[Budget Supplement]
[Creating Opportunity and Encouraging Responsibility]
[8. Investing in Education and Training]
[From the U.S. Government Printing Office, www.gpo.gov]


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  We have worked on a simple strategy for education. We believe in high standards. We believe in high           
expectations. We believe in high levels of opportunity. We believe in high technology. And we believe the doors 
of college should be open to every single American citizen.                                                     
                                                                                                                
                                      President Clinton                                                         
                                      February 1996                                                             
                                                                                                                

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  Today's most successful workers are those with technical skills and a 
firm educational footing who continue to learn throughout their careers 
in order to compete successfully in this fast-changing economy.
  In recent years, education and wages have become increasingly 
intertwined. Generally, those with the best skills and education have 
made steady progress, enjoying higher living standards. Those without 
the requisite skills and education have fallen behind. Tomorrow's 
workers face an even greater challenge: As the very nature of work 
changes with technological innovation, employers will demand even more 
highly-skilled workers. The best-paying jobs increasingly will go only 
to those with education and training beyond high school.
  For the most part, our Nation places responsibility for education and 
training on State and local governments, families and individuals, and 
the private sector. Nevertheless, the Federal Government plays a 
crucial, if limited, role in providing education for a lifetime--from 
pre-school to adult career training.
  Federal resources help States improve the quality of education and 
training for the disadvantaged and people with disabilities; support 
State- and locally-designed elementary and secondary school reform; and 
help low- and middle-income families gain financial access to 
postsecondary education and skill training through loans and grants. To 
help States raise student achievement, the President has consistently 
worked to make schools safer, improve teacher quality, move technology 
into the classroom as quickly as possible, raise academic standards, and 
better prepare students for college and the new workplace.
  The budget reaffirms the President's longstanding commitment to 
education and training. It builds on previous legislative and management 
reforms, and continues support for policies that the President has 
articulated since assuming office in 1993.
  Over seven years, the budget proposes $311 billion for education and 
training, $61 billion more than the 1996 congressional budget resolution 
(see Chart 8-1). For selected programs, the budget proposes an increase 
of $5.9 billion, or 24 percent, over the 1993 level (see Table 8-1).
  The Education Department's programs play a key role in the Nation's 
efforts to improve the quality of elementary and secondary education for 
all children, and to help low- and middle-income families pay for 
postsecondary education and skill training. For 1997, the budget 
proposes $25.6 billion in discretionary funds for department programs.
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Table 8-1.  THE BUDGET INCREASES SPENDING ON MAJOR EDUCATION AND TRAINING PROGRAMS BY $3.4 BILLION, OR 13 PERCENT, OVER 1995, AND BY $5.9 BILLION, OR 24
                                                                   PERCENT, SINCE 1993                                                                  
                                                     (Budget authority, dollar amounts in millions)                                                     
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                                                                                                                     Dollar   Percent   Dollar   Percent
                                                                            1993     1995       1996        1997     Change:  Change:   Change:  Change:
                                                                           Actual   Actual   Estimate\1\  Proposed   1995 to  1995 to   1993 to  1993 to
                                                                                                                      1997      1997     1997      1997 
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Head Start..............................................................    2,776    3,534       3,631       3,981      +447     +13%    +1,205     +43%
Goals 2000..............................................................  .......      372         486         491      +119     +32%      +491       NA
Charter Schools.........................................................  .......        6          20          40       +34    +567%       +40       NA
Title I--Ed for disadvantaged...........................................    6,709    7,228       7,328       7,679      +451      +6%      +970     +14%
Education Technology....................................................  .......       56          74         357      +301    +538%      +357       NA
Safe and Drug-Free Schools..............................................      582      466         500         540       +74     +16%       -42     -10%
Special education.......................................................    2,966    3,253       3,342       3,553      +300      +9%      +587     +20%
Eisenhower/Ch. 2 teacher training.......................................      682      599         599         610       +11      +2%       -72     -11%
Summer jobs for youth...................................................      849      867         635         871        +4      +*%       +22      +3%
Job Corps...............................................................      966    1,089       1,121       1,154       +65      +6%      +188     +19%
Out-of-School Youth.....................................................  .......  .......  ............       250      +250       NA      +250       NA
School-to-Work opportunities............................................  .......      245         372         400      +155     +63%      +400       NA
Vocational and adult education..........................................    1,474    1,383       1,383       1,420       +37      +3%       -54      -4%
Adult/dislocated worker training........................................    1,666    2,226       2,176       2,240       +14      +1%      +574     +34%
Honors scholarships.....................................................  .......  .......  ............       130      +130       NA      +130       NA
Pell grants\2\..........................................................    5,633    5,444       6,189       6,425      +981     +18%      +792     +14%
College work-study......................................................      616      617         617         679       +62     +10%       +63     +10%
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  Total.................................................................   24,919   27,385      28,473      30,820    +3,435     +13%    +5,901     +24%
Student loans (dollar amount of loans, in millions):                                                                                                    
  New loans:                                                                                                                                            
    Direct loans........................................................  .......    5,200      10,400      13,200    +8,000    +154%   +13,200       NA
    Guaranteed loans....................................................   16,100   18,500      14,800      13,200    -5,300     -29%    -2,900     -18%
  Loan consolidations...................................................    1,500    3,400       4,900       6,100    +2,700     +79%    +4,600    +307%
                                                                         -------------------------------------------------------------------------------
  Total loan volume.....................................................   17,600   27,100      30,100      32,500    +5,400     +20%   +14,900     +85%
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NA = Not applicable.                                                                                                                                    
*Less than $500 thousand or 0.5 percent.                                                                                                                
\1\Includes Administration's proposed adjustments to 1996 continuing resolution levels.                                                                 
\2\To permit comparability, data are shown at the program level, not budget authority.                                                                  

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Preparing Children for School

  Head Start: A healthy, caring family environment is the best 
preparation for school. For over 30 years, Head Start has helped 
families create this environment by taking a comprehensive approach to 
child development--improving children's learning skills, health, 
nutrition, and social competency. Head Start involves parents in their 
children's learning,
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and links children and their families to a wide 
array of services in their communities.
  To ensure that all Head Start programs consistently deliver the high-
quality services needed to produce good results for children, the 
President proposed, and Congress enacted, major quality improvements in 
1994. This budget builds on these important gains by continuing to 
support local efforts to improve the quality of instruction, attract and 
retain better workers, improve child-to-staff ratios, and upgrade 
facilities.
  The budget proposes $3.98 billion for Head Start, $447 million more 
than in 1995, which would enable another 46,000 children to participate. 
The budget proposes to enable a million children to participate by 2002 
(see Chart 8-2).


Elementary and Secondary Education

  Education is a national priority and a State and local responsibility. 
Americans widely support State and local control of elementary and 
secondary education. At the same time, the Federal Government over the 
years has helped to improve areas of critical concern to all Americans, 
such as teacher education or schooling for low-income children or those 
with disabilities.
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  This Administration has energized State and local efforts to raise the 
educational achievement of every child and to create safe learning 
environments. It also has worked with Congress to improve the largest 
Federal education programs for disadvantaged children, focusing them 
more on results and less on process.

  Goals 2000: This Administration initiative, enacted in 1994, supports 
State efforts to raise academic achievement for all students. Goals 2000 
helps States and communities focus on results. It builds on the National 
Education Goals, first articulated by the Nation's governors (led by 
then-Governor Bill Clinton) and President Bush in 1989, which provide 
clear targets but encourage States to develop their own means to achieve 
them.
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                               HOW STATES USE GOALS 2000 TO ADVANCE THEIR REFORMS                               
                                                                                                                
  In Maryland, scores on tests designed to measure progress toward the State's standards are increasing year    
after year.                                                                                                     
                                                                                                                
  In Michigan, 13 Upper Peninsula school districts are working with Bay Mills Community College and Lake        
Superior University to train teachers to use technology to improve math and science teaching and learning.      
                                                                                                                
  In Harrison County, Kentucky, Goals 2000 is helping train parents as volunteer instructional aides and        
reaching out to parents through cable television programs and homework hotlines.                                
                                                                                                                

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  States and localities receive funds to set their own challenging 
academic standards for all children, then design their curriculum, 
teacher training, educational technology, instruction methods, and 
assessment tools around them. Goals 2000 also helps States and schools 
involve parents in the education of their children. Currently, nearly 
all States participate in the program.
  The budget proposes $491 million for the program, 32 percent more than 
in 1995. Under it, every State and over 12,000 schools could receive 
grants.

  Charter Schools: Charter schools are public schools that parents, 
teachers, and communities create, and that States free from most rules 
and regulations and hold accountable for raising student achievement. 
Begun as a grassroots movement in 1991, and supported by Federal start-
up funds since 1995, public charter schools now number 250 nationwide, 
some of them already showing results in higher student test scores and 
lower drop-out rates. The budget proposes $40 million for public charter 
schools in 1997, and increases over the next five years to fund start-up 
costs for up to 3,000 such new schools.
  Title I--Education for the Disadvantaged: Title I provides funds to 
raise the educational achievement of disadvantaged children. In 1994, 
the President proposed and Congress adopted changes to: focus Title I 
resources better on areas with the largest concentrations of low-income 
children; set the same high standards for those children as for all 
others; and hold schools accountable for progress toward achieving those 
standards. Schools now have much more flexibility in using these funds. 
The budget includes $7.7 billion, six percent more than in 1995.
  Education Technology: Technology can expand learning opportunities for 
all students and help raise student achievement. Yet many school 
districts lack the necessary resources to integrate technology fully 
into their school curricula.
  The President has launched a national mission to ensure that all 
children are technologically literate by the dawn of the 21st Century, 
with communication, math, science, and critical thinking skills 
essential to succeed in the Information Age. Specifically, the President 
proposes a Technology Literacy Challenge Fund, with four goals: (1) 
helping States put enough computers in every classroom; (2) connecting 
these computers to the Information Superhighway; (3) giving teachers the 
training they need to integrate technology into teaching; and (4) 
fostering the development of high quality, widely available 
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educational software. To be eligible for Federal funds, a State must meet three challenges:
  develop a strategy that enables every school in the State to 
          meet the four goals by the dawn of the 21st Century, complete 
          with benchmarks and timetables;
  demonstrate significant private sector participation and 
          commitments that should at least match the amount of Federal 
          support; and
  publicly report at the end of every school year on progress in 
          achieving its benchmarks.
  The budget requests $250 million for the Challenge Fund in 1997, and 
$2 billion over five years.
  The budget also expands the successful Technology Learning Challenge 
program, which in 1995 began providing school-centered, public-private 
partnerships with matching Federal funds to support projects that 
integrate technology into the curriculum. In 1995, $10 million funded 19 
partnerships and leveraged over $70 million in other public- and 
private-sector resources. The budget provides $75 million for the 
program.

  Teacher Training: The Eisenhower Professional Development program 
helps States invest in training teachers and other educators so that 
they, in turn, can help all children reach the State's challenging 
academic standards. The President proposed, and Congress enacted, major 
improvements in 1994 to ensure that the training is of high enough 
quality and sufficient duration to pay off in the classroom. For this 
purpose, the budget combines funding for the Eisenhower program with 
general funds now in Title VI of the Elementary and Secondary Education 
Act; all told, it provides $610 million for these activities.
  Safe and Drug-Free Schools and Communities: Students can reach their 
full potential only if they can learn in safe and disciplined 
environments. This program helps 97 percent of the Nation's school 
districts implement anti-drug and anti-violence programs in our schools. 
It helps students resolve conflicts before they escalate into tragedy, 
teaches them the dangers of drug use, and helps schools increase 
security measures. The budget includes $540 million for this program, a 
$74 million increase over the 1995 level.
  Special Education: States have made considerable progress in providing 
children with disabilities ``free appropriate public education,'' as the 
Individuals with Disabilities Education Act (IDEA) calls for. The 
primary challenge now is to improve the quality of that education so 
that children with disabilities can, as much as possible, meet 
challenging standards that have been established for all children, and 
be prepared to lead productive, independent adult lives.
  To that end, the Administration proposed amendments to IDEA in 1995 to 
link individualized education programs to participation in the general 
curriculum; require that children with disabilities be included in 
State- and district-wide assessment programs; and give States and 
schools greater flexibility to use IDEA funds to meet children's needs 
in the regular classroom.
  The budget provides $3.6 billion for special education, nine percent 
more than in 1995.

Postsecondary Education

  The Federal Government's primary roles in postsecondary education and 
skill training are to (1) help students finance their education; and (2) 
help ensure the availability of skill training and access to good jobs 
for youth and adults, including dislocated workers. (For information on 
skill training, see the section on the G.I. Bill for America's Workers.)
  Postsecondary costs continue to climb rapidly, outpacing the ability 
of many working families to meet them without sizable assistance. To 
that end, the budget proposes more aid to more individuals than ever 
before (see Chart 8-3). It also proposes a phased-in, $10,000 tax 
deduction to help families pay for education and career training beyond 
high school. (For more details on the tax deduction, see Chapter 12.)

                                     


  Student Loans: An estimated 5.7 million individuals will borrow over 
$32 billion through the Federal student loan programs in 1997. Families 
at any income level can receive loans, but needy students can get 
interest 
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subsidies. The loans finance study toward undergraduate or 
graduate degrees, or short-term vocational training programs. The annual 
maximum loan amount varies from $2,625 for a first-year student 
financially dependent on his or her parents, to $18,500 for a graduate 
or professional program student.
  Eligible institutions of higher education may participate in either 
the Federal Direct Loan Program (FDLP) or the Federal Family Education 
Loan Program (FFELP). FDLP, enacted at the President's request in 1993, 
offers an efficient, streamlined, low-cost system for students, parents, 
and schools. It also offers flexible repayment options for students, 
including repayment based on income. The Education Department estimates 
that direct loans will make up half of total loan volume in academic 
year 1996-97 (see Chart 8-4).

                                     


  The FFELP, created in 1965, is a bank-based program, with over 7,000 
commercial and other lenders receiving Federal guarantees through 36 
non-profit and State intermediaries, 90 secondary markets eventually 
holding most loans, and dozens of servicing companies. Federal and 
school administrative burdens and complexities are much greater and 
costlier under FFELP.
  The budget proposes legislative changes to both programs to save money 
without increasing costs or curtailing benefits to borrowers.

  Pell Grants: Pell grants provide need-based grants to low- and middle-
income undergraduates for associate and bachelors degree programs and 
vocational training. In the 1995-96 academic year, about 3.6 million 
students, a fifth of all college students, are receiving grants. Over 61 
percent of the recipients come from families with incomes under $15,000, 
and over 90 percent from families with incomes under $30,000.
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  Pell grants help raise the participation and graduation rates of low-
income students in postsecondary programs. Recipients from the poorest 
families are twice as likely to earn a bachelor's degree as are college 
students from similar families without grants.
  For 1997, the budget would raise the maximum Pell grant to $2,700, a 
$360 increase over 1995. It also would continue to raise the maximum 
award by three percent a year, providing a maximum award of $3,128 in 
2002.

  Presidential Honors Scholarships: The President proposes to create an 
achievement-based scholarship program, rewarding the best and the 
brightest of high school students. This program would grant $1,000 
honors awards to the top five percent of graduating students in every 
secondary school in the Nation, making clear the Government's commitment 
to excellence for all children. The budget requests $130 million for 
this program.
  College Work-Study: Work-study helps needy undergraduate and graduate 
students through part-time employment, rewarding their hard work and 
commitment to education. The President proposes a significant expansion 
over the next four years, enabling the program to serve a million 
students a year by 2000. The budget proposes $679 million, 10 percent 
more than in 1995.

G.I. Bill for America's Workers

  Most people change jobs and get new skills by themselves or through 
employers. For others who need help, the Federal Government has 
supported State and private efforts over the last 30 years to provide 
it, but with mixed results.
  Last year, the President proposed to dramatically overhaul the 
complex, inefficient structure of Federal job training programs through 
the G.I. Bill for America's Workers. It would consolidate some 70 
programs into a single, integrated workforce development 
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system. It would make the programs more effective by cutting bureaucracy, 
streamlining administration, and improving accountability by freeing 
States and localities to focus on results, not process.
  As of this writing, Congress was considering legislation based on the 
principles of the G.I. Bill. House- and Senate-passed bills differ, but 
final legislation should embody the President's vision of fostering 
individual opportunity by: giving workers the resources--i.e., Skill 
Grants--and information they need to make good training choices; 
providing access to employment services through customer-friendly, 
``One-stop'' career centers; and designing youth programs based on the 
School-to-Work Opportunities Act. But, because the new law may not take 
full effect until 1998, the budget proposes funding for the separate 
programs that would remain in place until then.
  The budget provides sizeable new support for those with the biggest 
job problems--out-of-school youth in low-income areas--building on 
lessons of the past and relying on locally-tailored designs. It proposes 
to maintain support for programs that come under the G.I. Bill. To 
ensure that employers comply with Federal workplace laws, it maintains, 
and often substantially reforms, enforcement programs.

  Out-of-School Youth Opportunities Program: Recognizing the special 
problems of out-of-school youth, the budget proposes $250 million for 
new competitive grants to the lowest-income urban and rural areas with 
major youth unemployment problems. These communities would have to 
provide matching funds from State, local, or private sources. The Labor 
Department would award funds based on the quality of applications--that 
is, to those with the best chance of substantially increasing employment 
among youth in the area.
  In a related proposal, the Administration's plan to fund a second 
round of Empowerment Zones and Enterprise Communities for distressed 
communities includes $50 million for the Labor Department to support a 
``Jobs for Residents'' component. (For more information on the 
Empowerment Zones and Enterprise Communities program, see Chapter 5.)

  School-to-Work: School-to-Work, which the Education and Labor 
Departments administer jointly, gives States and communities competitive 
grants to build comprehensive systems to help young people move from 
high school to careers or postsecondary training and education. Young 
people can prepare for high-skill, high-wage careers; receive top-
quality academic and occupational training; and pursue more education or 
training. And businesses get the trained workers they need to stay 
globally competitive.
  By mid-1996, 27 States and 91 local partnerships will have received 
grants to implement their school-to-work systems. The budget proposes 
$400 million for the program, a 63 percent increase over 1995. With it, 
the Government could allocate implementation grants to nearly every 
State.

  Summer Youth: The Summer Youth Employment and Training Program (SYETP) 
gives many urban and rural disadvantaged students their first work 
experiences, and localities may include an academic component that 
reenforces the skills they have learned during the school year. Under 
the G.I. Bill, SYETP would continue to provide these services, but would 
be fully integrated into each local school-to-work system.
  For 1996, Congress sought to eliminate SYETP, but the President is 
committed to ensuring that it continues. The budget expands the program 
to provide 574,000 opportunities for the summer of 1997.

  Job Corps: The Job Corps provides intensive skill training, academic 
and social education, and support services to severely disadvantaged 
young people in a controlled residential setting. The budget provides 
$1.2 billion to fund opportunities for 68,000 young people.
  Dislocated Workers and Low-Income Adult Training: The budget proposes 
$2.2 billion for Job Training Partnership Act programs that provide 
training, job search assistance, and related services to laid-off 
workers and economically disadvantaged adults. When the new workforce 
development system begins operating in 1998, these funds would finance, 
among other things, Skill Grants with which adults pay for the training 
of their choice.