    [Budget of the U.S. Government]
    [V. Creating Opportunity, Demanding Responsibility, and Strengthening Community]
    [2. Investing in Education and Training]
    [From the U.S. Government Publishing Office, www.gpo.gov]

                     2.  INVESTING IN EDUCATION AND TRAINING

      ----------------------------------------------------------------------

      I want to build a bridge to the 21st Century in which we expand opportunity through education, where computers
    are as much a part of the classroom as blackboards, where highly-trained teachers demand peak performance from
    our students, where every eight-year-old can point to a book and say, I can read it myself.
                                          President Clinton
                                          August 29, 1996

      ----------------------------------------------------------------------
      Today's most successful workers are those with skills and a firm
    educational footing who continue to learn throughout their careers in
    order to compete successfully in this fast-changing economy.
       In recent years, education and wages have become increasingly
    intertwined. Generally, those with the best skills and education have
    made steady progress, enjoying higher living standards. Those without
    the requisite skills and education have fallen behind. Tomorrow's
    workers face an even greater challenge. As the very nature of work
    changes with technological innovation, employers will demand even more
    highly-skilled and flexible workers. The best-paying jobs increasingly
    will go only to those with education and training beyond high school.
       For the most part, our Nation places responsibility for education and
    training on State and local governments, families and individuals, and
    the private sector. Nevertheless, the Federal Government plays a
    crucial, if limited, role in providing education for a lifetime--from
    pre-school to adult career training.
       The President's goals are to help families, communities and States
    ensure that every child is prepared to make the best use of education;
    that the education system enables every child to learn to his or her
    potential; that those who need resources to pay for postsecondary
    education and training can get them; that those who need a second chance
    at training and education or a chance to improve or learn new skills
    throughout their working lives can get those opportunities; and that
    States and communities that receive Federal funds can use them more
    flexibly, with fewer regulations and less paperwork.
       Federal resources help States improve the quality of education and
    training for the disadvantaged and for people with disabilities; support
    State- and locally-designed elementary and secondary school reform; and
    help low- and middle-income families gain financial access to
    postsecondary education and skill training through loans and grants. To
    help States raise student achievement, the President has worked hard to
    make schools safer, improve teacher quality, move technology into the
    classroom as quickly as possible, raise academic standards, and better
    prepare students for college and the new workplace.
       The budget reaffirms the President's commitment to America's children
    by increasing the investment in Head Start and in Federal elementary and
    secondary education programs--focusing on innovation and technology--and
    launching a new effort to jump-start needed school renovation and
    construction. In addition, the President has begun a national,
    volunteer-based challenge called America Reads, to ensure that all
    children can read well and independently by the end of third grade.
       To ensure that all Americans have access to the high-skill training
    needed for today's workplace, the President proposes to make two years
    of postsecondary education universally available, through HOPE
    scholarship

    [[Page 58]]

    tax credits of up to $1,500 for two years. And to encourage
    lifelong learning, the budget proposes: tax deductions of up to $10,000
    for tuition and fees for college, graduate school, or job training; a
    $300 increase in the maximum Pell Grant college scholarship (to $3,000),
    marking the largest increase in two decades and providing grants for at
    least 348,000 more students; lower student loan fees and interest rates
    for parents and students; the G.I. Bill for America's Workers so they
    can choose where to get the best job training available; and new
    resources to help move welfare recipients from welfare to work (see
    Table 2-1 and Chart 2-1).
      ----------------------------------------------------------------------

                  Table 2-1.  THE BUDGET INCREASES RESOURCES FOR MAJOR EDUCATION AND TRAINING PROGRAMS BY $15 BILLION, OR 56 PERCENT OVER 1993
                                                                  (Dollar amounts in millions)
    --------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                     Percent
                                                                                                                          1993     1997      1998    Change:
                                                                                                                         Actual  Estimate  Proposed  1993 to
                                                                                                                                                       1998
    --------------------------------------------------------------------------------------------------------------------------------------------------------
    MANDATORY OUTLAYS/TAX EXPENDITURES:
      HOPE scholarships tax credit/deduction..........................................................................  .......       100     4,100       NA
      America Reads (Education Department)............................................................................  .......  ........        31       NA
      School construction.............................................................................................  .......  ........     1,250       NA
      Work Opportunity Tax Credit.....................................................................................  .......       120       160       NA
      Welfare-to-Work Jobs Challenge..................................................................................  .......  ........       600       NA
                                                                                                                       -------------------------------------
        Total, mandatory outlays and tax expenditures.................................................................  .......       220     6,141       NA

    DISCRETIONARY BUDGET AUTHORITY:
      Head Start......................................................................................................    2,776     3,981     4,305     +55%
      Elementary and secondary education:
        America Reads (Corp. for National and Community Service)......................................................  .......  ........       200       NA
        Goals 2000....................................................................................................  .......       491       620       NA
        Education technology..........................................................................................       23       305       545  +2,270%
        Title I Education for Disadvantaged...........................................................................    6,709     7,698     8,077     +20%
        Eisenhower Teacher Training...................................................................................      289       310       360     +25%
        Special education.............................................................................................    2,966     4,036     4,210     +42%
        Safe and drug free schools....................................................................................      582       540       620      +7%
        Charter schools...............................................................................................  .......        51       100       NA
        After-school learning centers.................................................................................  .......  ........        50       NA
      Postsecondary student aid:
        Pell Grants...................................................................................................    6,458     5,919     7,635     +18%
        College Work Study............................................................................................      616       830       857     +39%
        Other campus-based aid........................................................................................      845       811       771      -9%
        Presidential Honors Scholarships..............................................................................  .......  ........       132       NA
      Training and employment:
        Vocational education..........................................................................................    1,176     1,131     1,172      -*%
        Adult education...............................................................................................      304       354       394     +30%
        School-To-Work (Education and Labor Departments)..............................................................  .......       400       400       NA
        Summer Jobs for Youth.........................................................................................      849       871       871      +3%
        Job Corps.....................................................................................................      966     1,154     1,246     +29%
        Youth Opportunity Areas.......................................................................................  .......  ........       250       NA
        JTPA adult/dislocated worker training.........................................................................    1,666     2,181     2,415     +45%
        Employment service and One-Stops..............................................................................      975       974       993      +2%
                                                                                                                       -------------------------------------
           Total, budget authority....................................................................................   27,200    32,037    36,223     +33%
                                                                                                                       =====================================
            Total, mandatory outlays, tax expenditures, and budget authority..........................................   27,200    32,257    42,364     +56%
    --------------------------------------------------------------------------------------------------------------------------------------------------------

    STUDENT LOAN VOLUME (loan amount):
       Direct loans...................................................................................................  .......     9,938    12,037       NA
       Guaranteed loans...............................................................................................   16,029    16,965    16,774      +5%
       Consolidation loans............................................................................................    1,527     6,803     7,729    +406%
                                                                                                                       -------------------------------------
      Total, loan volume..............................................................................................   17,556    33,706    36,540    +108%

    --------------------------------------------------------------------------------------------------------------------------------------------------------
    NA = Not applicable.

    * Less than 0.5 percent.

      ----------------------------------------------------------------------

     America Reads

       Many of our children are falling short of meeting standard
    educational levels--a failure that they often have trouble overcoming
    later. In 1994, for instance, two-fifths of fourth-graders failed to
    reach the ``basic'' reading level on the National Assessment of
    Educational Progress and only 30 percent attained the ``proficient''
    level. In response, the President has launched the America Reads
    Challenge, a multi-part effort to help States and communities ensure
    that all children are reading well and independently by the end of the
    third grade. Business and academic leaders already have pledged their
    support, and the budget proposes the Federal funding component. The
    Administration will measure the success of this effort on a national
    basis through the biennial administration of the National Assessment of
    Educational Progress fourth grade reading assessment.

       America's Reading Corps: One-on-one tutoring is one key to better
    reading. America's Reading Corps will provide individualized after-
    school and summer help for over three million children in grades K-3 who
    want and need it. A five-year, $2.45 billion investment, through the
    Education Department and the Corporation for National and Community
    Service, would help communities mobilize 30,000 reading specialists and
    volunteer coordinators to recruit and train over a million tutors,
    including 100,000 college work-study students.
       Parents as First Teachers: Nothing is more important to children's
    reading skills than the time parents spend reading to, and with, them.
    Research shows that the first three years of a child's life are crucial
    to his or her development. An early exposure to books, even for infants,
    is important to prepare children for pre-reading activities as toddlers.
    Reading to them for 20 minutes a day can make a big difference in their
    readiness for school. To give parents help and information in teaching
    their children, the Administration proposes a Parents as First Teachers
    Challenge Grant Fund of $300 million over five years, building on the
    current Even Start Family Literacy program to support effective, proven
    efforts that help parents help their children become successful readers.

     Head Start

       A healthy, caring family environment is the best preparation for
    school. For over 30 years, Head Start has helped low-income families
    create this environment by taking a comprehensive approach to child
    development--improving children's learning skills, health, nutrition,
    and social competency. Head Start involves parents in their children's
    learning, and links children and their families to a wide array of
    services in their communities. Over the last four years, the President
    has secured a 43-percent increase in funds for Head Start, enabling the
    program to serve 800,000 children in 1997.
       The budget proposes $4.3 billion for Head Start, $324 million more
    than in 1997, to enable 86,000 more children to participate than in 1996
    and raising program quality (see Chart 2-2). With this funding, the
    Administration would be well on its way toward meeting the President's
    commitment of a million children in Head Start by 2002.

       In addition, the Early Start component of Head Start extends
    comprehensive early development services to infants aged 0 to 3 in a way
    that supports families, builds parenting skills, and extends a safe,
    nurturing, and stimulating environment to very young children.

     Elementary and Secondary Education

       The Administration has energized State and local efforts to raise
    student achievement by boosting funds for various programs that

    [[Page 59]]

    States and localities then combine with their own funds to help all students
    achieve at high levels in a safe, modern learning environment. The
    budget builds on this momentum by proposing additional funds for all
    major programs, and for the new America Reads initiative (discussed
    earlier in this chapter) and the new school construction initiative
    (discussed later).
       The Administration's goal for elementary and secondary education is
    to help States and communities raise the quality of education

    [[Page 60]]

    for all children. Administration initiatives launched in 1994 are designed to
    establish a framework for comprehensive reform and to help States
    finance their role in it. The goals include: high State standards for
    all children; new curriculum and teaching methods to help all children
    achieve those standards; teacher and administrator training to support
    the standards; assessments of each child's progress; and a safe,
    technologically up-to-date learning environment. The budget proposes to
    increase funds for programs that support these goals, and proposes more
    flexibility to enhance the success of State and community efforts.

       School Construction: The General Accounting Office found that a third
    of all schools across the country, with 14 million students, have one or
    more buildings needing extensive repair. School districts also face the
    cost of upgrading schools to accommodate computers and modern
    technology, and of constructing new classrooms and schools to meet
    expected record enrollment levels over the next decade. The President
    proposes to leverage new construction or renovation projects through a
    $5 billion fund for school districts with substantial need. The fund
    would support interest subsidies or similar assistance to cut borrowing
    costs for States and localities in order to reach higher levels of
    infrastructure investment.
       Goals 2000: Enacted in 1994, this Administration initiative helps
    participating States establish high standards for all children and plan
    and implement steps to raise educational achievement. It builds on the
    National Education Goals, first articulated by the Nation's governors
    (led by then-Governor Clinton) and President Bush in 1989, which provide
    clear national targets but encourage States to develop their own means
    to achieve them. All States have now chosen to receive Goals 2000
    funding.
       The program is working. In Maryland, 40 percent of all students met
    challenging State academic standards in 1995, a 25 percent gain over
    1993. Over the next two years, the Education Department seeks to

    [[Page 61]]

    ensure that at least half of all school districts are implementing reforms
    based on State-developed standards, and that the number of students
    meeting or exceeding their State's standards continues to rise. Goals
    2000 also supports individual school reforms. The budget would finance
    aid for 4,000 more schools than in 1997--for a total of 16,000 schools.
    The budget provides $620 million for Goals 2000, 26 percent more than in
    1997. It includes $15 million for parental information and resource
    centers in 42 States to help parents become more involved in their
    children's education and gain skills in child rearing through parent-to-
    parent training, hotlines, and other activities. Each center also
    provides information and training to parents of pre-school aged
    children, either through the Home Instruction Program for Preschool
    Youngsters or the Parents as Teachers program.

       Charter Schools: One way to improve the quality of public schools is
    to introduce variety and competition into the system. Charter schools
    are public schools that parents, teachers, and communities create--and
    that States free from most rules and regulations and, instead, hold
    accountable for raising student achievement. Begun as a grassroots
    movement in 1991, and supported by Federal start-up funds since 1995,
    charter schools now number over 400, and some are now showing results in
    higher student test scores and lower drop-out rates. For example, in the
    Vaughn Next Century Learning Center, a Los Angeles public charter
    school, median scores on a 4th-grade standardized reading test rose from
    the 19th to 37th percentile in one year. The budget proposes $100
    million for public charter schools, nearly double the 1997 level, in
    order to fund start-up costs for as many as 1,100 schools and to make
    further progress towards the President's goal of 3,000 schools by 2001.
      Title I--Education for the Disadvantaged: Title I provides funds to
    raise the educational achievement of disadvantaged children. In 1994,
    the President proposed, and Congress adopted, changes to focus Title I
    re-

    [[Page 62]]

    sources more on low-income children, to set the same high standards
    for those children as for all others, to hold schools accountable for
    progress toward achieving those standards, and to give States and
    schools great flexibility in using Title I funds. The budget includes
    $8.1 billion for Title I, five percent more than in 1997.
       Education Technology: Education technology can expand learning
    opportunities for all students, helping to raise student achievement,
    but many districts lack the resources to integrate technology fully into
    their school curricula. In February 1996, the President challenged the
    public and private sectors to work together to ensure that all children
    are technologically literate by the dawn of the 21st Century, with the
    communication, math, science, and critical thinking skills essential to
    succeed in the Information Age. The budget proposes substantial
    increases in two technology programs, for a total 1998 investment of
    $500 million.
       First, the President has committed $2 billion over five years for the
    Technology Literacy Challenge Fund. For 1998, the budget proposes $425
    million, more than doubling the $200 million that Congress provided in
    1997. Second, the budget proposes $75 million, 32 percent more than in
    1997, for the Technology Innovation Challenge Grant program, which gives
    matching Federal funds to school-centered, public-private partnerships
    to develop and implement innovative applications of technology in the
    curriculum.

       Teacher Training: The Eisenhower Professional Development program
    helps States invest in training teachers and other educators so that
    they can help all children reach the State's challenging academic
    standards. The President proposed, and Congress enacted, major
    improvements in 1994 to ensure that the training is of high enough
    quality and sufficient duration to pay off in the classroom. The budget
    increases funding to $360 million, 16 percent more than in 1997.
       Safe and Drug-Free Schools and Communities: Students can reach their
    full potential only in safe, disciplined learning environments. The Safe
    and Drug-Free Schools and Communities program helps 97 percent of school
    districts implement anti-drug and anti-violence programs in our schools.
    It helps students resolve conflicts before they escalate into tragedy,
    teaches them the dangers of drug use, and helps schools increase
    security. The budget proposes to spend $620 million for the program, 12
    percent over the 1997 level, and to encourage States to adopt models of
    proven excellence.
       Special Education: States have made real progress in giving children
    with disabilities a ``free appropriate public education,'' as the
    Individuals with Disabilities Education Act (IDEA) calls for. The
    Administration will propose amendments that will help improve
    educational results for children with disabilities by promoting
    accountability for performance and focusing resources on teaching and
    learning. The budget provides $4.2 billion for special education, four
    percent more than in 1997.
       Bilingual and Immigrant Education: The Bilingual Education program
    helps schools improve the quality of instructional services for limited
    English proficient (LEP) students, teaching them English and preparing
    them to meet the same challenging academic standards as all other
    students. The Immigrant Education program helps States with large
    concentrations of immigrant students who have recently arrived, helping
    to offset their financial impact on school systems. The budget proposes
    $199 million for Bilingual Education and $150 million for Immigrant
    Education, 27 percent and 50 percent more than in 1997, respectively.

     Postsecondary Education and Training

       Education beyond high school is increasingly a prerequisite for
    success in the rapidly changing job market. The rising rate of college
    attendance over the last half-century was fueled by State efforts to
    expand the public college system, and Federal efforts to help families
    pay for college. The post-World War II GI Bill was a watershed event in
    Federal investment in higher education, greatly increasing benefits for
    returning servicemen. Since then, through the Higher Education Act of
    1965 and subsequent amendments, the Federal Government has vastly
    expanded grant and work-study aid to all low- and middle-income
    students, and made it possible for every American to borrow

    [[Page 63]]

    enough money to attend college. The President wants to ensure that financial barriers to higher education continue to fall for all Americans. The budget
    provides substantial new support to low- and middle-income families
    through a new tax credit and tax deduction for education costs (see
    Chart 2-3).

       HOPE Scholarships: More than ever, today's employers look for job
    applicants with more than a high school diploma. HOPE scholarships would
    make the 13th and 14th years of education the norm for students by
    offering, to most working families, up to a $1,500 per student tuition
    tax credit for postsecondary education or training. Students would have
    to maintain at least a B average to receive the credit in the second
    year.
       Tuition Deduction: To encourage Americans to pursue higher education
    and to promote lifelong learning, the budget proposes to give families a
    tax deduction for postsecondary tuition and fees of up to $5,000 in 1997
    and 1998, and $10,000 starting in 1999. Together, the tuition deduction
    and HOPE scholarship would put over $36 billion back in the hands of
    Americans for education and training between 1997 and 2002.
       Pell Grants: The President proposes to raise the maximum Pell Grant
    award by $300, to $3,000, marking the largest increase in two decades.
    The Administration's changes also would bring at least 348,000 more
    students into the program, reaching a total of over four million low-
    and middle-income undergraduates. Such help is particularly important to
    raise participation and graduation rates of low-income students. With
    Pell Grants, they are as likely to stay in school and earn a degree as
    middle-income students without grants.
       Student Loans: An estimated 5.5 million individuals will borrow $37
    billion through the Federal student loan programs in 1998. Families at
    any income level can receive loans, but students who show greater
    financial need receive greater interest subsidies. The loans finance
    study toward undergraduate or graduate degrees, or short-term vocational
    training programs. The annual maximum loan amount

    [[Page 64]]

    varies from $2,625 for a first-year student financially dependent on his or her parents, to $18,500 for a graduate or professional program student. Under this Administration, the rate of student loan defaults within the first two
    years after borrowers leave college has reached an all-time low.
       Before 1993, students and parents paid fees of up to eight percent of
    their loan proceeds. The Student Loan Reform Act of 1993, which the
    President initiated, cut the fees to four percent and has already saved
    families nearly $2 billion. The 1993 reforms also created the simpler,
    less costly, and more accountable Federal Direct Loan Program (FDLP),
    and gave borrowers a way to afford payments on their student loans based
    on their actual post-college income--which the existing guaranteed loan
    program could not do.
       The budget proposes to cut the loan fees again--by half for needy
    students, and by a quarter for other students and parents. The budget
    also would continue to allow schools to choose to participate in either
    the FDLP or the guaranteed loan program--the Federal Family Education
    Loan Program (FFELP). In addition, it would reform FFELP to improve
    Federal management and give lenders and intermediaries financial
    incentives to prevent defaults. It also would ensure that all borrowers
    receive a variety of repayment options.

       Presidential Honors Scholarships: The President proposes an
    achievement-based scholarship program, rewarding the best and the
    brightest of high school students. It would grant $1,000 honors awards
    to the top five percent of graduating students in every secondary school
    in the Nation, making clear the Government's commitment to excellence.
    The budget requests $132 million for this program.
       College Work-Study: Work-study gives students additional aid through
    subsidized jobs, including an increasing number of community service
    positions. The budget proposes $857 million for Work-study, three
    percent more than in 1997, and continues the President's commitment to
    raise the number of Work-study recipients to a million by the year 2000,
    including 100,000 reading tutors to support America Reads.

     G.I. Bill for America's Workers

       For the past two years, the President has sought to dramatically
    overhaul the complex, inefficient structure of Federal job training
    programs through his proposed G.I. Bill for America's Workers. It would
    consolidate multiple programs into a single, integrated work force
    development system and provide Skill Grants (i.e., vouchers) to adults
    who need training so that they, not bureaucracies, choose where to get
    it. It also would streamline program administration, while improving
    accountability by freeing States and localities to focus on results, not
    process.
      ----------------------------------------------------------------------

    The President's Principles for Work Force Policy Reform:

      1.                             Give resources for training directly to adults so they can make informed
                                      choices, without bureaucratic interference.

      2.                             Consolidate and streamline Federal programs for adults, organize them within
                                      the One-Stop Career Center delivery system, and ensure that the private sector
                                      is a full partner.

      3.                             Ensure strong accountability to taxpayers by establishing high standards for
                                      program quality and giving States and localities responsibility for results.

      4.                             Organize Federal programs for youth within the School-to-Work Opportunities Act
                                      systems being established in States and local communities.

      5.                             Increase funding for work force development each year, commensurate with the
                                      needs of workers and the economy.

      ----------------------------------------------------------------------
       Although Congress did not enact these essential reforms, the
    Administration has pressed ahead to reform the job training system under
    current law. The Administration is making grants to establish One-Stop
    Career Center systems and School-to-Work systems; developing America's
    Labor Market Information System; expanding America's Job Bank to help
    match workers to jobs across the

    [[Page 65]]

    country; and implementing new authority to waive certain Federal legal and regulatory requirements in order to help States and local communities make changes to the job training system.
       Comprehensive reform still requires legislation. The President will
    again seek legislation that reflects the principles of his G.I. Bill.
    Because enactment would not occur before the fiscal 1998 appropriations
    process begins in Congress, the budget presents funding proposals under
    the current program structure.

     Youth Programs

       The President is deeply committed to helping States and communities
    help young people make a successful transition to the world of work and
    family responsibility. As discussed earlier in this chapter, the budget
    includes major new proposals to eliminate financial barriers to
    postsecondary education and training for all youth. In addition, the
    budget continues to support the goal by helping States develop and
    implement their school-to-work systems. And it proposes additional
    resources to aid disadvantaged youth who have left school, or are on the
    verge of doing so, and have entered the labor force.

       School-to-Work: This initiative, which the Education and Labor
    Departments fund and administer jointly, gives States and communities
    competitive grants to build comprehensive systems to help young people
    move from high school to careers or postsecondary training and
    education. School-to-Work supports reforms to the education system and
    its links to employers, so that young people can better prepare for
    high-skill, high-wage careers; receive top-quality academic and
    occupational training; and pursue more postsecondary education or
    training. Businesses get the trained workers they need to stay globally
    competitive. By 1996, 37 States and 133 local partnerships had already
    received grants to implement School-to-Work systems. The budget proposes
    $400 million, maintaining the 1997 level, in accord with the strategy of
    phasing in School-to-Work in all States by early in the next decade.
      After-School Program: Young people need access to after-school
    activities that keep them off the streets and out of trouble. The
    Presidential initiative will provide $50 million to keep public schools
    open during non-school hours, giving students access to after-school
    tutoring and other educational and recreational activities in a crime-
    free environment within their own communities.
       Youth Opportunity Areas Program: Recognizing the special problems of
    out-of-school youth, especially those in inner-city neighborhoods where
    jobless rates can exceed 50 percent, the budget proposes $250 million
    for new competitive grants to selected high-poverty urban and rural
    areas with major youth unemployment problems. The Labor Department would
    award funds to high-poverty areas, including designated Empowerment
    Zones or Enterprise Communities, based on the quality of the local
    applications--that is, those that show the best chance of substantially
    increasing employment among youth. These ``seed'' funds would leverage
    State, local, and private resources to sustain public-private efforts to
    train and employ youth in private sector jobs. (For more information on
    Empowerment Zones and Enterprise Communities, see Chapter 6.)
       Summer Youth Employment and Training Program: The summer jobs program
    gives many urban and rural disadvantaged students their first work
    experiences, and localities may include an academic component that re-
    enforces the skills they have learned during the school year. The budget
    provides $871 million to finance 530,000 job opportunities for the
    summer of 1998, assuming that localities spend this flexible funding
    entirely on summer jobs.
       Disadvantaged Youth Year-Round Program: The year-round program helps
    low-income youth who have dropped out of school, are at risk of dropping
    out, or are in families on public assistance. The Administration will
    expand upon ongoing efforts to refocus this program to stress local
    programs of proven effectiveness. Local service delivery areas that
    receive these funds under the Job Training Partnership Act can shift
    resources between the summer and year-round programs, as local needs
    dictate. The budget proposes $130 million for the year-round program.

    [[Page 66]]

       Job Corps: The Job Corps provides intensive, work-related vocational
    skills training, academic and social education, and support services to
    severely disadvantaged young people in a structured residential setting.
    The budget proposes $1.2 billion to fund opportunities for 70,000 young
    people.

     Adult Programs

       Most adults change jobs and get new skills by themselves or through
    their employers. But, many others--particularly welfare recipients and
    those permanently laid off from jobs--need help to get the services and
    information they need to successfully manage their careers. The budget
    proposes sizable new support for grants to States and localities to
    finance a training and employment system that adequately serves these
    adults, and helps build the job skills of American workers and job
    seekers into the 21st Century. These activities are the core of the
    adult portion of the G.I. Bill for America's Workers.

       Dislocated Workers and Low-Income Adult Training: The budget proposes
    $2.4 billion for Job Training Partnership Act programs that provide
    training, job search assistance, and related services to laid-off
    workers and economically disadvantaged adults, a $233 million increase
    over 1997. The dislocated worker program provides readjustment services,
    job search assistance, training, and other services to help dislocated
    workers find new jobs as quickly as possible. The program for
    disadvantaged adults helps welfare recipients and other low-income
    adults, giving them the skills and support to become employed. States
    and localities likely will continue to use a sizable portion of these
    resources to supplement training for welfare recipients under the new
    Transitional Assistance to Needy Families block grant. (For more
    information on this new block grant, and on the related Welfare-to-Work
    Challenge Fund and tax credit, see Chapter 7.)
       Adult Education: The Adult Education program helps educationally
    disadvantaged adults develop basic skills (including literacy), achieve
    certification of high school equivalency, and learn English. In 1993-94,
    the program served over 3.75 million adult learners--over 1.4 million
    enrollments in adult basic education programs, about 1.1 million in
    adult secondary education programs, and over 1.2 million in English-as-
    a-second-language programs. The budget proposes $394 million, nine
    percent more than in 1997 (and over 50 percent more than in 1996), to
    meet the demand for literacy training that the new welfare and
    immigration laws have stimulated.
       One-Stop Employment Service: The budget proposes $843 million for
    grants to the Employment Service--the Nation's public labor exchange--
    and $150 million to continue building One-Stop Career Center systems to
    streamline re-employment and career development service delivery. To
    date, 24 States have received grants to implement One-Stop systems and
    nine more States will receive grants in July 1997. The budget would
    permit One-Stops to expand to all States in 1998. While the One-Stop
    grants provide seed money for systems-building and increased automation,
    Employment Service grants provide the core operating funds for the new
    system. They help States to match employers and job seekers, and to
    provide counseling and re-employment assistance to unemployment
    insurance claimants and others who need more help finding jobs.