[Appendix]
[Detailed Budget Estimates by Agency]
[Department of Education]
[From the U.S. Government Printing Office, www.gpo.gov]
THE BUDGET FOR FISCAL YEAR 1998
[[Page 415]]
DEPARTMENT OF EDUCATION
OFFICE OF ELEMENTARY AND SECONDARY EDUCATION
Federal Funds
General and special funds:
Education Reform
For carrying out activities authorized by titles III and IV of the
Goals 2000: Educate America Act, [and] the School-to-Work Opportunities
Act, and section 3132 of the Elementary and Secondary Education Act of
1965, [$691,000,000] $1,245,000,000, of which [$476,000,000]
$603,500,000 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] 1998, and remain available through September 30, [1998] 1999:
Provided, That none of the funds appropriated under this heading shall
be obligated or expended to carry out section 304(a)(2)(A) of the Goals
2000[: Educate America] Act, except that no more than $1,500,000 may be
used to carry out activities under section 314(a)(2) of that Act:
Provided further, That section 315(a)(2) of the Goals 2000 Act shall not
apply: Provided further, That up to one-half of one percent of the
amount available under section 3132 shall be set aside for the outlying
areas, to be distributed on the basis of their relative need as
determined by the Secretary in accordance with the purposes of the
program: Provided further, That 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 that State that apply directly to the Secretary
according to the terms and conditions published by the Secretary in the
Federal Register. (Department of Education Appropriations Act, 1997.)
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0500-0-1-501 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Obligations by program activity:
Goals 2000:
00.01 State and local education
systemic improvement.......... 321 673 605
00.02 Parental assistance............. 10 15 15
--------- --------- ----------
00.91 Total goals 2000.............. 331 688 620
01.01 School-to-work opportunities...... 149 332 200
02.01 Technology Literacy Challenge Fund 425
--------- --------- ----------
10.00 Total obligations............... 480 1,020 1,245
----------------------------------------------------------------------------
Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested
balance......................... 265 329
22.00 New budget authority (gross)...... 530 691 1,245
22.21 Unobligated balance transferred to
other accounts.................. -2
22.22 Unobligated balance transferred
from other accounts............. 16
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 809 1,020 1,245
23.95 New obligations................... -480 -1,020 -1,245
24.40 Unobligated balance available, end
of year: Uninvested balance..... 329
----------------------------------------------------------------------------
New budget authority (gross), detail:
40.00 Appropriation..................... 530 691 1,245
----------------------------------------------------------------------------
Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Appropriation 322 532 861
73.10 New obligations................... 480 1,020 1,245
73.20 Total outlays (gross)............. -271 -691 -730
73.40 Adjustments in expired accounts... 1
74.40 Unpaid obligations, end of year:
Obligated balance: Appropriation 532 861 1,376
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new current authority 7 83 149
86.93 Outlays from current balances..... 264 608 581
--------- --------- ----------
87.00 Total outlays (gross)........... 271 691 730
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 530 691 1,245
90.00 Outlays........................... 271 691 730
---------------------------------------------------------------------------
Note.--Includes $425 million in budget authority in 1998 for activities
previously financed through the Department of Education, Office of
Educational Research and Improvement, Education Research, Statistics, and
Improvement account. The comparable amount for 1997 is $200 million and zero
in 1996, since the program was first funded in 1997.
Funds help States and localities undertake comprehensive education
reform, create State and local systems of school-to-work transition for
students, and implement educational technology plans.
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. Funds also
support evaluation of educational reform efforts.
Parental assistance.--Centers in 42 States would continue to
help provide parents with knowledge and skills they need to
participate effectively in their children's education.
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. Thirty-
seven States are currently in their first, second, or third year of
these grants. Requested funds would enable all States to participate
fully.
Direct grants are also provided to local partnerships serving young
people who live in urban and rural areas characterized by high-poverty,
as well as partnerships that serve Indian youth. These funds also
support a national evaluation, research, and development activities to
provide national leadership and analysis of school-to-work opportunities
initiatives.
Technology Literacy Challenge Fund.--All States will receive the
second year of 5-year grants as part of the President's plan to provide
States and school districts with $2 billion over 5 years for computers,
connections, training, and software, in order to achieve the President's
four goals for fully integrating technology into schools.
Object Classification (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0500-0-1-501 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
25.1 Advisory and assistance services.. 2 2 4
25.2 Other services.................... 3 6 6
25.3 Purchases of goods and services
from Government accounts........ 1 1 1
41.0 Grants, subsidies, and
contributions................... 474 1,011 1,234
--------- --------- ----------
99.9 Total obligations............... 480 1,020 1,245
---------------------------------------------------------------------------
Education for the Disadvantaged
For carrying out title I of the Elementary and Secondary Education
Act of 1965, and section 418A of the Higher Education Act,
[$7,698,469,000] $8,077,266,000, of which [$6,380,114,000]
$6,755,165,000 shall become available on July 1, [1997] 1998, and shall
remain available through September 30, [1998] 1999, and of which
$1,298,386,000 shall become available on October 1, [1997] 1998 and
shall remain available through September 30, [1998] 1999, for academic
year [1997-1998] 1998-1999: Provided, That
[[Page 416]]
[$6,194,850,000] $6,191,350,000 shall be available for basic grants
under section 1124: Provided further, That up to [$3,500,000] $4,000,000
of these funds shall be available to the Secretary on October 1, [1996]
1997, to obtain updated local-educational-agency-level census poverty
data from the Bureau of the Census: Provided further, That $999,249,000
shall be available for concentration grants under section 1124(A),
$350,000,000 shall be available for targeted grants under section 1125,
[and $7,000,000] $10,000,000 shall be available for evaluations under
section 1501, and not more than $7,500,000 shall be reserved for section
1308, of which not more than $3,000,000 shall be reserved for section
1308(d). (Department of Education Appropriations Act, 1997.)
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0900-0-1-501 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Obligations by program activity:
Direct program:
Grants to local educational
agencies:
00.01 Basic grants.................. 4,835 6,181 6,191
00.02 Concentration grants.......... 547 941 999
00.03 Targeted grants............... 350
00.04 Set-aside for BIA/outlying
areas....................... 5 85
00.05 Capital expenses................ 44 41 41
00.06 Even start...................... 103 104 108
00.07 State agency programs........... 346 349 360
00.08 State school improvement........ 8
00.09 Evaluation...................... 3 7 10
00.10 Migrant education projects...... 9 9 10
--------- --------- ----------
00.91 Total direct program.......... 5,892 7,717 8,077
01.01 Reimbursable program.............. 1 14
--------- --------- ----------
10.00 Total obligations............... 5,893 7,731 8,077
----------------------------------------------------------------------------
Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested
balance......................... 17 41
22.00 New budget authority (gross)...... 5,911 7,690 8,077
22.10 Resources available from
recoveries of prior year
obligations..................... 7
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 5,935 7,731 8,077
23.95 New obligations................... -5,893 -7,731 -8,077
24.40 Unobligated balance available, end
of year: Uninvested balance..... 41
----------------------------------------------------------------------------
New budget authority (gross), detail:
Current:
40.00 Appropriation................... 5,930 6,400 6,779
41.00 Transferred to other accounts... -34
--------- --------- ----------
43.00 Appropriation (total)......... 5,896 6,400 6,779
Permanent:
61.00 Transferred to other accounts... -8
65.00 Advance appropriation (definite) 1,298 1,298
68.00 Spending authority from
offsetting collections:
Offsetting collections (cash). 15
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 5,911 7,690 8,077
----------------------------------------------------------------------------
Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Appropriation 7,900 6,721 7,217
73.10 New obligations................... 5,893 7,731 8,077
73.20 Total outlays (gross)............. -7,034 -7,235 -7,476
73.40 Adjustments in expired accounts... -31
73.45 Adjustments in unexpired accounts. -7
74.40 Unpaid obligations, end of year:
Obligated balance: Appropriation 6,721 7,217 7,818
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new current authority 330 768 813
86.93 Outlays from current balances..... 6,695 5,421 5,390
86.97 Outlays from new permanent
authority....................... 1,032 1,038
86.98 Outlays from permanent balances... 9 14 235
--------- --------- ----------
87.00 Total outlays (gross)........... 7,034 7,235 7,476
----------------------------------------------------------------------------
Offsets:
Against gross budget authority and outlays:
88.00 Offsetting collections (cash)
from: Federal sources......... -15
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 5,896 7,690 8,077
90.00 Outlays........................... 7,020 7,235 7,476
---------------------------------------------------------------------------
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 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.
Evaluation.--Funds support national activities to evaluate Title I
programs and ongoing longitudinal studies of the program's effectiveness
in helping schools and children achieve to challenging State education
standards.
Migrant education projects.--Funds support grants to institutions of
higher education and other non-profit agencies that assist migrant
students to earn a high school equivalency certificate or to complete
their first year of college.
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 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Direct obligations:
25.1 Advisory and assistance services 6 8 11
25.2 Other services.................. 3 6 6
41.0 Grants, subsidies, and
contributions................. 5,883 7,703 8,060
--------- --------- ----------
99.0 Subtotal, direct obligations.. 5,892 7,717 8,077
99.0 Reimbursable obligations.......... 1 14
--------- --------- ----------
99.9 Total obligations............... 5,893 7,731 8,077
---------------------------------------------------------------------------
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, [$730,000,000], $658,000,000, of which
[$615,500,000] $584,000,000 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), [$52,000,000] $20,000,000, to remain
available until expended, shall be for payments under
[[Page 417]]
section 8003(f), [$5,000,000] $4,000,000 shall be for construction under
section 8007, and $10,000,000, to remain available until expended, shall
be for facilities maintenance activities under section 8008 [$17,500,000
shall be for Federal property payments under section 8002]: 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 1997 shall be eligible
to receive a payment under sections 8003(b) and 8003(d) for fiscal year
1998: Provided further, That notwithstanding the provisions of 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 the provisions
of 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 shall be used for payments
under section 8003(e). (Department of Education Appropriations Act,
1997.)
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0102-0-1-501 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Obligations by program activity:
Payments for federally connected children:
00.01 Basic support payments.......... 582 615 584
00.02 Supplemental payments for
children with disabilities.... 40 40 40
00.03 Payments for heavily impacted
districts..................... 41 101 20
--------- --------- ----------
00.91 Subtotal, payments for federally
connected children............ 663 756 644
01.01 Facilities maintenance............ 6 12 10
02.01 Construction...................... 13 22 4
03.01 Payments for Federal property..... 16 18
04.01 Payments for section 3(d)(2)(B)... 3 4
05.01 Disaster assistance............... 1 27
06.01 Construction (P.L. 81-815)........ 1
--------- --------- ----------
10.00 Total obligations............... 703 839 658
----------------------------------------------------------------------------
Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested
balance......................... 105 109
22.00 New budget authority (gross)...... 693 730 658
22.10 Resources available from
recoveries of prior year
obligations..................... 14
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 812 839 658
23.95 New obligations................... -703 -839 -658
24.40 Unobligated balance available, end
of year: Uninvested balance..... 109
----------------------------------------------------------------------------
New budget authority (gross), detail:
40.00 Appropriation..................... 693 730 658
----------------------------------------------------------------------------
Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Appropriation 373 320 258
73.10 New obligations................... 703 839 658
73.20 Total outlays (gross)............. -952 -901 -701
73.40 Adjustments in expired accounts... 210
73.45 Adjustments in unexpired accounts. -14
74.40 Unpaid obligations, end of year:
Obligated balance: Appropriation 320 258 215
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new current authority 531 599 532
86.93 Outlays from current balances..... 421 302 169
--------- --------- ----------
87.00 Total outlays (gross)........... 952 901 701
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 693 730 658
90.00 Outlays........................... 952 901 701
---------------------------------------------------------------------------
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 330,000 federally connected children enrolled in nearly
1,000 school districts across the country. The request would provide an
average payment of $1,770 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 31,000
such children are enrolled in school districts across the country. The
request would provide approximately $1,300 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 and to facilitate the transfer of the facilities to local
educational agencies.
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 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
32.0 Land and structures............... 6 12 10
41.0 Grants, subsidies, and
contributions................... 697 827 648
--------- --------- ----------
99.9 Total obligations............... 703 839 658
---------------------------------------------------------------------------
School Construction
(Legislative proposal, subject to PAYGO)
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0010-4-1-501 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Obligations by program activity:
10.00 Total obligations (object class
41.0)........................... 5,000
----------------------------------------------------------------------------
Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 5,000
23.95 New obligations................... -5,000
----------------------------------------------------------------------------
New budget authority (gross), detail:
40.00 Appropriation..................... 5,000
----------------------------------------------------------------------------
Change in unpaid obligations:
73.10 New obligations................... 5,000
73.20 Total outlays (gross)............. -1,250
74.40 Unpaid obligations, end of year:
Obligated balance: Appropriation 3,750
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new current authority 1,250
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 5,000
90.00 Outlays........................... 1,250
---------------------------------------------------------------------------
School construction.--Under legislation that the Administration is
submitting to the Congress in 1997, funds would provide Federal interest
subsidies, or similar assistance, to States and localities to stimulate
public elementary and secondary school construction and renovation. The
legislation would create a one-time mandatory appropriation of $5
billion.
[[Page 418]]
School Improvement Programs
For carrying out school improvement activities authorized by titles
II, IV[-A-1], V-A and B, [VI], IX, X and XIII of the Elementary and
Secondary Education Act of 1965; the Stewart B. McKinney Homeless
Assistance Act; and the Civil Rights Act of 1964; [$1,425,631,000]
$1,299,222,000, of which [$1,202,478,000] $977,000,000 shall become
available on July 1, [1997] 1998, and remain available through September
30, [1998] 1999: Provided, That of the amount appropriated,
[$310,000,000] $360,000,000 shall be for Eisenhower professional
development State grants under title II-B of the Elementary and
Secondary Education Act; $100,000,000 shall be for charter schools under
title X, part C of such Act; and [$310,000,000 shall be for innovative
education program strategies State grants under title VI-A.] $750,000
shall be for an evaluation of comprehensive regional assistance centers
under title XIII of such Act: Provided further, That funds under titles
II-B and IV-A-1 shall be used only for programs that are consistent with
principles of effectiveness to be published in the Federal Register by
the Secretary of Education. (Department of Education Appropriations Act,
1997.)
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-1000-0-1-501 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Obligations by program activity:
Professional development and program
innovation:
00.01 Eisenhower professional
development State grants...... 273 311 360
00.02 Innovative education program
strategies State grants....... 275 310
Safe and drug-free schools and communities:
00.03 State grants.................... 438 558 590
00.04 National programs............... 25 30
00.05 Inexpensive book distribution..... 10 10 12
00.06 Arts in education................. 9 9 10
00.07 Magnet schools assistance......... 95 95 95
00.08 Education for homeless children
and youth....................... 23 25 27
00.09 Women's educational equity........ 2 4
00.10 Training and advisory services.... 7 7 14
00.11 Ellender fellowships.............. 2 2
00.12 Education for Native Hawaiians.... 12 15 15
00.13 Alaska Native education equity.... 8 8
00.14 Foreign language assistance....... 10
00.15 Charter schools................... 18 51 100
00.16 Comprehensive regional assistance
centers......................... 22 26 34
--------- --------- ----------
10.00 Total obligations............... 1,219 1,429 1,299
----------------------------------------------------------------------------
Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested
balance......................... 5 4
22.00 New budget authority (gross)...... 1,218 1,426 1,299
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 1,223 1,430 1,299
23.95 New obligations................... -1,219 -1,429 -1,299
24.40 Unobligated balance available, end
of year: Uninvested balance..... 4
----------------------------------------------------------------------------
New budget authority (gross), detail:
40.00 Appropriation..................... 1,224 1,426 1,299
41.00 Transferred to other accounts..... -6
--------- --------- ----------
43.00 Appropriation (total)........... 1,218 1,426 1,299
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 1,218 1,426 1,299
----------------------------------------------------------------------------
Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Appropriation 1,761 1,693 1,606
73.10 New obligations................... 1,219 1,429 1,299
73.20 Total outlays (gross)............. -1,246 -1,516 -1,396
73.40 Adjustments in expired accounts... -41
74.40 Unpaid obligations, end of year:
Obligated balance: Appropriation 1,693 1,606 1,509
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new current authority 51 171 156
86.93 Outlays from current balances..... 1,195 1,345 1,240
--------- --------- ----------
87.00 Total outlays (gross)........... 1,246 1,516 1,396
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 1,218 1,426 1,299
90.00 Outlays........................... 1,246 1,516 1,396
---------------------------------------------------------------------------
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.
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 regional
desegregation assistance centers and State Educational Agencies 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.
Alaska Native education equity.--Grants provide supplemental
education services to Alaska Natives in the areas of educational
planning, curriculum development, teacher training, teacher recruitment,
student enrichment, and home-based instruction for pre-school children.
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 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
24.0 Printing and reproduction......... 1 1 1
[[Page 419]]
25.1 Advisory and assistance services.. 2 2 2
25.2 Other services.................... 14 17 20
25.5 Research and development contracts 1 1 1
41.0 Grants, subsidies, and
contributions................... 1,201 1,408 1,275
--------- --------- ----------
99.9 Total obligations............... 1,219 1,429 1,299
---------------------------------------------------------------------------
America Reads Challenge
(Legislative proposal, subject to PAYGO)
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0011-4-1-501 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 America's Reading Corps........... 200
00.02 Parents as first teachers grants.. 60
--------- --------- ----------
10.00 Total obligations (object class
41.0)......................... 260
----------------------------------------------------------------------------
Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 260
23.95 New obligations................... -260
----------------------------------------------------------------------------
New budget authority (gross), detail:
40.00 Appropriation..................... 260
----------------------------------------------------------------------------
Change in unpaid obligations:
73.10 New obligations................... 260
73.20 Total outlays (gross)............. -31
74.40 Unpaid obligations, end of year:
Obligated balance: Appropriation 229
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new current authority 31
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 260
90.00 Outlays........................... 31
---------------------------------------------------------------------------
America's Reading Corps.--The President has proposed a new
initiative to work with families and communities in a national reading
effort that will enlist a million trained and supervised reading tutors,
most of whom will participate in after-school, weekend, and summer
reading programs, to assist in teaching at least three million children
to read independently and well by the end of the third grade. Department
of Education funding for the America's Reading Corps will pay primarily
for reading specialists and materials to train tutors while tutor
recruitment efforts will be the focus of additional funds requested in
the budget for the Corporation for National and Community Service.
Parents as First Teachers grants.--Funds will be made available to
national and regional groups, as well as local communities and
organizations, to support effective, proven literacy efforts that help
parents to help their children become successful readers by the end of
third grade.
Chicago Litigation Settlement
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0220-0-1-501 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Obligations by program activity:
10.00 Total obligations (object class
41.0)........................... 1 5 4
----------------------------------------------------------------------------
Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested
balance......................... 10 9 4
23.95 New obligations................... -1 -5 -4
24.40 Unobligated balance available, end
of year: Uninvested balance..... 9 4
----------------------------------------------------------------------------
Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Appropriation 2 1 3
73.10 New obligations................... 1 5 4
73.20 Total outlays (gross)............. -1 -4 -4
74.40 Unpaid obligations, end of year:
Obligated balance: Appropriation 1 3 3
----------------------------------------------------------------------------
Outlays (gross), detail:
86.93 Outlays from current balances..... 1 4 4
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays........................... 1 4 4
---------------------------------------------------------------------------
Funds made available under this account were reappropriated 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 Education Act
of 1965, as amended, and section 215 of the Department of Education
Organization Act, [$61,000,000] $62,600,000. (Department of the Interior
and Related Agencies Appropriations Act, 1997.)
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0101-0-1-501 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Grants to local educational
agencies........................ 50 58 60
00.02 Fellowships....................... 1
00.03 Federal Administration............ 2 3 3
--------- --------- ----------
10.00 Total obligations............... 53 61 63
----------------------------------------------------------------------------
Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested
balance......................... 1
22.00 New budget authority (gross)...... 52 61 63
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 53 61 63
23.95 New obligations................... -53 -61 -63
24.40 Unobligated balance available, end
of year: Uninvested balance.....
----------------------------------------------------------------------------
New budget authority (gross), detail:
40.00 Appropriation..................... 52 61 63
----------------------------------------------------------------------------
Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Appropriation 93 66 60
73.10 New obligations................... 53 61 63
73.20 Total outlays (gross)............. -77 -67 -61
73.40 Adjustments in expired accounts... -3
74.40 Unpaid obligations, end of year:
Obligated balance: Appropriation 66 60 62
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new current authority 2 9 10
86.93 Outlays from current balances..... 75 58 51
--------- --------- ----------
87.00 Total outlays (gross)........... 77 67 61
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 52 61 63
90.00 Outlays........................... 77 67 61
---------------------------------------------------------------------------
The Indian Education program (Title IX, Part A of the Elementary and
Secondary Education Act) supports the efforts of local educational
agencies and tribal schools to im-
[[Page 420]]
prove teaching and learning for the Nation's American Indian and Alaska
Native children.
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 1996, 1,219 formula grants were made to local
educational agencies and certain tribal schools enrolling approximately
422,500 Indian students.
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 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
11.1 Personnel compensation: Full-time
permanent....................... 2 2 2
41.0 Grants, subsidies, and
contributions................... 51 58 60
99.5 Below reporting threshold......... 1 1
--------- --------- ----------
99.9 Total obligations............... 53 61 63
---------------------------------------------------------------------------
Personnel Summary
----------------------------------------------------------------------------
Identification code 91-0101-0-1-501 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
1001 Total compensable workyears: Full-
time equivalent employment...... 30 24 24
---------------------------------------------------------------------------
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, without regard to section 7103(b), [$261,700,000]
$354,000,000, of which [$100,000,000] $150,000,000 shall be for
immigrant education programs 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:
Provided further, That the Department of Education should only support
instructional programs which ensure that students completely master
English in a timely fashion (a period of three to five years) while
meeting rigorous achievement standards in the academic content areas.
(Department of Education Appropriations Act, 1997.)
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-1300-0-1-501 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Instructional services............ 117 157 160
00.02 Support services.................. 10 14
00.03 Training grants................... 1 25
00.04 Foreign Language Assistance....... 5 5
00.05 Immigrant education............... 50 100 150
--------- --------- ----------
10.00 Total obligations............... 178 262 354
----------------------------------------------------------------------------
Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 178 262 354
23.95 New obligations................... -178 -262 -354
----------------------------------------------------------------------------
New budget authority (gross), detail:
40.00 Appropriation..................... 178 262 354
----------------------------------------------------------------------------
Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Appropriation 266 241 278
73.10 New obligations................... 178 262 354
73.20 Total outlays (gross)............. -185 -225 -276
73.40 Adjustments in expired accounts... -18
74.40 Unpaid obligations, end of year:
Obligated balance: Appropriation 241 278 356
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new current authority 4 31 42
86.93 Outlays from current balances..... 181 194 234
--------- --------- ----------
87.00 Total outlays (gross)........... 185 225 276
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 178 262 354
90.00 Outlays........................... 185 225 276
---------------------------------------------------------------------------
Bilingual education.--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 in achieving 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.
Appropriation language permits 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 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
25.2 Other services.................... 2 6
41.0 Grants, subsidies, and
contributions................... 176 262 348
--------- --------- ----------
99.9 Total obligations............... 178 262 354
---------------------------------------------------------------------------
OFFICE OF SPECIAL EDUCATION AND REHABILITATIVE SERVICES
Federal Funds
General and special funds:
Special Education
[For carrying out parts B, C, D, E, F, G, and H and section
610(j)(2)(C) of the Individuals with Disabilities Education Act,
$4,036,000,000, of which $3,783,685,000 shall become available for
obligation on July 1, 1997, and shall remain available through September
30, 1998: Provided, That the Republic of the Marshall Islands, the
Federated States of Micronesia, and the Republic of Palau shall continue
to be eligible to receive funds under the Individuals with Disabilities
Education Act consistent with the provisions of Public Law 104-134:
Provided further, That the entities that received competitive awards for
direct services to children under section 611 of the Individuals with
Disabilities Education Act in accordance with the competition required
in Public Law 104-134 shall continue to be funded, without competition,
in the same amounts as under Public Law 104-134.] (Department of
Education Appropriations Act, 1997.)
[[Page 421]]
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0300-0-1-501 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Obligations by program activity:
State grants:
00.01 Grants to States................ 2,349 3,119
00.02 Preschool grants................ 366 361
00.03 Grants for infants and families. 429 505
--------- --------- ----------
00.91 Subtotal, State grants........ 3,145 3,985
Special purpose funds:
01.01 Deaf-blindness.................. 13 13
01.02 Serious emotional disturbance... 4 4
01.03 Severe disabilities............. 10 10
01.04 Early childhood education....... 25 25
01.05 Secondary and transitional
services...................... 24 24
01.06 Postsecondary education......... 9 9
01.07 Innovation and development...... 14 16
01.08 Media and captioning services... 19 20
01.09 Technology applications......... 10 10
01.10 Special studies................. 4 4
01.11 Personnel development........... 91 93
01.12 Parent training................. 14 16
01.13 Clearinghouses.................. 2 2
01.14 Regional resource centers....... 7 7
01.15 Architectural barriers removal.. 1
--------- --------- ----------
01.91 Subtotal, Special purpose
funds....................... 246 252
--------- --------- ----------
10.00 Total obligations............... 3,390 4,238
----------------------------------------------------------------------------
Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested
balance......................... 339 202
22.00 New budget authority (gross)...... 3,245 4,036
22.10 Resources available from
recoveries of prior year
obligations..................... 8
22.30 Unobligated balance expiring...... -1
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 3,592 4,238
23.95 New obligations................... -3,390 -4,238
24.40 Unobligated balance available, end
of year: Uninvested balance..... 202
----------------------------------------------------------------------------
New budget authority (gross), detail:
40.00 Appropriation..................... 3,245 4,036
----------------------------------------------------------------------------
Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Appropriation 3,952 4,055 4,867
73.10 New obligations................... 3,390 4,238
73.20 Total outlays (gross)............. -3,222 -3,426 -3,332
73.40 Adjustments in expired accounts... -57
73.45 Adjustments in unexpired accounts. -8
74.40 Unpaid obligations, end of year:
Obligated balance: Appropriation 4,055 4,867 1,535
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new current authority 122 404
86.93 Outlays from current balances..... 3,100 3,022 3,332
--------- --------- ----------
87.00 Total outlays (gross)........... 3,222 3,426 3,332
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 3,245 4,036
90.00 Outlays........................... 3,222 3,426 3,332
---------------------------------------------------------------------------
Summary of Budget Authority and Outlays
[In millions of dollars]
1996 actual 1997 est. 1998 est.
Enacted/requested:
Budget Authority.................. 3,245 4,036
Outlays........................... 3,222 3,426 3,332
Legislative proposal, not subject to
PAYGO:
Budget Authority.................. 4,210
Outlays........................... 421
------------------------------------
Total:
Budget Authority.................. 3,245 4,036 4,210
Outlays........................... 3,222 3,426 3,753
====================================
The administration will propose legislation 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:
1995 actual 1996 actual 1997 est.
Number of children served on December 1
of fiscal year:
Ages 3 through 21..................... 5,439,626 5,628,577 5,798,000
Ages 3 through 5...................... 524,458 549,154 577,000
Birth through 2....................... 165,253 174,288 184,000
1991-1992 ac1992-1993 actual 1993-1994
actual
Educational Environment
Children ages 3 through 21 provided
special education in:
Regular classrooms with or without
resource rooms...................... 3,397,326 3,563,883 3,746,481
Separate classes...................... 1,160,943 1,219,867 1,232,312
Separate schools...................... 219,055 204,764 192,112
Residential facilities................ 40,893 40,466 37,299
Status of Exiting Students
Graduated with a diploma................ 100,742 103,801 113,945
Graduated through certification......... 30,839 34,732 23,948
Reached maximum age..................... 4,337 5,096 4,594
Dropped out of school................... 51,489 NA 76,608
Status unknown.......................... 41,961 NA 42,460
NA--Not available due to changes in data collection form.
Object Classification (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0300-0-1-501 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
25.2 Other services.................... 8 8
25.5 Research and development contracts 1 1
41.0 Grants, subsidies, and
contributions................... 3,381 4,229
--------- --------- ----------
99.9 Total obligations............... 3,390 4,238
---------------------------------------------------------------------------
Special Education
(Legislative proposal, not subject to PAYGO)
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0300-2-1-501 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Obligations by program activity:
State grants:
00.01 Grants to States................ 3,249
00.02 Preschool grants................ 375
00.03 Grants for infants and families. 324
--------- --------- ----------
00.91 Subtotal, State grants........ 3,948
Program support and improvement:
01.01 Research to practice............ 100
01.02 State improvement............... 35
01.03 Professional development........ 82
01.04 Parent training and information. 16
01.05 Technology development and
educational media services.... 30
--------- --------- ----------
01.91 Subtotal, Program support and
improvement................. 262
--------- --------- ----------
10.00 Total obligations............... 4,210
----------------------------------------------------------------------------
Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 4,210
23.95 New obligations................... -4,210
----------------------------------------------------------------------------
New budget authority (gross), detail:
40.00 Appropriation..................... 4,210
----------------------------------------------------------------------------
Change in unpaid obligations:
73.10 New obligations................... 4,210
73.20 Total outlays (gross)............. -421
74.40 Unpaid obligations, end of year:
Obligated balance: Appropriation 3,789
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new current authority 421
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 4,210
90.00 Outlays........................... 421
---------------------------------------------------------------------------
The resources in this schedule are proposed for later transmittal
under proposed legislation to authorize programs under the Individuals
with Disabilities Education Act.
[[Page 422]]
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 ages 3 through 21. The 1998 estimate of
these children is 5,906,000.
Preschool Grants.--Formula grants provide additional funds to
States to further assist them in providing special education and
related services to children with disabilities ages 3 through 5
served under the Grants to States program. The 1998 estimate of
these children is 600,000.
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, birth through age 2 years 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 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
25.2 Other services.................... 8
25.5 Research and development contracts 1
41.0 Grants, subsidies, and
contributions................... 4,201
--------- --------- ----------
99.9 Total obligations............... 4,210
---------------------------------------------------------------------------
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, $2,509,447,000] $36,109,000. (Department of Education
Appropriations Act, 1997.)
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0301-0-1-506 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Obligations by program activity:
Direct program:
00.01 Vocational rehabilitation State
grants........................ 2,114 2,176
00.02 Client assistance State grants.. 10 10
00.03 Training........................ 40 40
00.04 Special demonstration programs.. 26 20
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........................ 38 38
00.10 Independent living.............. 73 75
00.11 Program improvement............. 1 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............ 36 36 36
00.16 1996 Paralympics Games.......... 7
--------- --------- ----------
00.91 Total direct program.......... 2,457 2,511 36
01.01 Reimbursable program.............. 2
--------- --------- ----------
10.00 Total obligations............... 2,459 2,511 36
----------------------------------------------------------------------------
Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested
balance......................... 2 1
22.00 New budget authority (gross)...... 2,458 2,509 36
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 2,460 2,510 36
23.95 New obligations................... -2,459 -2,511 -36
24.40 Unobligated balance available, end
of year: Uninvested balance..... 1
----------------------------------------------------------------------------
New budget authority (gross), detail:
Current:
40.00 Appropriation................... 2,456 2,509 36
Permanent:
68.00 Spending authority from
offsetting collections:
Offsetting collections (cash). 2
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 2,458 2,509 36
----------------------------------------------------------------------------
Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Appropriation 922 951 760
73.10 New obligations................... 2,459 2,511 36
73.20 Total outlays (gross)............. -2,413 -2,702 -665
73.40 Adjustments in expired accounts... -18
74.40 Unpaid obligations, end of year:
Obligated balance: Appropriation 951 760 131
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new current authority 1,617 1,932 28
86.93 Outlays from current balances..... 794 770 637
86.97 Outlays from new permanent
authority....................... 2
--------- --------- ----------
87.00 Total outlays (gross)........... 2,413 2,702 665
----------------------------------------------------------------------------
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.................. 2,456 2,509 36
90.00 Outlays........................... 2,410 2,702 665
---------------------------------------------------------------------------
Summary of Budget Authority and Outlays
[In millions of dollars]
1996 actual 1997 est. 1998 est.
Enacted/requested:
Budget Authority.................. 2,456 2,509 36
Outlays........................... 2,411 2,702 665
Legislative proposal, not subject to
PAYGO:
Budget Authority.................. 2,547
Outlays........................... 1,961
------------------------------------
Total:
Budget Authority.................. 2,456 2,509 2,583
Outlays........................... 2,411 2,702 2,626
====================================
The administration will propose legislation authorizing programs
under the Rehabilitation Act and the Helen Keller National Center Act.
When new legislation is enacted, resources for the affected programs
will be requested. See the ``Legislative proposal, not subject to
PAYGO'' schedule for additional details.
Programs and activities under the current laws are described below.
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.
As a result of the 1992 amendments to the Rehabilitation Act, the
eligibility rate (applicants determined eligible for the VR program as a
percent of all eligibility determinations) rose from 56.5 percent in
1992 to 76.5 percent in 1996. Half of the State VR agencies (41 of 82)
could not serve all individuals determined to be eligible for the
program. Of those individuals whose cases were closed in 1996 after
receiving VR services, about 60 percent achieved an employment outcome
and an estimated 86 percent of these individuals entered the competitive
labor market or became self-employed.
[[Page 423]]
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
1995 1996
actual preliminary
Eligible individuals in the VR system... 1,250,314 1,254,100
Severe disabilities, percent........... 75.2 75.5
Individuals achieving employment
outcomes............................... 209,509 209,500
Severe disabilities, percent........... 76.0 77.3
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 are 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 include technical assistance activities of national scope,
and the development of an effective data management and reporting
system, including program performance measures.
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 with disabilities.
Object Classification (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0301-0-1-506 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
25.1 Advisory and assistance services.. 5 7 1
25.2 Other services.................... 2 2
25.3 Purchases of goods and services
from Government accounts........ 1 1
25.5 Research and development contracts 1 1
41.0 Grants, subsidies, and
contributions................... 2,448 2,500 35
--------- --------- ----------
99.0 Subtotal, direct obligations.. 2,457 2,511 36
--------- --------- ----------
99.9 Total obligations............... 2,459 2,511 36
---------------------------------------------------------------------------
Rehabilitation Services and Disability Research
(Legislative proposal, not subject to PAYGO)
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0301-2-1-506 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Obligations by program activity:
Direct program:
00.01 Vocational rehabilitation State
grants........................ 2,247
00.02 Client assistance State grants.. 11
00.03 Training........................ 40
00.04 Special demonstration programs.. 17
00.05 Migratory workers............... 2
00.06 Recreational programs........... 3
00.07 Protection and advocacy......... 8
00.08 Projects with industry.......... 22
00.09 Supported employment State
grants........................ 38
00.10 Independent living.............. 76
00.11 Program improvement............. 4
00.12 Evaluation...................... 1
00.13 Helen Keller National Center.... 7
00.14 National Institute on Disability
and Rehabilitation Research... 71
--------- --------- ----------
10.00 Total obligations............... 2,547
----------------------------------------------------------------------------
Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 2,547
23.95 New obligations................... -2,547
----------------------------------------------------------------------------
New budget authority (gross), detail:
40.00 Appropriation..................... 2,547
----------------------------------------------------------------------------
Change in unpaid obligations:
73.10 New obligations................... 2,547
73.20 Total outlays (gross)............. -1,961
74.40 Unpaid obligations, end of year:
Obligated balance: Appropriation 587
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new current authority 1,961
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 2,547
90.00 Outlays........................... 1,961
---------------------------------------------------------------------------
[[Page 424]]
The administration is currently preparing a legislative proposal to
reauthorize the expiring Rehabilitation Act and the Helen Keller
National Center Act. The resources in this schedule are distributed
under current law for illustrative purposes. The distribution of
resources is subject to change pending the enactment of new authorizing
legislation.
Object Classification (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0301-2-1-506 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
25.1 Advisory and assistance services.. 6
25.2 Other services.................... 2
25.3 Purchases of goods and services
from Government accounts........ 1
25.5 Research and development contracts 1
41.0 Grants, subsidies, and
contributions................... 2,537
--------- --------- ----------
99.9 Total obligations............... 2,547
---------------------------------------------------------------------------
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.), $6,680,000. (Department of Education Appropriations Act,
1997.)
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0600-0-1-501 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Obligations by program activity:
10.00 Total obligations (object class
41.0)........................... 7 7 7
----------------------------------------------------------------------------
Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 7 7 7
23.95 New obligations................... -7 -7 -7
----------------------------------------------------------------------------
New budget authority (gross), detail:
40.00 Appropriation..................... 7 7 7
----------------------------------------------------------------------------
Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Appropriation 1 2
73.10 New obligations................... 7 7 7
73.20 Total outlays (gross)............. -5 -9 -7
74.40 Unpaid obligations, end of year:
Obligated balance: Appropriation 2
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new current authority 4 7 7
86.93 Outlays from current balances..... 1 2
--------- --------- ----------
87.00 Total outlays (gross)........... 5 9 7
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 7 7 7
90.00 Outlays........................... 5 9 7
---------------------------------------------------------------------------
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 1996, 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 34 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: Provided, That from the amount available, the Institute may
at its discretion use funds for the endowment program as authorized
under section 207. (Department of Education Appropriations Act, 1997.)
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0601-0-1-502 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Obligations by program activity:
10.00 Total obligations (object class
41.0)........................... 42 43 43
----------------------------------------------------------------------------
Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 42 43 43
23.95 New obligations................... -42 -43 -43
----------------------------------------------------------------------------
New budget authority (gross), detail:
40.00 Appropriation..................... 42 43 43
----------------------------------------------------------------------------
Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Appropriation 3
73.10 New obligations................... 42 43 43
73.20 Total outlays (gross)............. -42 -40 -43
74.40 Unpaid obligations, end of year:
Obligated balance: Appropriation 3 2
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new current authority 42 40 40
86.93 Outlays from current balances..... 3
--------- --------- ----------
87.00 Total outlays (gross)........... 42 40 43
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 42 43 43
90.00 Outlays........................... 42 40 43
---------------------------------------------------------------------------
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 1996, Federal appropriations
represented 81.8 percent of the Institute's operating budget. The
Institute may also use appropriated funds for the Endowment Grant
program.
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.), $79,182,000: Provided, That from the amount
available, the University may at its discretion use funds for the
endowment program as authorized under section 207. (Department of
Education Appropriations Act, 1997.)
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0602-0-1-502 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Obligations by program activity:
01.01 University programs............... 53
02.01 Pre-college programs.............. 24
03.01 Endowment grant................... 1
04.01 Consolidated Account.............. 79 79
--------- --------- ----------
10.00 Total obligations (object class
41.0)......................... 78 79 79
----------------------------------------------------------------------------
Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 78 79 79
23.95 New obligations................... -78 -79 -79
----------------------------------------------------------------------------
New budget authority (gross), detail:
40.00 Appropriation..................... 78 79 79
----------------------------------------------------------------------------
Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Appropriation 3 2 5
73.10 New obligations................... 78 79 79
73.20 Total outlays (gross)............. -79 -76 -79
74.40 Unpaid obligations, end of year:
Obligated balance: Appropriation 2 5 5
----------------------------------------------------------------------------
[[Page 425]]
Outlays (gross), detail:
86.90 Outlays from new current authority 77 74 74
86.93 Outlays from current balances..... 2 2 5
--------- --------- ----------
87.00 Total outlays (gross)........... 79 76 79
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 78 79 79
90.00 Outlays........................... 79 76 79
---------------------------------------------------------------------------
This institution provides 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 elementary and secondary education 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 1996, the Federal appropriation represented 63.6 percent of the
University's operating budget, excluding Federal financial aid,
vocational rehabilitation, and competitive grants, and 96.9 percent of
the operating budgets of the related elementary and secondary schools.
The University may also use appropriated funds for the Endowment Grant
program.
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[,] and the Adult
Education Act[, and the National Literacy Act of 1991], [$1,486,531,000,
of which $4,500,000 shall be for the National Institute for Literacy;
and] $1,565,966,000, of which [$1,483,612,000] $1,563,047,000 shall
become available on July 1, [1997] 1998 and shall remain available
through September 30, [1998] 1999; and of which $6,000,000 from amounts
available under the Adult Education Act shall be for the National
Institute for Literacy under section 384(c): Provided, That, of the
amounts made available for title II of the Carl D. Perkins Vocational
and Applied Technology Education Act, [$4,500,000] $20,497,000 shall be
used by the Secretary for national programs under title IV, without
regard to section 451: [Provided further, That, in addition, the
Secretary may reserve up to $9,000,000 under section 101(a)(1)(A) of the
Carl D. Perkins Vocational and Applied Technology Education Act, without
regard to section 451:] Provided further, That the Secretary may reserve
up to [$5,000,000] $6,000,000 under section 313(d) of the Adult
Education Act for activities carried out under section 383 of that Act:
Provided further, That no funds shall be awarded to a State Council
under section 112(f) of the Carl D. Perkins Vocational and Applied
Technology Education Act, and no State shall be required to operate such
a Council. (Department of Education Appropriations Act, 1997.)
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0400-0-1-501 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Obligations by program activity:
Vocational education:
Annual appropriations:
Basic grants:
00.01 Basic State grants.......... 956 998 1,026
00.02 Indian and Hawaiian natives
set-aside................. 15 30 16
00.03 Territorial set-aside....... 2 2 2
--------- --------- ----------
00.91 Subtotal, basic grants.... 973 1,030 1,044
01.01 Tech-prep education........... 100 100 105
01.02 Tribally controlled
postsecondary vocational
institutions................ 3 3 3
National programs:
01.03 Research.................... 7 18 20
01.04 National Occupational
Information Coordinating
Committee................. 4
--------- --------- ----------
02.00 Total, annual appropriation. 1,087 1,151 1,172
03.01 Permanent appropriation....... 7 7 7
--------- --------- ----------
04.00 Total, vocational education. 1,094 1,158 1,179
Adult education:
05.01 State programs................ 246 344 382
05.02 Evaluation and technical
assistance.................. 3 8 6
05.03 National Institute for
Literacy.................... 5 9 6
05.04 Workplace literacy
partnerships................ 13
05.05 Literacy programs for
prisoners................... 5 9
--------- --------- ----------
05.91 Total, adult education........ 272 370 394
--------- --------- ----------
10.00 Total obligations............... 1,366 1,528 1,573
----------------------------------------------------------------------------
Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested
balance......................... 53 34
22.00 New budget authority (gross)...... 1,347 1,494 1,573
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 1,400 1,528 1,573
23.95 New obligations................... -1,366 -1,528 -1,573
24.40 Unobligated balance available, end
of year: Uninvested balance..... 34
----------------------------------------------------------------------------
New budget authority (gross), detail:
Current:
40.00 Appropriation................... 1,340 1,487 1,566
Permanent:
60.00 Appropriation................... 7 7 7
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 1,347 1,494 1,573
----------------------------------------------------------------------------
Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Appropriation 1,639 1,654 1,584
73.10 New obligations................... 1,366 1,528 1,573
73.20 Total outlays (gross)............. -1,348 -1,598 -1,494
73.40 Adjustments in expired accounts... -3
74.40 Unpaid obligations, end of year:
Obligated balance: Appropriation 1,654 1,584 1,663
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new current authority 67 179 189
86.93 Outlays from current balances..... 1,274 1,410 1,298
86.97 Outlays from new permanent
authority....................... 1 1
86.98 Outlays from permanent balances... 7 8 6
--------- --------- ----------
87.00 Total outlays (gross)........... 1,348 1,598 1,494
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 1,347 1,494 1,573
90.00 Outlays........................... 1,348 1,598 1,494
---------------------------------------------------------------------------
Summary of Budget Authority and Outlays
[In millions of dollars]
1996 actual 1997 est. 1998 est.
Enacted/requested:
Budget Authority.................. 1,347 1,494 1,573
Outlays........................... 1,348 1,598 1,494
Legislative proposal, subject to
PAYGO:
Budget Authority.................. -7
Outlays........................... -1
------------------------------------
Total:
Budget Authority.................. 1,347 1,494 1,566
Outlays........................... 1,348 1,598 1,493
====================================
Budget authority for vocational and adult education includes the
following amounts:
[In millions of dollars]
1996 actual 1997 est. 1998 est.
1. Vocational education:
a. Basic grants................. 973 1,016 1,044
b. Tech-prep education.......... 100 100 105
c. Tribally controlled
postsecondary vocational
institutions.................. 3 3 3
[[Page 426]]
d. National programs............ 5 13 20
e. Permanent appropriation...... 7 7 0
2. Adult education:
a. State programs............... 247 340 382
b. Evaluation and technical
assistance.................... 3 5 6
c. National Institute for
Literacy...................... 5 4 6
d. Literacy programs for
prisoners..................... 5 5
------------------------------------
Total..................... 1,348 1,494 1,566
====================================
Vocational and adult education.--In fiscal year 1996, the
Administration proposed 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. During the 104th Congress,
both the House and Senate passed bills that streamlined the Federal
investment in Vocational and Adult Education. However, the 104th
Congress adjourned without reconciling differences between the House and
Senate bills. Absent new authorizing legislation, Congress extended the
authority of the Perkins Act, the Adult Education Act, and the National
Literacy Act through the 1997 appropriations act. The fiscal year 1998
budget estimate reflects funding under current law; however, the
Administration will propose new legislation for Vocational and Adult
Education early in the 105th Congress. Consistent with the earlier
proposals, State formula grant programs for vocational education and for
adult education would be streamlined and consolidated. In addition,
national activities for both vocational and adult education would
support State efforts through research, development, technical
assistance, and evaluation.
Object Classification (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0400-0-1-501 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
11.1 Personnel compensation: Full-time
permanent....................... 1 1 1
25.1 Advisory and assistance services.. 2 2 2
25.2 Other services.................... 2 2 2
25.5 Research and development contracts 1 2 2
41.0 Grants, subsidies, and
contributions................... 1,359 1,520 1,565
--------- --------- ----------
99.0 Subtotal, direct obligations.. 1,365 1,527 1,572
99.5 Below reporting threshold......... 1 1 1
--------- --------- ----------
99.9 Total obligations............... 1,366 1,528 1,573
---------------------------------------------------------------------------
Personnel Summary
----------------------------------------------------------------------------
Identification code 91-0400-0-1-501 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
1001 Total compensable workyears: Full-
time equivalent employment...... 13 10 10
---------------------------------------------------------------------------
Vocational and Adult Education
(Legislative proposal, subject to PAYGO)
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0400-4-1-501 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Obligations by program activity:
03.01 Permanent appropriation........... -7
--------- --------- ----------
10.00 Total obligations (object class
41.0)......................... -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:
72.40 Unpaid obligations, start of year:
Obligated balance: Appropriation
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
----------------------------------------------------------------------------
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 will be 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[, 3, and 4] and 3, of part A, part C and
part E of title IV of the Higher Education Act of 1965, as amended,
[$7,560,407,000] $9,263,407,000, which shall remain available through
September 30, [1998] 1999.
The maximum Pell Grant for which a student shall be eligible during
award year [1997-1998] 1998-1999 shall be [$2,700] $3,000: 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 fiscal year
[1996] 1997 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: Provided
further, That notwithstanding section 476(b)(1)(A)(iv) of the Act, the
income protection allowance for independent students without dependents
other than a spouse shall be determined using the table appearing in
section 477(b)(4) (or a successor table prescribed by the Secretary
under section 478(b)), except that the income protection allowance for
single students shall be equal to the amount specified in that table for
a family size of two with one family member in college, minus the amount
in the table for each additional family member. (Department of Education
Appropriations Act, 1997.)
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0200-0-1-502 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Obligations by program activity:
Pell grants:
01.01 Current academic year program... 2,522 3,670 4,284
01.02 Prior academic year program..... 2,404 3,611 2,249
01.03 Independent Student Formula
Modification.................. 450
--------- --------- ----------
01.91 Subtotal, Pell grants......... 4,926 7,281 6,983
Campus-based aid:
02.01 Supplemental educational
opportunity grants (SEOG)..... 587 587 583
02.02 Work-study...................... 619 832 857
02.03 Perkins loans: Federal capital
contributions................. 95 159 158
02.04 Perkins loans: Teacher
cancellations................. 23 20 30
--------- --------- ----------
02.91 Subtotal, Campus-based
activities.................. 1,324 1,597 1,628
Campus-based aid:
03.01 State Student Incentive Grants.. 32 50
--------- --------- ----------
[[Page 427]]
10.00 Total obligations (object class
41.0)......................... 6,282 8,928 8,611
----------------------------------------------------------------------------
Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested
balance......................... 3,561 3,617 2,249
22.00 New budget authority (gross)...... 6,258 7,560 9,263
22.10 Resources available from
recoveries of prior year
obligations..................... 87
22.30 Unobligated balance expiring...... -8
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 9,898 11,177 11,512
23.95 New obligations................... -6,282 -8,928 -8,611
24.40 Unobligated balance available, end
of year: Uninvested balance..... 3,617 2,249 2,901
----------------------------------------------------------------------------
New budget authority (gross), detail:
40.00 Appropriation..................... 6,258 7,560 9,263
----------------------------------------------------------------------------
Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Appropriation 3,363 2,665 3,994
73.10 New obligations................... 6,282 8,928 8,611
73.20 Total outlays (gross)............. -6,862 -7,599 -8,165
73.40 Adjustments in expired accounts... -31
73.45 Adjustments in unexpired accounts. -87
74.40 Unpaid obligations, end of year:
Obligated balance: Appropriation 2,665 3,994 4,440
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new current authority 886 1,458 2,084
86.93 Outlays from current balances..... 5,973 6,141 6,081
86.98 Outlays from permanent balances... 3
--------- --------- ----------
87.00 Total outlays (gross)........... 6,862 7,599 8,165
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 6,258 7,560 9,263
90.00 Outlays........................... 6,862 7,599 8,165
---------------------------------------------------------------------------
Status of Direct Loans (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0200-0-1-502 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 187 207 223
1251 Repayments: Repayments and
prepayments..................... -31 -31 -31
Write-offs for default:
1263 Direct loans.................... -5 -8 -8
1264 Other adjustments, net.......... 56 56 56
--------- --------- ----------
1290 Outstanding, end of year........ 207 223 240
---------------------------------------------------------------------------
\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 1998 would be $3,000. The Department plans to transmit a
legislative proposal later to modify the student aid need analysis
provisions of the Higher Education Act of 1965 in order to increase the
income protection allowance for single independent students and
independent students without dependents other than a spouse. With this
change, the law will provide income protection for these students at the
same level as for independent students with dependents and parents of
dependent students. This change will increase the eligibility of such
students for Pell Grants and other need-based student aid.
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.
The President proposes to continue the policy of annual increases in
Work-Study funding so that by FY 2000 one million students a year will
be able to work their way through college under the program. FY 1998 is
the second year of this policy.
Institutions are currently required to spend at least 5 percent of
their Work-Study allocation to pay students working in community service
jobs. The President has encouraged participating institutions to use at
least one-half of their Work-Study funding increases (over the FY 1996
Work-Study allocation level) for community service activities.
As part of the America Reads Challenge, the President has also
called upon Work-Study recipients to earn their awards by working as
reading tutors for kindergarten and elementary school students. The
Department recently amended its regulations to waive the required 25
percent employer funding match for students working as reading tutors.
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.
Reauthorization of the Higher Education Act.--The Department is
currently developing proposals for reauthorization of the Higher
Education Act. The Department's proposal will build on the
accomplishments of the past four years and incorporate the following
principles: (1) improve access to postsecondary education; (2) support
effective education through high standards and high student achievement;
(3) simplify program delivery and ensure accountability for taxpayer
funds; and (4) improve outreach to potential students and linkages to
employment and elementary/secondary education programs.
Gatekeeping in Student Financial Assistance Programs.--The Federal
student aid programs will make available more than $47 billion in grant,
loan, and work-study assistance to about 8.1 million students in the
academic year 1998-99. 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 381 institutions that have violated the Federal regulations. During
1997, it will complete its recertification of all institutions currently
eligible to participate in the student financial assistance programs.
The Department has also developed a risk analysis system that better
enables it to identify institutions with potentially serious problems,
and is currently pilot-testing the system for nationwide implementation.
Furthermore, the Department has provided regulatory relief to
institutions that have demonstrated outstanding administration of
federal programs and strong financial responsibility. This relief will
result in less frequent recertification, less fre-
[[Page 428]]
quent submission of compliance audits, and exemption from certain
regulatory requirements.
The Department helps students make better decisions by requiring
schools to provide important information about their education programs.
It enforces long-standing statutory requirements for institutions to
inform prospective students of educational programs, college costs, and
financial aid.
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]
1996 actual 1997 est. 1998 est.
Pell grants......................... 5,642 6,209 7,786
Student loans:
Guaranteed student loans:
Stafford loans.................. 9,792 9,880 9,642
Unsubsidized Stafford loans..... 5,489 5,540 5,531
PLUS............................ 1,430 1,545 1,600
Direct student loans:
Stafford loans.................. 5,028 5,830 6,958
Unsubsidized Stafford loans..... 2,529 3,083 3,765
PLUS............................ 799 1,025 1,314
Consolidation:
FFEL............................ 4,266 4,214 4,389
Direct Loans.................... 803 2,589 3,340
------------------------------------
Student loans, subtotal..... 30,136 33,706 36,540
Work-study.......................... 760 1,007 1,036
Supplemental educational opportunity
grants.............................. 738 738 738
Perkins loans....................... 943 1,058 1,087
State student incentive grants...... 63 100 0
------------------------------------
Total aid available......... 38,282 42,818 47,186
====================================
NUMBER OF AID AWARDS
[In thousands]
1996 actual 1997 est. 1998 est.
Pell grants......................... 3,601 3,661 4,009
Student loans:
Guaranteed student loans:
Stafford loans.................. 2,871 2,693 2,524
Unsubsidized Stafford loans..... 1,525 1,450 1,380
PLUS............................ 247 240 232
Direct student loans:
Stafford loans.................. 1,551 1,823 2,150
Unsubsidized Stafford loans..... 775 951 1,137
PLUS............................ 142 185 230
Consolidation:
FFEL............................ 281 305 308
Direct Loans.................... 83 215 290
------------------------------------
Student loans, subtotal..... 7,476 7,862 8,250
Work-study........................ 713 945 973
Supplemental educational
opportunity grants.............. 991 991 991
Perkins loans..................... 703 788 810
State student incentive grants.... 105 167 0
------------------------------------
Total awards................ 13,588 14,414 15,034
====================================
AVERAGE AID AWARDS
[In whole dollars]
1996 actual 1997 est. 1998 est.
Pell grants......................... 1,567 1,696 1,942
Student loans:
Guaranteed student loans:
Stafford loans.................. 3,411 3,669 3,820
Unsubsidized Stafford loans..... 3,598 3,821 4,009
PLUS............................ 5,788 6,437 6,909
Direct student loans:
Stafford loans.................. 3,242 3,198 3,236
Unsubsidized Stafford loans..... 3,262 3,242 3,312
PLUS............................ 5,623 5,534 5,726
Consolidation:
FFEL............................ 15,160 13,816 14,250
Direct Loans.................... 9,716 12,042 11,517
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...... 600 600 600
NUMBER OF STUDENTS AIDED
[In thousands]
1996 actual 1997 est. 1998 est.
Unduplicated student count.......... 7,238 7,607 8,057
The following table displays institutional administrative costs paid
from program funds.
ADMINISTRATIVE PAYMENTS TO INSTITUTIONS
[In millions of dollars]
1996 actual 1997 est. 1998 est.
Pell grants......................... 18 18 20
Work-study.......................... 47 64 66
Supplemental educational opportunity
grants.............................. 30 30 30
Perkins loans....................... 38 42 43
Direct student loans................ 8 0 0
The following table displays the status of defaulted Perkins loans
held by the Department and by institutions.
DEFAULTED PERKINS LOANS
[In millions of dollars]
1996 actual 1997 est. 1998 est.
Outstanding defaulted loans,
beginning of year:
Assigned defaulted loans \1\...... 187 207 223
Unassigned defaulted loans \2\.... 760 776 793
New defaulted loans................. 172 175 177
Collections on assigned loans....... -31 -31 -31
Collections on unassigned loans..... -87 -90 -92
Write-offs for assigned loans....... -5 -8 -8
Write-offs for unassigned loans..... -13 -13 -13
------------------------------------
Outstanding defaulted loans, end of
year................................ 983 1,016 1,049
====================================
\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 1996, $94 thousand in
1997, and $94 thousand in 1998. 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, [parts A and
B of] title III, without regard to section 360(a)(1)(B)(ii), titles IV,
V, VI, VII, and IX, and part A and subpart 1 of part B of title X[, and
title XI] of the Higher Education Act of 1965, as amended, part G of
title XV of Public Law [102-423] 102-325 and the Mutual Educational and
Cultural Exchange Act of 1961; [$879,054,000] $903,292,000, of which
[$15,673,000] $13,700,000 for interest subsidies under title VII of the
Higher Education Act[, as amended,] shall remain available until
expended: Provided, That funds available for part D of title IX of the
Higher Education Act shall be available to fund noncompeting
continuation awards for academic year [1997-1998] 1998-1999 for
fellowships awarded originally under part [B] C of title IX of said Act,
under the terms and conditions of part [B: Provided further, That
$5,931,000 of the funds available for part D of title IX of the Higher
Education Act shall be available to fund new and noncompeting
continuation awards for academic year 1997-1998 for fellowships awarded
under part C of title IX of said Act, under the terms and conditions of
part C: Provided further, That notwithstanding sections 419D, 419E, and
419H of the Higher Education Act, as amended, scholarships made under
title IV, part A, subpart 6 shall be prorated to maintain the same
number of new scholarships in fiscal year 1997 as in fiscal year 1996:
Provided further, That $3,000,000, to remain available until expended,
shall be for the George H.W. Bush fellowship program,
[[Page 429]]
if authorized by April 1, 1997: Provided further, That $3,000,000, to
remain available until expended, shall be for the Edmund S. Muskie
Foundation to establish an endowment fund to provide income to support
such foundation on a continuing basis, if authorized by April 1, 1997:
Provided further, That $3,000,000, to remain available until expended,
shall be for the Claiborne Pell Institute for International Relations
and Public Policy at Salve Regina University in Newport, Rhode Island,
if authorized by April 1, 1997: Provided further, That $1,000,000, to
remain available until expended, shall be for the Calvin Coolidge
Memorial Foundation, if authorized by April 1, 1997: Provided further,
That, of the amounts made available under title X, part A of the Higher
Education Act, $2,000,000 shall be awarded to the Pennsylvania
Educational Telecommunications Exchange Network.] C: Provided further,
That funds available for part C of title III of the Higher Education Act
shall be available only for awards to recipients that are title III,
part B institutions, as defined in section 322(2) of said Act.
(Department of Education Appropriations Act, 1997.)
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0201-0-1-502 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Obligations by program activity:
Aid for institutional development:
00.01 Strengthening historically Black
colleges and universities..... 129 129 133
00.02 Strengthening institutions...... 55 55 55
00.03 Strengthening Hispanic serving
institutions.................. 11 11 12
00.04 Endowment challenge grants...... 7 8 2
--------- --------- ----------
00.91 Subtotal, aid for
institutional development... 202 203 202
Other aid for institutions:
01.01 Program development............. 93 94 87
01.02 Interest subsidy grants......... 17 20 14
01.03 Special grants.................. 8 8
--------- --------- ----------
01.91 Subtotal, other aid for
institutions................ 118 122 101
Aid for students:
02.01 Federal TRIO programs........... 463 500 525
02.02 Advanced placement fees......... 6
02.03 Scholarships.................... 32 33 39
02.04 Graduate fellowships............ 31 33 30
--------- --------- ----------
02.91 Subtotal, aid for students.... 526 566 600
--------- --------- ----------
10.00 Total obligations............... 846 891 903
----------------------------------------------------------------------------
Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested
balance......................... 20 12
22.00 New budget authority (gross)...... 837 879 903
22.10 Resources available from
recoveries of prior year
obligations..................... 2
22.30 Unobligated balance expiring...... -2
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 857 891 903
23.95 New obligations................... -846 -891 -903
24.40 Unobligated balance available, end
of year: Uninvested balance..... 12
----------------------------------------------------------------------------
New budget authority (gross), detail:
40.00 Appropriation..................... 837 879 903
----------------------------------------------------------------------------
Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Appropriation 974 942 953
73.10 New obligations................... 846 891 903
73.20 Total outlays (gross)............. -846 -880 -881
73.40 Adjustments in expired accounts... -29
73.45 Adjustments in unexpired accounts. -2
74.40 Unpaid obligations, end of year:
Obligated balance: Appropriation 942 953 975
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new current authority 76 123 119
86.93 Outlays from current balances..... 770 757 762
--------- --------- ----------
87.00 Total outlays (gross)........... 846 880 881
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 837 879 903
90.00 Outlays........................... 847 880 881
---------------------------------------------------------------------------
Summary of Budget Authority and Outlays
[In millions of dollars]
1996 actual 1997 est. 1998 est.
Enacted/requested:
Budget Authority.................. 837 879 903
Outlays........................... 846 880 881
Legislative proposal, not subject to
PAYGO:
Budget Authority.................. 132
Outlays........................... 16
------------------------------------
Total:
Budget Authority.................. 837 879 1,035
Outlays........................... 846 880 897
====================================
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: academic, counseling and
outreach services 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 complete successfully 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.
Advanced placement fees.--Funds support State efforts to pay for
the Advanced Placement test fees of low-income students to help
students obtain college credit for high school courses.
Scholarships.--Funds support: Byrd honors scholarships for
outstanding students who show promise of continued excellence.
Graduate fellowships.--Funds support graduate assistance to
provide fellowships to financially needy graduate students who are
studying in areas of national need, and
[[Page 430]]
to students of superior ability completing graduate-level education.
Object Classification (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0201-0-1-502 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
25.1 Advisory and assistance 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 1 1
41.0 Grants, subsidies, and
contributions................... 842 887 899
99.5 Below reporting threshold......... 1 1 1
--------- --------- ----------
99.9 Total obligations............... 846 891 903
---------------------------------------------------------------------------
Higher Education
(Proposed for later transmittal, not subject to PAYGO)
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0201-2-1-502 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Obligations by program activity:
10.00 Total obligations (object class
41.0)........................... 132
----------------------------------------------------------------------------
Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 132
23.95 New obligations................... -132
----------------------------------------------------------------------------
New budget authority (gross), detail:
40.00 Appropriation..................... 132
----------------------------------------------------------------------------
Change in unpaid obligations:
73.10 New obligations................... 132
73.20 Total outlays (gross)............. -16
74.40 Unpaid obligations, end of year:
Obligated balance: Appropriation 116
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new current authority 16
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 132
90.00 Outlays........................... 16
---------------------------------------------------------------------------
Presidential Honors Scholarships.--The President is proposing a new
program to reward the best and brightest of our nation's high school
students. The program would provide $1,000 merit-based scholarship
awards to the top 5 percent of graduating students from every secondary
school in the country. Awards would be used by students to offset the
cost of attending any postsecondary education institution. This program
would encourage and reward individual academic excellence and
achievement in high school, and promote college attendance by graduating
seniors.
Howard University
For partial support of Howard University (20 U.S.C. 121 et seq.),
$196,000,000[: Provided, That from the amount available, the University
may at its discretion use funds for the endowment program as authorized
under], of which not less than $3,530,000, of which $3,530,000 shall
remain available until expended, shall be for a matching endowment grant
pursuant to the Howard University Endowment Act (Public Law 98-480).
(Department of Education Appropriations Act, 1997.)
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0603-0-1-502 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Academic program.................. 152
00.02 Endowment program................. 4
00.03 Research.......................... 1
00.04 Howard University Hospital........ 29 29 29
00.05 Construction...................... 1
00.06 Undistributed..................... 167 167
--------- --------- ----------
10.00 Total obligations (object class
41.0)......................... 187 196 196
----------------------------------------------------------------------------
Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested
balance......................... 4
22.00 New budget authority (gross)...... 182 196 196
22.10 Resources available from
recoveries of prior year
obligations..................... 1
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 187 196 196
23.95 New obligations................... -187 -196 -196
24.40 Unobligated balance available, end
of year: Uninvested balance.....
----------------------------------------------------------------------------
New budget authority (gross), detail:
40.00 Appropriation..................... 182 196 196
----------------------------------------------------------------------------
Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Appropriation 14 9 13
73.10 New obligations................... 187 196 196
73.20 Total outlays (gross)............. -194 -192 -196
73.40 Adjustments in expired accounts... 3
73.45 Adjustments in unexpired accounts. -1
74.40 Unpaid obligations, end of year:
Obligated balance: Appropriation 9 13 13
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new current authority 179 184 184
86.93 Outlays from current balances..... 15 8 12
--------- --------- ----------
87.00 Total outlays (gross)........... 194 192 196
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 182 196 196
90.00 Outlays........................... 194 192 196
---------------------------------------------------------------------------
Howard University is a private, nonprofit educational institution
consisting of 16 schools and colleges. Federal funds are used to provide
partial support for university programs as well as for the teaching
hospital facilities. In 1996, direct Federal appropriations for the
academic and research programs represented 65 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 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Obligations by program activity:
02.01 Direct loan subsidy............... 237 413 645
02.02 Reestimates of subsidy............ 3
--------- --------- ----------
02.91 Subtotal, subsidy cost.......... 240 413 645
07.09 Student loan administrative
expenses........................ 435 491 750
--------- --------- ----------
10.00 Total obligations............... 675 904 1,395
----------------------------------------------------------------------------
Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 680 904 1,395
22.40 Capital transfer to general fund.. -5
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 675 904 1,395
23.95 New obligations................... -675 -904 -1,395
----------------------------------------------------------------------------
New budget authority (gross), detail:
60.00 Appropriation..................... 436 491 750
60.05 Appropriation (indefinite)........ 244 109 645
--------- --------- ----------
63.00 Appropriation (total)........... 680 600 1,395
68.00 Spending authority from offsetting
collections: Offsetting
collections (cash).............. 304
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 680 904 1,395
----------------------------------------------------------------------------
[[Page 431]]
Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Appropriation 465 220 408
73.10 New obligations................... 675 904 1,395
73.20 Total outlays (gross)............. -595 -716 -1,126
73.40 Adjustments in expired accounts... -326
74.40 Unpaid obligations, end of year:
Obligated balance: Appropriation 220 408 677
----------------------------------------------------------------------------
Outlays (gross), detail:
86.97 Outlays from new permanent
authority....................... 472 549 813
86.98 Outlays from permanent balances... 123 167 313
--------- --------- ----------
87.00 Total outlays (gross)........... 595 716 1,126
----------------------------------------------------------------------------
Offsets:
Against gross budget authority and outlays:
88.00 Offsetting collections (cash)
from: Federal sources......... -304
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 680 600 1,395
90.00 Outlays........................... 595 412 1,126
---------------------------------------------------------------------------
Summary of Budget Authority and Outlays
[In millions of dollars]
1996 actual 1997 est. 1998 est.
Enacted/requested:
Budget Authority.................. 680 600 1,395
Outlays........................... 595 412 1,126
Legislative proposal, subject to
PAYGO:
Budget Authority.................. -112
Outlays........................... -56
------------------------------------
Total:
Budget Authority.................. 680 600 1,283
Outlays........................... 595 412 1,070
====================================
Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0243-0-1-502 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Direct loan levels supportable by subsidy
budget authority:
1150 Stafford.......................... 5,587 6,427 7,671
1150 Unsubsidized Stafford............. 2,869 3,475 4,246
1150 PLUS.............................. 972 1,265 1,626
1150 Consolidated...................... 869 2,622 3,386
--------- --------- ----------
1159 Total direct loan levels........ 10,297 13,789 16,929
Direct loan subsidy (in percent):
1320 Stafford.......................... 12.51 13.39 13.65
1320 Unsubsidized Stafford............. -12.97 -9.77 -6.93
1320 PLUS.............................. -8.09 -6.62 -6.34
1320 Consolidated...................... -0.83 -0.94 -0.14
--------- --------- ----------
1329 Weighted average subsidy rate... 2.34 2.99 3.81
Direct loan subsidy budget authority:
1330 Stafford.......................... 699 860 1,047
1330 Unsubsidized Stafford............. -372 -339 -294
1330 PLUS.............................. -79 -84 -103
1330 Consolidated...................... -7 -25 -5
1330 Downward reestimate............... 3 -304
--------- --------- ----------
1339 Total subsidy budget authority.. 244 108 645
Direct loan subsidy outlays:
1340 Stafford.......................... 570 661 881
1340 Unsubsidized Stafford............. -313 -274 -276
1340 PLUS.............................. -45 -60 -76
1340 Consolidated...................... -15 -24 -5
1340 Downward reestimate............... 3 -304
--------- --------- ----------
1349 Total subsidy outlays........... 200 -1 524
----------------------------------------------------------------------------
Student loan administrative expense data:
3510 Budget authority.................. 436 491 750
3590 Outlays........................... 395 413 602
---------------------------------------------------------------------------
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 Federal 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 fiscal
year 1998 budget, the President is proposing a number of changes for the
Direct Loan and FFEL programs. These changes are discussed as part of
this program description.
From its inception in 1965 through 1996, the FFEL program has
provided over $217 billion in loans to postsecondary students and their
parents. Since beginning on July 1, 1994, the Direct Loan program has
provided over $15 billion in loans to students and parents. Taken
together, the FFEL and Direct Loan programs will make over $32 billion
available in FY 1997. 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.
Loan capital in the FFEL program is provided by private lenders.
State and private nonprofit guaranty agencies act as agents of the
Federal government, providing a variety of services including payment of
default claims, collection of some defaulted loans, default avoidance
activities, and counseling to schools and students. These agencies also
provide various other services to lenders. The Government provides
substantial payments 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 Direct Loan program was created by the Student Loan Reform Act
(SLRA) of 1993. Under this program, the Federal Government provides loan
funds to postsecondary institutions directly or through an alternative
originator. 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.
The Direct Loan program began operation in academic year 1994-1995
with 7 percent of overall loan volume. The program grew to 32 percent of
overall volume in academic year 1995-1996, and is expected to account
for 36 percent in academic year 1996-1997. All eligible institutions are
free to participate in either the Direct Loan or FFEL 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. These rates are adjusted annually.
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-week Treasury bill rate plus 3.1 percent, with a cap of 9
percent and no interest subsidy.
Beginning July 1, 1998, the interest rate for new Stafford and
Unsubsidized Stafford loans will equal the Department's
[[Page 432]]
borrowing rate--currently the 10-20-year bond rate--plus 1 percentage
point, with a cap of 8.25 percent. This rate, adjusted annually, will
apply throughout the life of the loan. In order to standardize interest
subsidy payments across the FFEL and Direct Loan programs and reduce
interest paid by students on unsubsidized loans, the President is
proposing that, beginning on October 1, 1998, the interest subsidy rate
for new Stafford and interest rate for new Unsubsidized Stafford loans
equal the Department's borrowing rate during in-school, grace, and
deferment periods.
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 made up of underlying Stafford and
Unsubsidized Stafford loans carry the variable Stafford interest rate;
Direct Consolidation loan made up of underlying PLUS loans carry the
variable PLUS interest rate. The President is proposing that interest
rates for new FFEL Consolidation loans be calculated in the same way as
is currently done for Direct Consolidation loans. The President is also
proposing to allow borrowers whose FFEL Consolidation Loans include
underlying Stafford Loans to maintain interest subsidy benefits
associated with the Stafford portions of their loans. Direct
Consolidation Loan borrowers already retain these benefits.
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.
Guaranty agencies have the option of waiving this premium. In
addition, FFEL lenders have the option of paying some or all of a
borrower's original fee for Stafford Loan borrowers. The President is
proposing to eliminate the 1 percent guaranty agency insurance premium,
reduce the Direct Loan origination fee from 4 percent to 3 percent, and
further reduce fees for Stafford borrowers in both programs to 2
percent. The President is also proposing that FFEL lenders be required
to offer any benefits involving the partial or complete payment of
borrower origination fees to all eligible borrowers.
Loan limits are also identical across the two programs. 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.
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 25 years.
Borrowers may switch between repayment plans at any time. (Income-
contingent repayment is not available to Direct PLUS borrowers).
The President is proposing to require FFEL lenders to offer four of
these plans--standard, graduated, extended, and alternative--under the
same terms and conditions available under Direct Loans. The President
has determined that income-contingent repayment as offered through
Direct Loans--under which the Department has access to income data
provided by the Internal Revenue Service--would not be feasible for
private lenders to administer. In addition, the President is proposing
to clarify current law that loan amounts forgiven after 25 years under
the income-contingent repayment plan are not treated as income for tax
purposes.
In 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 President is proposing to reset the interest rate for special
allowance payments on new loans on an annual basis, as is done with
borrower interest rates, rather than quarterly as is done under current
law.
The President is proposing a number of changes to address serious
structural problems with the FFEL default prevention system. Under the
current system, lenders are insured by the government against default
loss on 98 percent of the principle and accrued interest on all FFEL
loans. The President proposes increasing this 2-percent risk-sharing to
5 percent. Supplemental pre-claims assistance payments to guaranty
agencies, which have proven ineffective in achieving their intended goal
of enhancing agency default prevention activities, would be eliminated.
As a more effective means of accomplishing this goal, the President is
proposing that lenders make payments to guaranty agencies only on
delinquent loans that have been brought current as a result of guaranty
agency efforts.
Guaranty agencies currently retain 27 percent of all collections on
defaulted loans, a portion of which covers agency collection costs. In
order to standardize payments for default collection activities across
the student loan programs, the President is proposing to reduce guaranty
agency default retention to 18.5 percent of the amount collected, the
amount paid on loans collected by the Department of Education.
The President is proposing a number of changes in the guaranty
agency system. The U.S. General Accounting Office and Federal courts
have acknowledged that the Federal government is the actual guarantor of
the loans. The State and non-profit intermediaries in the FFEL program
act as agents of the Federal government; there are no non-Federal funds
at risk. Guaranty agencies are not independent guarantors, but are in
fact administrators of the Federal guarantee. The Administration
proposes to end a system in which the guaranty agencies hold Federal
funds from which they pay default claims. Instead, direct Federal
payments will cover default claims. Guaranty agencies therefore no
longer need to hold Federal funds in reserve, making possible the return
of $2.5 billion in reserve funds over five years. In addition, the
President is proposing to periodically recertify guaranty agency
agreements, which will be revised to include specific, publicly released
performance indicators. Among other things, these revised agreements
will require that agencies be audited annually using a methodology that
samples loans held in agency systems, and that guaranty agencies submit
timely, accurate, and consistent data to the Department, including data
for the National Student Loan Data System. The Secretary of Education
will have the authority to terminate agreements based on agency
performance, and to award contracts for services currently performed by
guaranty agencies.
In order to ensure the uninterrupted availability of aid funds for
students and parents, Congress provided permanent
[[Page 433]]
funding to support student aid administration and expenses. These funds
support Department personnel and contractors for Direct Loan origination
and servicing, payments to guaranty agencies, 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 additional Department personnel
and administrative activities associated with operating the program.
Performance indicators are being developed on a broad spectrum of
policy objectives in both the Direct Loan and FFEL programs. These
indicators will measure program efficiency, Federal costs, and financial
management, as well as borrower and institutional satisfaction.
The following tables display performance indicators and program
data; including 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 dollars)
----------------------------------------------------------------------------
1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Budget Authority:
FFEL:
Liquidating \1\....................... 1,152,916 (14,544) (493,553)
Program \2\........................... 2,937,780 2,631,163 2,068,274
Reestimate of Prior Year Cost \2\..... 595,000 (2,530,592)
--------- --------- ----------
Subtotal, FFEL \2\.................. 4,685,696 86,027 1,574,721
Direct Loans:
Program \2\........................... 248,230 437,338 756,105
Reestimate of Prior Year Cost \2\..... 2,698 (303,653)
--------- --------- ----------
Subtotal, Direct Loans \2\.......... 250,928 133,685 756,105
Consolidation Loans:
FFEL.................................. 13,305 29,950 9,667
Direct Loans.......................... (7,208) (24,692) (4,760)
--------- --------- ----------
Subtotal, Consolidation Loans....... 6,097 5,258 4,907
Administration:
FFEL \3\.............................. 29,977 46,482 47,688
Student Aid \4\....................... 435,652 491,000 532,000
--------- --------- ----------
Subtotal, Administration............ 465,629 537,482 579,688
Total, FFEL and Direct Loans.......... 5,408,350 762,452 2,915,421
Outlays:
FFEL:
Liquidating \1\....................... 615,609 7,266 (413,615)
Program \2\........................... 2,398,610 2,483,035 2,078,153
Reestimate of Prior Year Costs \2\.... 595,000 (2,530,592)
--------- --------- ----------
Subtotal, FFEL \2\.................. 3,609,219 (40,291) 1,664,538
Direct Loans:
Program \2\........................... 212,165 326,939 586,154
Reestimate of Prior Year Costs \2\.... 2,698 (303,653)
--------- --------- ----------
Subtotal, Direct Loans \2\.......... 214,863 23,286 586,154
Consolidation Loans:
FFEL.................................. 13,207 29,613 9,560
Direct Loans.......................... (14,771) (23,839) (4,696)
--------- --------- ----------
Subtotal, Consolidation Loans....... (1,564) 5,774 4,864
Administration:
FFEL \3\.............................. 41,530 41,264 45,812
Student Aid \4\....................... 394,669 413,650 489,096
--------- --------- ----------
Subtotal, Administration............ 436,199 454,922 534,908
Total, FFEL and Direct Loans.......... 4,258,717 443,691 2,790,464
---------------------------------------------------------------------------
\1\ Liquidating account reflects loans made prior to 1992. FY 1997 and
1998 estimates reflect net transfers to the general account.
\2\ Because these figures do not include totals for consolidation loans,
they do not correspond with totals shown in account-specific schedules.
\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\
----------------------------------------------------------------------------
1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
FFEL:
Stafford.............................. 9,792 9,880 9,642
Unsubsidized Stafford................. 5,489 5,540 5,531
PLUS.................................. 1,430 1,545 1,600
--------- --------- ----------
Total, FFEL....................... 16,711 16,965 16,774
Direct Loans:
Stafford.............................. 5,028 5,830 6,958
Unsubsidized Stafford................. 2,529 3,083 3,765
PLUS.................................. 799 1,025 1,314
--------- --------- ----------
Total, Direct Loans................. 8,357 9,938 12,037
Consolidation Loans:
FFEL.................................. 4,266 4,214 4,389
Direct Loans.......................... 803 2,589 3,340
--------- --------- ----------
Subtotal, Consolidation Loans....... 5,069 6,803 7,729
Total, All Loans.................... 30,137 33,706 36,540
---------------------------------------------------------------------------
\1\ Net commitments equal gross commitments minus loan cancellations.
Number of Loans (In thousands)
----------------------------------------------------------------------------
1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
FFEL:
Stafford.............................. 2,871 2,693 2,524
Unsubsidized Stafford................. 1,525 1,450 1,380
PLUS.................................. 247 240 232
--------- --------- ----------
Total, FFEL......................... 4,643 4,383 4,136
Direct Loans:
Stafford.............................. 1,551 1,823 2,150
Unsubsidized Stafford................. 775 951 1,137
PLUS.................................. 142 185 230
--------- --------- ----------
Total, Direct Loans................. 2,468 2,959 3,516
Consolidation Loans:
FFEL.................................. 281 305 308
Direct Loans.......................... 83 215 290
--------- --------- ----------
Subtotal, Consolidation Loans....... 364 520 598
Total, All Loans.................... 7,476 7,862 8,250
---------------------------------------------------------------------------
Average Loan Size (in whole dollars)
----------------------------------------------------------------------------
1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
FFEL:
Stafford.............................. 3,411 3,669 3,820
Unsubsidized Stafford................. 3,598 3,821 4,009
PLUS.................................. 5,788 6,437 6,909
--------- --------- ----------
Weighted Average, FFEL............ 3,599 3,871 4,056
Direct Loans:
Stafford.............................. 3,242 3,198 3,236
Unsubsidized Stafford................. 3,262 3,242 3,312
PLUS.................................. 5,823 5,534 5,726
--------- --------- ----------
Weighted Average, Direct Loans.... 3,388 3,359 3,423
Consolidation Loans:
FFEL.................................. 15,180 13,816 14,250
Direct Loans.......................... 9,716 12,042 11,517
--------- --------- ----------
Subtotal, Consolidation Loans....... 13,923 13,083 12,925
Weighted Average, All Loans....... 4,031 4,287 4,429
---------------------------------------------------------------------------
Composition of Consolidation Loans
----------------------------------------------------------------------------
1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Net commitments (in millions of
dollars):
FFEL:
Standard consolidations............... 3,815 3,784 3,940
Consolidations from Default........... 451 430 449
--------- --------- ----------
Subtotal, FFEL.................... 4,266 4,214 4,389
Direct Loans:
Standard consolidations............... 513 2,270 2,989
Consolidations from Default........... 290 319 351
--------- --------- ----------
Subtotal, Direct Loans............ 803 2,589 3,340
Total:
Standard consolidations............... 4,328 6,054 6,929
[[Page 434]]
Consolidations from Default........... 741 749 806
--------- --------- ----------
Total, Consolidated Loans......... 5,069 6,803 7,729
---------------------------------------------------------------------------
Summary of Subsidy Rates, Default Rates, Interest Rates, and Discount Rates
----------------------------------------------------------------------------
1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Subsidy Rates (in percent) \1\
FFEL:
Stafford.............................. 19.55 19.38 15.10
Unsubsidized Stafford................. 7.56 7.47 6.63
PLUS.................................. 3.83 3.70 3.32
--------- --------- ----------
Weighted Average, FFEL.............. 14.22 14.01 11.15
Direct Loans:
Stafford.............................. 14.25 13.39 14.65
Unsubsidized Stafford................. -8.98 -9.77 -6.43
PLUS.................................. -6.53 -6.62 -5.84
--------- --------- ----------
Weighted Average, Direct Loans...... 5.00 3.92 5.58
Consolidation Loans:
FFEL.................................. 0.78 0.70 0.22
Direct Loans.......................... 0.27 -0.94 -0.14
--------- --------- ----------
Weighted Average, Consolidation
Loans............................. 0.70 0.08 0.06
Default Rates (in percent) \2\..........
FFEL:
Stafford.............................. 18.00 17.70 17.67
Unsubsidized Stafford................. 17.55 17.22 17.19
PLUS.................................. 9.56 9.28 9.16
--------- --------- ----------
Weighted Average, FFEL.............. 17.13 16.78 16.70
Direct Loans:
Stafford.............................. 17.22 17.46 17.32
Unsubsidized Stafford................. 16.76 17.06 17.02
PLUS.................................. 8.51 8.69 8.68
--------- --------- ----------
Weighted Average, Direct Loans...... 16.25 16.43 16.28
Consolidation Loans:
FFEL.................................. 10.50 10.50 10.50
Direct Loans.......................... 10.50 10.50 10.50
--------- --------- ----------
Weighted Average, Consolidation
Loans............................. 10.50 10.50 10.50
Borrower Interest Rates (in percent)....
FFEL:
Stafford\3\........................... 8.25 8.21 7.11
Unsubsidized Stafford\3\.............. 8.25 8.21 7.11
PLUS\3\............................... 8.60 8.62 8.21
Direct Loans
Stafford\3\........................... 8.25 8.21 7.11
Unsubsidized Stafford\3\.............. 8.25 8.21 7.11
PLUS\3\............................... 8.60 8.62 8.21
Consolidation Loans:
FFEL\4\...............................
Direct Loans \4\......................
Federal Borrowing Rate for Direct Loans
(in percent)........................ 6.64 6.35 6.11
---------------------------------------------------------------------------
\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 two years of repayment to determine institutional eligibility to
participate in Federal loan programs. These three-year rates tend to be
lower than those included in this table.
\3\ Rates shown for FY 1998 are those in effect beginning July 1, 1998.
\4\ Under current law, 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 program, loans consolidated from the Stafford and Unsubsidized
Stafford Loan program are charged the Stafford Loan interest rate. Loans
consolidated from the PLUS Loan program are charged the PLUS interest rate.
Composition of Default Collections (In thousands of dollars)
----------------------------------------------------------------------------
1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
FFEL:
Collections by Guaranty Agencies \1\.. (1,291,999) (1,027,653) (1,078,173)
Collections by Department of Education (808,253) (642,883) (674,487)
Internal Revenue Service Tax Refund
Offsets............................. (513,785) (408,663) (428,753)
--------- --------- ----------
Total, FFEL\2\.................... (2,614,036) (2,079,199) (2,181,414)
Direct Loans:
Collections by Department of Education 28 2,190 7,292
Internal Revenue Service Tax Refund
Offsets.............................
--------- --------- ----------
Total, Direct Loans \2\........... 28 2,190 7,292
--------- --------- ----------
Total, FFEL and Direct Loans............ (2,614,008) (2,077,009) (2,174,122)
---------------------------------------------------------------------------
\1\ These figures show total collections by guaranty agencies. Actual
Federal revenues resulting from these collections are lower than the amount
shown because agencies retain 27 percent of the amount collected.
\2\ These figures include collections on Consolidations Loans, which
have very low default rates. For FY 1996, Consolidation Loan-related
collections totaled $26,555,135 for FFEL and $4,437 for Direct Loans.
Projected Participation in Repayment Plans \1\ (in thousands of dollars)
----------------------------------------------------------------------------
1996 cohort 1997 cohort 1998 cohort
----------------------------------------------------------------------------
FFEL:\1\
Standard:
Percent of Loan Volume:\2\
Stafford...................... 100.00 100.00 64.88
Unsubsidized Stafford......... 100.00 100.00 64.88
PLUS.......................... 100.00 100.00 80.68
Consolidation................. 100.00 100.00 69.59
Subsidy Rate (in percent):\3\
Stafford...................... 19.55 19.38 15.33
Unsubsidized Stafford......... 7.56 7.47 7.04
PLUS.......................... 3.83 3.70 3.54
Consolidation................. 0.78 0.70 0.30
Graduated:\3\
Percent of Loan Volume:\2\
Stafford...................... 28.73
Unsubsidized Stafford......... 28.73
PLUS.......................... 14.00
Consolidation................. 17.38
Subsidy Rate (in percent):\3\
Stafford...................... 14.66
Unsubsidized Stafford......... 5.85
PLUS.......................... 2.38
Consolidation................. 0.04
Extended:\3\
Percent of Loan Volume:\2\
Stafford...................... 6.39
Unsubsidized Stafford......... 6.39
PLUS.......................... 5.32
Consolidation................. 13.03
Subsidy Rate (in percent):\3\
Stafford...................... 14.70
Unsubsidized Stafford......... 6.01
PLUS.......................... 2.41
Consolidation................. 0.06
Direct Loan:\3\
Standard:
Percent of Loan Volume:\2\
Stafford...................... 57.79 57.79 57.79
Unsubsidized Stafford......... 57.79 57.79 57.79
PLUS.......................... 80.68 80.68 80.68
Consolidation................. 18.62 18.62 18.62
Subsidy Rate (in percent):\3\
Stafford...................... 15.37 14.92 16.30
Unsubsidized Stafford......... -9.45 -9.90 -6.32
PLUS.......................... -5.79 -5.77 -4.97
Consilidation................. 2.10 1.79 4.57
Graduated:\3\
Percent of Loan Volume:\2\
Stafford...................... 28.73 28.73 28.73
Unsubsidized Stafford......... 28.73 28.73 28.73
PLUS.......................... 14.00 14.00 14.00
Consolidation................. 17.38 17.38 17.38
Subsidy Rate (in percent):\3\
Stafford...................... 13.12 11.86 13.47
Unsubsidized Stafford......... -12.21 -13.22 -9.20
PLUS.......................... -9.92 -10.52 -9.79
Consolidation................. -0.35 -1.09 2.99
Extended:\3\
Percent of Loan Volume:\3\
Stafford...................... 6.39 6.39 6.39
Unsubsidized Stafford......... 6.39 6.39 6.39
PLUS.......................... 5.32 5.32 5.32
Consolidation................. 13.03 13.03 13.03
Subsidy Rate (in percent):\3\
Stafford...................... 13.57 12.41 14.03
Unsubsidized Stafford......... -11.54 -12.40 -8.55
PLUS.......................... -8.86 -9.30 -8.55
Consolidation................. 0.33 -0.28 3.31
Income-Contingent:
Percent of Loan Volume:\2\
Stafford...................... 7.09 7.09 7.09
Unsubsidized Stafford......... 7.09 7.09 7.09
Consolidation................. 50.97 50.97 50.97
Subsidy Rate (in percent):\3\
Stafford...................... 10.26 7.96 6.62
[[Page 435]]
Unsubsidized Stafford......... 10.18 7.71 5.80
Consolidation................. -0.21 -2.06 -3.81
---------------------------------------------------------------------------
\1\ No data is included for the Alternative repayment plan under either
FFEL or Direct Loans. Borrowers are not expected to participate in this plan
due to the flexibility available under the other options. For FFEL, no data
is included for income-sensitive repayment. This option, which has been
available for a number of years, has never made up more than a tiny portion
of overall loan volume. For Direct Loans, income-contingent repayment is not
available for PLUS borrowers.
\2\ Percent of Loan Volume represents aggregate data. Individual
borrowers may move between plans over time.
\3\ Maximum terms under the Extended and Graduated repayment plans
reflect the following ``classes'' based on borrowers 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.
Risk categories for Stafford and Unsubsidized Stafford Loans are
based on the type of school attended by the borrower. Since PLUS loan
borrowers are all parents, they are assumed to share similar risk
profiles and are grouped together in a single category. For
Consolidation Loans, risk categories distinguish between standard
Consolidation Loans--in which borrowers in repayment consolidate a
number of outstanding loans--and loans consolidated out of default.
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 1998 Budget. These factors
substantially decrease subsidy rates across years in the FFEL program.
Subsidy rates in the Direct Loan program increase over the same period,
primarily due to proposals to reduce borrower origination fees.
FFEL RISK CATEGORIES: STAFFORD LOANS
Subsidy Rate (as a percentage of loan commitments)
1996 actual 1997 est. 1998 est.
Risk Categories:
Category 1: 4 year college, 1st
and 2nd year students........... 25.68 25.25 20.39
Category 2: 4 year college, 3rd
and 4th year students........... 16.17 15.77 13.08
Category 3: 2 year college, all
students........................ 22.9 22.51 20.36
Category 4: Proprietary school,
all students.................... 21.25 21.01 20.12
Category 5: Graduate students..... 16.9 16.53 12.94
Gross Default Rates (in percent)
1996 actual 1997 est. 1998 est.
Risk Categories:
Category 1: 4 year college, 1st
and 2nd year students........... 21.49 21.14 21.1
Category 2: 4 year college, 3rd
and 4th year students........... 15.23 15.24 15.35
Category 3: 2 year college, all
students........................ 31.18 31.11 31.12
Category 4: Proprietary school,
all students.................... 37.75 37.72 37.67
Category 5: Graduate students..... 10.37 10.38 10.39
UNSUBSIDIZED STAFFORD LOANS
Subsidy Rate (as a percentage of loan commitments)
1996 actual 1997 est. 1998 est.
Risk Categories:
Category 1: 4 year college, 1st
and 2nd year students........... 10.29 10.09 9.93
Category 2: 4 year college, 3rd
and 4th year students........... 6.73 6.69 6.66
Category 3: 2 year college, all
students........................ 15.6 15.46 15.35
Category 4: Proprietary school,
all students.................... 18.59 18.5 18.3
Category 5: Graduate students..... 2.86 2.8 2.81
Gross Default Rates (in percent)
1996 actual 1997 est. 1998 est.
Risk Categories:
Category 1: 4 year college, 1st
and 2nd year students........... 21.87 21.41 21.44
Category 2: 4 year college, 3rd
and 4th year students........... 15.37 15.36 15.47
Category 3: 2 year college, all
students........................ 30.96 30.85 30.87
Category 4: Proprietary school,
all students.................... 37.5 37.48 37.45
Category 5: Graduate students..... 10.31 10.29 10.31
PLUS LOANS
Subsidy Rate (as a percentage of loan commitments)
1996 actual 1997 est. 1998 est.
All PLUS Loans.................... 3.83 3.7 3.32
Gross Default Rates (in percent)
All PLUS Loans.................... 9.56 9.28 9.16
DIRECT LOAN RISK CATEGORIES: STAFFORD LOANS
Subsidy Rate (as a percentage of loan commitments)
1996 actual 1997 est. 1998 est.
Risk Categories:
Category 1: 4 year college, 1st
and 2nd year students........... 20.51 19.27 21.06
Category 2: 4 year college, 3rd
and 4th year students........... 11.33 10.33 12.63
Category 3: 2 year college, all
students........................ 18.91 18.16 20.39
Category 4: Proprietary school,
all students.................... 18.24 17.62 20.05
Category 5: Graduate students..... 11.63 10.52 12.63
Gross Default Rates (in percent)
1996 actual 1997 est. 1998 est.
Risk Categories:
Category 1: 4 year college, 1st
and 2nd year students........... 22.47 22.49 22.2
Category 2: 4 year college, 3rd
and 4th year students........... 15.12 15.18 15.1
Category 3: 2 year college, all
students........................ 31.59 31.62 31.55
Category 4: Proprietary school,
all students.................... 37.66 37.76 37.8
Category 5: Graduate students..... 10.37 10.36 10.32
UNSUBSIDIZED STAFFORD LOANS
Subsidy Rate (as a percentage of loan commitments)
1996 actual 1997 est. 1998 est.
Risk Categories:
Category 1: 4 year college, 1st
and 2nd year students........... -6.8 -7.82 -4.01
Category 2: 4 year college, 3rd
and 4th year students........... -8.86 -9.7 -6.05
Category 3: 2 year college, all
students........................ -0.98 -1.49 2.03
Category 4: Proprietary school,
all students.................... 2.9 2.35 5.6
Category 5: Graduate students..... -12.77 -13.76 -9.92
Gross Default Rates (in percent)
1996 actual 1997 est. 1998 est.
Risk Categories:
Category 1: 4 year college, 1st
and 2nd year students........... 22.44 22.58 22.43
Category 2: 4 year college, 3rd
and 4th year students........... 15.2 15.3 15.23
Category 3: 2 year college, all
students........................ 31.17 31.37 31.32
Category 4: Proprietary school,
all students.................... 37.45 37.52 37.58
Category 5: Graduate students..... 10.23 10.29 10.26
PLUS LOANS
Subsidy Rate (as a percentage of loan commitments)
1996 actual 1997 est. 1998 est.
All PLUS Loans.................... -6.53 -6.62 -5.84
Gross Default Rates (in percent)
All PLUS Loans.................... 8.51 8.69 8.68
Summary of Program Costs and Offsets (In thousands of dollars)
----------------------------------------------------------------------------
1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Interest subsidy costs:
FFEL:
Interest benefits................... 2,522,360 1,974,346 1,710,834
Special allowance................... 380,186 101,295 47,609
--------- --------- ----------
Total FFEL........................ 2,902,546 2,075,641 1,758,443
Direct Loans \1\.................... 396,626 641,753 918,899
Default costs and offsets:
Default costs:\2\
FFEL................................ 2,573,669 2,874,541 3,006,268
[[Page 436]]
Direct Loans........................ 4,743 23,254 74,230
Gross default collections:
FFEL................................ -2,614,037 -2,079,199 -2,181,415
Direct Loans........................ (28) (2,190) (7,292)
Default collection costs:
FFEL:
Contract collection costs......... 145,148 104,021 101,499
Guaranty agency retention......... 348,840 277,466 291,107
--------- --------- ----------
Total, FFEL collect costs....... 493,988 381,487 392,606
Direct Loans:
Collection costs \3\.............. 0 91 302
Net default costs:\4\
FFEL................................ 453,620 1,176,829 1,217,459
Direct Loans........................ 4,715 21,155 67,240
Death, disability, and bankruptcy costs:
FFEL................................ 222,890 261,603 260,072
Direct Loans........................ 2,679 18,798 39,337
Other write-offs 5,6............... 28,841 50,037 n.a.
Administrative Costs:
Federal administration:
FFEL................................ 30,066 46,482 47,688
Student Aid \7\................... 436,000 491,000 532,000
Guaranty agency administrative
payments:
Student Aid Management \8\.......... 167,040 152,752 152,143
Supplemental preclaims assistance \5\. 43,002 22,501 7,165
Payments for origination services \9\. 14,501 7,052 9,539
Fees:
Borrower origination fees:
FFEL................................ -583,428 -502,018 -505,558
Direct Loans........................ -317,550 -375,543 -447,727
Lender origination fee \5\.......... (105,366) (104,740) (106,205)
Sallie Mae offset fee \5\........... (53,043) (27,900) (41,292)
Consolidated loan holder fees \5\... (64,301) (129,130) (162,128)
---------------------------------------------------------------------------
\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\ Supports a number of expenses related to the management of the
student assistance programs. 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. These payments are made to Department
contractors that provide alternative organization services. They are not
made to institutions participating in the Direct Loan program.
Guaranty Agency Reserve Fund Levels (in millions of dollars)
----------------------------------------------------------------------------------------------------------------
1991 1992 1993 1994 1995 1996 \1\ 1997 \2\ 1998 \1\, \2\
----------------------------------------------------------------------------------------------------------------
526......... 904 1,110 1,413 1,767 1,900 2,100 1,660
----------------------------------------------------------------------------------------------------------------
\1\ Estimated.
\2\ Assumes $731 million returned to the Federal government.
Object Classification (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0243-0-1-502 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Personnel compensation:
11.1 Full-time permanent............. 23 26 26
11.3 Other than full-time permanent.. 1 1 1
--------- --------- ----------
11.9 Total personnel compensation.. 24 27 27
12.1 Civilian personnel benefits....... 5 6 7
21.0 Travel and transportation of
persons......................... 2 3 6
23.1 Rental payments to GSA............ 5 5 9
23.3 Communications, utilities, and
miscellaneous charges........... 14 14 29
24.0 Printing and reproduction......... 7 7 16
25.1 Advisory and assistance services.. 4 2 4
25.2 Other services.................... 3 10 18
25.3 Purchases of goods and services
from Government accounts........ 5 5 8
25.7 Operation and maintenance of
equipment....................... 184 257 478
26.0 Supplies and materials............ 1 1
31.0 Equipment......................... 1 1 2
32.0 Land and structures............... 1 1
41.0 Grants, subsidies, and
contributions................... 420 565 790
--------- --------- ----------
99.9 Total obligations............... 675 904 1,395
---------------------------------------------------------------------------
Personnel Summary
----------------------------------------------------------------------------
Identification code 91-0243-0-1-502 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
1001 Total compensable workyears: Full-
time equivalent employment...... 481 520 520
---------------------------------------------------------------------------
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 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Obligations by program activity:
02.01 Direct loan subsidy............... 106
07.09 Student loan administrative
expenses........................ -218
--------- --------- ----------
10.00 Total obligations............... -112
----------------------------------------------------------------------------
Budgetary resources available for obligation:
22.00 New budget authority (gross)...... -112
23.95 New obligations................... 112
----------------------------------------------------------------------------
New budget authority (gross), detail:
60.00 Appropriation..................... -218
60.05 Appropriation (indefinite)........ 106
--------- --------- ----------
63.00 Appropriation (total)........... -112
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... -112
----------------------------------------------------------------------------
Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Appropriation
73.10 New obligations................... -112
73.20 Total outlays (gross)............. 56
73.40 Adjustments in expired accounts...
73.45 Adjustments in unexpired accounts.
74.40 Unpaid obligations, end of year:
Obligated balance: Appropriation -56
----------------------------------------------------------------------------
Outlays (gross), detail:
86.97 Outlays from new permanent
authority....................... -56
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. -112
90.00 Outlays........................... -56
---------------------------------------------------------------------------
A description of the Administration's proposed legislation to modify
the Direct Loan program is included under the Federal Direct 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 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Direct loan subsidy (in percent):
1320 Stafford.......................... 1.00
1320 Unsubsidized Stafford............. 0.50
1320 PLUS.............................. 0.50
--------- --------- ----------
1329 Weighted average subsidy rate... 0.63
Direct loan subsidy budget authority:
1330 Stafford.......................... 77
1330 Unsubsidized Stafford............. 21
1330 PLUS.............................. 8
--------- --------- ----------
1339 Total subsidy budget authority.. 106
Direct loan subsidy outlays:
1340 Stafford.......................... 41
1340 Unsubsidized Stafford............. 12
1340 PLUS.............................. 4
--------- --------- ----------
1349 Total subsidy outlays........... 57
----------------------------------------------------------------------------
Student loan administrative expense data:
3510 Budget authority.................. -218
3590 Outlays........................... -113
---------------------------------------------------------------------------
[[Page 437]]
Object Classification (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0243-4-1-502 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
21.0 Travel and transportation of
persons......................... -3
23.1 Rental payments to GSA............ -4
23.3 Communications, utilities, and
miscellaneous charges........... -13
24.0 Printing and reproduction......... -8
25.1 Advisory and assistance services.. -2
25.2 Other services.................... -8
25.3 Purchases of goods and services
from Government accounts........ -3
25.7 Operation and maintenance of
equipment....................... -175
26.0 Supplies and materials............ -1
31.0 Equipment......................... -1
41.0 Grants, subsidies, and
contributions................... 106
--------- --------- ----------
99.9 Total obligations............... -112
---------------------------------------------------------------------------
Federal Direct Student Loan Program, Financing Account
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-4253-0-3-502 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Obligations by program activity:
Direct loans:
01.01 Stafford........................ 5,101 5,830 6,958
01.02 Unsubsidized Stafford........... 2,557 3,083 3,765
01.03 PLUS............................ 771 1,025 1,314
01.04 Consolidated.................... 832 2,589 3,340
--------- --------- ----------
01.91 Subtotal, direct loans
obligations................. 9,261 12,527 15,377
Payment of origination services:
02.01 Stafford........................ 7 1 1
02.02 Unsubsidized Stafford........... 4
02.03 PLUS............................ 1
02.04 Consolidated.................... 3 6 9
--------- --------- ----------
02.91 Subtotal, Payment of origination
services...................... 15 7 10
04.01 Interest payment to Treasury...... 750 1,035 1,717
05.01 Payment of downward reestimate to
program account................. 304
--------- --------- ----------
10.00 Total obligations............... 10,026 13,873 17,104
----------------------------------------------------------------------------
Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested
balance......................... 24 24
22.00 New financing authority (gross)... 9,507 13,570 17,104
22.10 Resources available from
recoveries of prior year
obligations..................... 1,825 304
22.70 Balance of authority to borrow
withdrawn....................... -1,282
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 10,050 13,898 17,128
23.95 New obligations................... -10,026 -13,873 -17,104
24.40 Unobligated balance available, end
of year: Uninvested balance..... 24 24 24
----------------------------------------------------------------------------
New financing authority (gross), detail:
67.15 Authority to borrow (indefinite).. 9,024 12,140 14,775
Spending authority from offsetting
collections:
68.00 Offsetting collections (cash)... 1,286 1,667 2,989
68.47 Portion applied to debt
reduction..................... -803 -237 -660
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total)..................... 483 1,430 2,329
--------- --------- ----------
70.00 Total new financing authority
(gross)....................... 9,507 13,570 17,104
----------------------------------------------------------------------------
Change in unpaid obligations:
72.90 Unpaid obligations, start of year:
Obligated balance: Unpaid
obligations..................... 4,545 2,921 3,890
73.10 New obligations................... 10,026 13,873 17,104
73.20 Total financing disbursements
(gross)......................... -9,824 -12,600 -16,260
73.45 Adjustments in unexpired accounts. -1,825 -304
74.90 Unpaid obligations, end of year:
Obligated balance: Unpaid
obligations..................... 2,921 3,890 4,734
87.00 Total financing disbursements
(gross)......................... 9,824 12,600 16,260
----------------------------------------------------------------------------
Offsets:
Against gross financing authority and
financing disbursements:
Offsetting collections (cash)
from:
Federal sources:
Payments from subsidy
account:
88.00 Stafford.................. -638 -780 -950
88.00 Unsubsidized Stafford..... 332 301 261
88.00 PLUS...................... 62 68 83
88.00 Consolidated.............. 7 24 5
88.00 Volume Reestimate......... -3
88.25 Interest on uninvested funds.. -402
Non-Federal sources:
Stafford loans:
88.40 Repayment of principal,
Stafford................ -84 -109 -256
88.40 Interest received on
loans, Stafford......... -9 -158 -367
88.40 Fees, Stafford............ -188 -221 -259
88.40 Recoveries of defaults,
Stafford................ -1 -4
Unsubsidized Stafford loans:
88.40 Repayment of principal,
Unsubsidized Stafford... -51 -57 -146
88.40 Interest received on
loans, Unsubsidized
Stafford................ -32 -83 -206
88.40 Fees, Unsubsidized
Stafford................ -94 -116 -140
88.40 Recoveries of defaults,
Unsubsidized Stafford... -1 -2
PLUS loans:
88.40 Repayment of principal,
PLUS.................... -57 -123 -214
88.40 Interest received on
loans, PLUS............. -45 -137 -218
88.40 Fees, PLUS................ -35 -38 -48
88.40 Recoveries of defaults,
PLUS.................... -1
Consolidated:
88.40 Payment of Principal,
Consolidated............ -22 -82 -194
88.40 Interest received on
loans, Consolidated..... -27 -154 -332
88.40 Recoveries of defaults,
Consolidated............ -1
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -1,286 -1,667 -2,989
----------------------------------------------------------------------------
Net financing authority and financing
disbursements:
89.00 Financing authority............... 8,221 11,903 14,115
90.00 Financing disbursements........... 8,538 10,933 13,271
---------------------------------------------------------------------------
Status of Direct Loans (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-4253-0-3-502 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
STAFFORD
Position with respect to appropriations act
limitation on obligations:
1111 Limitation on direct loans........
1131 Direct loan obligations exempt
from limitation................. 5,101 5,830 6,958
--------- --------- ----------
1150 Total direct loan obligations... 5,101 5,830 6,958
----------------------------------------------------------------------------
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 1,515 6,317 11,753
1231 Disbursements: Direct loan
disbursements................... 4,901 5,549 6,500
1251 Repayments: Repayments and
prepayments..................... -84 -109 -261
1261 Adjustments: Capitalized interest. 2
Write-offs for default:
1263 Direct loans....................
1264 Other adjustments, net.......... -17 -4 -10
--------- --------- ----------
1290 Outstanding, end of year........ 6,317 11,753 17,982
----------------------------------------------------------------------------
UNSUBSIDIZED STAFFORD
Position with respect to appropriations act
limitation on obligations:
1131 Direct loan obligations exempt
from limitation................. 2,558 3,083 3,765
--------- --------- ----------
1150 Total direct loan obligations... 2,558 3,083 3,765
----------------------------------------------------------------------------
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 666 3,063 5,900
1231 Disbursements: Direct loan
disbursements................... 2,459 2,897 3,496
1251 Repayments: Repayments and
prepayments..................... -51 -57 -147
1261 Adjustments: Capitalized interest. 14
Write-offs for default:
1263 Direct loans....................
1264 Other adjustments, net.......... -25 -3 -8
--------- --------- ----------
1290 Outstanding, end of year........ 3,063 5,900 9,241
----------------------------------------------------------------------------
PLUS
Position with respect to appropriations act
limitation on obligations:
1131 Direct loan obligations exempt
from limitation................. 771 1,025 1,314
--------- --------- ----------
1150 Total direct loan obligations... 771 1,025 1,314
----------------------------------------------------------------------------
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 216 865 1,676
1231 Disbursements: Direct loan
disbursements................... 707 943 1,197
1251 Repayments: Repayments and
prepayments..................... -57 -124 -215
[[Page 438]]
Write-offs for default:
1263 Direct loans....................
1264 Other adjustments, net.......... -1 -8 -14
--------- --------- ----------
1290 Outstanding, end of year........ 865 1,676 2,644
----------------------------------------------------------------------------
CONSOLIDATED
Position with respect to appropriations act
limitation on obligations:
1131 Direct loan obligations exempt
from limitation................. 832 2,589 3,340
--------- --------- ----------
1150 Total direct loan obligations... 832 2,589 3,340
----------------------------------------------------------------------------
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 296 1,320 3,824
1231 Disbursements: Direct loan
disbursements................... 1,033 2,589 3,340
1251 Repayments: Repayments and
prepayments..................... -22 -82 -194
1261 Adjustments: Capitalized interest. 13
Write-offs for default:
1263 Direct loans....................
1264 Other adjustments, net.......... -3 -8
--------- --------- ----------
1290 Outstanding, end of year........ 1,320 3,824 6,962
---------------------------------------------------------------------------
Balance Sheet (in millions of dollars)
-----------------------------------------------------------------------------------------------
Identification code 91-4253-0-3-502 1995 actual 1996 actual 1997 est. 1998 est.
-----------------------------------------------------------------------------------------------
ASSETS:
1101 Federal assets: Fund balances with
Treasury........................ 4,913 2,921 3,890 4,733
Net value of assets related to
post-1991 direct loans
receivable:
Direct loans receivable, gross:
1401 Stafford...................... 1,558 6,310 11,725 17,882
1401 Unsubsidized Stafford......... 708 3,044 5,885 9,192
1401 PLUS.......................... 225 861 1,662 2,607
1401 Consolidated.................. 310 1,304 3,817 6,945
Interest receivable:
1402 Interest receivable, Stafford. 5 6 7
1402 Interest receivable, Unsub
Stafford.................... 114 138 167
1402 Interest receivable, PLUS..... 8 10 14
1402 Interest receivable,
Consolidated................ 25 73 94
1405 Allowance for subsidy cost (-).. -553 -655 -764 -1,404
------------ -------------- ------------ -------------
1499 Net present value of assets
related to direct loans..... 2,248 11,016 22,552 35,504
------------ -------------- ------------ -------------
1999 Total assets.................... 7,161 13,937 26,442 40,237
LIABILITIES:
2103 Federal liabilities: Debt......... 6,793 12,220 24,413 38,457
------------ -------------- ------------ -------------
2999 Total liabilities............... 6,793 12,220 24,413 38,457
NET POSITION:
3100 Appropriated capital.............. 368 1,717 2,029 1,780
------------ -------------- ------------ -------------
3999 Total net position.............. 368 1,717 2,029 1,780
------------ -------------- ------------ -------------
4999 Total liabilities and net position 7,161 13,937 26,442 40,237
-----------------------------------------------------------------------------------------------
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 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Obligations by program activity:
04.01 Interest payment to Treasury...... -3
--------- --------- ----------
10.00 Total obligations............... -3
----------------------------------------------------------------------------
Budgetary resources available for obligation:
22.00 New financing authority (gross)... -3
23.95 New obligations................... 3
----------------------------------------------------------------------------
New financing authority (gross), detail:
67.15 Authority to borrow (indefinite).. -95
Spending authority from offsetting
collections:
68.00 Offsetting collections (cash)... 95
68.47 Portion applied to debt
reduction..................... -3
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total)..................... 92
--------- --------- ----------
70.00 Total new financing authority
(gross)....................... -3
----------------------------------------------------------------------------
Change in unpaid obligations:
73.10 New obligations................... -3
73.20 Total financing disbursements
(gross)......................... 3
87.00 Total financing disbursements
(gross)......................... -3
----------------------------------------------------------------------------
Offsets:
Against gross financing authority and
financing disbursements:
Offsetting collections (cash)
from:
Federal sources:
Payments from subsidy
account:
88.00 Stafford.................. -70
88.00 Unsubsidized Stafford..... -19
88.00 PLUS...................... -6
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -95
----------------------------------------------------------------------------
Net financing authority and financing
disbursements:
89.00 Financing authority............... -98
90.00 Financing disbursements........... -98
---------------------------------------------------------------------------
Balance Sheet (in millions of dollars)
-----------------------------------------------------------------------------------------------
Identification code 91-4253-4-3-502 1995 actual 1996 actual 1997 est. 1998 est.
-----------------------------------------------------------------------------------------------
ASSETS:
Net value of assets related to
post-1991 direct loans
receivable:
1405 Allowance for subsidy cost (-).. -95
------------ -------------- ------------ -------------
1499 Net present value of assets
related to direct loans..... -95
------------ -------------- ------------ -------------
1999 Total assets.................... -95
LIABILITIES:
2103 Federal liabilities: Debt......... -98
------------ -------------- ------------ -------------
2999 Total liabilities............... -98
NET POSITION:
3100 Appropriated capital.............. 3
------------ -------------- ------------ -------------
3999 Total net position.............. 3
------------ -------------- ------------ -------------
4999 Total liabilities and net position -95
-----------------------------------------------------------------------------------------------
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] $47,988,000. (Department of Education
Appropriations Act, 1997.)
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.
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0231-0-1-502 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Obligations by program activity:
Guaranteed loan subsidy:
02.01 Stafford........................ 2,244 2,106 1,992
02.02 Unsubsidized Stafford........... 391 461 448
02.03 PLUS............................ 44 64 66
02.05 Consolidated.................... 13 30 33
02.07 Upward reestimate (92 cohort)... 971 521
02.08 Interest on reestimate.......... 72 43
--------- --------- ----------
02.91 Subtotal, subsidy cost........ 3,735 3,225 2,539
[[Page 439]]
Administrative expenses:
07.01 Administrative expenses due to
limitations................... 30 46 48
--------- --------- ----------
10.00 Total obligations............... 3,765 3,271 2,587
----------------------------------------------------------------------------
Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 4,024 3,271 2,587
22.10 Resources available from
recoveries of prior year
obligations..................... 206
22.40 Capital transfer to general fund.. -465
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 3,765 3,271 2,587
23.95 New obligations................... -3,765 -3,271 -2,587
----------------------------------------------------------------------------
New budget authority (gross), detail:
Current:
40.00 Appropriation (Federal
Administration)............... 30 46 48
Permanent:
60.05 Appropriation (indefinite)...... 3,546 471 2,539
68.00 Spending authority from
offsetting collections:
Offsetting collections (cash). 448 2,754
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 4,024 3,271 2,587
----------------------------------------------------------------------------
Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Appropriation 1,002 1,065 1,219
73.10 New obligations................... 3,765 3,271 2,587
73.20 Total outlays (gross)............. -3,496 -3,117 -2,395
73.45 Adjustments in unexpired accounts. -206
74.40 Unpaid obligations, end of year:
Obligated balance: Appropriation 1,065 1,219 1,411
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new current authority 25 31 34
86.93 Outlays from current balances..... 16 10 10
86.97 Outlays from new permanent
authority....................... 2,694 2,754 1,407
86.98 Outlays from permanent balances... 761 322 944
--------- --------- ----------
87.00 Total outlays (gross)........... 3,496 3,117 2,395
----------------------------------------------------------------------------
Offsets:
Against gross budget authority and outlays:
88.00 Offsetting collections (cash)
from: Federal sources......... -448 -2,754
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 3,576 517 2,587
90.00 Outlays........................... 3,048 363 2,395
---------------------------------------------------------------------------
Summary of Budget Authority and Outlays
[In millions of dollars]
1996 actual 1997 est. 1998 est.
Enacted/requested:
Budget Authority.................. 3,576 517 2,587
Outlays........................... 3,048 363 2,395
Legislative proposal, subject to
PAYGO:
Budget Authority.................. -340 -461
Outlays........................... -340 -263
------------------------------------
Total:
Budget Authority.................. 3,576 177 2,126
Outlays........................... 3,048 23 2,132
====================================
Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0231-0-1-502 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Guaranteed loan levels supportable by subsidy
budget authority:
2150 Stafford.......................... 10,557 10,863 10,596
2150 Unsubsidized Stafford............. 6,103 6,176 6,162
2150 PLUS.............................. 1,591 1,737 1,799
2150 Consolidated...................... 4,061 4,262 4,438
--------- --------- ----------
2159 Total loan guarantee levels..... 22,312 23,038 22,995
Guaranteed loan subsidy (in percent):
2320 Stafford.......................... 23.26 19.38 18.80
2320 Unsubsidized Stafford............. 7.09 7.47 7.27
2320 PLUS.............................. 3.14 3.70 3.65
2320 Consolidated...................... 0.33 0.70 0.75
--------- --------- ----------
2329 Weighted average subsidy rate... 13.23 11.55 11.04
Guaranteed loan subsidy budget authority:
2330 Stafford.......................... 2,455 2,106 1,992
2330 Unsubsidized Stafford............. 433 461 448
2330 PLUS.............................. 50 64 66
2330 Consolidated...................... 13 30 33
2330 Upward reestimate................. 1,043 564
2330 Downward reestimate............... -448 -2,754
--------- --------- ----------
2339 Total subsidy budget authority.. 3,546 471 2,539
Guaranteed loan subsidy outlays:
2340 Stafford.......................... 2,055 2,030 1,853
2340 Unsubsidized Stafford............. 311 401 407
2340 PLUS.............................. 33 51 58
2340 Consolidated...................... 13 30 33
2340 Upward reestimate................. 1,043 564
2340 Downward reestimate............... -448 -2,754
--------- --------- ----------
2349 Total subsidy outlays........... 3,007 322 2,351
----------------------------------------------------------------------------
Administrative expense data:
3510 Budget authority.................. 30 46 48
3590 Outlays........................... 41 41 44
---------------------------------------------------------------------------
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 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Personnel compensation:
11.1 Full-time permanent............. 15 18 19
11.3 Other than full-time permanent.. 1
--------- --------- ----------
11.9 Total personnel compensation.. 16 18 19
12.1 Civilian personnel benefits....... 3 4 4
21.0 Travel and transportation of
persons......................... 1 1 1
23.1 Rental payments to GSA............ 2 2 2
23.3 Communications, utilities, and
miscellaneous charges........... 1 5 1
24.0 Printing and reproduction......... 1 1 2
25.1 Advisory and assistance services.. 1
25.2 Other services.................... 1
25.3 Purchases of goods and services
from Government accounts........ 1 1 1
25.7 Operation and maintenance of
equipment....................... 4 14 17
41.0 Grants, subsidies, and
contributions................... 3,735 3,225 2,539
--------- --------- ----------
99.9 Total obligations............... 3,765 3,271 2,587
---------------------------------------------------------------------------
Personnel Summary
----------------------------------------------------------------------------
Identification code 91-0231-0-1-502 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
1001 Total compensable workyears: Full-
time equivalent employment...... 330 368 368
---------------------------------------------------------------------------
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 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Obligations by program activity:
Guaranteed loan subsidy:
02.01 Stafford........................ -393
02.02 Unsubsidized Stafford........... -39
02.03 PLUS............................ -6
02.05 Consolidated.................... -23
--------- --------- ----------
10.00 Total obligations (object class
41.0)......................... -461
----------------------------------------------------------------------------
[[Page 440]]
Budgetary resources available for obligation:
22.00 New budget authority (gross)...... -461
23.95 New obligations................... 461
----------------------------------------------------------------------------
New budget authority (gross), detail:
60.05 Appropriation (indefinite)........ -340 -461
68.00 Spending authority from offsetting
collections: Offsetting
collections (cash).............. 340
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... -461
----------------------------------------------------------------------------
Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Appropriation
73.10 New obligations................... -461
73.20 Total outlays (gross)............. 263
74.40 Unpaid obligations, end of year:
Obligated balance: Appropriation -198
----------------------------------------------------------------------------
Outlays (gross), detail:
86.97 Outlays from new permanent
authority....................... 324 -263
86.98 Outlays from permanent balances... -324
--------- --------- ----------
87.00 Total outlays (gross)........... -263
----------------------------------------------------------------------------
Offsets:
Against gross budget authority and outlays:
88.00 Offsetting collections (cash)
from: Federal sources......... -340
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. -340 -461
90.00 Outlays........................... -340 -263
---------------------------------------------------------------------------
Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0231-4-1-502 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Guaranteed loan subsidy (in percent):
2320 Stafford.......................... 0.00 -3.71
2320 Unsubsidized Stafford............. 0.00 -0.64
2320 PLUS.............................. 0.00 -0.33
2320 Consolidated...................... 0.00 -0.53
--------- --------- ----------
2329 Weighted average subsidy rate... 0.00 -2.01
Guaranteed loan subsidy budget authority:
2330 Stafford.......................... -393
2330 Unsubsidized Stafford............. -39
2330 PLUS.............................. -6
2330 Consolidated...................... -23
2330 Downward reestimate............... -340
--------- --------- ----------
2339 Total subsidy budget authority.. -340 -461
Guaranteed loan subsidy outlays:
2340 Stafford.......................... -216
2340 Unsubsidized Stafford............. -21
2340 PLUS.............................. -3
2340 Consolidated...................... -23
2340 Downward reestimate............... -340
--------- --------- ----------
2349 Total subsidy outlays........... -340 -263
---------------------------------------------------------------------------
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 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Obligations by program activity:
Stafford loans:
01.01 Interest benefits............... 2,262 1,846 1,698
01.02 Special allowance............... 121
01.03 Default claims.................. 889 1,256 1,406
01.04 Death, disability, and
bankruptcy claims............. 77 67 83
01.06 Supplemental preclaims
assistance.................... 9 5 6
01.07 Contract collection costs....... 1 5 8
--------- --------- ----------
01.91 Subtotal, Stafford loans...... 3,359 3,179 3,201
Unsubsidized Stafford loans:
02.02 Special allowance............... 3
02.03 Default claims.................. 105 343 519
02.04 Death, disability, and
bankruptcy claims............. 7 26 42
02.06 Supplemental preclaims
assistance.................... 1 1 2
02.07 Contract collection costs....... 1 2
--------- --------- ----------
02.91 Subtotal, Unsubsidized
Stafford loans.............. 116 371 565
PLUS loans:
03.02 Special Allowance............... 1
03.03 Default claims.................. 80 110 121
03.04 Death, disability, and
bankruptcy claims............. 19 38 41
03.05 Supplemental preclaims
assistance.................... 1 1
03.06 Contract Collection Costs....... 1 1
--------- --------- ----------
03.91 Subtotal, PLUS loans.......... 101 149 164
SLS loans:
04.03 Default claims.................. 239 199 165
04.04 Death, disability and bankruptcy
claims........................ 2 14 14
04.06 Supplemental preclaims
assistance.................... 2 1 1
04.07 Contract collection costs....... 2 1 2
--------- --------- ----------
04.91 Subtotal, SLS loans........... 245 215 182
Consolidations loans:
05.01 Interest benefits............... 1
05.03 Default claims.................. 115 172 241
05.04 Death, disability, and
bankruptcy claims............. 6 35 45
05.06 Supplemental preclaims
assistance.................... 1 1 1
05.07 Contract Collection Costs....... 1
--------- --------- ----------
05.91 Subtotal, Consolidations loans 123 208 288
07.01 Interest paid to Treasury......... 83 50 26
08.01 Payment of downard reestimate to
Program account................. 448 2,340
09.01 Interest on downward reestimate... 414
--------- --------- ----------
10.00 Total obligations............... 4,475 6,926 4,426
----------------------------------------------------------------------------
Budgetary resources available for obligation:
21.90 Unobligated balance available,
start of year: Fund balance..... 7,559 9,146 6,669
22.00 New financing authority (gross)... 5,807 4,449 3,880
22.10 Resources available from
recoveries of prior year
obligations..................... 256
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 13,622 13,595 10,549
23.95 New obligations................... -4,475 -6,926 -4,426
24.90 Unobligated balance available, end
of year: Fund balance........... 9,146 6,669 6,123
----------------------------------------------------------------------------
New financing authority (gross), detail:
Spending authority from offsetting
collections:
68.00 Offsetting collections (cash)... 6,261 4,775 4,117
68.47 Portion applied to debt
reduction..................... -454 -326 -237
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total)..................... 5,807 4,449 3,880
--------- --------- ----------
70.00 Total new financing authority
(gross)....................... 5,807 4,449 3,880
----------------------------------------------------------------------------
Change in unpaid obligations:
72.90 Unpaid obligations, start of year:
Obligated balance: Obligated
balance......................... 21 -886 1,039
73.10 New obligations................... 4,475 6,926 4,426
73.20 Total financing disbursements
(gross)......................... -5,126 -5,000 -4,800
73.45 Adjustments in unexpired accounts. -256
74.90 Unpaid obligations, end of year:
Obligated balance: Obligated
balance......................... -886 1,039 664
87.00 Total financing disbursements
(gross)......................... 5,126 5,000 4,800
----------------------------------------------------------------------------
[[Page 441]]
Offsets:
Against gross financing authority and
financing disbursements:
Offsetting collections (cash)
from:
Federal sources:
Payment from subsidy
account:
88.00 Stafford loans............ -2,244 -1,915 -1,813
88.00 Unsubsidized Stafford..... -390 -414 -402
88.00 PLUS loans................ -44 -57 -58
88.00 Consolidated loans........ -13 -30 -33
88.00 Upward reestimate......... -1,043 -564
88.00 Scheduled payments from
Liquidating account for
noncontractual
modifications........... -538 -376 -263
88.25 Interest on uninvested funds:
Stafford loans.............. -514 -462 -438
Non-Federal sources:
Stafford loans:
88.40 Recoveries on defaults.... -425 -123 -190
88.40 Origination fees.......... -420 -342 -341
88.40 Sallie Mae offset fees.... -53 -28 -29
88.40 Other Fees................ -15
88.40 Recoveries on defaults.... -76 -16 -35
Unsubsidized Stafford:
88.40 Origination fees.......... -208 -191 -194
88.40 Other Fees................ -4
88.40 Recoveries on defaults.... -40 -15 -22
PLUS:
88.40 Origination fees.......... -52 -52 -55
88.40 Other Fees................ -1
88.40 Recoveries on defaults.... -79 -29 -39
SLS:
88.40 Other Fees................ -1
88.40 Recoveries on defaults.... -27 -11 -21
88.40 Origination fees.......... -8 -21 -22
Consolidated:
88.40 Consolidated Loan Holders
Fee..................... -66 -129 -162
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -6,261 -4,775 -4,117
----------------------------------------------------------------------------
Net financing authority and financing
disbursements:
89.00 Financing authority............... -454 -326 -237
90.00 Financing disbursements........... -1,134 225 683
---------------------------------------------------------------------------
Status of Guaranteed Loans (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-4251-0-3-502 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
STAFFORD
Position with respect to appropriations act
limitation on commitments:
2131 Guaranteed loan commitments exempt
from limitation................. 10,557 10,863 10,596
--------- --------- ----------
2150 Total guaranteed loan
commitments................... 10,557 10,863 10,596
----------------------------------------------------------------------------
Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 37,830 44,316 49,598
2231 Disbursements of new guaranteed
loans........................... 9,752 9,779 9,738
2251 Repayments and prepayments........ -2,076 -3,188 -4,359
Adjustments:
2261 Terminations for default that
result in loans receivable.... -1,113 -1,242 -1,431
2263 Terminations for default that
result in claim payments...... -77 -67 -83
--------- --------- ----------
2290 Outstanding, end of year........ 44,316 49,598 53,463
----------------------------------------------------------------------------
Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 44,316 49,598 53,463
----------------------------------------------------------------------------
Addendum:
Cumulative balance of defaulted guaranteed
loans that result in loans receivable:
2310 Outstanding, start of year...... 955 1,643 2,747
2331 Disbursements for guaranteed
loan claims................... 1,113 1,242 1,431
2351 Repayments of loans receivable.. -425 -123 -190
2361 Write-offs of loans receivable.. -15 -23
--------- --------- ----------
2390 Outstanding, end of year...... 1,643 2,747 3,965
----------------------------------------------------------------------------
UNSUBSIDIZED STAFFORD
Position with respect to appropriations act
limitation on commitments:
2131 Guaranteed loan commitments exempt
from limitation................. 6,102 6,176 6,162
--------- --------- ----------
2150 Total guaranteed loan
commitments................... 6,102 6,176 6,162
----------------------------------------------------------------------------
Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 7,210 11,180 15,643
2231 Disbursements of new guaranteed
loans........................... 4,374 5,469 5,536
2251 Repayments and prepayments........ -273 -662 -1,183
Adjustments:
2261 Terminations for default that
result in loans receivable.... -124 -318 -510
2263 Terminations for default that
result in claim payments...... -7 -26 -42
--------- --------- ----------
2290 Outstanding, end of year........ 11,180 15,643 19,444
----------------------------------------------------------------------------
Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 11,180 15,643 19,444
----------------------------------------------------------------------------
Addendum:
Cumulative balance of defaulted guaranteed
loans that result in loans receivable:
2310 Outstanding, start of year...... 45 93 393
2331 Disbursements for guaranteed
loan claims................... 124 318 510
2351 Repayments of loans receivable.. -76 -16 -35
2361 Write-offs of loans receivable.. -2 -4
--------- --------- ----------
2390 Outstanding, end of year...... 93 393 864
----------------------------------------------------------------------------
PLUS
Position with respect to appropriations act
limitation on commitments:
2131 Guaranteed loan commitments exempt
from limitation................. 1,591 1,737 1,799
--------- --------- ----------
2150 Total guaranteed loan
commitments................... 1,591 1,737 1,799
----------------------------------------------------------------------------
Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 3,629 4,261 4,837
2231 Disbursements of new guaranteed
loans........................... 1,337 1,486 1,578
2251 Repayments and prepayments........ -579 -763 -962
Adjustments:
2261 Terminations for default that
result in loans receivable.... -107 -109 -123
2263 Terminations for default that
result in claim payments...... -19 -38 -41
--------- --------- ----------
2290 Outstanding, end of year........ 4,261 4,837 5,289
----------------------------------------------------------------------------
Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 4,261 4,837 5,289
----------------------------------------------------------------------------
Addendum:
Cumulative balance of defaulted guaranteed
loans that result in loans receivable:
2310 Outstanding, start of year...... 174 241 333
2331 Disbursements for guaranteed
loan claims................... 107 109 123
2351 Repayments of loans receivable.. -40 -15 -21
2361 Write-offs of loans receivable.. -2 -3
--------- --------- ----------
2390 Outstanding, end of year...... 241 333 432
----------------------------------------------------------------------------
SLS
Position with respect to appropriations act
limitation on commitments:
2111 Limitation on guaranteed loans
made by private lenders.........
--------- --------- ----------
2150 Total guaranteed loan
commitments...................
----------------------------------------------------------------------------
Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 6,061 5,290 4,504
2251 Repayments and prepayments........ -454 -560 -641
Adjustments:
2261 Terminations for default that
result in loans receivable.... -316 -212 -176
2263 Terminations for default that
result in claim payments...... -1 -14 -14
--------- --------- ----------
2290 Outstanding, end of year........ 5,290 4,504 3,673
----------------------------------------------------------------------------
Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 5,290 4,504 3,673
----------------------------------------------------------------------------
Addendum:
Cumulative balance of defaulted guaranteed
loans that result in loans receivable:
2310 Outstanding, start of year...... 479 715 895
2331 Disbursements for guaranteed
loan claims................... 316 212 176
[[Page 442]]
2351 Repayments of loans receivable.. -79 -29 -39
2361 Write-offs of loans receivable.. -1 -3 -5
--------- --------- ----------
2390 Outstanding, end of year...... 715 895 1,027
----------------------------------------------------------------------------
CONSOLIDATED
Position with respect to appropriations act
limitation on commitments:
2131 Guaranteed loan commitments exempt
from limitation................. 4,061 4,262 4,438
--------- --------- ----------
2150 Total guaranteed loan
commitments................... 4,061 4,262 4,438
----------------------------------------------------------------------------
Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 2,827 6,501 9,635
2231 Disbursements of new guaranteed
loans........................... 4,353 4,214 4,389
2251 Repayments and prepayments........ -543 -876 -1,246
Adjustments:
2261 Terminations for default that
result in loans receivable.... -129 -169 -239
2263 Terminations for default that
result in claim payments...... -7 -35 -45
--------- --------- ----------
2290 Outstanding, end of year........ 6,501 9,635 12,494
----------------------------------------------------------------------------
Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 6,501 9,635 12,494
----------------------------------------------------------------------------
Addendum:
Cumulative balance of defaulted guaranteed
loans that result in loans receivable:
2310 Outstanding, start of year...... 23 125 282
2331 Disbursements for guaranteed
loan claims................... 129 169 239
2351 Repayments of loans receivable.. -27 -11 -21
2361 Write-offs of loans receivable.. -1 -3
--------- --------- ----------
2390 Outstanding, end of year...... 125 282 497
---------------------------------------------------------------------------
Balance Sheet (in millions of dollars)
-----------------------------------------------------------------------------------------------
Identification code 91-4251-0-3-502 1995 actual 1996 actual 1997 est. 1998 est.
-----------------------------------------------------------------------------------------------
ASSETS:
1101 Federal assets: Fund balances with
Treasury........................ 7,559 9,146 6,303 5,746
Net value of assets related to
post-1991 acquired defaulted
guaranteed loans receivable:
1501 Defaulted guaranteed loans
receivable, gross............. 1,676 2,817 4,650 6,785
------------ -------------- ------------ -------------
1599 Net present value of assets
related to defaulted
guaranteed loans............ 1,676 2,817 4,650 6,785
Net value of assets related to
pre-1992 direct loans
receivable and acquired
defaulted guaranteed loans
receivable:
1701 Defaulted guaranteed loans,
gross......................... -3,507 12,151 11,236 9,448
1704 Defaulted guaranteed loans and
interest receivable, net...... -3,507 12,151 11,236 9,448
------------ -------------- ------------ -------------
1999 Total assets.................... 5,728 24,114 22,189 21,979
LIABILITIES:
2103 Federal liabilities: Debt......... 1,605 1,134 680 354
------------ -------------- ------------ -------------
2999 Total liabilities............... 1,605 1,134 680 354
NET POSITION:
3100 Appropriated capital.............. 4,123 22,980 21,509 21,626
------------ -------------- ------------ -------------
3999 Total net position.............. 4,123 22,980 21,509 21,626
------------ -------------- ------------ -------------
4999 Total liabilities and net position 5,728 24,114 22,189 21,980
-----------------------------------------------------------------------------------------------
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 Financing Account
(Legislative proposal, subject to PAYGO)
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-4251-4-3-502 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Obligations by program activity:
Stafford loans:
01.01 Interest benefits............... -51
01.06 Supplemental preclaims
assistance.................... -6
01.07 Contract collection costs....... 1
--------- --------- ----------
01.91 Subtotal, Stafford loans...... -56
Unsubsidized Stafford loans:
02.06 Supplemental preclaims
assistance.................... -2
PLUS loans:
03.03 Default claims.................. -1
03.04 Death, disability, and
bankruptcy claims............. -1
--------- --------- ----------
03.91 Subtotal, PLUS loans.......... -2
SLS loans:
04.06 Supplemental preclaims
assistance.................... -1
Consolidations loans:
05.04 Death, disability, and
bankruptcy claims............. -1
05.06 Supplemental preclaims
assistance.................... -1
--------- --------- ----------
05.91 Subtotal, Consolidations loans -2
08.01 Payment of downard reestimate to
Program account................. 342
--------- --------- ----------
10.00 Total obligations............... 342 -63
----------------------------------------------------------------------------
Budgetary resources available for obligation:
21.90 Unobligated balance available,
start of year: Fund balance..... -369
22.00 New financing authority (gross)... -27 -446
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... -27 -815
23.95 New obligations................... -342 63
24.90 Unobligated balance available, end
of year: Fund balance........... -369 -752
----------------------------------------------------------------------------
New financing authority (gross), detail:
68.00 Spending authority from offsetting
collections (gross): Offsetting
collections (cash).............. -27 -446
----------------------------------------------------------------------------
Change in unpaid obligations:
72.90 Unpaid obligations, start of year:
Obligated balance: Obligated
balance......................... 52
73.10 New obligations................... 342 -63
73.20 Total financing disbursements
(gross)......................... -290 2
74.90 Unpaid obligations, end of year:
Obligated balance: Obligated
balance......................... 52 -9
87.00 Total financing disbursements
(gross)......................... 290 -2
----------------------------------------------------------------------------
Offsets:
Against gross financing authority and
financing disbursements:
Offsetting collections (cash)
from:
Federal sources:
Payment from subsidy
account:
88.00 Stafford loans............ 357
88.00 Unsubsidized Stafford..... 35
88.00 PLUS loans................ 5
88.00 Consolidated loans........ 23
88.25 Interest on uninvested funds:
Stafford loans.............. 27 68
Non-Federal sources:
Stafford loans:
88.40 Recoveries on defaults.... -20
88.40 Sallie Mae offset fees.... -13
88.40 Recoveries on defaults.... -3
88.40 Recoveries on defaults.... -2
88.40 Recoveries on defaults.... -4
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ 27 446
----------------------------------------------------------------------------
Net financing authority and financing
disbursements:
89.00 Financing authority...............
90.00 Financing disbursements........... 317 444
---------------------------------------------------------------------------
[[Page 443]]
Status of Guaranteed Loans (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-4251-4-3-502 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
STAFFORD
Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........
2251 Repayments and prepayments........ 3
--------- --------- ----------
2290 Outstanding, end of year........ 3
----------------------------------------------------------------------------
Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 3
----------------------------------------------------------------------------
Addendum:
Cumulative balance of defaulted guaranteed
loans that result in loans receivable:
2310 Outstanding, start of year......
2351 Repayments of loans receivable.. -20
2361 Write-offs of loans receivable.. -2
--------- --------- ----------
2390 Outstanding, end of year...... -22
----------------------------------------------------------------------------
UNSUBSIDIZED STAFFORD
Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........
2251 Repayments and prepayments........ 2
--------- --------- ----------
2290 Outstanding, end of year........ 2
----------------------------------------------------------------------------
Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 2
----------------------------------------------------------------------------
Addendum:
Cumulative balance of defaulted guaranteed
loans that result in loans receivable:
2310 Outstanding, start of year......
2351 Repayments of loans receivable.. -3
2361 Write-offs of loans receivable.. -1
--------- --------- ----------
2390 Outstanding, end of year...... -4
----------------------------------------------------------------------------
PLUS
Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........
2251 Repayments and prepayments........ 10
2263 Adjustments: Terminations for
default that result in claim
payments........................ 1
--------- --------- ----------
2290 Outstanding, end of year........ 11
----------------------------------------------------------------------------
Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 11
----------------------------------------------------------------------------
Addendum:
Cumulative balance of defaulted guaranteed
loans that result in loans receivable:
2310 Outstanding, start of year......
2351 Repayments of loans receivable.. -1
2361 Write-offs of loans receivable.. -2
--------- --------- ----------
2390 Outstanding, end of year...... -3
----------------------------------------------------------------------------
SLS
Position with respect to appropriations act
limitation on commitments:
2111 Limitation on guaranteed loans
made by private lenders.........
--------- --------- ----------
2150 Total guaranteed loan
commitments...................
----------------------------------------------------------------------------
Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........
2251 Repayments and prepayments........ 152
--------- --------- ----------
2290 Outstanding, end of year........ 152
----------------------------------------------------------------------------
Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 152
----------------------------------------------------------------------------
Addendum:
Cumulative balance of defaulted guaranteed
loans that result in loans receivable:
2310 Outstanding, start of year......
2351 Repayments of loans receivable.. -4
2361 Write-offs of loans receivable.. -1
--------- --------- ----------
2390 Outstanding, end of year...... -5
----------------------------------------------------------------------------
CONSOLIDATED
Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........
2251 Repayments and prepayments........ 33
2263 Adjustments: Terminations for
default that result in claim
payments........................ 1
--------- --------- ----------
2290 Outstanding, end of year........ 34
----------------------------------------------------------------------------
Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 34
---------------------------------------------------------------------------
Balance Sheet (in millions of dollars)
-----------------------------------------------------------------------------------------------
Identification code 91-4251-4-3-502 1995 actual 1996 actual 1997 est. 1998 est.
-----------------------------------------------------------------------------------------------
ASSETS:
1101 Federal assets: Fund balances with
Treasury........................ -369 -752
Net value of assets related to
post-1991 acquired defaulted
guaranteed loans receivable:
1501 Defaulted guaranteed loans
receivable, gross............. -34
------------ -------------- ------------ -------------
1599 Net present value of assets
related to defaulted
guaranteed loans............ -34
------------ -------------- ------------ -------------
1999 Total assets.................... -369 -786
NET POSITION:
3100 Appropriated capital.............. -369 -786
------------ -------------- ------------ -------------
3999 Total net position.............. -369 -786
------------ -------------- ------------ -------------
4999 Total liabilities and net position -369 -786
-----------------------------------------------------------------------------------------------
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 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Obligations by program activity:
Stafford loans:
01.01 Interest benefits, net of
origination fees.............. 260 128 64
01.02 Special allowance net of
origination fees.............. 254 101 48
01.03 Default claims.................. 1,091 767 539
01.04 Death, disability, and
bankruptcy claims............. 106 74 32
01.06 Supplemental preclaims
assistance.................... 28 14 7
01.07 Contract collection costs....... 136 78 68
--------- --------- ----------
01.91 Subtotal, Stafford loans...... 1,875 1,162 758
PLUS/SLS loans:
02.01 Default claims.................. 56 30 16
02.02 Death, disability, and
bankruptcy claims............. 5 7 4
02.04 Supplemental preclaims
assistance.................... 1 1
02.05 Contract collection costs....... 7 18 20
--------- --------- ----------
02.91 Subtotal, PLUS/SLS loans...... 69 56 40
Miscellaneous costs:
03.01 Scheduled payments to finance
account for non-contractual
modifications................. 538 376 263
--------- --------- ----------
10.00 Total obligations............... 2,482 1,594 1,061
----------------------------------------------------------------------------
Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 2,772 1,608 1,554
22.10 Resources available from
recoveries of prior year
obligations..................... 34
22.40 Capital transfer to general fund.. -324 -14 -493
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 2,482 1,594 1,061
[[Page 444]]
23.95 New obligations................... -2,482 -1,594 -1,061
----------------------------------------------------------------------------
New budget authority (gross), detail:
60.05 Appropriation (indefinite)........ 1,153
68.00 Spending authority from offsetting
collections: Offsetting
collections (cash).............. 1,619 1,608 1,554
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 2,772 1,608 1,554
----------------------------------------------------------------------------
Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Appropriation 48 261 239
73.10 New obligations................... 2,482 1,594 1,061
73.20 Total outlays (gross)............. -2,234 -1,614 -1,140
73.45 Adjustments in unexpired accounts. -34
74.40 Unpaid obligations, end of year:
Obligated balance: Appropriation 261 239 159
----------------------------------------------------------------------------
Outlays (gross), detail:
86.97 Outlays from new permanent
authority....................... 2,186 1,353 901
86.98 Outlays from permanent balances... 48 261 239
--------- --------- ----------
87.00 Total outlays (gross)........... 2,234 1,614 1,140
----------------------------------------------------------------------------
Offsets:
Against gross budget authority and outlays:
Offsetting collections (cash)
from:
Non-Federal sources:
Stafford loans:
88.40 Federal collections on
defaulted loans......... -475 -472 -456
88.40 Federal collections on
bankruptcies............ -23 -23 -23
88.40 Offsets against Federal
tax refunds............. -317 -315 -304
Other collections:
88.40 Reimbursements from
guaranty agencies....... -583 -577 -559
88.40 Federal collections on
defaulted loans......... -75 -75 -72
88.40 Federal collections on
bankruptcies............ -4 -4 -3
88.40 Offsets against Federal
tax refunds............. -50 -50 -48
88.40 Reimbursements from
guaranty agencies....... -92 -92 -89
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -1,619 -1,608 -1,554
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 1,153
90.00 Outlays........................... 616 6 -414
---------------------------------------------------------------------------
Status of Guaranteed Loans (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0230-0-1-502 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
STAFFORD LOANS
Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 26,846 26,412 20,540
2251 Repayments and prepayments........ -9,110 -5,002 -4,536
Adjustments:
2261 Terminations for default that
result in loans receivable.... -1,076 -810 -569
2263 Terminations for default that
result in claim payments...... -106 -60 -30
2264 Other adjustments, net.......... 9,858
--------- --------- ----------
2290 Outstanding, end of year........ 26,412 20,540 15,405
----------------------------------------------------------------------------
Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 26,412 20,540 15,405
----------------------------------------------------------------------------
Addendum:
Cumulative balance of defaulted guaranteed
loans that result in loans receivable:
2310 Outstanding, start of year...... 10,013 9,868 9,185
2331 Disbursements for guaranteed
loan claims................... 1,365 810 569
2351 Repayments of loans receivable.. -1,395 -1,398 -1,359
2361 Write-offs of loans receivable.. -11 -11 -11
2364 Other adjustments, net.......... -104 -84 -65
--------- --------- ----------
2390 Outstanding, end of year...... 9,868 9,185 8,319
----------------------------------------------------------------------------
PLUS/SLS LOANS
Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 2,727 3,914 3,043
2251 Repayments and prepayments........ -964 -831 -1,691
Adjustments:
2261 Terminations for default that
result in loans receivable.... -56 -33 -18
2263 Terminations for default that
result in claim payments...... -5 -7 -3
2264 Other adjustments, net.......... 2,212
--------- --------- ----------
2290 Outstanding, end of year........ 3,914 3,043 1,331
----------------------------------------------------------------------------
Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 3,914 3,043 1,331
----------------------------------------------------------------------------
Addendum:
Cumulative balance of defaulted guaranteed
loans that result in loans receivable:
2310 Outstanding, start of year...... 3,166 2,991 2,611
2331 Disbursements for guaranteed
loan claims................... 68 33 18
2351 Repayments of loans receivable.. -222 -208 -193
2361 Write-offs of loans receivable.. -3 -190 -187
2364 Other adjustments, net.......... -18 -15 -12
--------- --------- ----------
2390 Outstanding, end of year...... 2,991 2,611 2,237
---------------------------------------------------------------------------
\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 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
25.2 Other services.................... 142 96 88
33.0 Investments and loans............. 1,147 796 555
41.0 Grants, subsidies, and
contributions................... 1,081 620 382
42.0 Insurance claims and indemnities.. 112 82 36
--------- --------- ----------
99.9 Total obligations............... 2,482 1,594 1,061
---------------------------------------------------------------------------
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,
$698,000.]
For Federal administrative expenses to carry out activities related
to facility loans entered into under title VII, part C and section 702
of the Higher Education Act, as amended, $1,069,000. (Department of
Education Appropriations Act, 1997.)
Historically Black College and University Capital Financing Program
Account
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.
(Department of Education Appropriations Act, 1997.)
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0241-0-1-502 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.09 Federal administration............ 1 1 1
--------- --------- ----------
10.00 Total obligations............... 1 1 1
----------------------------------------------------------------------------
Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 1 1 1
[[Page 445]]
22.10 Resources available from
recoveries of prior year
obligations..................... 2
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 3 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. 8 5 4
73.10 New obligations................... 1 1 1
73.20 Total outlays (gross)............. -2 -2 -2
73.45 Adjustments in unexpired accounts. -2
74.90 Unpaid obligations, end of year:
Obligated balance: Fund balance. 5 4 4
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new current authority 1 1 1
86.93 Outlays from current balances..... 1 1 1
--------- --------- ----------
87.00 Total outlays (gross)........... 2 2 2
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 1 1 1
90.00 Outlays........................... 2 2 2
---------------------------------------------------------------------------
Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0241-0-1-502 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Direct loan subsidy outlays:
1340 Subsidy outlays................... 1 1
----------------------------------------------------------------------------
Administrative expense data:
3510 Budget authority.................. 1 1 1
3590 Outlays from new authority........ 1 1 1
---------------------------------------------------------------------------
The College Housing and Academic Facilities Loan (CHAFL) Program
account and the Historically Black College and University (HBCU) Capital
Financing Program account are consolidated for presentation purposes.
The College Housing and Academic Facilities Loans and Historically Black
College and University Capital Financing programs will continue to be
administered separately.
The College Housing and Academic Facilities Loans Program.--The
Department began issuing CHAFL facility loans in 1987 and made its last
awards in 1993. Prior to 1987, loans were made under two separate loan
programs: Higher Education and Facilities Loans (HEFL) and College
Housing Loans (CHL). The loans support financing for the reconstruction,
renovation, and construction of academic facilities, housing and other
postsecondary education facilities for students and faculty. Although
the Department no longer makes new loans, the Department continues to be
responsible for conducting architectural and engineering reviews before
disbursing payments to institutions and servicing the outstanding loans
under an agreement with the Federal Reserve Bank.
In prior years, funding for CHAFL administration was in this
account, and funding for CHL and HEFL administration was split between
the Department's Program Administration account and the liquidating
accounts for these two programs. In fiscal year 1998, the Department
plans to consolidate funding for administrative activities for CHAFL,
HEFL and CHL under a single account. The FY 1998 request includes
funding for personnel, loan servicing, and architectural and engineering
services.
Historically Black College and University Capital Financing
Program.--The Historically Black College and University (HBCU) Capital
Financing Program provides 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 granted the Department
authority to enter into insurance agreements with a private for-profit
Designated Bonding Authority to guarantee no more than $357,000,000 loan
principal plus accrued unpaid interest for taxable bonds. The bonding
authority issues the bonds and maintains 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 first loan was issued in 1996 for $3.5 million, and additional
loans are expected in 1997 and 1998. No subsidy appropriations are
required. The 1998 budget requests funds for continuing Federal
administrative activities only.
Object Classification (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0241-0-1-502 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
25.3 Direct obligations: Purchases of
goods and services from
Government accounts............. 1
99.5 Below reporting threshold......... 1 1
--------- --------- ----------
99.9 Total obligations............... 1 1 1
---------------------------------------------------------------------------
Personnel Summary
----------------------------------------------------------------------------
Identification code 91-0241-0-1-502 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
1001 Total compensable workyears: Full-
time equivalent employment...... 8 7 9
---------------------------------------------------------------------------
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 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.02 Interest paid to Treasury......... 1 1 1
--------- --------- ----------
10.00 Total obligations............... 1 1 1
----------------------------------------------------------------------------
Budgetary resources available for obligation:
22.00 New financing authority (gross)... 1 1
23.95 New obligations................... -1 -1 -1
----------------------------------------------------------------------------
New financing authority (gross), detail:
Spending authority from offsetting
collections:
68.00 Offsetting collections (cash)... 2 1 1
68.10 Change in orders on hand from
Federal sources............... -4 -1
68.15 Adjustment to orders on hand
from Federal sources.......... 2
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total)..................... 1
--------- --------- ----------
70.00 Total new financing authority
(gross)....................... 1
----------------------------------------------------------------------------
Change in unpaid obligations:
Unpaid obligations, start of year:
72.90 Obligated balance: Authority to
Borrow........................ 38 22 16
72.95 Obligate balance: Subsidy....... 8 4 3
--------- --------- ----------
72.99 Total unpaid obligations,
start of year............... 46 26 19
73.10 New obligations................... 1 1 1
73.20 Total financing disbursements
(gross)......................... -9 -8 -4
73.40 Adjustments in expired accounts... -12
Unpaid obligations, end of year:
74.90 Obligated balance: Obligated
balance....................... 22 16 14
74.95 Receivables from program account 4 3 3
--------- --------- ----------
74.99 Total unpaid obligations, end
of year..................... 26 19 17
87.00 Total financing disbursements
(gross)......................... 9 8 4
----------------------------------------------------------------------------
Offsets:
Against gross financing authority and
financing disbursements:
Offsetting collections (cash)
from:
88.00 Principal repayments.......... -1
88.25 Interest on uninvested funds.. -1
[[Page 446]]
88.40 Interest repayments........... -1 -1
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -2 -1 -1
88.95 Change in receivables from program
accounts........................ 4 1
88.96 Adjustment to orders on hand from
Federal sources................. -2
----------------------------------------------------------------------------
Net financing authority and financing
disbursements:
89.00 Financing authority............... 1
90.00 Financing disbursements........... 7 7 3
---------------------------------------------------------------------------
Status of Direct Loans (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-4252-0-3-502 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Position with respect to appropriations act
limitation on obligations:
1111 Limitation on direct loans........
--------- --------- ----------
1150 Total direct loan obligations...
----------------------------------------------------------------------------
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 6 13 19
1231 Disbursements: Direct loan
disbursements................... 7 6 3
1251 Repayments: Repayments and
prepayments.....................
--------- --------- ----------
1290 Outstanding, end of year........ 13 19 22
---------------------------------------------------------------------------
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, 1998.
Balance Sheet (in millions of dollars)
-----------------------------------------------------------------------------------------------
Identification code 91-4252-0-3-502 1995 actual 1996 actual 1997 est. 1998 est.
-----------------------------------------------------------------------------------------------
ASSETS:
Investments in US securities:
1106 Federal assets: Receivables, net 9 8 4 3
Net value of assets related to
post-1991 direct loans
receivable:
1401 Direct loans receivable, gross.. 5 11 19 22
1402 Interest receivable............. 1 1
1405 Allowance for subsidy cost (-).. -2 -4 -1
------------ -------------- ------------ -------------
1499 Net present value of assets
related to direct loans..... 3 7 19 23
------------ -------------- ------------ -------------
1999 Total assets.................... 12 15 23 26
LIABILITIES:
Federal liabilities:
2102 Interest payable................ 1 1 1 1
2103 Debt............................ 5 11 20 27
------------ -------------- ------------ -------------
2999 Total liabilities............... 6 12 21 28
NET POSITION:
3100 Appropriated capital.............. 6 3 2 -2
------------ -------------- ------------ -------------
3999 Total net position.............. 6 3 2 -2
------------ -------------- ------------ -------------
4999 Total liabilities and net position 12 15 23 26
-----------------------------------------------------------------------------------------------
College Housing and Academic Facilities Loans Liquidating Account
[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.] (Department of
Education Appropriations Act, 1997.)
[College Housing Loans]
[Pursuant to title VII, part C of the Higher Education Act, as
amended, for necessary expenses of the college housing loans program,
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.]
(Department of Education Appropriations Act, 1997.)
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0242-0-1-502 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Obligations by program activity:
10.00 Total obligations (object class
43.0)........................... 33 25 24
----------------------------------------------------------------------------
Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested
balance......................... 41 41 50
22.00 New budget authority (gross)...... 36 29 27
22.10 Resources available from
recoveries of prior year
obligations..................... 10
22.60 Redemption of debt................ -3 -5 -3
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 74 75 74
23.95 New obligations................... -33 -25 -24
24.40 Unobligated balance available, end
of year: Uninvested balance..... 41 50 51
----------------------------------------------------------------------------
New budget authority (gross), detail:
60.05 Appropriation (indefinite)........ 6 3 3
Spending authority from offsetting
collections:
68.00 Offsetting collections (cash)... 76 59 59
68.27 Capital transfer to general fund -4 -3 -3
68.47 Portion applied to debt
reduction..................... -42 -30 -32
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total)..................... 30 26 24
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 36 29 27
----------------------------------------------------------------------------
Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Appropriation 43 46 31
73.10 New obligations................... 33 25 24
73.20 Total outlays (gross)............. -30 -30 -27
73.45 Adjustments in unexpired accounts. -10
74.40 Unpaid obligations, end of year:
Obligated balance: Appropriation 46 31 28
----------------------------------------------------------------------------
Outlays (gross), detail:
86.97 Outlays from new permanent
authority....................... 30 23 23
86.98 Outlays from permanent balances... 7 4
--------- --------- ----------
87.00 Total outlays (gross)........... 30 30 27
----------------------------------------------------------------------------
Offsets:
Against gross budget authority and outlays:
Offsetting collections (cash)
from:
Non-Federal sources:
88.40 Repayments of principal..... -50 -39 -39
88.40 Interest received on loans.. -26 -20 -20
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -76 -59 -59
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. -40 -30 -32
90.00 Outlays........................... -45 -29 -32
---------------------------------------------------------------------------
Status of Direct Loans (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0242-0-1-502 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
CHAFL LIQUIDATING
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 144 152 148
1231 Disbursements: Direct loan
disbursements................... 13
1251 Repayments: Repayments and
prepayments..................... -5 -4 -3
--------- --------- ----------
1290 Outstanding, end of year........ 152 148 145
----------------------------------------------------------------------------
[[Page 447]]
HIGHER EDUCATION FACILITIES
LOANS
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 54 48 42
1251 Repayments: Repayments and
prepayments..................... -6 -6 -6
--------- --------- ----------
1290 Outstanding, end of year........ 48 42 36
----------------------------------------------------------------------------
COLLEGE HOUSING LOANS
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 484 446 415
1251 Repayments: Repayments and
prepayments..................... -38 -31 -31
--------- --------- ----------
1290 Outstanding, end of year........ 446 415 384
---------------------------------------------------------------------------
The College Housing and Academic Facilities Loans Liquidating
Account records all cash flows to and from the Government resulting from
direct loans made prior to 1992 to schools and colleges for the
reconstruction, renovation, and construction of academic facilities,
housing and other postsecondary education facilities. Loans were made
under three separate loan programs: Higher Education and Facilities
Loans, College Housing Loans, and College Housing and Academic
Facilities Loans. In 1998, the Department is consolidating the three
loan programs into the CHAFL Liquidating account for budget presentation
purposes only. The three individual programs will continue to be
administered separately.
Historically Black College and University Capital Financing, Financing
Account
Status of Guaranteed Loans (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-4254-0-3-502 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Position with respect to appropriations act
limitation on commitments:
2111 Limitation on guaranteed loans
made by private lenders.........
----------------------------------------------------------------------------
Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 10
2231 Disbursements of new guaranteed
loans........................... 10 15
2251 Repayments and prepayments........
--------- --------- ----------
2290 Outstanding, end of year........ 10 25
----------------------------------------------------------------------------
Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 10 25
---------------------------------------------------------------------------
Note.--The appropriations language for this program specifies a
limitation that applies to direct and guaranteed loans in total.
In FY 1997, the Federal Financing Bank (FFB) began purchasing bonds
issued by the HBCU Designated Bonding Authority. Under the policies
governing Federal credit programs, loan guarantees by the FFB create the
equivalent of a Federal direct loan. For budget purposes, all FFB loans
shall be treated as direct loans. HBCU bonds are still available for
purchase by the private sector, and these will be treated as loan
guarantees. The Department expects some future loans may be financed
from private sources.
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, sections
[3132,] 3136 and 3141, parts B, C, and D of title III and parts A, B,
and I, [and K] and section 10601 of title X, and part C of title XIII of
the Elementary and Secondary Education Act of 1965, as amended, and
title VI of Public Law 103-227, $510,693,000 [$598,350,000: Provided,
That $200,000,000 shall be for section 3132, $56,965,000 shall be for
section 3136 and $10,000,000 shall be for section 3141 of the Elementary
and Secondary Education Act: Provided further, That notwithstanding any
other provision of law, one-half of one percent of the amount available
for section 3132 of the Elementary and Secondary Education Act of 1965,
as amended, shall be set aside for the outlying areas to be distributed
among the outlying areas on the basis of their relative need as
determined by the Secretary in accordance with the purposes of the
program: Provided further, That, notwithstanding section 3131(b) of said
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:
Provided further, That, of the amount available for title III, part B of
the Elementary and Secondary Education Act of 1965, as amended, funds
shall be awarded to continue the Iowa Communication Network statewide
fiber optic demonstration and $2,000,000 shall be awarded to the
Southeastern Pennsylvania Consortium for Higher Education for the
establishment of local and wide area computer networks to provide
instructional resources to students and faculty: Provided further, That
none of the funds appropriated in this paragraph may be obligated or
expended for the Goals 2000 Community Partnerships Program]. (Department
of Education Appropriations Act, 1997.)
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-1100-0-1-999 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Obligations by program activity:
Direct program:
Research, development and
dissemination:
00.01 National education research
institutes.................. 43 54 62
00.02 Regional educational
laboratories................ 51 51 54
00.03 National dissemination
activities.................. 13 19 19
00.04 Statistics...................... 46 50 66
00.05 Assessment...................... 33 33 38
00.06 Eisenhower professional
development national
activities.................... 18 13 30
Educational technology:
Technology for education:
00.07 Technology literacy
challenge fund............ 200
00.08 Technology innovation
challenge grants.......... 38 57 75
00.09 Regional technology in
education consortia....... 10 10 10
00.10 Star schools.................. 23 30 26
00.11 Ready to learn television..... 6 7 7
00.12 Telecommunications
demonstration project for
mathematics................. 1 1 2
00.13 Fund for the improvement of
education..................... 38 40 40
00.14 Javits gifted and talented
education..................... 3 5 7
00.15 Eisenhower regional mathematics
and science education
consortia..................... 15 15 15
00.16 After-school learning centers... 1 1 50
00.17 National writing project........ 3 3
00.18 Civic education................. 4 4 5
00.19 International education exchange 5 5 5
--------- --------- ----------
00.91 Subtotal, direct program...... 351 598 511
02.01 Reimbursable program.............. 2
--------- --------- ----------
10.00 Total obligations............... 353 598 511
----------------------------------------------------------------------------
Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 353 598 511
23.95 New obligations................... -353 -598 -511
----------------------------------------------------------------------------
New budget authority (gross), detail:
Current:
40.00 Appropriation................... 351 598 511
Permanent:
68.00 Spending authority from
offsetting collections:
Offsetting collections (cash). 2
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 353 598 511
----------------------------------------------------------------------------
Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Appropriation 322 358 543
73.10 New obligations................... 353 598 511
73.20 Total outlays (gross)............. -313 -412 -551
73.40 Adjustments in expired accounts... -4
74.40 Unpaid obligations, end of year:
Obligated balance: Appropriation 358 543 503
----------------------------------------------------------------------------
[[Page 448]]
Outlays (gross), detail:
86.90 Outlays from new current authority 82 130 129
86.93 Outlays from current balances..... 229 281 422
86.98 Outlays from permanent balances... 2 1
--------- --------- ----------
87.00 Total outlays (gross)........... 313 412 551
----------------------------------------------------------------------------
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.................. 351 598 511
90.00 Outlays........................... 311 412 551
---------------------------------------------------------------------------
Note.--Excludes $425 million in budget authority in 1998 for activities
transferred to the Office of Elementary and Secondary Education, Education
Reform Account. The comparable amount for 1997 was $200 million (included
above) and zero in 1996, since the program was first funded in 1997.
Research, development, and dissemination.--
National research institutes.--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.
Regional educational laboratories.--Ten laboratories provide
applied research and development, dissemination, and technical
assistance services to address needs in specified regions throughout
the country.
National dissemination activities.--Funds support information
clearinghouses, a national dissemination system, and a national
library of education, which 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 innovation challenge grants.--Competitive grants are
made to consortia of school districts and other partners to improve
teaching and learning through the effective use of technologies.
Regional technology in education consortia.--Funds support
technical assistance in the development and implementation of
educational technology.
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, contribute to achievement of the
National Education Goals and support the Christa McAuliffe Fellowships.
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.
After-school learning centers.--Funds support school-based after-
school tutoring and other educational and violence prevention services
to members of the community.
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 91-1100-0-1-999 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Direct obligations:
11.3 Personnel compensation: Other
than full-time permanent...... 1 1 1
24.0 Printing and reproduction....... 2 2 1
25.1 Advisory and assistance services 5 5 5
25.2 Other services.................. 46 52 71
25.3 Purchases of goods and services
from Government accounts...... 9 9 9
25.5 Research and development
contracts..................... 55 56 56
25.7 Operation and maintenance of
equipment..................... 9 9 9
41.0 Grants, subsidies, and
contributions................. 222 462 357
--------- --------- ----------
99.0 Subtotal, direct obligations.. 349 596 509
99.0 Reimbursable obligations.......... 2
99.5 Below reporting threshold......... 2 2 2
--------- --------- ----------
99.9 Total obligations............... 353 598 511
---------------------------------------------------------------------------
Personnel Summary
----------------------------------------------------------------------------
Identification code 91-1100-0-1-999 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
1001 Total compensable workyears: Full-
time equivalent employment...... 11 13 13
---------------------------------------------------------------------------
Libraries
The account for the Office of Library programs, which was formerly
shown under the Department of Education, Office of Educational Research
and Improvement, is now part of the Institute of Museum and Library
Services.
[[Page 449]]
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, [$327,000,000] $341,039,000. (Department of Education
Appropriations Act, 1997.)
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0800-0-1-503 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Direct program.................... 326 326 341
01.01 Reimbursable programs............. 6 8 8
--------- --------- ----------
10.00 Total obligations............... 332 334 349
----------------------------------------------------------------------------
Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 333 334 349
22.30 Unobligated balance expiring...... -1
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 332 334 349
23.95 New obligations................... -332 -334 -349
----------------------------------------------------------------------------
New budget authority (gross), detail:
Current:
40.00 Appropriation................... 327 327 341
40.75 Reduction pursuant to P.L. 104-
208........................... -1
--------- --------- ----------
43.00 Appropriation (total)......... 327 326 341
Permanent:
68.00 Spending authority from
offsetting collections:
Offsetting collections (cash). 6 8 8
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 333 334 349
----------------------------------------------------------------------------
Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Appropriation 183 119 123
73.10 New obligations................... 332 334 349
73.20 Total outlays (gross)............. -406 -330 -348
73.40 Adjustments in expired accounts... 10
74.40 Unpaid obligations, end of year:
Obligated balance: Appropriation 119 123 124
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new current authority 254 245 253
86.93 Outlays from current balances..... 130 78 87
86.97 Outlays from new permanent
authority....................... 3 4 4
86.98 Outlays from permanent balances... 19 3 4
--------- --------- ----------
87.00 Total outlays (gross)........... 406 330 348
----------------------------------------------------------------------------
Offsets:
Against gross budget authority and outlays:
88.00 Offsetting collections (cash)
from: Federal sources......... -6 -8 -8
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 327 326 341
90.00 Outlays........................... 400 322 340
---------------------------------------------------------------------------
The Program Administration account includes the direct Federal costs
of providing grants and administering elementary and secondary
education, bilingual education, higher education, vocational and adult
education, and special education programs, programs 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; 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.
Also included in this account are 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 1998.
Object Classification (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0800-0-1-503 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Direct obligations:
Personnel compensation:
11.1 Full-time permanent........... 137 140 141
11.3 Other than full-time permanent 13 11 11
11.5 Other personnel compensation.. 2 1 1
--------- --------- ----------
11.9 Total personnel compensation 152 152 153
12.1 Civilian personnel benefits..... 30 31 33
21.0 Travel and transportation of
persons....................... 5 5 5
23.1 Rental payments to GSA.......... 23 22 25
23.3 Communications, utilities, and
miscellaneous charges......... 17 16 17
24.0 Printing and reproduction....... 8 9 10
25.1 Advisory and assistance services 5 5 5
25.2 Other services.................. 10 9 13
25.3 Purchases of goods and services
from Government accounts...... 14 15 14
25.4 Operation and maintenance of
facilities.................... 1 1 1
25.7 Operation and maintenance of
equipment..................... 44 50 46
26.0 Supplies and materials.......... 3 3 3
31.0 Equipment....................... 13 5 13
32.0 Land and structures............. 1 1 2
--------- --------- ----------
99.0 Subtotal, direct obligations.. 326 324 340
99.0 Reimbursable obligations.......... 6 7 7
99.5 Below reporting threshold......... 3 2
--------- --------- ----------
99.9 Total obligations............... 332 334 349
---------------------------------------------------------------------------
Personnel Summary
----------------------------------------------------------------------------
Identification code 91-0800-0-1-503 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Total compensable workyears:
1001 Full-time equivalent employment... 2,733 2,630 2,575
1005 Full-time equivalent of overtime
and holiday hours............... 3 3 3
---------------------------------------------------------------------------
Office for Civil Rights
For expenses necessary for the Office for Civil Rights, as
authorized by section 203 of the Department of Education Organization
Act, [$55,000,000] $61,500,000. (Department of Education Appropriations
Act, 1997.)
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0700-0-1-751 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Direct program: Civil Rights...... 55 55 62
--------- --------- ----------
10.00 Total obligations............... 55 55 62
----------------------------------------------------------------------------
Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 55 55 62
23.95 New obligations................... -55 -55 -62
----------------------------------------------------------------------------
New budget authority (gross), detail:
40.00 Appropriation..................... 55 55 62
----------------------------------------------------------------------------
Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Appropriation 28 11 9
73.10 New obligations................... 55 55 62
[[Page 450]]
73.20 Total outlays (gross)............. -72 -57 -60
74.40 Unpaid obligations, end of year:
Obligated balance: Appropriation 11 9 11
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new current authority 48 48 53
86.93 Outlays from current balances..... 24 9 7
--------- --------- ----------
87.00 Total outlays (gross)........... 72 57 60
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 55 55 62
90.00 Outlays........................... 72 57 60
---------------------------------------------------------------------------
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 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Personnel compensation:
11.1 Full-time permanent............. 37 37 38
11.3 Other than full-time permanent.. 1 1 1
--------- --------- ----------
11.9 Total personnel compensation.. 38 38 39
12.1 Civilian personnel benefits....... 7 7 8
21.0 Travel and transportation of
persons......................... 1 1 1
23.1 Rental payments to GSA............ 4 4 5
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........ 1 2 2
25.7 Operation and maintenance of
equipment....................... 1 1 2
26.0 Supplies and materials............ 1
31.0 Equipment......................... 1 1
99.5 Below reporting threshold......... 1 1 1
--------- --------- ----------
99.9 Total obligations............... 55 55 62
---------------------------------------------------------------------------
Personnel Summary
----------------------------------------------------------------------------
Identification code 91-0700-0-1-751 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
1001 Total compensable workyears: Full-
time equivalent employment...... 744 724 724
---------------------------------------------------------------------------
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, [$30,000,000] $32,000,000. (Department of Education Appropriations
Act, 1997.)
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-1400-0-1-751 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Inspector General................. 29 30 32
--------- --------- ----------
10.00 Total obligations............... 29 30 32
----------------------------------------------------------------------------
Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 29 30 32
23.95 New obligations................... -29 -30 -32
----------------------------------------------------------------------------
New budget authority (gross), detail:
40.00 Appropriation..................... 29 30 32
----------------------------------------------------------------------------
Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Appropriation 8 6 5
73.10 New obligations................... 29 30 32
73.20 Total outlays (gross)............. -31 -31 -31
74.40 Unpaid obligations, end of year:
Obligated balance: Appropriation 6 5 6
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new current authority 25 26 27
86.93 Outlays from current balances..... 6 5 4
--------- --------- ----------
87.00 Total outlays (gross)........... 31 31 31
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 29 30 32
90.00 Outlays........................... 31 31 31
---------------------------------------------------------------------------
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 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Personnel compensation:
11.1 Full-time permanent............. 17 18 19
11.5 Other personnel compensation.... 1 1 1
--------- --------- ----------
11.9 Total personnel compensation.. 18 19 20
12.1 Civilian personnel benefits....... 4 4 5
21.0 Travel and transportation of
persons......................... 1 1 1
23.1 Rental payments to GSA............ 2 2 2
25.1 Advisory and assistance services.. 1 1
25.3 Purchases of goods and services
from Government accounts........ 1 1 1
25.7 Operation and maintenance of
equipment....................... 1
99.5 Below reporting threshold......... 2 3 1
--------- --------- ----------
99.9 Total obligations............... 29 30 32
---------------------------------------------------------------------------
Personnel Summary
----------------------------------------------------------------------------
Identification code 91-1400-0-1-751 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
1001 Total compensable workyears: Full-
time equivalent employment...... 305 317 317
---------------------------------------------------------------------------
Headquarters Renovation
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-1500-0-1-503 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Obligations by program activity:
10.00 Total obligations................. 1 6
----------------------------------------------------------------------------
Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested
balance......................... 6
22.00 New budget authority (gross)...... 7
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 7 6
23.95 New obligations................... -1 -6
24.40 Unobligated balance available, end
of year: Uninvested balance..... 6
----------------------------------------------------------------------------
[[Page 451]]
New budget authority (gross), detail:
40.00 Appropriation..................... 7
----------------------------------------------------------------------------
Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Appropriation 1 2
73.10 New obligations................... 1 6
73.20 Total outlays (gross)............. -5 -2
74.40 Unpaid obligations, end of year:
Obligated balance: Appropriation 1 2
----------------------------------------------------------------------------
Outlays (gross), detail:
86.93 Outlays from current balances..... 5 2
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 7
90.00 Outlays........................... 5 2
---------------------------------------------------------------------------
This account provides the Department of Education's portion of funds
to renovate its headquarters building, including costs for
administrative services, information technology, telecommunications
cabling, and systems furniture. The remaining funds required for the
renovation, which began in October 1994, will be provided by the General
Services Administration.
Object Classification (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-1500-0-1-503 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
25.2 Other services.................... 1
25.7 Operation and maintenance of
equipment....................... 2
31.0 Equipment......................... 3
--------- --------- ----------
99.0 Subtotal, direct obligations.. 6
99.5 Below reporting threshold......... 1
--------- --------- ----------
99.9 Total obligations............... 1 6
---------------------------------------------------------------------------
GENERAL FUND RECEIPT ACCOUNTS
(in millions of dollars)
----------------------------------------------------------------------------
1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Offsetting receipts from the public:
91-022100 FFEL Guarantee agency
reserve recoveries: Legislative
proposal, subject to PAYGO.......... 731
91-291500 Repayment of loans, capital
contributions, higher education
activities, Education............... 61 62 61
--------- --------- ----------
General Fund Offsetting receipts from
the public............................. 61 62 792
---------------------------------------------------------------------------
GENERAL PROVISIONS
Sec. 301. 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. 302. 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. 303. No funds appropriated under this Act may be used to
prevent the implementation of programs of voluntary prayer and
meditation in the public schools.
[Sec. 304. Notwithstanding any other provision of law, funds
available under section 458 of the Higher Education Act shall not exceed
$491,000,000 for fiscal year 1997. The Department of Education shall use
$80,000,000 of the amounts provided for payment of administrative cost
allowances to guaranty agencies for fiscal year 1996. For fiscal year
1997, the Department of Education shall pay administrative costs to
guaranty agencies, calculated on the basis of 0.85 percent of the total
principal amount of loans upon which insurance was issued on or after
October 1, 1996: Provided, That such administrative costs shall be paid
only on the first $8,200,000,000 of the principal amount of loans upon
which insurance was issued on or after October 1, 1996 by such guaranty
agencies, and shall not exceed a total of $70,000,000. Such payments are
to be paid quarterly, and receipt of such funds and uses of such funds
shall be in accordance with section 428(f) of the Higher Education Act.]
[Notwithstanding section 458 of the Higher Education Act, the
Secretary may not use funds available under that section or any other
section for subsequent fiscal years for administrative expenses of the
William D. Ford Direct Loan Program. The Secretary may not require the
return of guaranty agency reserve funds during fiscal year 1997, except
after consultation with both the Chairmen and ranking members of the
House Economic and Educational Opportunities Committee and the Senate
Labor and Human Resources Committee. Any reserve funds recovered by the
Secretary shall be returned to the Treasury of the United States for
purposes of reducing the Federal deficit.]
[No funds available to the Secretary may be used for (1) the hiring
of advertising agencies or other third parties to provide advertising
services for student loan programs prior to January 1, 1997, or (2)
payment of administrative fees relating to the William D. Ford Direct
Loan Program to institutions of higher education.]
[Sec. 305. None of the funds appropriated in this Act may be
obligated or expended to carry outsection 621(b) of Public Law 101-589.]
[(transfer of funds)]
[Sec. 306. Not to exceed 1 percent of any discretionary funds
(pursuant to the Balanced Budget and Emergency Deficit Control Act, as
amended) which are appropriated for the current fiscal year for the
Department of Education in this Act may be transferred between
appropriations, but no such appropriation shall be increased by more
than 3 percent by any such transfer: Provided, That the Appropriations
Committees of both Houses of Congress are notified at least fifteen days
in advance of any transfer.]
[Sec. 307. (a) Section 8003(f)(3)(A)(i) of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 7703(f)(3)(A)(i)) is
amended--]
[(1) in the matter preceding subclause (I), by striking ``The
Secretary'' and all that follows through ``greater of--'' and
inserting the following: ``The Secretary, in conjunction with the
local educational agency, shall first determine each of the
following:'';]
[(2) in each of subclauses (I) through (III), by striking ``the
average'' each place it appears the first time in each such
subclause and inserting ``The average'';]
[(3) in subclause (I), by striking the semicolon and inserting a
period;]
[(4) in subclause (II), by striking ``: or'' and inserting a
period; and]
[(5) by adding at the end the following: ``The local educational
agency shall select one of the amounts determined under subclause
(I), (II), or (III) for purposes of the remaining computations under
this subparagraph.''.]
[(b) The amendments made by subsection (a) shall apply with respect
to fiscal years beginning with fiscal year 1995.]
[Sec. 308. Section 485(e)(9) of the Higher Education Act of 1965 is
amended by striking out ``June 30'' in the second sentence of such
section and inserting ``August 30''.] (Department of Education
Appropriations Act, 1997.)