropriation 1,639 1,375 1,513
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new current authority 79 141 172
86.93 Outlays from current balances..... 1,395 1,338 1,111
86.97 Outlays from new permanent
authority....................... 2 1 1
86.98 Outlays from permanent balances... 7 7 6
--------- --------- ----------
87.00 Total outlays (gross)........... 1,482 1,487 1,289
----------------------------------------------------------------------------
Offsets:
Against gross budget authority and outlays:
88.00 Offsetting collections (cash)
from: Federal sources......... -1
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 1,390 1,170 1,427
90.00 Outlays........................... 1,481 1,487 1,289
---------------------------------------------------------------------------
Summary of Budget Authority and Outlays
[In millions of dollars]
1995 actual 1996 est. 1997 est.
Enacted/requested:
Budget Authority.................. 1,390 1,170 1,427
Outlays........................... 1,482 1,487 1,290
Legislative proposal, subject to
PAYGO:
Budget Authority.................. -7
Outlays........................... -1
Adjustment to 1996 continuing
resolution levels:
Budget Authority.................. 219
Outlays........................... 26 149
------------------------------------
Total:
Budget Authority.................. 1,390 1,389 1,420
Outlays........................... 1,482 1,513 1,438
====================================
Budget authority for vocational and adult education includes the
following amounts:
[In millions of dollars]
1. Vocational education: 1995 actual 1996 est. 1997 est.
a. Basic grants................. 973
b. Tech-prep education.......... 108
c. Tribally controlled
postsecondary vocational
institutions.................. 3
d. State councils............... 9
e. National programs............ 11
f. Permanent appropriation...... 7 7
[[Page 406]]
g. Vocational education programs 1,120
2. Adult education:
a. State programs............... 252
b. Evaluation and technical
assistance.................... 4
c. National Institute for
Literacy...................... 5
d. Workplace literacy
partnerships.................. 13
e. Literacy programs for
prisoners..................... 5
f. Adult education programs..... 300
3. Unallocated amount under P.L.
104-99.............................. 1,163
------------------------------------
Total..................... 1,390 1,170 1,420
====================================
Vocational and adult education.--As part of the GI Bill for
America's Workers initiative, which is designed to promote lifelong
learning and economic security for all Americans, the Administration
proposed in fiscal year 1996 to restructure Federal workforce-related
education and training programs, including those under the Carl D.
Perkins Vocational and Applied Technology Education Act, the Adult
Education Act, and the National Literacy Act. As proposed by the
Administration, State formula grant programs for vocational education
and for adult education would be consolidated into a single State grant
for each program. In addition, national activities for both vocational
and adult education would support State efforts through research,
development, technical assistance, and evaluation. The Administration
and the Congress are currently working together to ensure that new
legislation in support of this initiative is enacted in 1996.
Pending enactment of the new legislation, the fiscal year 1997
budget estimate reflects funding under current law. Funds will be
allocated for specific activities once new legislation is enacted.
Object Classification (In millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0400-0-1-501 1995 actual 1996 est. 1997 est.
----------------------------------------------------------------------------
Direct obligations:
11.1 Personnel compensation: Full-
time permanent................ 1 1
25.1 Advisory and assistance services 4 4
25.2 Other services.................. 3 3
25.3 Purchases of goods and services
from Government accounts...... 1 1
25.5 Research and development
contracts..................... 2 2
41.0 Grants, subsidies, and
contributions................. 1,448 60 1,416
92.0 Undistributed................... 1,163
--------- --------- ----------
99.0 Subtotal, direct obligations.. 1,459 1,223 1,427
99.0 Reimbursable obligations.......... 1
41.0 Allocation Account--Direct
Obligations: Grants, subsidies,
and contributions............... 1
--------- --------- ----------
99.9 Total obligations............... 1,461 1,223 1,427
---------------------------------------------------------------------------
Personnel Summary
----------------------------------------------------------------------------
Identification code 91-0400-0-1-501 1995 actual 1996 est. 1997 est.
----------------------------------------------------------------------------
1001 Total compensable workyears: Full-
time equivalent employment...... 13 11 10
---------------------------------------------------------------------------
Vocational And Adult Education
(Legislative proposal, subject to PAYGO)
Program and Financing (In millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0400-4-1-501 1995 actual 1996 est. 1997 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Permanent appropriation........... -7
--------- --------- ----------
10.00 Total obligations............... -7
----------------------------------------------------------------------------
Budgetary resources available for obligation:
22.00 New budget authority (gross)...... -7
23.95 New obligations................... 7
----------------------------------------------------------------------------
New budget authority (gross), detail:
60.00 Appropriation..................... -7
----------------------------------------------------------------------------
Change in unpaid obligations:
73.10 New obligations................... -7
73.20 Total outlays (gross)............. 1
74.40 Unpaid obligations, end of year:
Obligated balance: Appropriation -6
----------------------------------------------------------------------------
Outlays (gross), detail:
86.97 Outlays from new permanent
authority....................... -1
--------- --------- ----------
87.00 Total outlays (gross)........... -1
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. -7
90.00 Outlays........................... -1
---------------------------------------------------------------------------
The Smith-Hughes Act authorizes a permanent appropriation for four
vocational education activities: Basic Grants, the Indian and Hawaiian
Natives set-aside, the Territorial set-aside, and National Programs. The
permanent appropriation is proposed for repeal, and an equivalent level
of funding is included in the Administration's proposal to reauthorize
and restructure the Carl D. Perkins Vocational and Applied Technology
Education Act.
OFFICE OF POSTSECONDARY EDUCATION
Federal Funds
General and special funds:
Student Financial Assistance
For carrying out subparts 1 and 3 of part A, and parts C and E of
title IV of the Higher Education Act of 1965, as amended,
$7,359,407,000, which shall remain available through September 30, 1998.
The maximum Pell Grant for which a student shall be eligible during
award year 1997-1998 shall be $2,700: Provided, That notwithstanding
section 401(g) of the Act, if the Secretary determines, prior to
publication of the payment schedule for such award year, that the amount
included within this appropriation for Pell Grant awards in such award
year, and any funds available from the FY 1996 appropriation for Pell
Grant awards, are insufficient to satisfy fully all such awards for
which students are eligible, as calculated under section 401(b) of the
Act, the amount paid for each such award shall be reduced by either a
fixed or variable percentage, or by a fixed dollar amount, as determined
in accordance with a schedule of reductions established by the Secretary
for this purpose.
Note.--A regular 1996 appropration for this account had not been
enacted at the time this budget was prepared. The 1996 amounts included
in this budget are based on the levels provided in three continuing
resolutions: P.L. 104-91, P.L. 104-92, and P.L. 104-99. Of the 1996
appropriation, ten percent is not available for obligation pending
resolution of a full-year appropriation.
Program and Financing (In millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0200-0-1-502 1995 actual 1996 est. 1997 est.
----------------------------------------------------------------------------
Obligations by program activity:
Pell grants:
01.01 Current academic year program... 3,144 3,538 3,670
01.02 Prior academic year program..... 2,675 3,561 2,169
--------- --------- ----------
01.91 Subtotal, Pell grants......... 5,819 7,099 5,839
Campus-based aid:
03.01 Work-study...................... 620 617 679
03.02 Supplemental educational
opportunity grants............ 588 583
03.03 Perkins loans: Federal capital
contributions................. 161 158
03.04 Perkins loans: Teacher
cancellations................. 26 20 20
--------- --------- ----------
03.91 Subtotal, Campus-based aid.... 1,395 637 1,440
04.01 State student incentive grants.... 64
05.01 State postsecondary review program 13
06.01 Unallocated amount under P.L. 104-
99.............................. 1,243
--------- --------- ----------
10.00 Total obligations............... 7,291 8,979 7,279
----------------------------------------------------------------------------
Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested
balance......................... 3,074 3,561 2,169
[[Page 407]]
22.00 New budget authority (gross)...... 7,586 7,586 7,359
22.10 Resources available from
recoveries of prior year
obligations..................... 196
22.30 Unobligated balance expiring...... -4
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 10,852 11,147 9,528
23.95 New obligations................... -7,291 -8,979 -7,279
24.40 Unobligated balance available, end
of year: Uninvested balance..... 3,561 2,169 2,249
----------------------------------------------------------------------------
New budget authority (gross), detail:
Current:
40.00 Appropriation................... 7,583 7,586 7,359
Permanent:
62.00 Transferred from other accounts. 3
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 7,586 7,586 7,359
----------------------------------------------------------------------------
Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Appropriation 3,334 3,363 4,902
73.10 New obligations................... 7,291 8,979 7,279
73.20 Total outlays (gross)............. -7,047 -7,440 -8,083
73.40 Adjustments in expired accounts... -19
73.45 Adjustments in unexpired accounts. -196
74.40 Unpaid obligations, end of year:
Obligated balance: Appropriation 3,363 4,902 4,098
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new current authority 1,334 741 1,226
86.93 Outlays from current balances..... 5,709 6,696 6,857
86.97 Outlays from new permanent
authority....................... 1
86.98 Outlays from permanent balances... 3 3
--------- --------- ----------
87.00 Total outlays (gross)........... 7,047 7,440 8,083
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 7,586 7,586 7,359
90.00 Outlays........................... 7,047 7,440 8,083
---------------------------------------------------------------------------
Summary of Budget Authority and Outlays
[In millions of dollars]
1995 actual 1996 est. 1997 est.
Enacted/requested:
Budget Authority.................. 7,586 7,586 7,359
Outlays........................... 7,047 7,440 8,083
Adjustment to 1996 continuing
resolution levels:
Budget Authority.................. -453
Outlays........................... -45 -394
------------------------------------
Total:
Budget Authority.................. 7,586 7,133 7,359
Outlays........................... 7,047 7,395 7,689
====================================
\1\ The Ninth Continuing Resolution, P.L. 104-99, provides for a
maximum Pell grant of ``at least $2,440.'' The preliminary Federal Pell
Grant Program payment and disbursement schedules for 1996-97 are
therefore calculated using a $2,400 maximum award. However, the
President's 1996 policy for the Federal Pell Grant Program calls for a
maximum award level of $2,620. The Pell grant estimates for 1996 are
based on an assumed maximum award level of $2,620. Establishing this
maximum award level would require the joint agreement of the
Administration and the Congress.
\2\ Includes obligations from budget authority in the amount of
$3,165 thousand in 1994 and 1995 for benefits for participants in
Operation Desert Shield/Desert Storm appropriated by transfer from the
Department of Defense pursuant to P.L. 102-27, the Dire Emergency
Supplemental Appropriations Act of 1991.
\3\ Represents budget authority for benefits for participants in
Operation Desert Shield/Desert Storm appropriated by transfer from the
Department of Defense pursuant to P.L. 102-27, the Dire Emergency
Supplemental Appropriations Act of 1991.
Status of Direct Loans (In millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0200-0-1-502 1995 actual 1996 est. 1997 est.
----------------------------------------------------------------------------
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 323 187 189
1251 Repayments: Repayments and
prepayments..................... -66 -51 -50
1262 Adjustments: Discount on loan
asset sales to the public or
discounted...................... -7 -8 -8
1264 Write-offs for default: Other
adjustments, net................ -63 61 61
--------- --------- ----------
1290 Outstanding, end of year........ 187 189 192
---------------------------------------------------------------------------
Object Classification (In millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0200-0-1-502 1995 actual 1996 est. 1997 est.
----------------------------------------------------------------------------
41.0 Grants, subsidies, and
contributions................... 7,291 7,736 7,279
92.0 Undistributed..................... 1,243
--------- --------- ----------
99.9 Total obligations............... 7,291 8,979 7,279
---------------------------------------------------------------------------
\1\ Includes in all years institutional matching share of defaulted
notes assigned from institutions to the Education Department.
Federal Pell Grants.--Undergraduate students establish eligibility
for these grants under award and need determination rules set out in the
authorizing statute and the annual appropriation act. The maximum award
for FY 1997 would be $2,700.
Federal Work-Study.--Federal grants are awarded by formula to
qualifying institutions, which develop and provide part-time jobs for
eligible undergraduate and graduate students with demonstrated need.
Federal grants in most cases pay 75 percent of a student's hourly
earnings, with the remainder paid by the employer. Hourly earnings must
not be less than the Federal minimum wage. Institutions are required to
spend at least 5 percent of their Work-Study allocation to pay students
working in community service jobs. The President is proposing to
increase funding for Work-Study over the next four years to help one
million students per year work their way through college by the year
2000.
Federal Supplemental Educational Opportunity Grants.--Federal funds
are awarded by formula to qualifying institutions, which use these funds
at their discretion to award grants to undergraduate students, with
priority for Pell Grant recipients and others with exceptional need. The
Federal share of such grants may not exceed 75 percent of the total
grant.
Perkins Loan Program.--Schools award loans from revolving funds,
composed of Federal Capital Contributions, collections on prior year
loans, and Federal payments for loan cancellations granted in exchange
for specified types of teaching, military or public service.
Perkins Loans--Cancellations.--Under the Perkins Loan (formerly
national direct student loan (NDSL)) cancellation program, institutional
revolving funds are reimbursed for indebtedness cancelled as a result of
a borrower engaging in certain public service occupations.
The Higher Education Amendments of 1992 broadened statutory
cancellations in the Perkins Loan program. This has resulted in a
progressive increase in the usage of cancellations provisions by Perkins
Loan borrowers in recent years.
Gatekeeping in Student Financial Assistance Programs.--The Federal
student aid programs will make available more than $41 billion in grant,
loan, and work-study assistance to about 7.3 million students in the
academic year 1997-98. The Department of Education, together with States
and accrediting agencies, works to ensure that institutions of higher
education participating in the Federal student aid programs meet a basic
standard of quality in the education and training of their students, and
that these institutions are administratively capable and financially
responsible.
Since 1993, the Department has terminated the participation of more
than 300 institutions that have violated the Federal regulations. In
1997, the Department plans to complete its recertification of all
institutions currently eligible to participate. It also plans to develop
a system of risk analysis that will better enable the Department to
identify institutions with potentially serious problems, and to improve
major elements of its information management system, including the
National Student Loan Data System and the Postsecondary Education
Participants System.
The Department also plans to provide regulatory relief--such as less
frequent recertification, less frequent submission of compliance audits,
and exemption from certain regulatory requirements--to institutions that
have demonstrated outstanding administration of federal programs and
strong financial responsibility.
In addition, the Department helps students make better decisions by
requiring schools to provide important informa
[[Page 408]]
tion about their education programs. It enforces long-standing statutory
requirements for institutions to inform prospective students of
educational programs, college costs, and financial aid. Final
regulations to implement the Student Right to Know Act, published in
1995, require institutions to disclose completion and graduation rates
for students who enter the institution after July 1, 1996.
The following tables display student aid funds available, the number
of aid awards, average awards, and the unduplicated count of students
receiving awards, based on current law and legislation proposed for
later transmittal. The tables include aid under the Federal Family
Education Loan (FFEL) program, formerly the Guaranteed Student Loan
(GSL) program, the William D. Ford Direct Loan (DL) Program, as well as
under programs in this account. The tables include the effects of
matching funds wherever applicable. Perkins loan amounts also reflect
available capital in institutional revolving funds, including loan
collection and loan cancellation receipts. FFEL and DL amounts reflect
the capital actually loaned, not the Federal costs of those loans.
AID FUNDS AVAILABLE FOR POSTSECONDARY EDUCATION AND TRAINING
[In millions of dollars]
1995 actual 1996 est. 1997 est.
Pell Grants......................... 5,426 6,170 6,406
Student loans:
Guaranteed student loans:
Stafford loans.................. 11,086 8,843 7,859
Unsubsidized Stafford loans..... 5,989 4,688 4,137
PLUS............................ 1,445 1.229 1,198
Direct student loans:
Stafford loans.................. 3,181 6,229 7,750
Unsubsidized Stafford loans..... 1,499 3,213 4,168
PLUS............................ 480 949 1,243
Consolidation
FFEL............................ 3,117 4,031 4,510
Direct Loans.................... 329 882 1,599
------------------------------------
Student loans, subtotal..... 27,126 30,064 32,464
Work-study.......................... 760 760 837
Supplemental educational opportunity
grants.............................. 738 NA 738
Perkins loans....................... 999 NA 1058
State student incentive grants...... 127 NA
------------------------------------
Total aid available......... 35,176 NA 41,503
====================================
Note: 1996 amounts not available for SEOG, Perkins loans, and SSIG
pending final appropriations.
NUMBER OF AID AWARDS
[In thousands]
1995 actual 1996 est. 1997 est.
Pell grants......................... 3,600 3,712 3,755
Student loans:
Guaranteed student loans:
Stafford loans.................. 3,392 2,592 2,197
Unsubsidized Stafford loans... 1,673 1,290 1,087
PLUS.......................... 267 212 190
Direct student loans:
Stafford loans.................. 824 1,669 2,137
Unsubsidized Stafford loans..... 393 834 1,086
PLUS............................ 81 156 200
Consolidation:
FFEL............................ 208 234 246
Direct Loans.................... 32 106 140
------------------------------------
Student loans, subtotal..... 6,870 7,101 7,282
Work-study........................ 713 713 786
Supplemental educational
opportunity grants.............. 991 NA 991
Perkins loans..................... 744 NA 788
State student incentive grants.... 211 NA
------------------------------------
Total awards................ 13,129 NA 13,603
====================================
Note: 1996 amounts not available for SEOG, Perkins loans, and SSIG
pending final appropriations.
AVERAGE AID AWARDS
[In whole dollars]
1995 actual 1996 est. 1997 est.
Pell grants......................... 1,507 1,662 1,706
Student loans:
Guaranteed student loans:
Stafford loans.................. 3,268 3,412 3,578
Unsubsidized Stafford loans..... 3,581 3,634 3,805
PLUS............................ 5,409 5,794 6,308
Direct student loans:
Stafford loans.................. 3,862 3,733 3,627
Unsubsidized Stafford loans..... 3,814 3,854 3,837
PLUS............................ 5,910 6,074 6,229
Consolidation:
FFEL............................ 15,005 16,576 18,356
Direct Loans.................... 10,281 8,358 11,349
Work-study.......................... 1,065 1,065 1,065
Supplemental educational opportunity
grants.............................. 745 745 745
Perkins loans....................... 1,342 1,342 1,342
State student incentive grants...... 600 600
NUMBER OF STUDENTS AIDED
[In thousands]
1995 actual 1996 est. 1997 est.
Unduplicated student count.......... 6,986 NA 7,284
Note: 1996 count data not available pending final appropriations.
The following table displays institutional administrative costs paid
from program funds.
ADMINISTRATIVE PAYMENTS TO INSTITUTIONS
[In millions of dollars]
1995 actual 1996 est. 1997 est.
Pell grants......................... 18 19 19
Work-study.......................... 47 47 52
Supplemental educational opportunity
grants.............................. 30 NA 30
Perkins loans....................... 40 NA 42
Direct student loans................ 10 20 32
Note: 1996 amounts not available for SEOG, Perkins loans, and SSIG
pending final appropriations.
The following table displays the status of defaulted Perkins loans
held by the Department and by institutions.
DEFAULTED PERKINS LOANS
[In millions of dollars]
1995 actual 1996 est. 1997 est.
Outstanding defaulted loans,
beginning of year:
Assigned defaulted loans \1\...... 323 187 189
Unassigned defaulted loans \2\.... 744 754 764
New defaulted loans................. 34 159 162
Collections on assigned loans....... -66 -51 -50
Collections on unassigned loans..... -82 -84 -88
Write-offs for assigned loans....... -7 -8 -8
Write-offs for unassigned loans..... -4 -4 -4
------------------------------------
Outstanding defaulted loans, end of
year................................ 1,263 1,140 1,156
====================================
\1\ Permanently assigned to the Federal Government for collection.
Does not include the following amounts in loans made to institutions to
establish Perkins revolving funds: $94 thousand in 1995, $94 thousand in
1996, and $94 thousand in 1997. These amounts are recorded as
outstanding loans in the ``Status of Direct Loans'' schedule.
\2\ Unassigned loans at institutions.
Higher Education
For carrying out, to the extent not otherwise provided, titles III
(without regard to section 360(a)(1)(B)(ii)), IV, V, VI, VII, IX, and
part A and subpart 1 of part B of title X of the Higher Education Act of
1965, as amended (HEA); and the Mutual Educational and Cultural Exchange
Act of 1961, $842,771,000, of which $2,015,000 for endowment activities
under part C of title III and $15,673,000 for interest subsidies under
title VII of HEA shall remain available until expended: Provided, That
funds available for part C of title III of HEA shall be available only
for awards to recipients that are title III, part B institutions, as
defined in section 322(2): Provided further, That funds available for
Part D of title IX of HEA shall be available to fund noncompeting
continuation awards for academic year 1997-98 for fellowships awarded
originally under parts B and C of title IX of HEA, under the terms and
conditions of parts B and C, respectively.
Note.--A regular 1996 appropriation for this account had not been
enacted at the time this budget was prepared. The 1996 amounts included
in this budget are based on the
[[Page 409]]
levels provided in three continuing resolutions: P.L. 104-91, P.L 104-
92, and P.L. 104-99.
Program and Financing (In millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0201-0-1-502 1995 actual 1996 est. 1997 est.
----------------------------------------------------------------------------
Obligations by program activity:
Aid for institutional development:
00.01 Strengthening historically Black
colleges and universities..... 129 129
00.02 Strengthening institutions...... 80 40
00.03 Strengthening Hispanic serving
institutions.................. 12 12
00.04 Endowment challenge grants...... 9 15 2
00.05 Evaluation...................... 1
--------- --------- ----------
00.91 Subtotal, aid for
institutional development... 231 15 183
Other aid for institutions:
01.01 Program development............. 116 85
01.02 Interest subsidy grants......... 18 1 16
01.03 Special grants.................. 4 4
--------- --------- ----------
01.91 Subtotal, other aid for
institutions................ 138 5 101
Aid for students:
02.01 Federal TRIO programs........... 463 500
02.02 Scholarships.................... 35 29
02.03 Graduate fellowships............ 44 30
02.04 School, college and university
partnerships.................. 4
02.05 Legal training for the
disadvantaged................. 3
--------- --------- ----------
02.91 Subtotal, aid for students.... 549 559
03.01 Unallocated amount under P.L. 104-
99.............................. 758
--------- --------- ----------
10.00 Total obligations............... 918 778 843
----------------------------------------------------------------------------
Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested
balance......................... 20 20
22.00 New budget authority (gross)...... 919 758 843
22.10 Resources available from
recoveries of prior year
obligations..................... 1
22.30 Unobligated balance expiring...... -2
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 938 778 843
23.95 New obligations................... -918 -778 -843
24.40 Unobligated balance available, end
of year: Uninvested balance..... 20
----------------------------------------------------------------------------
New budget authority (gross), detail:
40.00 Appropriation..................... 919 758 843
----------------------------------------------------------------------------
Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Appropriation 950 974 856
73.10 New obligations................... 918 778 843
73.20 Total outlays (gross)............. -871 -896 -803
73.40 Adjustments in expired accounts... -24
73.45 Adjustments in unexpired accounts. -1
74.40 Unpaid obligations, end of year:
Obligated balance: Appropriation 974 856 896
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new current authority 87 104 113
86.93 Outlays from current balances..... 784 792 690
--------- --------- ----------
87.00 Total outlays (gross)........... 871 896 803
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 919 758 843
90.00 Outlays........................... 871 896 803
---------------------------------------------------------------------------
Summary of Budget Authority and Outlays
[In millions of dollars]
1995 actual 1996 est. 1997 est.
Enacted/requested:
Budget Authority.................. 919 758 843
Outlays........................... 871 896 803
Legislative proposal, not subject to
PAYGO:
Budget Authority.................. 130
Outlays........................... 16
Adjustment to 1996 continuing
resolution levels:
Budget Authority.................. 13
Outlays........................... 2 9
------------------------------------
Total:
Budget Authority.................. 919 771 973
Outlays........................... 871 898 828
====================================
Aid for institutional development.--
Strengthening historically Black colleges and universities.--
Funds support grants to help historically Black undergraduate and
graduate institutions equalize educational opportunity and
strengthen their management and fiscal operations so that they may
eventually become self-sufficient.
Strengthening institutions.--Funds support planning and
development grants for improving academic programs and financial
management at schools that enroll high proportions of disadvantaged
students and have low per-student expenditures.
Strengthening Hispanic-serving institutions.--Funds support
Hispanic-serving institutions to enable them to improve and expand
their capacity to serve Hispanic and low-income students.
Endowment challenge grants.--Funds support endowment challenge
grants for historically Black colleges and universities to enable
such institutions to establish or increase institutional endowment
funds.
Other aid for institutions.--
Program development.--Funds support: the Fund for the
Improvement of Postsecondary Education (FIPSE), to address problems
and encourage improvements in postsecondary education; the minority
science improvement program, to improve science education at
predominantly minority institutions; international education and
foreign language study programs, to help strengthen American
education in foreign languages and area and international studies
and to provide research and study opportunities in foreign countries
for American graduate students, faculty members, and teachers of
foreign languages; and minority teacher recruitment, to encourage
minorities to enter teaching careers.
Interest subsidy grants.--Funds meet mandatory interest subsidy
costs of construction loan commitments made prior to 1974.
Aid for students.--
Federal TRIO programs.--Funds support: undergraduate outreach
programs to help individuals from disadvantaged backgrounds enter
and complete college; the student support services program to assist
postsecondary students from disadvantaged backgrounds who need
academic support to successfully complete their education; the
McNair postbaccalaureate program, to provide support to
disadvantaged groups underrepresented in graduate education; and
staff training, to provide training opportunities for staff employed
in or preparing for employment in TRIO programs. Funds also support
the continuation of an evaluation of the TRIO programs.
Scholarships.--Funds support: Byrd honors scholarships for
outstanding students who show promise of continued excellence.
Graduate fellowships.--Funds support graduate assistance in
areas of national need, to provide fellowships to financially needy
graduate students who are studying in areas of national need, to
underrepresented groups pursuing masters degrees and professional
study, and to students of superior ability completing graduate-level
education.
Object Classification (In millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0201-0-1-502 1995 actual 1996 est. 1997 est.
----------------------------------------------------------------------------
25.1 Advisory and assistance services.. 2 1 1
25.2 Other services.................... 2 2 2
25.3 Purchases of goods and services
from Government accounts........ 1
41.0 Grants, subsidies, and
contributions................... 913 17 840
92.0 Undistributed..................... 758
--------- --------- ----------
99.9 Total obligations............... 918 778 843
---------------------------------------------------------------------------
[[Page 410]]
Higher Education
(Legislative proposal, not subject to PAYGO)
Program and Financing (In millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0201-2-1-502 1995 actual 1996 est. 1997 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Presidential honors scholarships.. 130
--------- --------- ----------
10.00 Total obligations (object class
41.0)......................... 130
----------------------------------------------------------------------------
Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 130
23.95 New obligations................... -130
----------------------------------------------------------------------------
New budget authority (gross), detail:
40.00 Appropriation..................... 130
----------------------------------------------------------------------------
Change in unpaid obligations:
73.10 New obligations................... 130
73.20 Total outlays (gross)............. -16
74.40 Unpaid obligations, end of year:
Obligated balance: Appropriation 114
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new current authority 16
--------- --------- ----------
87.00 Total outlays (gross)........... 16
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 130
90.00 Outlays........................... 16
---------------------------------------------------------------------------
Presidential Honors Scholarships.--In his State of the Union
address, the President called for this new legislative initiative to
reward the best and the brightest of graduating high school students.
Under this program, $1,000 merit-based scholarships will be extended to
the top five percent of graduating students in every secondary school in
the Nation for their use at the postsecondary institution of their
choice. It is the aim of this program to encourage and reward students
for their academic excellence and achievement. Individual high schools
would have sole responsibility in the selection of recipients.
Howard University
For partial support of Howard University (20 U.S.C. 121 et seq.),
$195,965,000, including at least $3,530,000 for the endowment program:
Provided, That, of the amounts available for the endowment program,
$3,530,000 shall remain available until expended, for a matching
endowment grant to be administered in accordance with the Howard
University Endowment Act (Public Law 95-480).
Note.--A regular 1996 appropriation for this account had not been
enacted at the time this budget was prepared. The 1996 amounts included
in this budget are based on the levels provided in three continuing
resolutions: P.L. 104-91, P.L. 104-92, and P.L. 104-99.
Program and Financing (In millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0603-0-1-502 1995 actual 1996 est. 1997 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Academic program.................. 157
00.02 Endowment program................. 2 4
00.03 Research.......................... 5
00.04 Howard University Hospital........ 29 29
00.05 Construction...................... 11
00.06 Law School Clinical Center........ 6
00.07 Unallocated amount under P.L. 104-
99.............................. 170
00.08 Undistributed..................... 167
--------- --------- ----------
10.00 Total obligations (object class
41.0)......................... 210 174 196
----------------------------------------------------------------------------
Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested
balance......................... 9 4
22.00 New budget authority (gross)...... 205 170 196
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 214 174 196
23.95 New obligations................... -210 -174 -196
24.40 Unobligated balance available, end
of year: Uninvested balance..... 4
----------------------------------------------------------------------------
New budget authority (gross), detail:
40.00 Appropriation..................... 205 170 196
----------------------------------------------------------------------------
Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Appropriation 15 14 15
73.10 New obligations................... 210 174 196
73.20 Total outlays (gross)............. -210 -175 -199
74.40 Unpaid obligations, end of year:
Obligated balance: Appropriation 14 15 12
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new current authority 184 157 184
86.93 Outlays from current balances..... 24 18 15
--------- --------- ----------
87.00 Total outlays (gross)........... 210 175 199
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 205 170 196
90.00 Outlays........................... 210 175 199
---------------------------------------------------------------------------
Summary of Budget Authority and Outlays
[In millions of dollars]
1995 actual 1996 est. 1997 est.
Enacted/requested:
Budget Authority.................. 205 170 196
Outlays........................... 208 175 199
Adjustment to 1996 continuing
resolution levels:
Budget Authority.................. 17
Outlays........................... 16 1
------------------------------------
Total:
Budget Authority.................. 205 187 196
Outlays........................... 208 191 200
====================================
Howard University is a private, nonprofit educational institution
consisting of 17 schools and colleges. Federal funds are used to provide
partial support for university programs as well as for the teaching
hospital facilities. In 1995, direct Federal appropriations for the
academic and research programs represented 53 percent of the
university's educational and general expenditures.
Credit accounts:
Federal Direct Student Loan Program Account
Program and Financing (In millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0243-0-1-502 1995 actual 1996 est. 1997 est.
----------------------------------------------------------------------------
Obligations by program activity:
02.01 Direct loan subsidy............... 810 427 88
02.02 Reestimates of subsidy............ 11 -271
--------- --------- ----------
02.91 Subtotal, subsidy cost.......... 821 156 88
07.09 Student loan administrative
expenses........................ 383 550 595
--------- --------- ----------
10.00 Total obligations............... 1,204 706 683
----------------------------------------------------------------------------
Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested
balance......................... 95
22.00 New budget authority (gross)...... 1,105 706 683
22.10 Resources available from
recoveries of prior year
obligations..................... 4
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 1,204 706 683
23.95 New obligations................... -1,204 -706 -683
24.40 Unobligated balance available, end
of year: Uninvested balance.....
----------------------------------------------------------------------------
New budget authority (gross), detail:
60.00 Appropriation..................... 284 550 595
60.05 Appropriation (indefinite)........ 821 156 88
--------- --------- ----------
[[Page 411]]
63.00 Appropriation (total)........... 1,105 706 683
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 1,105 706 683
----------------------------------------------------------------------------
Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Appropriation 105 465 558
73.10 New obligations................... 1,204 706 683
73.20 Total outlays (gross)............. -840 -613 -722
73.45 Adjustments in unexpired accounts. -4
74.40 Unpaid obligations, end of year:
Obligated balance: Appropriation 465 558 519
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new current authority 325 433 522
86.97 Outlays from new permanent
authority....................... 453 9
86.98 Outlays from permanent balances... 62 180 191
--------- --------- ----------
87.00 Total outlays (gross)........... 840 613 722
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 1,105 706 683
90.00 Outlays........................... 840 613 722
---------------------------------------------------------------------------
Summary of Budget Authority and Outlays
[In millions of dollars]
1995 actual 1996 est. 1997 est.
Enacted/requested:
Budget Authority.................. 1,105 706 683
Outlays........................... 840 613 722
Legislative proposal, subject to
PAYGO:
Budget Authority.................. -124 -139
Outlays........................... -68 -121
------------------------------------
Total:
Budget Authority.................. 1,105 582 544
Outlays........................... 840 545 601
====================================
Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (In
millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0243-0-1-502 1995 actual 1996 est. 1997 est.
----------------------------------------------------------------------------
Direct loan levels supportable by subsidy
budget authority:
1150 Stafford.......................... 3,659 6,336 7,898
1150 Unsubsidized Stafford............. 1,834 3,282 4,266
1150 PLUS.............................. 457 1,003 1,319
1150 Consolidated...................... 1,653 886 1,618
--------- --------- ----------
1159 Total direct loan levels........ 7,603 11,507 15,101
Direct loan subsidy (in percent):
1320 Stafford.......................... 17.51 13.29 10.38
1320 Unsubsidized Stafford............. -2.92 -8.68 -11.77
1320 PLUS.............................. -5.35 -8.24 -9.36
1320 Consolidated...................... 10.93 -5.29 -6.59
--------- --------- ----------
1329 Weighted average subsidy rate... 9.48 3.71 0.58
Direct loan subsidy budget authority:
1330 Stafford.......................... 747 842 820
1330 Unsubsidized Stafford............. 28 -285 -502
1330 PLUS.............................. -40 -83 -123
1330 Consolidated...................... 52 -47 -107
1330 Reestimates of subsidy............ 5 -271
--------- --------- ----------
1339 Total subsidy budget authority.. 792 156 88
Direct loan subsidy outlays:
1340 Stafford.......................... 495 747 820
1340 Unsubsidized Stafford............. 30 -191 -413
1340 PLUS.............................. -30 -58 -102
1340 Consolidated...................... 8 -47 -105
1340 Reestimates of subsidy............ 12 -271
--------- --------- ----------
1349 Total subsidy outlays........... 515 180 200
----------------------------------------------------------------------------
Student loan administrative expense data:
3510 Budget authority.................. 284 550 595
3590 Outlays........................... 325 433 522
---------------------------------------------------------------------------
The Federal Government operates two major student loan programs: the
Federal Family Education Loan (FFEL) program--formerly the Guaranteed
Student Loan (GSL) program--and the William D. Ford Direct Loan (Direct
Loan) program. The President is committed to allowing individual
institutions to choose which of these two programs best meets their
needs and the needs of their students.
This summary section outlines the structure of these two programs,
highlights their differences and similarities, and provides text tables
displaying program cost data; loan volume, subsidy, default, and
interest rates; and other descriptive information. As part of his
January 1996 seven-year balanced budget plan, the President proposed a
number of relatively small policy changes for the Direct Loan and FFEL
programs. These changes are discussed as part of this program
description.
From its inception in 1965 through 1995, the FFEL program has
provided over $196 billion in loans to postsecondary students and their
parents. Since beginning on July 1, 1994, the Direct Loan program has
provided over $7 billion in loans to students and parents. Taken
together, the FFEL and Direct Loan programs will make over $30 billion
available in FY 1996. Because funding for these two programs is provided
on a permanent indefinite basis, for budget purposes they are considered
separately from other Federal student financial assistance programs. The
FFEL and Direct Loan programs should be viewed in combination with these
other programs, however, and with Perkins Loans in particular, as part
of the overall Federal effort to ensure access to higher education.
The Direct Loan program was created by the Student Loan Reform Act
(SLRA) of 1993. Under this program, the Federal Government provides
funds to postsecondary institutions to originate loans. Direct Loans
offer a streamlined system that is simpler for student and parent
borrowers, less prone to waste and abuse, and less expensive for the
Federal taxpayer than the FFEL program. The program also offers flexible
repayment options that allow borrowers to consider lower-paying careers,
such as public service, without fear of default. In addition, at the
time SLRA was passed in 1993, a gradual phase-in of direct lending was
projected to save $4 billion over five years.
Loan capital in the FFEL program is provided by private lenders. The
FFEL program primarily is administered by State and private nonprofit
guaranty agencies that serve as intermediate loan insurers, collect
defaulted loans, and provide various other services to lenders. The
Government provides substantial subsidies to these guaranty agencies.
The Government also pays interest subsidies to lenders for certain
borrowers, as well as most costs associated with loan defaults and other
write-offs.
The SLRA established statutory participation goals for the Direct
Loan program of 40 percent of overall new loan volume in academic year
1995-1996, 50 percent of overall loan volume in academic years 1996-1997
and 1997-1998, and 60 percent of overall loan volume beginning in
academic year 1998-1999. In addition to these goals, beginning in
academic year 1996-1997, any eligible institution will be able to
participate in the Direct Loan program.
The Direct Loan and FFEL programs share many basic elements. Each
program offers four types of loans: Stafford, Unsubsidized Stafford,
PLUS for parents, and Consolidation. Evidence of financial need is
required for a student to receive a subsidized Stafford loan. The other
three loan programs are available to borrowers at all income levels.
Loans can be used only to meet qualified educational expenses.
For new Stafford Loans, the interest rate equals the 91-day Treasury
bill rate plus 2.5 percent during in-school, grace, and deferment
periods, and the 91-day Treasury bill plus 3.1 percent at all other
times, with a cap of 8.25 percent. Interest payments for these loans are
fully subsidized by the Government while a student is in school and
during grace and deferment periods. Unsubsidized Stafford loans carry
the same interest rate as Stafford loans, but have no interest subsidy.
For PLUS loans, the interest rate equals the 52-
[[Page 412]]
week Treasury bill rate plus 3.1 percent, with a cap of 9 percent and no
interest subsidy.
Consolidation loans allow borrowers to combine loans made under
Title IV of the Higher Education Act--FFEL, Direct Loans, and Perkins
Loans--as well as some loans made under the Public Health Service Act.
Under FFEL, the interest rate for loans made on or after July 1, 1994,
equals the weighted average of the interest rate on the loans
consolidated, rounded upward to the nearest whole percent. Lenders may
choose to offer a lower rate. Direct Consolidation loans carry the
variable Stafford interest rate.
Origination/insurance fees for each loan type are essentially the
same across the two programs. Direct Loan borrowers are charged an
origination fee equal to 4 percent of principal, which partially offsets
Federal program operation costs. FFEL borrowers pay an origination fee
to the Government equal to 3 percent of principal, and are also liable
for a guaranty agency insurance premium of up to 1 percent of principal.
For both programs, the Government is liable for 100 percent of cost
related to death, disability, and bankruptcy.
Loan limits are also identical across the two programs. As part of
his balanced budget plan, the President has proposed a $15,000 annual
limit on borrowing for an individual student under the PLUS loan
program. (There is currently no limit on borrowing under this program.)
In addition to these common elements, the Direct Loan and FFEL
programs each have a number of unique provisions. For Direct Loans, the
Government provides assistance to institutions for originating loans,
including alternative origination services for institutions that are
unable or unwilling to perform these functions. The Government has paid
institutions that choose to originate loans $10 per borrower as
compensation for their administrative expenses. As part of his balanced
budget plan, the President has proposed to eliminate this payment.
Borrowers under Direct Loans may choose from among five repayment
plans including income-contingent repayment (``Pay-as-you-can''), under
which annual repayment amounts vary based on the income of the borrower
and the amount borrowed and payments can be made over an extended period
of time of up to 25 years. Borrowers may switch between repayment plans
at any time. (Income-contingent repayment is not available to Direct
PLUS borrowers).
For the FFEL program, lenders may receive a quarterly interest
subsidy, called a special allowance, from the Government to ensure a
guaranteed rate of return on their loans. Special allowance payments
vary by loan type, are determined quarterly, and are based on current
borrower interest rates and market-yield formulas. For recent Stafford
and Unsubsidized Stafford loans, for example, the Federal Government
must pay lenders a special allowance if the average 91-day Treasury bill
rate for a given quarter plus 3.1 percent--or 2.5 percent during in-
school, grace, or deferment periods--is higher than the current interest
rate charged borrowers.
The FFEL program includes a number of fees on lenders, holders of
Consolidation loans, and the Student Loan Marketing Association (Sallie
Mae). As part of his balanced budget plan, the President has proposed
the following changes to these fees: (1) the current fee lenders pay
upon originating a loan would be increased from 0.5 percent of principal
to 0.8 percent of principal; (2) a new semiannual fee equal to 0.035
percent of outstanding principal would be applied to all holders of
subsidized and unsubsidized Stafford and PLUS loans originated after
July 1, 1996; and (3) the current Sallie Mae offset fee, which is equal
to 0.3 percent of outstanding principal held by the association, would
be extended to all other participants in the student loan secondary
market, including subsidiaries and related companies.
The President has proposed a number of changes to the FFEL program's
default management system. Supplemental preclaims assistance payments to
guaranty agencies, which have proven ineffective in achieving their
intended goal of enhancing agency default prevention activities, would
be eliminated. In order to share the financial risk associated with
defaults more broadly across FFEL program participants, the lender
default insurance rate would be reduced from 98 percent to 95 percent,
and the maximum reinsurance rate for guaranty agencies would be lowered
from 98 percent to 96 percent.
The President has also proposed to reduce the amount guaranty
agencies may retain from default collection to cover their collection
costs from 27 percent to 18.5 percent of the amount collected. In
addition, the President has proposed to codify current Government
regulations allowing guaranty agencies to retain up to 18.5 percent of
new Consolidation loans for which the underlying loans were in default.
Lastly, the President has proposed the return to the Government of a
portion of guaranty agency reserve funds that he has determined are no
longer needed. This policy would be phased in over six years.
In order to ensure the uninterrupted availability of loan funds for
students and parents, Congress provided permanent funding to support
student loan administration and expenses. These funds support Department
personnel and contractors for Direct Loan origination and servicing as
well as certain costs associated with activities common to Direct Loans,
FFEL and other student assistance programs, such as application printing
and processing. The President believes that the current services level
of this permanent appropriation could be reduced. Discretionary funds
requested for the FFEL program support Department personnel and
administrative activities associated with operating the program.
The following tables display projected overall Direct Loan and FFEL
costs; loan volume, number of loans, and average loan amount;
descriptive data, and program activity under the President's budget and
legislative request.
Funding Levels (In thousands of dollar)
----------------------------------------------------------------------------
1995 actual 1996 est. 1997 est.
----------------------------------------------------------------------------
Budget Authority:
FFEL:
Liquidating \1\....................... 1,080,615 302,714 -179,711
Program \2\........................... 3,418,620 2,964,492 1,918,154
--------- --------- ----------
Subtotal, FFEL.................... 4,499,235 3,267,206 1,738,443
Direct Loans:
Program \2\........................... 821,656 138,426 53,023
Administration:
FFEL \3\.............................. 62,096 46,572 46,572
Student Aid Management \4\............ 164,574 249,627 221,512
Direct Loans.......................... 118,990 195,372 269,488
--------- --------- ----------
Subtotal, Administration.......... 345,660 491,571 537,572
Total, FFEL and Direct Loans...... 5,666,551 3,897,203 2,329,038
Outlays:
FFEL:
Liquidating \1\....................... 1,588,590 73,542 -280,997
Program \2\........................... 3,537,307 2,249,927 1,875,699
--------- --------- ----------
Subtotal, FFEL.................... 5,125,897 2,323,469 1,594,702
Direct Loans:
Program \2\........................... 515,153 210,190 172,773
Administration:
FFEL \3\.............................. 62,527 47,990 47,302
Student Aid Management \4\............ 255,734 233,330 210,809
Direct Loans.......................... 69,024 142,749 215,908
--------- --------- ----------
Subtotal, Administration.......... 387,285 424,069 474,019
--------- --------- ----------
Total, FFEL and Direct Loans...... 6,028,335 2,957,728 2,241,494
---------------------------------------------------------------------------
\1\ Liquidating account reflects loans made prior to 1992.
\2\ Program account totals for 1996 reflect adjustments resulting from
reestimates of prior year costs.
[[Page 413]]
\3\ Reflects annual discretionary appropriation.
\4\ Supports administrative expense allowance payments to FFEL guaranty
agencies, as well as a range of administrative activities, such as
application printing, mailing, and processing, that are common to all
Federal student financial assistance programs.
Summary of Loans Available (net commitments in millions of dollars) \1\
----------------------------------------------------------------------------
1995 actual 1996 est. 1997 est.
----------------------------------------------------------------------------
FFEL:
Stafford.............................. 11,086 8,843 7,859
Unsubsidized Stafford................. 5,989 4,688 4,137
PLUS.................................. 1,445 1,229 1,198
--------- --------- ----------
Total, FFEL....................... 18,519 14,760 13,193
Direct Loans:
Stafford.............................. 3,181 6,229 7,750
Unsubsidized Stafford................. 1,499 3,213 4,168
PLUS.................................. 480 949 1,243
--------- --------- ----------
Total, Direct Loans............... 5,161 10,391 13,161
Consolidated Loans:
FFEL.................................. 3,117 4,031 4,510
Direct Loans.......................... 329 882 1,599
--------- --------- ----------
Total, Consolidated Loans......... 3,446 4,913 6,109
--------- --------- ----------
Total, All Loans.................. 27,126 30,064 32,464
---------------------------------------------------------------------------
\1\ Net commitments equal gross commitments minus loan cancellations.
Number of Loans (In thousands)
----------------------------------------------------------------------------
1995 actual 1996 est. 1997 est.
----------------------------------------------------------------------------
FFEL:
Stafford.............................. 3,392 2,592 2,197
Unsubsidized Stafford................. 1,673 1,290 1,087
PLUS.................................. 267 212 190
--------- --------- ----------
Total, FFEL....................... 5,332 4,094 3,474
Direct Loans:
Stafford.............................. 824 1,669 2,137
Unsubsidized Stafford................. 393 834 1,086
PLUS.................................. 81 156 200
--------- --------- ----------
Total, Direct Loans............... 1,298 2,659 3,423
Consolidated Loans:
FFEL.................................. 208 243 246
Direct Loans.......................... 32 106 140
--------- --------- ----------
Total, Consolidated Loans......... 240 349 386
--------- --------- ----------
Total, All Loans.................. 6,870 7,101 7,282
---------------------------------------------------------------------------
Average Loan Size (in whole dollars)
----------------------------------------------------------------------------
1995 actual 1996 est. 1997 est.
----------------------------------------------------------------------------
FFEL:
Stafford.............................. 3,268 3,412 3,578
Unsubsidized Stafford................. 3,581 3,634 3,805
PLUS.................................. 5,409 5,794 6,308
--------- --------- ----------
Weighted Average, FFEL............ 3,473 3,605 3,798
Direct Loans:
Stafford.............................. 3,862 3,733 3,627
Unsubsidized Stafford................. 3,814 3,854 3,837
PLUS.................................. 5,910 6,074 6,229
--------- --------- ----------
Weighted Average, Direct Loans.... 3,975 3,908 3,845
Consolidated Loans:
FFEL.................................. 15,005 16,576 18,356
Direct Loans.......................... 10,281 8,358 11,394
--------- --------- ----------
Weighted Average, Consolidated
Loans........................... 14,374 14,089 15,825
--------- --------- ----------
Weighted Average, All Loans....... 3,948 4,234 4,458
---------------------------------------------------------------------------
Summary of Subsidy Rates, Default Rates, Interest Rates, and Discount Rates
----------------------------------------------------------------------------
1995 actual 1996 est. 1997 est.
----------------------------------------------------------------------------
Subsidy Rates (in percent) \1\
FFEL:
Stafford.............................. 25.02 21.40 19.77
Unsubsidized Stafford................. 7.77 5.10 5.05
PLUS.................................. 3.58 2.25 1.71
Consolidation......................... 6.66 -0.34 -0.94
----------- ----------- ----------
Weighted Average, FFEL.............. 16.24 11.60 10.04
Direct Loans:
Stafford.............................. 17.51 13.13 10.17
Unsubsidized Stafford................. -2.92 -8.83 -12.15
PLUS.................................. -5.35 -8.34 -9.49
Consolidation......................... 10.93 -5.49 -6.59
----------- ----------- ----------
Weighted Average, Direct Loans...... 9.48 3.55 0.35
Default Rates (in percent) \2\
FFEL:
Stafford.............................. 23.47 23.47 23.47
Unsubsidized Stafford................. 16.90 16.57 16.41
PLUS.................................. 9.00 9.00 9.00
Consolidation......................... 10.50 10.50 10.50
----------- ----------- ----------
Weighted Average, FFEL.............. 18.82 18.02 17.54
Direct Loans:
Stafford.............................. 21.95 21.74 21.74
Unsubsidized Stafford................. 15.81 15.35 15.20
PLUS.................................. 9.00 9.00 9.00
Consolidation......................... 10.50 10.50 10.50
----------- ----------- ----------
Weighted Average, Direct Loans...... 18.43 17.94 17.58
Borrower Interest Rates (in percent)
FFEL:
Stafford.............................. 8.25 8.25 7.79
Unsubsidized Stafford................. 8.25 8.25 7.79
PLUS.................................. 9.00 8.44 8.05
Consolidation \3\.....................
Direct Loans:
Stafford.............................. 8.25 8.25 7.79
Unsubsidized Stafford................. 8.25 8.25 7.79
PLUS.................................. 9.00 8.44 8.05
Consolidation \3\.....................
Federal Borrowing Rate for Direct Loans
(in percent)........................ 7.26 5.84 5.49
----------------------------------------------------------------------------
\1\ Subsidy rates represent the Federal portion of non-administrative costs--
principally interest subsidies and defaults--associated with each borrowed dollar.
For example, a $1,000 loan with Federal subsidy costs of $100 would have a subsidy
rate of 10 percent.
\2\ Default rates displayed in this table, which reflect projected defaults over
the life of a loan cohort, are used in developing program cost estimates. The
Department uses other rates based on defaults occurring in the first three years of
repayment, which tend to be slightly lower than those included in this table, to
determine institutional eligibility to participate in Federal loan programs.
\3\ Interest rates under the FFEL Consolidation Loan program reflect a weighted
average of the rates of the loans consolidated, rounded upward to the nearest whole
percentage. For the Direct Loan Consolidation Loan program, loans consolidated from
the Stafford Loan program are charged the Stafford Loan interest rate. Loans
consolidated from the Stafford and Unsubsidized Stafford Loan programs are charged
the Unsubsidized Stafford interest rates. Loans consolidated from the PLUS program
are charged the PLUS interest rates.
Composition of Default Collections (In thousands of dollars)
----------------------------------------------------------------------------
1995 actual 1996 est. 1997 est.
----------------------------------------------------------------------------
FFEL:
Collections by Guaranty Agencies \1\.. 1,005,827 865,548 878,301
Collections by Department of Education 537,259 462,329 469,142
Internal Revenue Service Tax Refund
Offsets............................. 519,350 446,918 453,503
--------- --------- ----------
Total, FFEL....................... 2,062,436 1,774,795 1,800,946
Direct Loans:
Collections by Department of Education 2 99 1,180
Internal Revenue Service Tax Refund
Offsets.............................
--------- --------- ----------
Total, Direct Loans............... 2 99 1,180
--------- --------- ----------
Total, FFEL and Direct Loans...... 2,062,438 1,774,894 1,802,126
---------------------------------------------------------------------------
\1\ These figures show total collections by guaranty agencies. Actual
Federal revenues resulting from these collections are lower than the figures
shown here because agencies retain 27 percent of the amount collected.
Projected Participation in Direct Loan Repayment \1\ (In thousands of
dollars)
----------------------------------------------------------------------------
1995 cohort 1996 cohort 1997 cohort
----------------------------------------------------------------------------
Standard:
Percent of Direct Loan Volume \2\..... 41.81 41.81 41.81
Maximum Term (in years)............... 10 10 10
Subsidy Rate (in percent) \3\......... 10.92 4.49 2.19
Budget Authority...................... 408,331 246,775 163,918
Outlays............................... 259,746 260,509 174,081
Extended: \4\
Percent of Direct Loan Volume \2\..... 13.58 13.58 13.58
Subsidy Rate (in percent) \3\......... 8.03 3.08 0.44
Budget Authority...................... 92,564 44,437 7,980
Outlays............................... 56,176 54,160 19,990
Graduated: \4\
Percent of Direct Loan Volume \2\..... 28.05 28.05 28.05
Subsidy Rate (in percent) \3\......... 6.94 1.90 -0.84
Budget Authority...................... 179,899 56,609 -31,669
[[Page 414]]
Outlays............................... 109,179 91,107 3,227
Income-Contingent:
Percent of Direct Loan Volume \2\..... 16.56 16.56 16.56
Maximum Term (in years)............... 25 25 25
Subsidy Rate (in percent) \3\......... 10.77 3.87 -4.33
Budget Authority...................... 129,249 61,605 -87,206
Outlays............................... 78,440 75,414 -24,525
Total:
Percent of Direct Loan Volume \2\..... 100.00 100.00 100.00
Subsidy Rate (in percent) \3\......... 9.48 3.55 0.35
Budget Authority...................... 810,043 409,426 53,023
Outlays............................... 503,540 481,190 172,773
---------------------------------------------------------------------------
\1\ No data are included for the Alternative repayment plan. Borrowers
are not expected to participate in this plan due to the flexibility
available under the other options. BA and outlay amounts do not reflect re-
estimates for prior-year cohorts.
\2\ Percent of Direct Loan Volume represents aggregate data. Individual
borrowers may move between plans over time.
\3\ Subsidy rate reflects weighted average for four loan types:
Stafford, Unsubsidized Stafford, PLUS, and Consolidation Loans.
\4\ Maximum terms under the Extended and Graduated repayment plans
reflect the following ``classes'' based on borrower debt levels.
Debt Level: Maximum Term
(in years) Percent of
Volume
Within
Affected
Plans
Below $10,000..................... 12 57.57
$10,000-$20,000................... 15 24.28
$20,000-$40,000................... 20 14.56
$40,000-$60,000................... 25 2.22
Above $60,000..................... 30 1.37
Subsidy costs for the FFEL and Direct Loan programs are estimated in
accordance with procedures set out in the Credit Reform Act of 1990.
Subsidy costs for each loan type are estimated separately and, because
costs can vary widely within a program depending on the characteristics
of the individual borrower, cost estimates are aggregated from data for
homogeneous groups within risk categories.
Default rates are a major cause of differences in subsidy between
risk categories. The default rates in the following tables reflect
estimates of the percent of borrowers who will default over the lifetime
of the loans. These estimates are revised annually based on an analysis
of default trends prepared each year by an independent auditor. Within
each risk group, it is assumed that borrowers choosing similar repayment
plans will have similar default rates, regardless of whether they borrow
under the FFEL or Direct Loan program.
The risk group data below also reflect proposed policy changes and
interest rate projections in the President's 1997 Budget. These factors
substantially decrease subsidy rates across years in the FFEL program.
Subsidy rates in the Direct Loan program are also significantly reduced,
primarily as a result of interest rate projections.
DIRECT LOAN RISK CATEGORIES: STAFFORD LOANS
Subsidy Rate (as a percentage of loan commitments)
1995 actual 1996 est. 1997 est.
Risk Categories:
Category 1: 4 year college, 1st
and 2nd year students........... 23.36 17.37 13.31
Category 2: 4 year college, all
other students.................. 14.94 11.10 8.51
Category 3: 2 year school, all
students........................ 22.98 17.06 13.08
Category 4: Proprietary school,
all students.................... 23.27 17.30 13.26
Gross Default Rates (in percent)
Risk Categories:
Category 1: 4 year college, 1st
and 2nd year students........... 27.57 26.40 25.70
Category 2: 4 year college, all
other students.................. 14.69 14.07 13.70
Category 3: 2 year school, all
students........................ 36.39 34.85 33.91
Category 4: Proprietary school,
all students.................... 41.99 40.21 39.13
UNSUBSIDIZED STAFFORD LOANS
Subsidy Rate (as a percentage of loan commitments)
1995 actual 1996 est. 1997 est.
Risk Categories:
Category 1: 4 year college, 1st
and 2nd year students........... -2.27 -7.15 -10.24
Category 2: 4 year college, all
other students.................. -3.29 -10.37 -14.86
Category 3: 2 year school, all
students........................ -1.32 -4.16 -5.96
Category 4: Proprietary school,
all students.................... -0.48 -1.50 -2.14
Gross Default Rates (in percent)
Category 1: 4 year college, 1st
and 2nd year students........... 27.57 26.40 25.70
Category 2: 4 year college, all
other students.................. 14.69 14.07 13.70
Category 3: 2 year school, all
students........................ 36.39 34.85 33.91
Category 4: Proprietary school,
all students.................... 41.99 40.21 39.13
PLUS LOANS
Subsidy Rate (as a percentage of loan commitments)
1995 actual 1996 est. 1997 est.
All PLUS loans...................... -5.35 -8.34 -9.49
Gross Default Rate (in percent)
All PLUS loans...................... 9.00 9.00 9.00
CONSOLIDATED LOANS
Subsidy Rate (as a percentage of loan commitments)
1995 actual 1996 est. 1997 est.
All consolidated loans.............. 10.93 -5.49 -6.59
Gross Default Rate (in percent)
All consolidated loans.............. 10.50 10.50 10.50
FFEL LOAN RISK CATEGORIES: STAFFORD LOANS
Subsidy Rate (as a percentage of loan commitments)
1995 actual 1996 est. 1997 est.
Risk Categories:
Category 1: 4 year college, 1st
and 2nd year students........... 32.37 27.67 25.79
Category 2: 4 year college, all
other students.................. 20.70 17.68 16.48
Category 3: 2 year school, all
students........................ 31.82 27.11 25.26
Category 4: Proprietary school,
all students.................... 32.23 27.47 25.59
Gross Default Rates (in percent)
Risk Categories:
Category 1: 4 year college, 1st
and 2nd year students........... 27.57 26.40 25.70
Category 2: 4 year college, all
other students.................. 14.69 14.07 13.70
Category 3: 2 year school, all
students........................ 36.39 34.85 33.91
Category 4: Proprietary school,
all students.................... 41.99 40.21 39.13
UNSUBSIDIZED STAFFORD LOANS
Subsidy Rate (as a percentage of loan commitments)
1995 actual 1996 est. 1997 est.
Risk Categories:
Category 1: 4 year college, 1st
and 2nd year students........... 9.41 6.21 7.14
Category 2: 4 year college, all
other students.................. 1.82 1.20 1.37
Category 3: 2 year school, all
students........................ 19.89 13.09 15.07
Category 4: Proprietary school,
all students.................... 29.24 19.23 22.13
Gross Default Rates (in percent)
Category 1: 4 year college, 1st
and 2nd year students........... 27.57 26.40 25.70
Category 2: 4 year college, all
other students.................. 14.69 14.07 13.70
Category 3: 2 year school, all
students........................ 36.39 34.85 33.91
Category 4: Proprietary school,
all students.................... 41.99 40.21 39.13
PLUS LOANS
Subsidy Rates (as a percentage of loan commitments)
1995 actual 1996 est. 1997 est.
All PLUS loans.................... 3.58 2.25 1.71
Gross Default Rate (in percent)
All PLUS loans.................... 9.00 9.00 9.00
CONSOLIDATED LOANS
Subsidy Rate (as a percentage of loan commitments)
1995 actual 1996 est. 1997 est.
All consolidated loans............ 6.66 -0.34 -0.94
Gross Default Rates (in percent)
All consolidated loans............ 10.50 10.50 10.50
Summary of Program Costs and Offsets (In thousands of dollars)
----------------------------------------------------------------------------
1995 actual 1996 est. 1997 est.
----------------------------------------------------------------------------
Interest subsidy costs:
FFEL:
Interest benefits................... 2,171,426 1,986,013 1,746,511
Special allowance................... 159,107 126,713 114,622
--------- --------- ----------
Total FFEL........................ 2,330,533 2,112,726 1,861,133
Direct Loans \1\.................... 34,673 163,578 670,765
Default costs and offsets:
Default costs \2\:
FFEL................................ 1,306,175 1,554,000 2,065,932
Direct Loans........................ 14,154 12,542 52,350
[[Page 415]]
Gross default collections:
FFEL................................ -247,430 -59,397 -102,376
Direct Loans........................ -3 -99 -1,180
Default collection costs:
FFEL:
Contract collection costs......... 7,089 2,749 4,636
Guaranty agency retention......... 37,521 9,007 15,525
--------- --------- ----------
Total, FFEL collect costs....... 44,610 11,756 20,161
Direct Loans:
Collection costs \3\.............. 488 22 267
Net default costs \4\:
FFEL................................ 1,103,355 1,506,359 1,983,717
Direct Loans........................ 14,639 12,465 51,437
Death, disability, and bankruptcy costs:
FFEL................................ 16,472 99,343 130,429
Direct Loans........................ 0 4,305 12,355
Other write-offs \5\, \6\.......... 9,418 28,841 50,037
Administrative Costs:
Federal administration:
FFEL................................ 62,527 47,990 47,302
Direct Loans \7\.................... 324,758 375,000 427,000
Guaranty agency administrative
payments
Student Aid Management \8\.......... 219,978 175,918 135,742
Supplemental preclaims assistance \5\. 7,503 5,810
Payments for origination services \9\. 13,927 10,438 5,138
Fees:
Borrower origination fees:
FFEL................................ -710,302 -444,081 -434,010
Direct Loans........................ -90,667 -354,527 -513,906
Lender origination fee \5\.......... -114,627 -90,438 -109,723
Loan holder's fee \5\............... -6,443 -16,432
State default fees \5\.............. -38,984 -85,405
Sallie Mae offset fee \5\........... -10,263 -18,669 -27,341
Consolidation loan holder fees \5\.. -56,691 -96,125 -136,007
\1\ This represents net interest costs associated with Direct Loans.
\2\ Default costs under FFEL reflect claims paid to guaranty agencies.
Default costs under Direct Loans reflect non-repayment of defaulted loans.
\3\ In the budget schedules, Direct Loan collections are displayed net
of collection costs.
\4\ Net default costs equal default claims minus net collections (gross
collections minus contract collection costs and guaranty agency retention).
\5\ Applies to FFEL program only.
\6\ Includes repayment of agency advances, elimination of excess agency
reserves, through direct payments to the Government and reduced reinsurance
payments to the agencies, and purchase of rehabilitated loans by the
agencies.
\7\ A number of expenses related to the management of the student
assistance programs are paid out of Student Loan administration funds. The
largest of these, administrative expense allowances to guaranty agencies, is
shown as a separate line.
\8\ Administrative Expense Allowances paid from Student Loan
administrative funds.
\9\ Applies to Direct Loans only.
Object Classification (In millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0243-0-1-502 1995 actual 1996 est. 1997 est.
----------------------------------------------------------------------------
Personnel compensation:
11.1 Full-time permanent............. 15 23 25
11.3 Other than full-time permanent.. 1 1 1
--------- --------- ----------
11.9 Total personnel compensation.. 16 24 26
12.1 Civilian personnel benefits....... 2 5 6
13.0 Benefits for former personnel..... 1
21.0 Travel and transportation of
persons......................... 2 4 4
23.1 Rental payments to GSA............ 3 5 5
23.3 Communications, utilities, and
miscellaneous charges........... 5 16 17
24.0 Printing and reproduction......... 9 9 10
25.1 Advisory and assistance services.. 2 2 2
25.2 Other services.................... 116 290 365
25.3 Purchases of goods and services
from Government accounts........ 2 2 2
26.0 Supplies and materials............ 2 1 1
31.0 Equipment......................... 2 2 2
33.0 Investments and loans............. 822 156 88
41.0 Grants, subsidies, and
contributions................... 220 190 155
99.5 Below reporting threshold.........
--------- --------- ----------
99.9 Total obligations............... 1,204 706 683
---------------------------------------------------------------------------
Personnel Summary
----------------------------------------------------------------------------
Identification code 91-0243-0-1-502 1995 actual 1996 est. 1997 est.
----------------------------------------------------------------------------
1001 Total compensable workyears: Full-
time equivalent employment...... 322 496 520
---------------------------------------------------------------------------
Federal Direct Student Loan Program Account
(Legislative proposal, subject to PAYGO)
Program and Financing (In millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0243-4-1-502 1995 actual 1996 est. 1997 est.
----------------------------------------------------------------------------
Obligations by program activity:
02.01 Direct loan subsidy............... -18 -35
02.02 Reestimates of subsidy............
--------- --------- ----------
02.91 Subtotal, subsidy cost.......... -18 -35
07.09 Student loan administrative
expenses........................ -106 -104
--------- --------- ----------
10.00 Total obligations............... -124 -139
----------------------------------------------------------------------------
Budgetary resources available for obligation:
22.00 New budget authority (gross)...... -124 -139
23.95 New obligations................... 124 139
----------------------------------------------------------------------------
New budget authority (gross), detail:
60.00 Appropriation..................... -106 -104
60.05 Appropriation (indefinite)........ -18 -35
--------- --------- ----------
63.00 Appropriation (total)........... -124 -139
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... -124 -139
----------------------------------------------------------------------------
Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Appropriation -56
73.10 New obligations................... -124 -139
73.20 Total outlays (gross)............. 68 121
74.40 Unpaid obligations, end of year:
Obligated balance: Appropriation -56 -74
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new current authority -58 -95
86.97 Outlays from new permanent
authority....................... -10 -21
86.98 Outlays from permanent balances... -5
--------- --------- ----------
87.00 Total outlays (gross)........... -68 -121
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. -124 -139
90.00 Outlays........................... -68 -121
---------------------------------------------------------------------------
A description of the Administration's proposed legislation to modify
the Direct Loan program is included under the Federal Direct Student
Loan program account.
Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (In
millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0243-4-1-502 1995 actual 1996 est. 1997 est.
----------------------------------------------------------------------------
Direct loan subsidy (in percent):
1320 Stafford.......................... -16.00 -21.00
1320 Unsubsidized Stafford............. -15.00 -38.00
1320 PLUS.............................. -10.00 -13.00
1320 Consolidated...................... -20.00 0.00
--------- --------- ----------
1329 Weighted average subsidy rate... -15.00 -23.00
Direct loan subsidy budget authority:
1330 Stafford.......................... -10 -17
1330 Unsubsidized Stafford............. -5 -16
1330 PLUS.............................. -1 -2
1330 Consolidated...................... -2
--------- --------- ----------
1339 Total subsidy budget authority.. -18 -35
Direct loan subsidy outlays:
1340 Stafford.......................... -6 -14
1340 Unsubsidized Stafford............. -2 -11
1340 PLUS.............................. -1 -1
1340 Consolidated...................... -1
--------- --------- ----------
1349 Total subsidy outlays........... -10 -26
----------------------------------------------------------------------------
Student loan administrative expense data:
3510 Budget authority.................. -106 -104
3590 Outlays........................... -58 -95
---------------------------------------------------------------------------
[[Page 416]]
Object Classification (In millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0243-4-1-502 1995 actual 1996 est. 1997 est.
----------------------------------------------------------------------------
23.3 Communications, utilities, and
miscellaneous charges........... -3
24.0 Printing and reproduction......... -3
25.2 Other services.................... -87 -79
33.0 Investments and loans............. -18 -35
41.0 Grants, subsidies, and
contributions................... -16 -22
--------- --------- ----------
99.9 Total obligations............... -124 -139
---------------------------------------------------------------------------
Federal Direct Student Loan Program, Financing Account
Program and Financing (In millions of dollars)
----------------------------------------------------------------------------
Identification code 91-4253-0-3-502 1995 actual 1996 est. 1997 est.
----------------------------------------------------------------------------
Obligations by program activity:
Direct loans:
01.01 Stafford........................ 3,659 6,229 7,750
01.02 Unsubsidized Stafford........... 1,834 3,213 4,168
01.03 PLUS............................ 457 949 1,243
01.04 Consolidated.................... 1,653 882 1,599
--------- --------- ----------
01.91 Subtotal, direct loans
obligations................. 7,603 11,273 14,760
Payment of origination services:
02.01 Stafford........................ 8 14 17
02.02 Unsubsidized Stafford........... 4 7 8
02.03 PLUS............................ 1 1 2
02.04 Consolidated.................... 1 6 5
--------- --------- ----------
02.91 Subtotal, Payment of origination
services...................... 14 28 32
03.01 Interest on Treasury borrowing.... 383 441 1,028
--------- --------- ----------
10.00 Total obligations............... 8,000 11,742 15,820
----------------------------------------------------------------------------
Budgetary resources available for obligation:
22.00 New financing authority (gross)... 7,811 12,013 15,820
22.10 Resources available from
recoveries of prior year
obligations..................... 189
22.60 Redemption of debt................ -271
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 8,000 11,742 15,820
23.95 New obligations................... -8,000 -11,742 -15,820
----------------------------------------------------------------------------
New financing authority (gross), detail:
67.15 Authority to borrow (indefinite).. 6,793 11,541 14,668
Spending authority from offsetting
collections:
68.00 Offsetting collections (cash)... 947 926 1,780
68.10 Change in orders on hand from
Federal sources............... 307 -177 -108
68.47 Portion applied to debt
reduction..................... -235 -277 -520
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total)..................... 1,019 472 1,152
--------- --------- ----------
70.00 Total new financing authority
(gross)....................... 7,811 12,013 15,820
----------------------------------------------------------------------------
Change in unpaid obligations:
Unpaid obligations, start of year:
72.90 Obligated balance: Unpaid
obligations................... 673 4,545 4,156
72.95 Orders on hand from Federal
sources....................... 61 368 191
--------- --------- ----------
72.99 Total unpaid obligations,
start of year............... 734 4,913 4,347
73.10 New obligations................... 8,000 11,742 15,820
73.20 Total financing disbursements
(gross)......................... -3,633 -12,308 -14,816
73.45 Adjustments in unexpired accounts. -189
Unpaid obligations, end of year:
74.90 Obligated balance: Fund balance:
Unpaid obligations............ 4,545 4,156 5,268
74.95 Orders on hand from Federal
sources....................... 368 191 83
--------- --------- ----------
74.99 Total unpaid obligations, end
of year..................... 4,913 4,347 5,351
----------------------------------------------------------------------------
Outlays (gross), detail:
87.00 Total financing disbursements
(gross)......................... 3,633 12,308 14,816
----------------------------------------------------------------------------
Offsets:
Against gross financing authority and
financing disbursements:
Offsetting collections (cash)
from:
Federal sources:
Payments from subsidy
account:
88.00 Stafford.................. -495 -747 -820
88.00 Unsubsidized Stafford..... -31 191 413
88.00 PLUS...................... 30 58 102
88.00 Consolidated.............. -8 47 105
88.00 Volume Reestimate......... -12 271
Interest on uninvested funds:
88.25 Stafford.................... -183
88.25 Unsubsidized Stafford....... -78
88.25 PLUS........................ -36
Non-Federal sources:
Stafford loans:.............
88.40 Repayment of principal.... -4 -33 -123
88.40 Interest received on loans -56 -169
88.40 Fees...................... -53 -206 -288
88.40 Recoveries of defaults.... -1
Unsubsidized Stafford loans:
88.40 Repayment of principal.... -5 -31 -101
88.40 Interest received on loans -4 -48 -136
88.40 Fees...................... -25 -106 -153
88.40 Repayment of principal.... -8 -50 -120
PLUS loans:
88.40 Interest received on loans.. -8 -60 -127
88.40 Fees........................ -8 -31 -45
88.40 Payment of Principal........ -12 -52 -142
88.40 Interest received on loans.. -2 -61 -148
88.40 Fees........................ -5 -12 -27
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -947 -926 -1,780
88.95 Change in receivables from program
accounts........................ -307 177 108
----------------------------------------------------------------------------
Net financing authority and financing
disbursements:
89.00 Financing authority............... 6,557 11,264 14,148
90.00 Financing disbursements........... 2,686 11,382 13,036
---------------------------------------------------------------------------
Status of Direct Loans (In millions of dollars)
----------------------------------------------------------------------------
Identification code 91-4253-0-3-502 1995 actual 1996 est. 1997 est.
----------------------------------------------------------------------------
Stafford
Position with respect to appropriations act
limitation on obligations:
1111 Limitation on direct loans......
1131 Direct loan obligations exempt
from limitation............... 3,659 6,229 7,750
--------- --------- ----------
1150 Total direct loan obligations. 3,659 6,229 7,750
----------------------------------------------------------------------------
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year...... 294 1,558 6,656
1231 Disbursements: Direct loan
disbursements................. 1,273 5,139 7,194
1251 Repayments: Repayments and
prepayments................... -4 -33 -123
Write-offs for default:
1263 Direct loans.................. -6 -26
1264 Other adjustments, net........ -5 -2 -5
--------- --------- ----------
1290 Outstanding, end of year...... 1,558 6,656 13,696
----------------------------------------------------------------------------
Unsubsidized Stafford
Position with respect to appropriations act
limitation on obligations:
1131 Direct loan obligations exempt
from limitation............... 1,834 3,213 4,168
Total direct loan obligations:
--------- --------- ----------
1150 Total direct loan
obligations............... 1,834 3,213 4,168
1150 Total direct loan obligations. 1,834 3,213 4,168
----------------------------------------------------------------------------
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year...... 141 708 3,474
1231 Disbursements: Direct loan
disbursements................. 553 2,802 3,835
1251 Repayments: Repayments and
prepayments................... -5 -31 -101
Write-offs for default:
1263 Direct loans.................. -4 -16
1264 Other adjustments, net........ 19 -1 -3
--------- --------- ----------
1290 Outstanding, end of year...... 708 3,474 7,189
----------------------------------------------------------------------------
PLUS
Position with respect to appropriations act
limitation on obligations:
1131 Direct loan obligations exempt
from limitation............... 457 949 1,243
Total direct loan obligations:
--------- --------- ----------
1150 Total direct loan
obligations............... 457 949 1,243
1150 Total direct loan obligations. 457 949 1,243
----------------------------------------------------------------------------
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year...... 42 225 950
1231 Disbursements: Direct loan
disbursements................. 188 777 1,135
1251 Repayments: Repayments and
prepayments................... -8 -50 -120
[[Page 417]]
Write-offs for default:
1263 Direct loans.................. -1 -4
1264 Other adjustments, net........ 3 -1 -2
--------- --------- ----------
1290 Outstanding, end of year...... 225 950 1,959
----------------------------------------------------------------------------
Consolidated
Position with respect to appropriations act
limitation on obligations:
1131 Direct loan obligations exempt
from limitation............... 1,653 882 1,599
Total direct loan obligations:
--------- --------- ----------
1150 Total direct loan
obligations............... 1,653 882 1,599
1150 Total direct loan obligations. 1,653 882 1,599
----------------------------------------------------------------------------
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year...... 310 1,138
1231 Disbursements: Direct loan
disbursements................. 318 882 1,599
1251 Repayments: Repayments and
prepayments................... -12 -52 -142
Write-offs for default:
1263 Direct loans.................. -14 -1 -6
1264 Other adjustments, net........ 18 -1 -2
--------- --------- ----------
1290 Outstanding, end of year...... 310 1,138 2,587
---------------------------------------------------------------------------
Balance Sheet (In millions of dollars)
-----------------------------------------------------------------------------------------------
Identification code 91-4253-0-3-502 1994 actual 1995 actual 1996 est. 1997 est.
-----------------------------------------------------------------------------------------------
ASSETS:
1101 Federal assets: Fund balances with
Treasury........................ 531 4,913 4,510 5,477
Net value of assets related to
post-1991 direct loans
receivable:
Direct loans receivable, gross:
1401 Stafford...................... 192 1,558 6,656 13,696
1401 Unsubsidized Stafford......... 81 708 3,474 7,189
1401 PLUS.......................... 38 225 950 1,959
1401 Consolidated.................. 310 1,138 2,587
1405 Allowance for subsidy cost (-).. -26 -553 -354 -208
------------ -------------- ------------ -------------
1499 Net present value of assets
related to direct loans..... 285 2,248 11,864 25,223
------------ -------------- ------------ -------------
1999 Total assets.................... 816 7,161 16,374 30,700
LIABILITIES:
2103 Federal liabilities: Debt......... 787 6,793 16,051 20,145
------------ -------------- ------------ -------------
2999 Total liabilities............... 787 6,793 16,051 20,145
NET POSITION:
3100 Appropriated capital.............. 29 368 323 10,555
------------ -------------- ------------ -------------
3999 Total net position.............. 29 368 323 10,555
------------ -------------- ------------ -------------
4999 Total liabilities and net position 816 7,161 16,374 30,700
-----------------------------------------------------------------------------------------------
As required by the Federal Credit Reform Act of 1990, this non-
budgetary account records all cash flows to and from the Government
resulting from Direct Loans. The amounts in this account are a means of
financing and are not included in the budget totals.
Federal Direct Student Loan Program, Financing Account
(Legislative proposal, subject to PAYGO)
Program and Financing (In millions of dollars)
----------------------------------------------------------------------------
Identification code 91-4253-4-3-502 1995 actual 1996 est. 1997 est.
----------------------------------------------------------------------------
Obligations by program activity:
Payment of origination services:
02.01 Stafford........................ -10 -17
02.02 Unsubsidized Stafford........... -5 -8
02.03 PLUS............................ -1 -2
02.04 Consolidated.................... -2
--------- --------- ----------
02.91 Subtotal, Payment of
origination services........ -18 -27
03.01 Interest on Treasury borrowing.... -1
--------- --------- ----------
10.00 Total obligations............... -18 -28
----------------------------------------------------------------------------
Budgetary resources available for obligation:
22.00 New financing authority (gross)... -18 -28
23.95 New obligations................... 18 28
----------------------------------------------------------------------------
New financing authority (gross), detail:
67.15 Authority to borrow (indefinite).. 15 35
Spending authority from offsetting
collections:
68.00 Offsetting collections (cash)... -10 -26
68.10 Change in orders on hand from
Federal sources............... -5 -9
68.47 Portion applied to debt
reduction..................... -18 -28
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total)..................... -33 -63
--------- --------- ----------
70.00 Total new financing authority
(gross)....................... -18 -28
----------------------------------------------------------------------------
Change in unpaid obligations:
Unpaid obligations, start of year:
72.90 Obligated balance: Unpaid
obligations................... 8
72.95 Orders on hand from Federal
sources....................... -5
--------- --------- ----------
72.99 Total unpaid obligations,
start of year............... 3
73.10 New obligations................... -18 -28
73.20 Total financing disbursements
(gross)......................... 21 25
Unpaid obligations, end of year:
74.90 Obligated balance: Fund balance:
Unpaid obligations............ 8 14
74.95 Orders on hand from Federal
sources....................... -5 -14
--------- --------- ----------
74.99 Total unpaid obligations, end
of year..................... 3
----------------------------------------------------------------------------
Outlays (gross), detail:
86.97 Outlays from new permanent
authority....................... 1
--------- --------- ----------
87.00 Total financing disbursements
(gross)....................... -21 -25
----------------------------------------------------------------------------
Offsets:
Against gross financing authority and
financing disbursements:
Offsetting collections (cash)
from:
Federal sources:
Payments from subsidy
account:
88.00 Stafford.................. 6 14
88.00 Unsubsidized Stafford..... 2 11
88.00 PLUS...................... 1 1
88.00 Consolidated.............. 1
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ 10 26
88.95 Change in receivables from program
accounts........................ 5 9
----------------------------------------------------------------------------
Net financing authority and financing
disbursements:
89.00 Financing authority............... -3 7
90.00 Financing disbursements........... -11 1
---------------------------------------------------------------------------
Balance Sheet (In millions of dollars)
-----------------------------------------------------------------------------------------------
Identification code 91-4253-4-3-502 1994 actual 1995 actual 1996 est. 1997 est.
-----------------------------------------------------------------------------------------------
ASSETS:
1101 Federal assets: Fund balances with
Treasury........................ -3 -11
Net value of assets related to
post-1991 direct loans
receivable:
1405 Allowance for subsidy cost (-).. 11 26
------------ -------------- ------------ -------------
1499 Net present value of assets
related to direct loans..... 11 26
------------ -------------- ------------ -------------
1999 Total assets.................... 8 15
LIABILITIES:
2103 Federal liabilities: Debt......... 12 24
------------ -------------- ------------ -------------
2999 Total liabilities............... 12 24
NET POSITION:
3100 Appropriated capital.............. -4 -9
------------ -------------- ------------ -------------
3999 Total net position.............. -4 -9
------------ -------------- ------------ -------------
4999 Total liabilities and net position 8 15
-----------------------------------------------------------------------------------------------
Federal Family Education Loan Program Account
For Federal administrative expenses to carry out guaranteed student
loans authorized by title IV, part B, of the Higher Education Act, as
amended, $46,572,000.
Note.--A regular 1996 appropriation for this account had not been
enacted at the time this budget was prepared. The 1996 amounts included
in this budget are based on the levels provided in three continuing
resolutions: P.L. 104-91, P.L. 104-92, and P.L. 104-99.
Note.--The following tables display the program account which
includes the subsidy costs and administrative expenses associated with
guaranteed student loan commitments beginning in 1992.
[[Page 418]]
Program and Financing (In millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0231-0-1-502 1995 actual 1996 est. 1997 est.
----------------------------------------------------------------------------
Obligations by program activity:
Guaranteed loan subsidy:
02.01 Stafford........................ 2,526 2,277 1,963
02.02 Unsubsidized Stafford........... 274 355 311
02.03 PLUS............................ 23 46 45
02.05 Consolidated.................... 130 6 3
02.07 Upward reestimate (92 cohort)... 421 565
02.08 Interest on reestimate.......... 45 30
--------- --------- ----------
02.91 Subtotal, subsidy cost........ 3,419 3,279 2,322
Administrative expenses:
07.01 Administrative expenses due to
limitations................... 62 47 47
--------- --------- ----------
10.00 Total obligations............... 3,481 3,326 2,369
----------------------------------------------------------------------------
Budgetary resources available for obligation:
21.90 Unobligated balance available,
start of year: Fund balance.....
22.00 New budget authority (gross)...... 3,481 3,326 2,369
22.10 Resources available from
recoveries of prior year
obligations.....................
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 3,481 3,326 2,369
23.95 New obligations................... -3,481 -3,326 -2,369
----------------------------------------------------------------------------
New budget authority (gross), detail:
Current:
40.00 Appropriation (Federal
Administration)............... 62 47 47
Permanent:
60.05 Appropriation (indefinite)...... 3,419 3,279 2,322
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 3,481 3,326 2,369
----------------------------------------------------------------------------
Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Appropriation 1,121 1,002 1,251
73.10 New obligations................... 3,481 3,326 2,369
73.20 Total outlays (gross)............. -3,600 -3,076 -2,269
73.45 Adjustments in unexpired accounts.
74.40 Unpaid obligations, end of year:
Obligated balance: Appropriation 1,002 1,251 1,351
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new current authority 41 32 33
86.93 Outlays from current balances..... 1,108 960 958
86.97 Outlays from new permanent
authority....................... 2,452 2,084 1,279
--------- --------- ----------
87.00 Total outlays (gross)........... 3,600 3,076 2,269
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 3,481 3,326 2,369
90.00 Outlays........................... 3,600 3,076 2,269
---------------------------------------------------------------------------
Summary of Budget Authority and Outlays
[In millions of dollars]
1995 actual 1996 est. 1997 est.
Enacted/requested:
Budget Authority.................. 3,481 3,326 2,369
Outlays........................... 3,601 3,076 2,270
Legislative proposal, subject to
PAYGO:
Budget Authority.................. -314 -404
Outlays........................... -779 -347
------------------------------------
Total:
Budget Authority.................. 3,481 3,012 1,965
Outlays........................... 3,601 2,297 1,923
====================================
Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (In
millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0231-0-1-502 1995 actual 1996 est. 1997 est.
----------------------------------------------------------------------------
Guaranteed loan levels supportable by subsidy
budget authority:
2150 Stafford.......................... 11,130 9,746 8,627
2150 Unsubsidized Stafford............. 5,581 5,226 4,594
2150 PLUS.............................. 1,391 1,400 1,359
2150 Consolidated...................... 1,501 4,061 4,534
--------- --------- ----------
2159 Total loan guarantee levels..... 19,603 20,433 19,114
Guaranteed loan subsidy (in percent):
2320 Stafford.......................... 25.02 23.37 22.75
2320 Unsubsidized Stafford............. 7.77 6.80 6.77
2320 PLUS.............................. 3.58 3.27 3.33
2320 Consolidated...................... 6.66 0.16 0.06
--------- --------- ----------
2329 Weighted average subsidy rate... 16.24 13.14 12.15
Guaranteed loan subsidy budget authority:
2330 Stafford.......................... 2,526 2,277 1,963
2330 Unsubsidized Stafford............. 274 355 311
2330 PLUS.............................. 23 46 45
2330 Consolidated...................... 130 6 3
2330 Upward Reestimate................. 465 595
--------- --------- ----------
2339 Total subsidy budget authority.. 3,418 3,279 2,322
Guaranteed loan subsidy outlays:
2340 Stafford.......................... 2,684 2,058 1,885
2340 Unsubsidized Stafford............. 242 331 294
2340 PLUS.............................. 15 38 40
2340 SLS............................... 2
2340 Consolidated...................... 128 6 3
2340 Upward reestimate................. 465 595
--------- --------- ----------
2349 Total subsidy outlays........... 3,536 3,028 2,222
----------------------------------------------------------------------------
Administrative expense data:
3510 Budget authority.................. 62 47 47
3590 Outlays........................... 63 48 47
---------------------------------------------------------------------------
As required by the Federal Credit Reform Act of 1990, this program
account records for this program the subsidy costs associated with
Federal Family Education Loans (FFEL), formerly guaranteed student loans
(GSL), committed in 1992 and beyond, as well as certain administrative
expenses of the program. Administrative expenses include discretionary
expenses for salaries, expenses and overhead of employees working
directly on the program. Beginning with the 1993 cohort, mandatory
administrative costs, specifically contract collection costs and
supplemental pre-claims assistance, are included in the FFEL subsidy
estimates of each year's cohort. The subsidy amounts are estimated on a
net present value basis.
A description of the FFEL program and accompanying tables are
included under the Federal Direct Student Loan program account.
Object Classification (In millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0231-0-1-502 1995 actual 1996 est. 1997 est.
----------------------------------------------------------------------------
Personnel compensation:
11.1 Full-time permanent............. 20 15 15
--------- --------- ----------
11.9 Total personnel compensation.. 20 15 15
12.1 Civilian personnel benefits....... 4 4 4
13.0 Benefits for former personnel..... 1
21.0 Travel and transportation of
persons......................... 2 1 1
23.1 Rental payments to GSA............ 3 2 3
23.3 Communications, utilities, and
miscellaneous charges........... 1 1 1
24.0 Printing and reproduction......... 3 2 2
25.1 Advisory and assistance services.. 1
25.2 Other services.................... 23 20 20
25.3 Purchases of goods and services
from Government accounts........ 2 1 1
26.0 Supplies and materials............ 1
31.0 Equipment......................... 1
41.0 Grants, subsidies, and
contributions................... 3,419 3,279 2,322
99.5 Below reporting threshold......... 1
--------- --------- ----------
99.9 Total obligations............... 3,481 3,326 2,369
---------------------------------------------------------------------------
Personnel Summary
----------------------------------------------------------------------------
Identification code 91-0231-0-1-502 1995 actual 1996 est. 1997 est.
----------------------------------------------------------------------------
1001 Total compensable workyears: Full-
time equivalent employment...... 446 330 315
---------------------------------------------------------------------------
[[Page 419]]
Federal Family Education Loan Program Account
(Legislative proposal, subject to PAYGO)
Program and Financing (In millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0231-4-1-502 1995 actual 1996 est. 1997 est.
----------------------------------------------------------------------------
Obligations by program activity:
Guaranteed loan subsidy:
02.01 Stafford........................ -192 -257
02.02 Unsubsidized Stafford........... -88 -79
02.03 PLUS............................ -14 -22
02.05 Consolidated.................... -20 -46
--------- --------- ----------
10.00 Total obligations............... -314 -404
----------------------------------------------------------------------------
Budgetary resources available for obligation:
22.00 New budget authority (gross)...... -314 -404
23.95 New obligations................... 314 404
----------------------------------------------------------------------------
New budget authority (gross), detail:
60.05 Appropriation (indefinite)........ -314 -404
----------------------------------------------------------------------------
Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Appropriation 465
73.10 New obligations................... -314 -404
73.20 Total outlays (gross)............. 779 347
74.40 Unpaid obligations, end of year:
Obligated balance: Appropriation 465 408
----------------------------------------------------------------------------
Outlays (gross), detail:
86.93 Outlays from current balances..... -103
86.97 Outlays from new permanent
authority....................... -779 -244
--------- --------- ----------
87.00 Total outlays (gross)........... -779 -347
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. -314 -404
90.00 Outlays........................... -779 -347
---------------------------------------------------------------------------
Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (In
millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0231-4-1-502 1995 actual 1996 est. 1997 est.
----------------------------------------------------------------------------
Guaranteed loan subsidy (in percent):
2320 Stafford.......................... -1.97 -2.98
2320 Unsubsidized Stafford............. -1.70 -1.72
2320 PLUS.............................. -1.02 -1.62
2320 Consolidated...................... -0.50 -1.00
--------- --------- ----------
2329 Weighted average subsidy rate... -1.54 -2.11
Guaranteed loan subsidy budget authority:
2330 Stafford.......................... -192 -257
2330 Unsubsidized Stafford............. -88 -79
2330 PLUS.............................. -14 -22
2330 Consolidated...................... -20 -46
2330 Upward Reestimate................. -595
--------- --------- ----------
2339 Total subsidy budget authority.. -909 -404
Guaranteed loan subsidy outlays:
2340 Stafford.......................... -107 -210
2340 Unsubsidized Stafford............. -50 -74
2340 PLUS.............................. -7 -17
2340 Consolidated...................... -20 -46
2340 Upward reestimate................. -595
--------- --------- ----------
2349 Total subsidy outlays........... -779 -347
---------------------------------------------------------------------------
A description of the Administration's proposed legislation to modify
the Federal Family Education Loan program is included under the Federal
Direct Student Loan program account.
Federal Family Education Loan Program, Financing Account
Note.--The financing account includes all cash flows to and from the
government from guaranteed student loans committed after 1991.
Program and Financing (In millions of dollars)
----------------------------------------------------------------------------
Identification code 91-4251-0-3-502 1995 actual 1996 est. 1997 est.
----------------------------------------------------------------------------
Obligations by program activity:
Stafford loans:
01.01 Interest benefits............... 2,162 1,986 1,746
01.02 Special allowance............... 152 125 115
01.03 Default claims.................. 805 1,038 1,373
01.04 Death, disability, and
bankruptcy claims............. 16 94 121
01.06 Supplemental preclaims
assistance.................... 5 5 7
01.07 Contract collection costs....... 5 1 1
--------- --------- ----------
01.91 Subtotal, Stafford loans...... 3,145 3,249 3,363
Unsubsidized Stafford loans:
02.02 Special allowance............... 4
02.03 Default claims.................. 54 99 252
02.04 Death, disability, and
bankruptcy claims............. 4 8 21
02.06 Supplemental preclaims
assistance.................... 1 1
02.07 Contract collection costs....... 1
--------- --------- ----------
02.91 Subtotal, Unsubsidized
Stafford loans.............. 63 108 274
03.02 Special Allowance................. 2
03.03 Default claims.................... 110 76 118
03.04 Death, disability, and bankruptcy
claims.......................... 3 24 42
03.06 Supplemental preclaims assistance. 1 1
--------- --------- ----------
03.91 Subtotal, PLUS loans............ 116 100 161
04.02 Special Allowance................. 1
04.03 Default claims.................... 308 262 132
04.04 Death, disability and bankruptcy
claims.......................... 2 2 2
04.06 Supplemental preclaims assistance. 2 2 1
04.07 Contract collection costs......... 1 2 3
--------- --------- ----------
04.91 Subtotal, SLS loans............. 314 268 138
05.01 Interest benefits................. 9
05.03 Default claims.................... 29 100 235
05.04 Death, disability, and bankruptcy
claims.......................... 1 8 13
05.06 Supplemental preclaims assistance. 1
--------- --------- ----------
05.91 Subtotal, Consolidations loans.. 39 108 249
07.01 Interest paid to Treasury......... 118 86 53
--------- --------- ----------
10.00 Total obligations............... 3,795 3,919 4,238
----------------------------------------------------------------------------
Budgetary resources available for obligation:
21.90 Unobligated balance available,
start of year: Fund balance..... 6,359 7,884 7,813
22.00 New financing authority (gross)... 5,302 3,847 3,393
22.10 Resources available from
recoveries of prior year
obligations..................... 19
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 11,680 11,731 11,206
23.95 New obligations................... -3,795 -3,919 -4,238
24.90 Unobligated balance available, end
of year: Fund balance........... 7,884 7,813 6,968
----------------------------------------------------------------------------
New financing authority (gross), detail:
Spending authority from offsetting
collections:
68.00 Offsetting collections (cash)... 5,773 4,298 3,717
68.47 Portion applied to debt
reduction..................... -471 -451 -323
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total)..................... 5,302 3,847 3,394
--------- --------- ----------
70.00 Total new financing authority
(gross)....................... 5,302 3,847 3,393
----------------------------------------------------------------------------
Change in unpaid obligations:
72.90 Unpaid obligations, start of year:
Obligated balance: Fund balance. 552 575
73.10 New obligations................... 3,795 3,919 4,238
73.20 Total financing disbursements
(gross)......................... -3,224 -3,895 -4,185
73.45 Adjustments in unexpired accounts. -19
74.90 Unpaid obligations, end of year:
Obligated balance: Fund balance:
Uninvested balance.............. 552 575 628
----------------------------------------------------------------------------
Outlays (gross), detail:
87.00 Total financing disbursements
(gross)......................... 3,224 3,895 4,185
----------------------------------------------------------------------------
Offsets:
Against gross financing authority and
financing disbursements:
Offsetting collections (cash)
from:
Federal sources:
Payment from subsidy
account:
88.00 Stafford loans............ -2,684 -2,067 -1,788
88.00 Unsubsidized Stafford..... -242 -319 -279
[[Page 420]]
88.00 PLUS loans................ -15 -40 -40
88.00 SLS....................... -2
88.00 Consolidated loans........ -128 -6 -3
88.00 Upward reestimate......... -465 -595
88.00 Scheduled payments from
Liquidating account for
noncontractual
modifications........... -589 -538 -376
88.25 Interest on uninvested funds:
Stafford loans.............. -507 -344 -342
Non-Federal sources:
Stafford loans:
88.40 Recoveries on defaults.... -174 -12 -34
88.40 Origination fees.......... -416 -77 -287
88.40 Sallie Mae offset fees.... -44 -49
88.40 State default fees........ -39 -85
88.40 Unsubsidized Stafford--
Recoveries on defaults.... -8 -1
88.40 Origination fees.......... -158 -42 -164
88.40 PLUS--Recoveries on defaults -15 -1 -3
88.40 Origination fees.......... -208 -12 -42
88.40 SLS--Recoveries on defaults. -48 -46 -64
88.40 Origination fees.......... -88
88.40 Consolidated--Recoveries on
defaults.................. -3
88.40 Origination fees.......... -23 -20 -23
88.40 Consolidated Loan Holders
Fee..................... -96 -136
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -5,773 -4,298 -3,716
----------------------------------------------------------------------------
Net financing authority and financing
disbursements:
89.00 Financing authority............... -471 -451 -323
90.00 Financing disbursements........... -2,549 -403 469
---------------------------------------------------------------------------
Status of Guaranteed Loans (In millions of dollars)
----------------------------------------------------------------------------
Identification code 91-4251-0-3-502 1995 actual 1996 est. 1997 est.
----------------------------------------------------------------------------
STAFFORD
Position with respect to appropriations act
limitation on commitments:
2131 Guaranteed loan commitments
exempt from limitation........ 11,130 9,746 8,627
--------- --------- ----------
2150 Total guaranteed loan
commitments................. 11,130 9,746 8,627
----------------------------------------------------------------------------
Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year...... 28,016 37,830 45,080
2231 Disbursements of new guaranteed
loans......................... 12,424 8,581 8,189
2251 Repayments and prepayments...... -1,821 -199 -1,834
Adjustments:
2261 Terminations for default that
result in loans receivable.. -773 -1,038 -1,369
2263 Terminations for default that
result in claim payments.... -16 -94 -121
--------- --------- ----------
2290 Outstanding, end of year...... 37,830 45,080 49,945
----------------------------------------------------------------------------
Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year 37,830 45,080 49,945
----------------------------------------------------------------------------
Addendum:
Cumulative balance of defaulted
guaranteed loans that result
in loans receivable:
2310 Outstanding, start of year.... 377 955 1,980
2331 Disbursements for guaranteed
loan claims................. 773 1,038 1,369
2351 Repayments of loans receivable -174 -12 -34
2361 Write-offs of loans receivable -21 -1 -4
--------- --------- ----------
2390 Outstanding, end of year.... 955 1,980 3,311
----------------------------------------------------------------------------
UNSUBSIDIZED STAFFORD
Position with respect to appropriations act
limitation on commitments:
2131 Guaranteed loan commitments
exempt from limitation........ 5,581 5,226 4,594
--------- --------- ----------
2150 Total guaranteed loan
commitments................. 5,581 5,226 4,594
----------------------------------------------------------------------------
Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year...... 3,128 7,210 10,920
2231 Disbursements of new guaranteed
loans......................... 4,247 4,050 3,677
2251 Repayments and prepayments...... -112 -236 -257
Adjustments:
2261 Terminations for default that
result in loans receivable.. -49 -96 -237
2263 Terminations for default that
result in claim payments.... -4 -8 -21
--------- --------- ----------
2290 Outstanding, end of year...... 7,210 10,920 14,082
----------------------------------------------------------------------------
Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year 7,210 10,920 14,082
----------------------------------------------------------------------------
Addendum:
Cumulative balance of defaulted
guaranteed loans that result
in loans receivable:
2310 Outstanding, start of year.... 5 45 141
2331 Disbursements for guaranteed
loan claims................. 49 96 237
2351 Repayments of loans receivable -8 -1
2361 Write-offs of loans receivable -1
--------- --------- ----------
2390 Outstanding, end of year.... 45 141 377
----------------------------------------------------------------------------
PLUS
Position with respect to appropriations act
limitation on commitments:
2131 Guaranteed loan commitments
exempt from limitation........ 1,391 1,400 1,359
--------- --------- ----------
2150 Total guaranteed loan
commitments................. 1,391 1,400 1,359
----------------------------------------------------------------------------
Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year...... 2,675 3,629 4,108
2231 Disbursements of new guaranteed
loans......................... 1,606 1,138 1,200
2251 Repayments and prepayments...... -542 -551 -683
Adjustments:
2261 Terminations for default that
result in loans receivable.. -107 -84 -116
2263 Terminations for default that
result in claim payments.... -3 -24 -42
--------- --------- ----------
2290 Outstanding, end of year...... 3,629 4,108 4,467
----------------------------------------------------------------------------
Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year 3,629 4,108 4,467
----------------------------------------------------------------------------
Addendum:
Cumulative balance of defaulted
guaranteed loans that result
in loans receivable:
2310 Outstanding, start of year.... 83 173 256
2331 Disbursements for guaranteed
loan claims................. 107 84 116
2351 Repayments of loans receivable -15 -1 -3
2361 Write-offs of loans receivable -2
--------- --------- ----------
2390 Outstanding, end of year.... 173 256 369
----------------------------------------------------------------------------
SLS
Position with respect to appropriations act
limitation on commitments:
2150 Total guaranteed loan
commitments...................
----------------------------------------------------------------------------
Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year...... 4,841 5,061 4,716
2231 Disbursements of new guaranteed
loans......................... 577
2251 Repayments and prepayments...... -51 -64 -302
Adjustments:
2261 Terminations for default that
result in loans receivable.. -305 -279 -157
2263 Terminations for default that
result in claim payments.... -1 -2 -2
--------- --------- ----------
2290 Outstanding, end of year...... 5,061 4,716 4,255
----------------------------------------------------------------------------
Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year 5,061 4,716 4,255
----------------------------------------------------------------------------
Addendum:
Cumulative balance of defaulted
guaranteed loans that result
in loans receivable:
2310 Outstanding, start of year.... 228 479 707
2331 Disbursements for guaranteed
loan claims................. 305 279 157
2351 Repayments of loans receivable -48 -46 -64
[[Page 421]]
2361 Write-offs of loans receivable -6 -5 -8
--------- --------- ----------
2390 Outstanding, end of year.... 479 707 792
----------------------------------------------------------------------------
CONSOLIDATED
Position with respect to appropriations act
limitation on commitments:
2131 Guaranteed loan commitments
exempt from limitation........ 1,501 4,061 4,534
--------- --------- ----------
2150 Total guaranteed loan
commitments................. 1,501 4,061 4,534
----------------------------------------------------------------------------
Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year...... 1,608 2,827 6,583
2231 Disbursements of new guaranteed
loans......................... 1,467 4,031 4,510
2251 Repayments and prepayments...... -221 -175 -476
Adjustments:
2261 Terminations for default that
result in loans receivable.. -26 -92 -222
2263 Terminations for default that
result in claim payments.... -1 -8 -13
--------- --------- ----------
2290 Outstanding, end of year...... 2,827 6,583 10,382
----------------------------------------------------------------------------
Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year 2,827 6,583 10,382
----------------------------------------------------------------------------
Addendum:
Cumulative balance of defaulted
guaranteed loans that result
in loans receivable:
2310 Outstanding, start of year.... 23 115
2331 Disbursements for guaranteed
loan claims................. 26 92 222
2351 Repayments of loans receivable -3
--------- --------- ----------
2390 Outstanding, end of year.... 23 115 337
---------------------------------------------------------------------------
Balance Sheet (In millions of dollars)
-----------------------------------------------------------------------------------------------
Identification code 91-4251-0-3-502 1994 actual 1995 actual 1996 est. 1997 est.
-----------------------------------------------------------------------------------------------
ASSETS:
1101 Federal assets: Fund balances with
Treasury........................ 6,308 7,559 7,813 6,968
Net value of assets related to
post-1991 acquired defaulted
guaranteed loans receivable:
1501 Defaulted guaranteed loans
receivable, gross............. 694 1,676 3,198 5,185
------------ -------------- ------------ -------------
1599 Net present value of assets
related to defaulted
guaranteed loans............ 694 1,676 3,198 5,185
Net value of assets related to
pre-1992 direct loans
receivable and acquired
defaulted guaranteed loans
receivable:
1701 Defaulted guaranteed loans,
gross......................... 1,617 -3,507 -3,166 -2,797
1704 Defaulted guaranteed loans and
interest receivable, net...... 1,617 -3,507 -3,166 -2,797
------------ -------------- ------------ -------------
1999 Total assets.................... 8,619 5,728 7,845 9,356
LIABILITIES:
2103 Federal liabilities: Debt......... 2,058 1,605 1,134 680
------------ -------------- ------------ -------------
2999 Total liabilities............... 2,058 1,605 1,134 680
NET POSITION:
3100 Appropriated capital.............. 6,561 4,123 6,710 8,676
------------ -------------- ------------ -------------
3999 Total net position.............. 6,561 4,123 6,710 8,676
------------ -------------- ------------ -------------
4999 Total liabilities and net position 8,619 5,728 7,844 9,356
-----------------------------------------------------------------------------------------------
As required by the Federal Credit Reform Act of 1990, this
nonbudgetary account records all cash flows to and from the Government
resulting from guaranteed student loans committed in 1992 and beyond.
The amounts in this account are a means of financing and are not
included in the budget totals.
Federal Family Education Loan Program, Financing Account
(Legislative proposal, subject to PAYGO)
Program and Financing (In millions of dollars)
----------------------------------------------------------------------------
Identification code 91-4251-4-3-502 1995 actual 1996 est. 1997 est.
----------------------------------------------------------------------------
Obligations by program activity:
Stafford loans:
01.03 Default claims.................. -2
--------- --------- ----------
01.91 Subtotal, Stafford loans...... -2
Unsubsidized Stafford loans:
02.02 Special allowance............... -1
--------- --------- ----------
02.91 Subtotal, Unsubsidized
Stafford loans.............. -1
03.03 Default claims.................... -21 -42
03.04 Death, disability, and bankruptcy
claims.......................... -7 -18
03.07 Contract collection costs......... 3 4
--------- --------- ----------
03.91 Subtotal, PLUS loans............ -25 -56
--------- --------- ----------
10.00 Total obligations............... -25 -59
----------------------------------------------------------------------------
Budgetary resources available for obligation:
21.90 Unobligated balance available,
start of year: Fund balance..... -59
22.00 New financing authority (gross)... -85 -193
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... -85 -252
23.95 New obligations................... 25 59
24.90 Unobligated balance available, end
of year: Fund balance........... -59 -193
----------------------------------------------------------------------------
New financing authority (gross), detail:
68.00 Spending authority from offsetting
collections (gross): Offsetting
collections (cash).............. -85 -193
-85 -193
----------------------------------------------------------------------------
Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Obligated
balance, start of year, unpaid
obligations..................... -4
73.10 New obligations................... -25 -59
73.20 Total financing disbursements
(gross)......................... 22 54
74.40 Unpaid obligations, end of year:
Obligated balance: Obligated
balance, end of year, unpaid
obligations..................... -4 -9
----------------------------------------------------------------------------
Outlays (gross), detail:
86.97 Outlays from new permanent
authority....................... 1
86.98 Outlays from permanent balances... 1
--------- --------- ----------
87.00 Total financing disbursements
(gross)....................... -22 -54
----------------------------------------------------------------------------
Offsets:
Against gross financing authority and
financing disbursements:
Offsetting collections (cash)
from:
Federal sources:
Payment from subsidy
account:
88.00 Stafford loans............ -18 82
88.00 Unsubsidized Stafford..... 52 47
88.00 PLUS loans................ 8 17
88.00 Consolidated loans........ 20 46
88.25 Interest on uninvested funds:
Stafford loans.............. 2 7
Non-Federal sources:
Stafford loans:
88.40 New loan holders fee...... -4 -9
88.40 Origination fees.......... -7 -19
88.40 Sallie Mae offset fees.... 40 39
88.40 New loan holders fee...... -2 -6
88.40 Origination fees.......... -4 -7
88.40 New loan holders fees..... -1 -1
88.40 Origination fees.......... -1 -3
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ 85 193
----------------------------------------------------------------------------
Net financing authority and financing
disbursements:
89.00 Financing authority...............
90.00 Financing disbursements........... 63 139
---------------------------------------------------------------------------
[[Page 422]]
Status of Guaranteed Loans (In millions of dollars)
----------------------------------------------------------------------------
Identification code 91-4251-4-3-502 1995 actual 1996 est. 1997 est.
----------------------------------------------------------------------------
STAFFORD
Position with respect to appropriations act
limitation on commitments:
2131 Guaranteed loan commitments
exempt from limitation........
----------------------------------------------------------------------------
Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year...... 1
2251 Repayments and prepayments...... 1 12
2261 Adjustments: Terminations for
default that result in loans
receivable.................... 2
--------- --------- ----------
2290 Outstanding, end of year...... 1 15
----------------------------------------------------------------------------
Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year 1 15
----------------------------------------------------------------------------
Addendum:
Cumulative balance of defaulted
guaranteed loans that result
in loans receivable:
2331 Disbursements for guaranteed
loan claims................. -2
--------- --------- ----------
2390 Outstanding, end of year.... -2
----------------------------------------------------------------------------
UNSUBSIDIZED STAFFORD
Position with respect to appropriations act
limitation on commitments:
2131 Guaranteed loan commitments
exempt from limitation........
----------------------------------------------------------------------------
Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year...... 3,761
2231 Disbursements of new guaranteed
loans......................... 569 1,011
2251 Repayments and prepayments...... 3,190 670
2261 Adjustments: Terminations for
default that result in loans
receivable.................... 2 6
--------- --------- ----------
2290 Outstanding, end of year...... 3,761 5,448
----------------------------------------------------------------------------
Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year 3,761 5,448
----------------------------------------------------------------------------
Addendum:
Cumulative balance of defaulted
guaranteed loans that result
in loans receivable:
2310 Outstanding, start of year.... -2
2331 Disbursements for guaranteed
loan claims................. -2 -6
--------- --------- ----------
2390 Outstanding, end of year.... -2 -8
----------------------------------------------------------------------------
PLUS
Position with respect to appropriations act
limitation on commitments:
2150 Total guaranteed loan
commitments...................
----------------------------------------------------------------------------
Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year...... 8
2251 Repayments and prepayments...... -19 -38
Adjustments:
2261 Terminations for default that
result in loans receivable.. 20 42
2263 Terminations for default that
result in claim payments.... 7 18
--------- --------- ----------
2290 Outstanding, end of year...... 8 30
----------------------------------------------------------------------------
Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year 8 29
----------------------------------------------------------------------------
Addendum:
Cumulative balance of defaulted
guaranteed loans that result
in loans receivable:
2310 Outstanding, start of year.... -20
2331 Disbursements for guaranteed
loan claims................. -20 -42
--------- --------- ----------
2390 Outstanding, end of year.... -20 -62
----------------------------------------------------------------------------
SLS
Position with respect to appropriations act
limitation on commitments:
2150 Total guaranteed loan
commitments...................
----------------------------------------------------------------------------
Cumulative balance of guaranteed loans
outstanding:
2251 Repayments and prepayments...... -6 -3
2261 Adjustments: Terminations for
default that result in loans
receivable.................... 6 3
----------------------------------------------------------------------------
Addendum:
Cumulative balance of defaulted
guaranteed loans that result
in loans receivable:
2310 Outstanding, start of year.... -8
2331 Disbursements for guaranteed
loan claims................. -6 -3
2361 Write-offs of loans receivable -2 -2
--------- --------- ----------
2390 Outstanding, end of year.... -8 -13
----------------------------------------------------------------------------
CONSOLIDATED
Position with respect to appropriations act
limitation on commitments:
2150 Total guaranteed loan
commitments...................
----------------------------------------------------------------------------
Cumulative balance of guaranteed loans
outstanding:
2251 Repayments and prepayments...... -8 -13
2263 Adjustments: Terminations for
default that result in claim
payments...................... 8 13
---------------------------------------------------------------------------
Balance Sheet (In millions of dollars)
-----------------------------------------------------------------------------------------------
Identification code 91-4251-4-3-502 1994 actual 1995 actual 1996 est. 1997 est.
-----------------------------------------------------------------------------------------------
ASSETS:
1101 Federal assets: Fund balances with
Treasury........................ -59 -193
Net value of assets related to
post-1991 acquired defaulted
guaranteed loans receivable:
1501 Defaulted guaranteed loans
receivable, gross............. -29 -85
------------ -------------- ------------ -------------
1599 Net present value of assets
related to defaulted
guaranteed loans............ -29 -85
------------ -------------- ------------ -------------
1999 Total assets.................... -88 -278
NET POSITION:
3100 Appropriated capital.............. -88 -278
------------ -------------- ------------ -------------
3999 Total net position.............. -88 -278
------------ -------------- ------------ -------------
4999 Total liabilities and net position -88 -278
-----------------------------------------------------------------------------------------------
Federal Family Education Loan Liquidating Account
Note.--The following tables display the liquidating account, which
includes all cash flows to and from the Government from guaranteed
student loan commitments prior to 1992.
Program and Financing (In millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0230-0-1-502 1995 actual 1996 est. 1997 est.
----------------------------------------------------------------------------
Obligations by program activity:
Stafford loans:
01.01 Interest benefits, net of
origination fees.............. 689 170 110
01.02 Special allowance net of
origination fees.............. 458 243 151
01.03 Default claims.................. 1,048 598 475
01.04 Death, disability, and
bankruptcy claims............. 175 115 79
01.06 Supplemental preclaims
assistance.................... 28 16 10
01.07 Contract collection costs....... 115 113 79
--------- --------- ----------
01.91 Subtotal, Stafford loans...... 2,513 1,255 904
PLUS/SLS loans:
02.01 Default claims.................. 58 31 21
02.02 Death, disability, and
bankruptcy claims............. 17 10 8
02.04 Supplemental preclaims
assistance.................... 2 1
02.05 Contract collection costs....... 6 15 18
--------- --------- ----------
02.91 Subtotal, PLUS/SLS loans...... 83 57 47
Miscellaneous costs:
03.01 Scheduled payments to finance
account for non-contractual
modifications................. 589 538 376
--------- --------- ----------
[[Page 423]]
10.00 Total obligations............... 3,185 1,850 1,327
----------------------------------------------------------------------------
Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 2,717 1,850 1,327
22.10 Resources available from
recoveries of prior year
obligations..................... 468
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 3,185 1,850 1,327
23.95 New obligations................... -3,185 -1,850 -1,327
----------------------------------------------------------------------------
New budget authority (gross), detail:
60.05 Appropriation (indefinite)........ 1,081 303
60.49 Portion applied to liquidate
contract authority.............. -1
62.00 Transferred from DoD pursuant to
P.L. 102-27..................... 1
--------- --------- ----------
63.00 Appropriation (total)........... 1,081 303
Spending authority from offsetting
collections:
68.00 Offsetting collections (cash)... 1,636 1,547 1,507
68.27 Capital transfer to general fund -180
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total)..................... 1,636 1,547 1,327
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 2,717 1,850 1,327
----------------------------------------------------------------------------
Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Appropriation 556 48 277
73.10 New obligations................... 3,185 1,850 1,327
73.20 Total outlays (gross)............. -3,225 -1,621 -1,225
73.45 Adjustments in unexpired accounts. -468
74.40 Unpaid obligations, end of year:
Obligated balance: Appropriation 48 277 379
----------------------------------------------------------------------------
Outlays (gross), detail:
86.97 Outlays from new permanent
authority....................... 2,668 1,572 948
86.98 Outlays from permanent balances... 556 48 277
--------- --------- ----------
87.00 Total outlays (gross)........... 3,225 1,621 1,225
----------------------------------------------------------------------------
Offsets:
Against gross budget authority and outlays:
Offsetting collections (cash)
from:
Stafford loans:
Non-Federal sources:
88.40 Federal collections on
defaulted loans......... -209 -471 -555
88.40 Federal collections on
bankruptcies............ -89 -62 -43
88.40 Offsets against Federal
tax refunds............. -561 -585 -530
Other collections:
88.40 Reimbursements from guaranty
agencies.................. -553 -223 -184
88.40 Federal collections on
defaulted loans........... -18 -64 -75
88.40 Federal collections on
bankruptcies.............. -4 -3 -2
88.40 Offsets against Federal tax
refunds................... -102 -99 -84
88.40 Reimbursements from guaranty
agencies.................. -100 -40 -34
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -1,636 -1,547 -1,507
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 1,081 303 -180
90.00 Outlays........................... 1,589 74 -282
---------------------------------------------------------------------------
Status of Guaranteed Loans (In millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0230-0-1-502 1995 actual 1996 est. 1997 est.
----------------------------------------------------------------------------
STAFFORD LOANS
Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 32,728 26,846 20,964
2231 Disbursements of new guaranteed
loans........................... 19 19 5
2251 Repayments and prepayments........ -4,612 -5,158 -3,859
Adjustments:
2261 Terminations for default that
result in loans receivable \1\ -1,115 -661 -490
2263 Terminations for default that
result in claim payments...... -174 -82 -65
--------- --------- ----------
2290 Outstanding, end of year........ 26,846 20,964 16,555
----------------------------------------------------------------------------
Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 26,846 20,964 16,555
----------------------------------------------------------------------------
Addendum:
Cumulative balance of defaulted guaranteed
loans that result in loans receivable:
2310 Outstanding, start of year...... 10,995 10,013 8,698
2331 Disbursements for guaranteed
loan claims................... 1,115 661 490
2351 Repayments of loans receivable
\1\........................... -1,408 -1,339 -1,310
2361 Write-offs of loans receivable.. -452 -542 -570
2364 Other adjustments, net.......... -237 -96 -79
--------- --------- ----------
2390 Outstanding, end of year...... 10,013 8,698 7,230
----------------------------------------------------------------------------
PLUS/SLS LOANS
Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 3,646 2,727 1,808
2251 Repayments and prepayments........ -824 -876 -750
Adjustments:
2261 Terminations for default that
result in loans receivable.... -78 -34 -22
2263 Terminations for default that
result in claim payments...... -17 -9 -7
--------- --------- ----------
2290 Outstanding, end of year........ 2,727 1,808 1,029
----------------------------------------------------------------------------
Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 2,727 1,808 1,029
----------------------------------------------------------------------------
Addendum:
Cumulative balance of defaulted guaranteed
loans that result in loans receivable:
2310 Outstanding, start of year...... 3,507 3,166 2,797
2331 Disbursements for guaranteed
loan claims................... 78 34 22
2351 Repayments of loans receivable.. -225 -206 -195
2361 Write-offs of loans receivable.. -151 -181 -190
2364 Other adjustments, net.......... -43 -17 -14
--------- --------- ----------
2390 Outstanding, end of year...... 3,166 2,797 2,420
---------------------------------------------------------------------------
\1\ Excludes interest and premium collections on insured loans.
As required by the Federal Credit Reform Act of 1990, this
liquidating account records, for this program, all cash flows to and
from the Government resulting from guaranteed student loans committed
prior to 1992. This account is shown on a cash basis. All new loan
activity in this program in 1992 and beyond is recorded in corresponding
program and financing accounts.
Object Classification (In millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0230-0-1-502 1995 actual 1996 est. 1997 est.
----------------------------------------------------------------------------
25.2 Other services.................... 121 129 97
41.0 Grants, subsidies, and
contributions................... 1,178 430 92
42.0 Insurance claims and indemnities.. 1,886 1,291 1,138
--------- --------- ----------
99.9 Total obligations............... 3,185 1,850 1,327
---------------------------------------------------------------------------
College Housing and Academic Facilities Loans Program
For administrative expenses to carry out the existing direct loan
program of college housing and academic facilities loans entered into
pursuant to title VII, part C, of the Higher Education Act, as amended,
$700,000.
Historically Black College and University Capital Financing Program
The total amount of bonds insured pursuant to section 724 of title
VII, part B of the Higher Education Act shall not exceed $357,000,000,
and the cost, as defined in section 502 of the Congressional Budget Act
of 1974, of such bonds shall not exceed zero.
For administrative expenses to carry out the Historically Black
College and University Capital Financing Program entered into pursuant
to title VII, part B of the Higher Education Act, as amended, $104,000.
Note.--Regular 1996 appropriations for these accounts have not been
enacted at the time this budget was prepared. The 1996 amounts included
in this budget are based on the levels provided in three continuing
resolutions: P.L. 104-91, P.L. 104-92, and P.L. 104-99.
Program and Financing (In millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0241-0-1-502 1995 actual 1996 est. 1997 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.09 Federal administration............ 1 1 1
--------- --------- ----------
10.00 Total obligations............... 1 1 1
----------------------------------------------------------------------------
[[Page 424]]
Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 1 1 1
23.95 New obligations................... -1 -1 -1
----------------------------------------------------------------------------
New budget authority (gross), detail:
40.00 Appropriation (Federal
administration)................. 1 1 1
----------------------------------------------------------------------------
Change in unpaid obligations:
72.90 Unpaid obligations, start of year:
Obligated balance: Fund balance. 9 8 6
73.10 New obligations................... 1 1 1
73.20 Total outlays (gross)............. -2 -3 -2
74.90 Unpaid obligations, end of year:
Obligated balance: Fund balance:
Uninvested balance.............. 8 6 4
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new current authority 1 1 1
86.93 Outlays from current balances..... 1 3 1
--------- --------- ----------
87.00 Total outlays (gross)........... 2 3 2
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 1 1 1
90.00 Outlays........................... 2 3 2
---------------------------------------------------------------------------
Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (In
millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0241-0-1-502 1995 actual 1996 est. 1997 est.
----------------------------------------------------------------------------
Direct loan subsidy outlays:
1340 Subsidy outlays................... 1 2 1
--------- --------- ----------
1349 Total subsidy outlays........... 1 2 1
----------------------------------------------------------------------------
Administrative expense data:
3510 Budget authority.................. 1 1 1
3590 Outlays from new authority........ 1 1 1
---------------------------------------------------------------------------
The College Housing and Academic Facilities Loans Program account
and the Historically Black College and University Capital Financing
Program account are consolidated for presentation purposes. College
Housing and Academic Facilities Loans (a direct loan program) and
Historically Black College and University Capital Financing (a
guaranteed loan program) will continue to be administered separately.
College Housing and Academic Facilities Program.--The Federal Credit
Reform Act of 1990 separates the College Housing and Academic Facilities
Loans (CHAFL) account into two distinct operating activities and budget
accounts--CHAFL Program and CHAFL Liquidating. The federal
administration and subsidy disbursement for loans awarded in fiscal year
1992 and beyond are recorded in the program account. The cash flows
associated with loans originating before fiscal year 1992 are recorded
in the liquidating account.
CHAFL supports financing for the reconstruction, renovation, and
construction of academic facilities, housing and other postsecondary
educational facilities for students and faculty. Institutions receive
direct interest-subsidized loans of 5.5 percent. This financing is
intended to help higher education institutions finance construction and
renovation activities on more favorable financing terms than available
in the private market. This account is only partially self-financing
since the amount of interest paid by borrowers, 5.5 percent, is lower
than the amount the Department must pay Treasury for capital borrowed to
finance the loans. The subsidy covers the difference. To meet the
required repayment of interest and principal each year to Treasury, the
Federal Credit Reform Act of 1990 has provided permanent appropriation
authority.
No loan limitation or corresponding loan subsidy funds are requested
for the CHAFL program. The 1997 budget requests funds for continuing
administrative activities only.
Historically Black College and University Capital Financing
Program.--The Historically Black College and University (HBCU) Capital
Financing Program was authorized by the Higher Education Act Amendments
of 1992 to provide HBCUs with private capital for capital projects such
as repairs, renovation and construction of classrooms, libraries,
laboratories, dormitories, instructional equipment, and research
instrumentation. The 1994 appropriation provided the authority to enter
into insurance agreements with a private for-profit bonding authority to
guarantee no more than $357,000,000 loan principal plus accrued unpaid
interest for taxable bonds. The bonding authority will issue the bonds
and establish an escrow account in which 10 percent of each
institution's principal is deposited. This amount is estimated to be
sufficient to cover all potential delinquencies and defaults. The 1997
budget requests funds for continuing Federal administrative activities
only.
Personnel Summary
----------------------------------------------------------------------------
Identification code 91-0241-0-1-502 1995 actual 1996 est. 1997 est.
----------------------------------------------------------------------------
1001 Total compensable workyears: Full-
time equivalent employment...... 10 8 7
---------------------------------------------------------------------------
College Housing and Academic Facilities Loans Financing Account
Note.--The financing account includes all cash flows to and from the
Government from college housing and academic facilities loans committed
after 1991.
Program and Financing (In millions of dollars)
----------------------------------------------------------------------------
Identification code 91-4252-0-3-502 1995 actual 1996 est. 1997 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.02 Interest paid to Treasury......... 1 1 2
--------- --------- ----------
10.00 Total obligations............... 1 1 2
----------------------------------------------------------------------------
Budgetary resources available for obligation:
22.00 New financing authority (gross)... 1 1 2
23.95 New obligations................... -1 -1 -2
----------------------------------------------------------------------------
New financing authority (gross), detail:
Spending authority from offsetting
collections:
68.00 Offsetting collections (cash)... 2 4 3
68.10 Change in orders on hand from
Federal sources............... -1 -2 -2
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total)..................... 1 2 1
--------- --------- ----------
70.00 Total new financing authority
(gross)....................... 1 1 2
----------------------------------------------------------------------------
Change in unpaid obligations:
Unpaid obligations, start of year:
72.90 Obligated balance: Authority to
Borrow........................ 46 38 28
72.95 Obligate balance: Subsidy....... 9 8 6
--------- --------- ----------
72.99 Total unpaid obligations,
start of year............... 55 46 34
73.10 New obligations................... 1 1 2
73.20 Total financing disbursements
(gross)......................... -7 -14 -11
73.40 Adjustments in expired accounts... -3
Unpaid obligations, end of year:
74.90 Obligated balance: Fund balance:
Uninvested balance............ 38 28 21
74.95 Orders on hand from Federal
sources....................... 8 6 4
--------- --------- ----------
74.99 Total unpaid obligations, end
of year..................... 46 34 25
----------------------------------------------------------------------------
Outlays (gross), detail:
87.00 Total financing disbursements
(gross)......................... 7 14 11
----------------------------------------------------------------------------
[[Page 425]]
Offsets:
Against gross financing authority and
financing disbursements:
Offsetting collections (cash)
from:
88.00 Federal sources............... -1 -2 -1
88.25 Interest on uninvested funds.. -1
88.40 Interest repayments........... -1 -2
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -2 -3 -3
88.95 Change in receivables from program
accounts........................ 1 2 2
----------------------------------------------------------------------------
Net financing authority and financing
disbursements:
89.00 Financing authority............... 1
90.00 Financing disbursements........... 4 11 8
---------------------------------------------------------------------------
Status of Direct Loans (In millions of dollars)
----------------------------------------------------------------------------
Identification code 91-4252-0-3-502 1995 actual 1996 est. 1997 est.
----------------------------------------------------------------------------
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 1 7 20
1231 Disbursements: Direct loan
disbursements................... 6 13 9
--------- --------- ----------
1290 Outstanding, end of year........ 7 20 29
---------------------------------------------------------------------------
The reestimate of the subsidy from prior year obligations may
require the Department to exercise its permanent indefinite authority to
borrow funds to cover outstanding Treasury interest expenses due on
September 30, 1997.
Balance Sheet (In millions of dollars)
-----------------------------------------------------------------------------------------------
Identification code 91-4252-0-3-502 1994 actual 1995 actual 1996 est. 1997 est.
-----------------------------------------------------------------------------------------------
ASSETS:
Investments in US securities:
1106 Federal assets: Receivables, net 9 8 6 4
Net value of assets related to
post-1991 direct loans
receivable:
1401 Direct loans receivable, gross.. 1 7 20 27
1402 Interest receivable............. 1 1
1405 Allowance for subsidy cost (-).. -1 -4 -5
------------ -------------- ------------ -------------
1499 Net present value of assets
related to direct loans..... 1 6 17 23
------------ -------------- ------------ -------------
1999 Total assets.................... 10 14 23 27
LIABILITIES:
Federal liabilities:
2102 Interest payable................ 1 1 1
2103 Debt............................ 1 6 16 23
------------ -------------- ------------ -------------
2999 Total liabilities............... 1 7 17 24
NET POSITION:
3100 Appropriated capital.............. 11 9 7 5
------------ -------------- ------------ -------------
3999 Total net position.............. 11 9 7 5
------------ -------------- ------------ -------------
4999 Total liabilities and net position 12 16 24 29
-----------------------------------------------------------------------------------------------
College Housing and Academic Facilities Loans Liquidating Account
Program and Financing (In millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0242-0-1-502 1995 actual 1996 est. 1997 est.
----------------------------------------------------------------------------
Obligations by program activity:
10.00 Total obligations (object class
43.0)........................... 13 10 11
----------------------------------------------------------------------------
Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested
balance......................... 2 10 20
22.00 New budget authority (gross)...... 15 20 22
22.10 Resources available from
recoveries of prior year
obligations..................... 8
22.30 Unobligated balance expiring...... -2
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 23 30 42
23.95 New obligations................... -13 -10 -11
24.40 Unobligated balance available, end
of year: Uninvested balance..... 10 20 31
----------------------------------------------------------------------------
New budget authority (gross), detail:
60.05 Appropriation (indefinite)........ 5 10 11
68.00 Spending authority from offsetting
collections: Offsetting
collections (cash).............. 10 10 10
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 15 20 22
----------------------------------------------------------------------------
Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Appropriation 40 32 24
73.10 New obligations................... 13 10 11
73.20 Total outlays (gross)............. -13 -18 -17
73.45 Adjustments in unexpired accounts. -8
74.40 Unpaid obligations, end of year:
Obligated balance: Appropriation 32 24 20
----------------------------------------------------------------------------
Outlays (gross), detail:
86.97 Outlays from new permanent
authority....................... 10 10 10
86.98 Outlays from permanent balances... 3 8 7
--------- --------- ----------
87.00 Total outlays (gross)........... 13 18 17
----------------------------------------------------------------------------
Offsets:
Against gross budget authority and outlays:
Offsetting collections (cash)
from:
Non-Federal sources:
88.40 Repayments of principal..... -8 -8 -7
88.40 Interest received on loans.. -2 -2 -3
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -10 -10 -10
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 5 10 12
90.00 Outlays........................... 3 8 7
---------------------------------------------------------------------------
Status of Direct Loans (In millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0242-0-1-502 1995 actual 1996 est. 1997 est.
----------------------------------------------------------------------------
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 136 138 140
1231 Disbursements: Direct loan
disbursements................... 4 4 4
1251 Repayments: Repayments and
prepayments..................... -2 -2 -3
--------- --------- ----------
1290 Outstanding, end of year........ 138 140 141
---------------------------------------------------------------------------
The College Housing and Academic Facilities Loans Liquidating
Account records all cash flows to and from the Government resulting from
direct loans made to schools and colleges for the reconstruction,
renovation, and construction of academic facilities, housing and other
postsecondary education facilities from loans obligated prior to fiscal
year 1992. The Secretary pays, on average, 8.68 percent interest on
funds borrowed for liquidating account loans. To meet the required
repayment of interest and principal each year to Treasury, the Federal
Credit Reform Act of 1990 has provided permanent authority.
At the end of 1995, total delinquencies for this account were $987
thousand.
Historically Black College and University Capital Financing, Financing
Account
Status of Guaranteed Loans (In millions of dollars)
----------------------------------------------------------------------------
Identification code 91-4254-0-3-502 1995 actual 1996 est. 1997 est.
----------------------------------------------------------------------------
Position with respect to appropriations act
limitation on commitments:
2111 Limitation on guaranteed loans
made by private lenders......... 357
--------- --------- ----------
2150 Total guaranteed loan
commitments................... 357
----------------------------------------------------------------------------
Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 64
2231 Disbursements of new guaranteed
loans........................... 65 75
2251 Repayments and prepayments........ -1 -1
--------- --------- ----------
2290 Outstanding, end of year........ 64 138
----------------------------------------------------------------------------
[[Page 426]]
Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 64 138
---------------------------------------------------------------------------
Higher Education Facilities Loans
The Secretary is hereby authorized to make such expenditures, within
the limits of funds available under this heading and in accord with law,
and to make such contracts and commitments without regard to fiscal year
limitation, as provided by section 104 of the Government Corporation
Control Act (31 U.S.C. 9104), as may be necessary in carrying out the
program for the current fiscal year.
Note.--A regular 1996 appropriation for this account had not been
enacted at the time this budget was prepared. The 1996 amounts included
in this budget are based on the levels provided in three continuing
resolutions: P.L. 104-91, P.L. 104-92, and P.L. 104-99.
Program and Financing (In millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0240-0-1-502 1995 actual 1996 est. 1997 est.
----------------------------------------------------------------------------
Obligations by program activity:
10.00 Total obligations (object class
43.0)........................... 3 4 3
----------------------------------------------------------------------------
Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested
balance......................... 11 11 11
22.00 New budget authority (gross)...... 9 8 8
22.40 Capital transfer to general fund.. -7 -4 -3
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 13 15 16
23.95 New obligations................... -3 -4 -3
24.40 Unobligated balance available, end
of year: Uninvested balance..... 11 11 12
----------------------------------------------------------------------------
New budget authority (gross), detail:
68.00 Spending authority from offsetting
collections (gross): Spending
authority from offsetting
collections..................... 9 8 8
----------------------------------------------------------------------------
Change in unpaid obligations:
73.10 New obligations................... 3 4 3
73.20 Total outlays (gross)............. -3 -4 -4
----------------------------------------------------------------------------
Outlays (gross), detail:
86.97 Outlays from new permanent
authority....................... 3 4 5
--------- --------- ----------
87.00 Total outlays (gross)........... 3 4 4
----------------------------------------------------------------------------
Offsets:
Against gross budget authority and outlays:
Offsetting collections (cash)
from:
Non-Federal sources:
88.40 Repayments of principal..... -7 -6 -6
88.40 Interest received on loans.. -2 -2 -2
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -9 -8 -8
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays........................... -6 -4 -4
---------------------------------------------------------------------------
Status of Direct Loans (In millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0240-0-1-502 1995 actual 1996 est. 1997 est.
----------------------------------------------------------------------------
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 62 55 49
1251 Repayments: Repayments and
prepayments..................... -7 -6 -6
--------- --------- ----------
1290 Outstanding, end of year........ 55 49 43
---------------------------------------------------------------------------
Program operations.--Title VII, Section 702, of the Higher Education
Act of 1965, as amended, authorizes such sums as may be necessary to pay
obligations incurred prior to 1987 under the Higher Education Facilities
Loan Program previously authorized under Title VII, Part C. Prior to
1987, this program provided direct loans at 5.5 percent interest,
repayable within 50 years, to colleges, universities, and higher
education building agencies for the construction, reconstruction, or
renovation of academic facilities. No new loan commitments have been
made since 1981. The Higher Education Act Amendments of 1992 do not
authorize new loan activity in this account.
Financing.--Loan capital for this program has been provided both
through appropriations and the sale of participation certificates which
were backed by pools of existing higher education facilities loans held
by the Federal Government. All participation certificates held by this
account were redeemed as of September 30, 1988.
Interest is payable to Treasury on the amount of appropriations paid
out for loan capital and remaining outstanding, less the average
undisbursed cash balance in the fund during the year. The interest rate
certified by Treasury for payment from the account is 6.75 percent in
1996.
Repayments on outstanding loans, interest revenue, and investment
income are used to pay operating expenses and to repay interest costs to
Treasury. For 1997, operating income is expected to be sufficient to
finance all expenses. No appropriation is needed.
At the end of 1995, total delinquencies for this account were $543
thousand.
College Housing Loans
For necessary expenses of the college housing loans program,
pursuant to title VII, part C of the Higher Education Acts, as amended,
the Secretary shall make expenditures and enter into contracts without
regard to fiscal year limitation using loan repayments and other
resources available to this account. Any unobligated balances becoming
available from fixed fees paid into this account pursuant to 12 U.S.C.
1749d, relating to payment of costs for inspections and site visits,
shall be available for the operating expenses of this account.
Note.--A regular 1996 appropriation for this account had not been
enacted at the time this budget was prepared. The 1996 amounts included
in this budget are based on the levels provided in three continuing
resolutions: P.L. 104-91, P.L. 104-92, and P.L. 104-99.
Program and Financing (In millions of dollars)
----------------------------------------------------------------------------
Identification code 91-4250-0-3-502 1995 actual 1996 est. 1997 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Interest on Treasury borrowings... 10 13 12
--------- --------- ----------
10.00 Total obligations (object class
43.0)......................... 10 13 12
----------------------------------------------------------------------------
Budgetary resources available for obligation:
21.90 Unobligated balance available,
start of year: Fund balance..... 31 20 13
22.00 New budget authority (gross)...... 50 49 46
22.60 Redemption of debt................ -51 -42 -35
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 30 27 24
23.95 New obligations................... -10 -13 -12
24.90 Unobligated balance available, end
of year: Fund balance........... 20 13 12
----------------------------------------------------------------------------
New budget authority (gross), detail:
Spending authority from offsetting
collections:
Offsetting collections (cash):
68.00 Repayments of principal....... 35 35 32
68.00 Interest received on loans.... 15 14 14
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total)..................... 50 49 46
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 50 49 46
----------------------------------------------------------------------------
Change in unpaid obligations:
72.90 Unpaid obligations, start of year:
Obligated balance: Fund balance. 11 11 14
[[Page 427]]
73.10 New obligations................... 10 13 12
73.20 Total outlays (gross)............. -9 -10 -10
74.90 Unpaid obligations, end of year:
Obligated balance: Fund balance:
Uninvested balance.............. 11 14 16
----------------------------------------------------------------------------
Outlays (gross), detail:
86.98 Outlays from permanent balances... 9 10 10
--------- --------- ----------
87.00 Total outlays (gross)........... 9 10 10
----------------------------------------------------------------------------
Offsets:
Against gross budget authority and outlays:
Offsetting collections (cash)
from:
Non-Federal sources:
88.40 Repayments of principal..... -35 -35 -32
88.40 Interest received on loans.. -15 -14 -14
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -50 -49 -46
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays........................... -42 -39 -36
---------------------------------------------------------------------------
Status of Direct Loans (In millions of dollars)
----------------------------------------------------------------------------
Identification code 91-4250-0-3-502 1995 actual 1996 est. 1997 est.
----------------------------------------------------------------------------
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 519 484 449
1251 Repayments: Repayments and
prepayments..................... -35 -35 -32
--------- --------- ----------
1290 Outstanding, end of year........ 484 449 417
---------------------------------------------------------------------------
Program operations.--Loans in this account were made for
construction and renovation of college housing facilities prior to 1987
under title IV of the Housing Act of 1950. The Higher Education
Amendments of 1992 gave the Secretary authority to manage outstanding
college housing loans under title VII, Part C of the Higher Education
Act as amended. New loans made after 1986 were financed in the College
Housing and Academic Facilities Loans Account. No new loan activity is
authorized in this account.
Financing.--Loan capital for this program was provided primarily
through Treasury borrowings and the sale of participation certificates
which were backed by pools of college housing loans held by the Federal
Government. The participation certificates sold by the Government
National Mortgage Association (GNMA) and held by this account were
redeemed as of September 30, 1988. As of September 30, 1995, $484
million in loan capital is still due the Treasury at an annual interest
rate of 2.75 percent.
Available resources (loan repayments, interest revenue, and other
income in excess of operating expenses) will be used to redeem a portion
of the agency's debt in outstanding Treasury borrowings, as is being
done in 1996 and as was done in preceding years. Approximately $51
million will be repaid to Treasury in 1995 and $42 million will be
repaid in 1996; $35 million was repaid in 1994.
At the end of 1995, total delinquencies for this account were $2.9
billion.
OFFICE OF EDUCATIONAL RESEARCH AND IMPROVEMENT
Federal Funds
General and special funds:
Education Research, Statistics, and Improvement
For carrying out activities authorized by the Educational Research,
Development, Dissemination, and Improvement Act of 1994, including part
E; the National Education Statistics Act of 1994; section 2102, parts A,
B, and C of title III, parts A and B, and section 10601 of title X, part
C of title XIII of the Elementary and Secondary Education Act of 1965,
as amended; and title VI of the Goals 2000: Educate America Act:
$634,750,000: Provided, That $15,000,000 shall be for section 2102,
$5,000,000 shall be for section 3122, $250,000,000 shall be for section
3132, $60,000,000 shall be for section 3136, $10,000,000 shall be for
section 3141, and $4,000,000 shall be for section 10601 of the
Elementary and Secondary Education Act: Provided further, That,
notwithstanding section 3131(b) of the Elementary and Secondary
Education Act, if any state educational agency does not apply for a
grant under section 3132, that State's allotment under section 3131
shall be reserved by the Secretary for grants to local educational
agencies in the State that apply directly to the Secretary according to
the terms and conditions announced by the Secretary in the Federal
Register.
Note.--A regular 1996 appropriation for this account had not been
enacted at the time this budget was prepared. The 1996 amounts included
in this budget are based on the levels provided in three continuing
resolutions: P.L. 104-91, P.L. 104-92, and P.L. 104-99.
Program and Financing (In millions of dollars)
----------------------------------------------------------------------------
Identification code 91-1100-0-1-503 1995 actual 1996 est. 1997 est.
----------------------------------------------------------------------------
Obligations by program activity:
Direct program:
00.01 Research........................ 86 108
00.02 Statistics...................... 48 50
00.03 Assessment...................... 33 33
00.04 Eisenhower professional
development national
activities.................... 21 15
Educational technology:
Technology for education:
00.05 Technology literacy
challenge fund............ 250
00.06 National activities and
local innovation fund..... 23 19 75
00.07 Star schools.................. 25 19 25
00.08 Ready to learn television..... 7 7
00.09 Telecommunications
demonstration project for
mathematics................. 1
00.10 Fund for the improvement of
education..................... 37 40
00.11 Javits gifted and talented
education..................... 5 10
00.12 National diffusion network...... 12
00.13 Eisenhower regional mathematics
and science education
consortia..................... 15 15
00.14 21st century community learning
centers....................... 1
00.15 National writing project........ 3
00.16 Civic education................. 4 4
00.17 International education exchange 3 3
00.18 Unallocated amount under P.L.
104-99........................ 212
--------- --------- ----------
00.91 Subtotal, direct program...... 324 250 635
01.01 Reimbursable program.............. 3
--------- --------- ----------
10.00 Total obligations............... 327 250 635
----------------------------------------------------------------------------
Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 327 250 635
23.95 New obligations................... -327 -250 -635
----------------------------------------------------------------------------
New budget authority (gross), detail:
Current:
40.00 Appropriation................... 324 250 635
Permanent:
68.00 Spending authority from
offsetting collections:
Offsetting collections (cash). 3
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 327 250 635
----------------------------------------------------------------------------
Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Appropriation 288 322 256
73.10 New obligations................... 327 250 635
73.20 Total outlays (gross)............. -283 -316 -329
73.40 Adjustments in expired accounts... -10
74.40 Unpaid obligations, end of year:
Obligated balance: Appropriation 322 256 562
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new current authority 82 67 130
86.93 Outlays from current balances..... 199 249 198
86.97 Outlays from new permanent
authority....................... 1
86.98 Outlays from permanent balances... 1 1
--------- --------- ----------
87.00 Total outlays (gross)........... 283 316 329
----------------------------------------------------------------------------
Offsets:
Against gross budget authority and outlays:
88.00 Offsetting collections (cash)
from: Federal sources......... -3
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 324 250 635
[[Page 428]]
90.00 Outlays........................... 279 316 329
---------------------------------------------------------------------------
Summary of Budget Authority and Outlays
[In millions of dollars]
1995 actual 1996 est. 1997 est.
Enacted/requested:
Budget Authority.................. 324 250 635
Outlays........................... 279 317 329
Adjustment to 1996 continuing
resolution levels:
Budget Authority.................. 92
Outlays........................... 19 54
------------------------------------
Total:
Budget Authority.................. 324 342 635
Outlays........................... 279 336 383
====================================
Research.--Funds support the activities of five research institutes
organized to address topics of national concern in education. The
institutes carry out comprehensive programs of research and development
by funding research centers, field-initiated research studies, and other
research projects. A national dissemination system provides information
and technical assistance through regional laboratories and
clearinghouses. A national library of education serves as a central
location within the Federal government for information on education.
Statistics.--Funds support the collection of statistics on
educational institutions and on individuals to monitor trends in
education, and a coordinated program of statistical services to assist
States in developing comparable data bases and analyses of the
implications of data.
Assessment.--Funds support the National Assessment of Educational
Progress, which surveys young Americans to provide reliable information
about educational attainment in important skill areas. Both national-
and State-representative data are collected.
Eisenhower professional development national activities.--Funds
support activities to promote excellence in teaching. Such activities
include strengthening professional standards for teachers, demonstrating
ways to engage teachers and other educators in the use of effective
teaching and learning strategies, providing support services for both
Eisenhower State and Federal program activities, and evaluating these
activities.
Technology for education.--
Technology literacy challenge fund.--Funds for this Presidential
initiative are awarded to States on the basis of a formula and are used
for grants to local school districts to support teacher training and the
purchase of hardware and software to create 21st century classrooms.
National activities and local innovation fund.--Funds support
national leadership and technical assistance in the development and
implementation of educational technology. Competitive grants are made to
consortia of school districts and other partners to improve teaching and
learning through the effective use of technologies.
Star schools.--Funds support the acquisition of telecommunications
equipment and development of instructional programming for distance
learning.
Ready to learn television.--Funds support the development of
educational programming for preschool and elementary school children and
their parents.
Telecommunications demonstration project for mathematics.--Funds
support a national telecommunications-based demonstration project to
improve the teaching of mathematics so that all students are prepared to
achieve State content standards.
Fund for the improvement of education.--Funds support nationally
significant projects to improve the quality of education, assist all
students to meet challenging standards, and contribute to achievement of
the National Education Goals.
Javits gifted and talented education.--Funds support projects
designed to help educators identify and meet the special educational
needs of gifted and talented students and, where appropriate, to adapt
strategies successful with those students to improve instruction for all
students.
Eisenhower regional mathematics and science education consortia.--
Funds support regional consortia to disseminate exemplary mathematics
and science education materials and provide technical assistance to help
teachers and administrators implement new teaching methods and
assessment tools.
Civic education.--Funds are used to provide an award to the Center
for Civic Education to help educate students about the history and
principles of the Constitution, including the Bill of Rights.
International education exchange.--Funds are used for international
exchange programs to help improve civics and economics education in
central and eastern European countries, countries that were part of the
former Soviet Union, and the United States.
Object Classification (In millions of dollars)
----------------------------------------------------------------------------
Identification code 91-1100-0-1-503 1995 actual 1996 est. 1997 est.
----------------------------------------------------------------------------
Direct obligations:
11.3 Personnel compensation: Other
than full-time permanent...... 1 1
24.0 Printing and reproduction....... 1 1
25.1 Advisory and assistance services 7 7
25.2 Other services.................. 51 51
25.3 Purchases of goods and services
from Government accounts...... 15 15
25.5 Research and development
contracts..................... 44 41
31.0 Equipment....................... 1 1
41.0 Grants, subsidies, and
contributions................. 204 38 518
92.0 Undistributed................... 212
--------- --------- ----------
99.0 Subtotal, direct obligations.. 324 250 635
99.0 Reimbursable obligations.......... 3
--------- --------- ----------
99.9 Total obligations............... 327 250 635
---------------------------------------------------------------------------
Personnel Summary
----------------------------------------------------------------------------
Identification code 91-1100-0-1-503 1995 actual 1996 est. 1997 est.
----------------------------------------------------------------------------
1001 Total compensable workyears: Full-
time equivalent employment...... 10 13 13
---------------------------------------------------------------------------
Libraries
Note.--A regular 1996 appropriation for this account had not been
enacted at the time this budget was prepared. The 1996 amounts included
in this budget are based on the levels provided in three continuing
resolutions: P.L. 104-91, P.L. 104-92, and P.L. 104-99.
Program and Financing (In millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0104-0-1-503 1995 actual 1996 est. 1997 est.
----------------------------------------------------------------------------
Obligations by program activity:
Direct program:
00.01 Public library services......... 83
00.02 Public library construction..... 24 7
00.03 Interlibrary cooperation........ 24
00.05 Library literacy programs....... 8
00.07 Library education and training.. 5
00.08 Research and demonstrations..... 6
00.09 Unallocated amount under P.L.
104-99........................ 118
--------- --------- ----------
10.00 Total obligations (object class
41.0)......................... 150 125
----------------------------------------------------------------------------
[[Page 429]]
Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested
balance......................... 13 7
22.00 New budget authority (gross)...... 144 118
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 157 125
23.95 New obligations................... -150 -125
24.40 Unobligated balance available, end
of year: Uninvested balance..... 7
----------------------------------------------------------------------------
New budget authority (gross), detail:
40.00 Appropriation..................... 144 118
----------------------------------------------------------------------------
Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Appropriation 161 192 148
73.10 New obligations................... 150 125
73.20 Total outlays (gross)............. -118 -169 -79
73.40 Adjustments in expired accounts... -1
74.40 Unpaid obligations, end of year:
Obligated balance: Appropriation 192 148 69
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new current authority 11 43
86.93 Outlays from current balances..... 106 126 80
--------- --------- ----------
87.00 Total outlays (gross)........... 118 169 79
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 144 118
90.00 Outlays........................... 118 169 79
---------------------------------------------------------------------------
Summary of Budget Authority and Outlays
[In millions of dollars]
1995 actual 1996 est. 1997 est.
Enacted/requested:
Budget Authority.................. 144 118
Outlays........................... 117 169 80
Legislative proposal, not subject to
PAYGO:
Budget Authority.................. 110
Outlays........................... 44
------------------------------------
Total:
Budget Authority.................. 144 118 110
Outlays........................... 117 169 124
====================================
Library services.--State formula grants are made to assist public
libraries in improving library services, library construction and
technology enhancement, and resource sharing; and discretionary awards
are made for library literacy services, education in library and
information science, and library research and demonstration projects.
Libraries
(Legislative proposal, not subject to PAYGO)
Program and Financing (In millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0104-2-1-503 1995 actual 1996 est. 1997 est.
----------------------------------------------------------------------------
Obligations by program activity:
Direct program:
00.01 Library Services................ 110
--------- --------- ----------
10.00 Total obligations (object class
41.0)......................... 110
----------------------------------------------------------------------------
Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 110
23.95 New obligations................... -110
----------------------------------------------------------------------------
New budget authority (gross), detail:
40.00 Appropriation..................... 110
----------------------------------------------------------------------------
Change in unpaid obligations:
73.10 New obligations................... 110
73.20 Total outlays (gross)............. -44
74.40 Unpaid obligations, end of year:
Obligated balance: Appropriation 66
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new current authority 44
--------- --------- ----------
87.00 Total outlays (gross)........... 44
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 110
90.00 Outlays........................... 44
---------------------------------------------------------------------------
Authority to provide support for library services, including wider
access to information through technology, is pending in the Congress.
Funds will be requested when authorizing legislation is enacted.
DEPARTMENTAL MANAGEMENT
Federal Funds
General and special funds:
Program Administration
For carrying out, to the extent not otherwise provided, the
Department of Education Organization Act, including rental of conference
rooms in the District of Columbia and hire of two passenger motor
vehicles, $355,476,000.
Note--Regular 1996 appropriations for these accounts have not been
enacted at the time this budget was prepared. The 1996 amounts in this
budget are based on the levels provided in three continuing resolutions:
P.L. 104-91, P.L. 104-92, and P.L. 104-99.
Program and Financing (In millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0800-0-1-503 1995 actual 1996 est. 1997 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Direct program.................... 355 327 355
01.01 Reimbursable programs............. 136 8 8
--------- --------- ----------
10.00 Total obligations............... 491 335 363
----------------------------------------------------------------------------
Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested
balance......................... 1
22.00 New budget authority (gross)...... 491 335 363
22.30 Unobligated balance expiring...... -1
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 491 335 363
23.95 New obligations................... -491 -335 -363
----------------------------------------------------------------------------
New budget authority (gross), detail:
Current:
40.00 Appropriation................... 355 327 355
Permanent:
68.00 Spending authority from
offsetting collections:
Offsetting collections (cash). 136 8 8
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 491 335 363
----------------------------------------------------------------------------
Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Appropriation 142 183 135
73.10 New obligations................... 491 335 363
73.20 Total outlays (gross)............. -455 -383 -357
73.40 Adjustments in expired accounts... 6
74.40 Unpaid obligations, end of year:
Obligated balance: Appropriation 183 135 141
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new current authority 228 245 258
86.93 Outlays from current balances..... 112 122 86
86.97 Outlays from new permanent
authority....................... 115 4 4
86.98 Outlays from permanent balances... 12 8
--------- --------- ----------
87.00 Total outlays (gross)........... 455 383 357
----------------------------------------------------------------------------
Offsets:
Against gross budget authority and outlays:
88.00 Offsetting collections (cash)
from: Federal sources......... -136 -8 -8
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 355 327 355
90.00 Outlays........................... 320 375 349
---------------------------------------------------------------------------
The Program Administration account includes the direct Federal costs
of administering elementary and secondary education, bilingual
education, higher education, vocational and adult education, and special
education programs, programs
[[Page 430]]
for persons with disabilities and a portion of the direct Federal costs
for administering student financial aid programs. It also supports
assessment, statistics, research and improvement activities.
In addition, this account includes the cost of providing centralized
support and administrative services, overall policy development, and
strategic planning for the Department. Included in the centralized
activities are rent and mail services; telecommunciations; program
grants and contractual services; financial management and accounting,
including payments to schools, education agencies and other grant
recipients, and preparation of auditable financial statements; ADP
services; personnel management; budget formulation and execution;
program evaluation; legal services; congressional and public relations;
and intergovernmental affairs.
Reimbursable program.--Reimbursements to this account include the
costs of collecting defaulted Perkins student loans and of providing
administrative services to other agencies.
This presentation includes contributions, which had previously been
presented separately.
Spending derives from contributions from the public. Activities
supported include the Goals 2000 Teachers' Forum, and the Gifts and
Bequests Miscellaneous Fund. No new contributions are currently
anticipated for 1997.
Object Classification (In millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0800-0-1-503 1995 actual 1996 est. 1997 est.
----------------------------------------------------------------------------
Direct obligations:
Personnel compensation:
11.1 Full-time permanent........... 135 141 140
11.3 Other than full-time permanent 14 7 6
11.5 Other personnel compensation.. 3 2 2
--------- --------- ----------
11.9 Total personnel compensation 152 150 148
12.1 Civilian personnel benefits..... 29 34 35
13.0 Benefits for former personnel... 7
21.0 Travel and transportation of
persons....................... 7 5 5
23.1 Rental payments to GSA.......... 22 23 22
23.3 Communications, utilities, and
miscellaneous charges......... 20 16 16
24.0 Printing and reproduction....... 7 7 7
25.1 Advisory and assistance services 7 4 6
25.2 Other services.................. 70 10 10
25.3 Purchases of goods and services
from Government accounts...... 14 10 10
25.4 Operation and maintenance of
facilities.................... 1 1 1
25.7 Operation and maintenance of
equipment..................... 55 69
26.0 Supplies and materials.......... 5 2 3
31.0 Equipment....................... 12 8 21
32.0 Land and structures............. 2 2
--------- --------- ----------
99.0 Subtotal, direct obligations.. 353 327 355
99.0 Reimbursable obligations.......... 136 7 7
99.5 Below reporting threshold......... 2 1 1
--------- --------- ----------
99.9 Total obligations............... 491 335 363
---------------------------------------------------------------------------
Personnel Summary
----------------------------------------------------------------------------
Identification code 91-0800-0-1-503 1995 actual 1996 est. 1997 est.
----------------------------------------------------------------------------
Direct:
Total compensable workyears:
1001 Full-time equivalent employment. 2,853 2,771 2,651
1005 Full-time equivalent of overtime
and holiday hours............. 11 6 6
Reimbursable:
2001 Total compensable workyears: Full-
time equivalent employment...... 1
---------------------------------------------------------------------------
Office for Civil Rights
For necessary expenses of the Office for Civil Rights, as authorized
by section 203 of the Department of Education Organization Act,
$60,000,000.
Note.--A regular 1996 appropriation for this account had not been
enacted at the time this budget was prepared. The 1996 amounts in this
budget are based on the levels provided in three continuing resolutions:
P.L. 104-91, P.L. 104-92, and P.L. 104-99.
Program and Financing (In millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0700-0-1-751 1995 actual 1996 est. 1997 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Direct program: Civil Rights...... 58 54 60
--------- --------- ----------
10.00 Total obligations............... 58 54 60
----------------------------------------------------------------------------
Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 58 54 60
23.95 New obligations................... -58 -54 -60
----------------------------------------------------------------------------
New budget authority (gross), detail:
40.00 Appropriation..................... 58 54 60
----------------------------------------------------------------------------
Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Appropriation 26 28 25
73.10 New obligations................... 58 54 60
73.20 Total outlays (gross)............. -56 -57 -56
74.40 Unpaid obligations, end of year:
Obligated balance: Appropriation 28 25 29
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new current authority 52 48 51
86.93 Outlays from current balances..... 4 9 6
--------- --------- ----------
87.00 Total outlays (gross)........... 56 57 56
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 58 54 60
90.00 Outlays........................... 56 57 56
---------------------------------------------------------------------------
The Office for Civil Rights is responsible for ensuring that no
person is unlawfully discriminated against on the basis of race, color,
national origin, sex, disability, or age in the delivery of services or
the provision of benefits in programs or activities of schools and
institutions receiving financial assistance from the Department of
Education. The authorities under which the Office for Civil Rights
operates are title VI of the Civil Rights Act of 1964 (racial and ethnic
discrimination), title IX of the Education Amendments of 1972 (sex
discrimination), section 504 of the Rehabilitation Act of 1973
(discrimination against individuals with a disability), the Age
Discrimination Act of 1975, and the Americans with Disabilities Act of
1990.
Object Classification (In millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0700-0-1-751 1995 actual 1996 est. 1997 est.
----------------------------------------------------------------------------
Personnel compensation:
11.1 Full-time permanent............. 37 36 37
11.3 Other than full-time permanent.. 1 1 1
--------- --------- ----------
11.9 Total personnel compensation.. 38 37 38
12.1 Civilian personnel benefits....... 7 8 9
13.0 Benefits for former personnel..... 2
21.0 Travel and transportation of
persons......................... 1 1
23.1 Rental payments to GSA............ 4 4 4
23.3 Communications, utilities, and
miscellaneous charges........... 1 1 1
25.2 Other services.................... 1
25.3 Purchases of goods and services
from Government accounts........ 2 2 2
25.7 Operation and maintenance of
equipment....................... 1 2
26.0 Supplies and materials............ 1
31.0 Equipment......................... 1 2
99.5 Below reporting threshold......... 1 1
--------- --------- ----------
99.9 Total obligations............... 58 54 60
---------------------------------------------------------------------------
Personnel Summary
----------------------------------------------------------------------------
Identification code 91-0700-0-1-751 1995 actual 1996 est. 1997 est.
----------------------------------------------------------------------------
1001 Total compensable workyears: Full-
time equivalent employment...... 788 763 745
---------------------------------------------------------------------------
[[Page 431]]
Office of the Inspector General
For expenses necessary for the Office of the Inspector General, as
authorized by Section 212 of the Department of Education Organization
Act, $30,500,000.
Note.--A regular 1996 appropriation for this account had not been
enacted at the time this budget was prepared. The 1996 amounts in this
budget are based on the levels provided in three continuing resolutions:
P.L. 104-91, P.L. 104-92, and P.L. 104-99.
Program and Financing (In millions of dollars)
----------------------------------------------------------------------------
Identification code 91-1400-0-1-751 1995 actual 1996 est. 1997 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Inspector General................. 30 28 30
--------- --------- ----------
10.00 Total obligations............... 30 28 30
----------------------------------------------------------------------------
Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 30 28 30
23.95 New obligations................... -30 -28 -30
----------------------------------------------------------------------------
New budget authority (gross), detail:
40.00 Appropriation..................... 30 28 30
----------------------------------------------------------------------------
Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Appropriation 6 8 4
73.10 New obligations................... 30 28 30
73.20 Total outlays (gross)............. -29 -32 -29
74.40 Unpaid obligations, end of year:
Obligated balance: Appropriation 8 4 5
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new current authority 26 24 25
86.93 Outlays from current balances..... 3 8 4
--------- --------- ----------
87.00 Total outlays (gross)........... 29 32 29
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 30 28 30
90.00 Outlays........................... 29 32 29
---------------------------------------------------------------------------
The Inspector General is responsible for the quality, coverage, and
coordination of audit, investigation, and security functions relating to
Federal education activities. The Inspector General has the authority to
inquire into all activities of the Department including those performed
under Federal education contracts, grants, or other agreements. Under
the Chief Financial Officers Act of 1990, the Inspector General is also
responsible for internal reviews of the Department's financial systems
and audits of its financial statements.
Object Classification (In millions of dollars)
----------------------------------------------------------------------------
Identification code 91-1400-0-1-751 1995 actual 1996 est. 1997 est.
----------------------------------------------------------------------------
Personnel compensation:
11.1 Full-time permanent............. 18 19 19
--------- --------- ----------
11.9 Total personnel compensation.. 18 19 19
12.1 Civilian personnel benefits....... 4 4 4
13.0 Benefits for former personnel..... 1
21.0 Travel and transportation of
persons......................... 1 1 2
23.1 Rental payments to GSA............ 2 2 2
25.2 Other services.................... 1 1 1
25.3 Purchases of goods and services
from Government accounts........ 1 1 1
25.7 Operation and maintenance of
equipment....................... 1
31.0 Equipment......................... 1
99.5 Below reporting threshold......... 1
--------- --------- ----------
99.9 Total obligations............... 30 28 30
---------------------------------------------------------------------------
Personnel Summary
----------------------------------------------------------------------------
Identification code 91-1400-0-1-751 1995 actual 1996 est. 1997 est.
----------------------------------------------------------------------------
Direct:
1001 Total compensable workyears: Full-
time equivalent employment...... 337 328 322
Reimbursable:
2001 Total compensable workyears: Full-
time equivalent employment...... 1
---------------------------------------------------------------------------
GENERAL FUND RECEIPT ACCOUNTS
[In millions of dollars]
----------------------------------------------------------------------------
1995 actual 1996 est. 1997 est.
----------------------------------------------------------------------------
Offsetting receipts from the public:
91-022100 FFEL Guarantee agency
reserve recoveries: Legislative
proposal, subject to PAYGO.......... 100
91-291500 Repayment of loans, capital
contributions, higher education
activities, Education............... 90 68 68
--------- --------- ----------
General Fund Offsetting receipts from
the public............................. 90 68 168
---------------------------------------------------------------------------
GENERAL PROVISIONS
Sec. 301. No part of the funds contained in this title may be used
to force any school or school district which is desegregated as that
term is defined in title IV of the Civil Rights Act of 1964, Public Law
88-352, to take any action to force the busing of students; to force on
account of race, creed or color the abolishment of any school so
desegregated; or to force the transfer or assignment of any student
attending any elementary or secondary school so desegregated to or from
a particular school over the protest of his or her parents or parent.
Sec. 302. (a) No part of the funds contained in this title shall be
used to force any school or school district which is desegregated as
that term is defined in title IV of the Civil Rights Act of 1964, Public
Law 88-352, to take any action to force the busing of students; to
require the abolishment of any school so desegregated; or to force on
account of race, creed or color the transfer of students to or from a
particular school so desegregated as a condition precedent to obtaining
Federal funds otherwise available to any State, school district or
school.
(b) No funds appropriated in this Act may be used for the
transportation of students or teachers (or for the purchase of equipment
for such transportation) in order to overcome racial imbalance in any
school or school system, or for the transportation of students or
teachers (or for the purchase of equipment for such transportation) in
order to carry out a plan of racial desegregation of any school or
school system.
Sec. 303. None of the funds contained in this Act shall be used to
require, directly or indirectly, the transportation of any student to a
school other than the school which is nearest the student's home, except
for a student requiring special education, to the school offering such
special education, in order to comply with title VI of the Civil Rights
Act of 1964. For the purpose of this section an indirect requirement of
transportation of students includes the transportation of students to
carry out a plan involving the reorganization of the grade structure of
schools, the pairing of schools, or the clustering of schools, or any
combination of grade restructuring, pairing or clustering. The
prohibition described in this section does not include the establishment
of magnet schools.
Sec. 304. No funds appropriated under this Act may be used to
prevent the implementation of programs of voluntary prayer and
meditation in the public schools.