[Budget of the United States Government]
[V. Preparing For the 21st Century]
[1. Investing in Education and Training]
[From the U.S. Government Publishing Office, www.gpo.gov]


 
     V. PREPARING FOR THE 21ST CENTURY

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                 1.  INVESTING IN EDUCATION AND TRAINING

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  Americans want the best for our children. We want them to live out their 
dreams, empowered with the tools they need to make the most of their lives 
and to build a future where America remains the world's beacon of hope and 
freedom and opportunity. To do this, we must all make improving the quality 
of education in America one of our  highest priorities.

                                      President Clinton                                                                                              September 1997                                                            
  ----------------------------------------------------------------------

  In today's fast-paced, increasingly competitive world economy, the 
most successful Americans are those with the skills to compete, making 
education more and more vital for all Americans. Tomorrow's workers face 
an even greater challenge. As technological innovations change the very 
nature of work, 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 
role in supporting education and training, from pre-school through 
adulthood.
  Over the last five years, the President has worked hard to expand 
Federal support in ways that help families, communities, and States 
ensure that every boy and girl 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 education and training, or a chance to improve or learn 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.
  The budget proposes to significantly increase funding to help 
children, especially children in the poorest communities, reach 
challenging academic standards, and it proposes to make further progress 
in implementing voluntary national tests. At the same time, the budget 
proposes major new initiatives to help families and caregivers more 
effectively begin children's education; to help high-poverty, low-
achieving school districts carry out reforms and hold schools 
accountable for improving student achievement; to raise the rate of 
school construction and renovation; to fund 4,000 school- and community-
based sites for before- and after-school programs for children; to 
reduce class size by paying for 100,000 new teachers over the next seven 
years; to expand public school choice; to improve reading and 
mathematics achievement; and to improve the quality of teaching and the 
use of technology.
  To ensure that Americans get the post-secondary education and training 
they need to succeed at work, the budget proposes to increase Pell 
Grants and other college scholarship awards; to expand College Work-
Study to a record one million students; to streamline student loan 
programs and cut student fees; to continue implementing the Welfare-To-
Work program; and to expand access to job placement services, training, 
and related services for dislocated workers and others. In addition, the 
budget proposes new initiatives to help colleges, high schools, and 
middle schools provide continuous mentoring and other services to 
encourage students

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in high-poverty areas to stay in school and prepare for college; to 
explain the benefits of college and the availability of Federal student 
aid to students and their families; and to provide intensive help to 
jobless youth in high-poverty areas (see Table 1-1).

Elementary and Secondary Education

  Federal programs help all children, especially those in high-poverty 
areas, achieve all they can. The budget increases support for most 
ongoing programs, and proposes new programs with substantial resources 
to supplement them. (For information on Head Start and other important 
education-related programs for young children, see Chapter 2, 
``Supporting Working Families.'')

  Voluntary National Tests: The President has proposed tests--in fourth 
grade reading and eighth grade mathematics--with which parents and 
schools can evaluate their students' achievement against challenging 
standards of performance, and against the achievements of children 
across the country and the world. The budget proposes $16 million to 
further develop the tests, which the States would administer.
  New Teachers and Smaller Class Sizes: Soaring school enrollments have 
caused severe teacher shortages and classroom overcrowding. The budget 
provides $7.3 billion over five years to help States reduce class size 
in the early grades by recruiting and training teachers to teach 
effectively in small-class settings. Research in Tennessee and Indiana 
shows that reducing class size to 15-18 students in the early grades 
improves student achievement, particularly among low-income and minority 
students in inner cities.
  Teacher Recruitment and Preparation: The budget provides $67 million, 
and $350 million over five years, to help improve the quality of teacher 
preparation programs at colleges and universities and address shortages 
of well-prepared teachers, particularly in urban and rural schools. In 
1999, the proposal would fund 12 partnerships of exemplary teaching 
colleges and universities, urban and rural schools, and subsidiary 
colleges and universities with teaching programs. It also would fund at 
least 7,000 scholarships in 1999, and 35,000 over five years, to help 
recruit and retain teachers for urban and rural schools.
  Education Opportunity Zones: Most school districts with children who 
are the furthest away from reaching challenging academic standards serve 
the poorest communities. The budget proposes new resources to help these 
districts if they adopt tough reforms to hold schools accountable for 
improving quality, expanding public school choice, ending social 
promotion, and showing real improvements in student achievement. About 
50 high-poverty, low-achieving, urban and rural school districts would 
receive funds for at least three years, and schools that show 
significant learning gains could get funds for two more. The budget 
proposes $200 million for the initiative, and $1.5 billion over five 
years.
  School Construction: A third of all schools across the country, with 
14 million students, have one or more buildings that need extensive 
repair, according to the General Accounting Office. 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 $5 billion in tax incentives over five years, and 
more than $10 billion over 10 years, to help States and school districts 
accelerate the pace of new construction or renovation projects. States 
and school districts will be able to leverage the Federal investment by 
amounts that are even greater.
  Education Technology: 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, and that 
schools take full advantage of the benefits of technology in raising 
student achievement. Achieving this goal will require progress in four 
areas: connecting every classroom to the Internet; expanding access to 
multimedia computers; increasing the availability of high-quality 
educational software and content; and ensuring that teachers can teach 
effectively using technology.
  The budget supports the following major programs that help achieve 
these goals, with a new focus on technology training for teachers, so 
that all new teachers entering the

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 Table 1-1.  THE BUDGET INCREASES RESOURCES FOR MAJOR EDUCATION AND TRAINING PROGRAMS BY $11.6 BILLION, OR 32 PERCENT OVER 1998, AND BY A TOTAL INCREASE
                                                                 OVER 1993 OF 81 PERCENT                                                                
                                                              (Dollar amounts in millions)                                                              
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                         Dollar  Percent
                                                                                                             1993     1998      1999    Change:  Change:
                                                                                                            Actual  Estimate  Proposed  1998 to  1993 to
                                                                                                                                          1999     1999 
--------------------------------------------------------------------------------------------------------------------------------------------------------
TAX EXPENDITURES:                                                                                                                                       
  Hope Scholarships Credit...............................................................................  .......       205     4,160   +3,955       NA
  Lifetime Learning Credit...............................................................................  .......       115     2,550   +2,435       NA
  School Construction....................................................................................  .......  ........       215     +215       NA
  Work Opportunity Tax Credit (Targeted Jobs Tax Credit in 1993).........................................      160       280       406     +126    +154%
  Welfare/Jobs Tax Credit................................................................................  .......        10        41      +31       NA
                                                                                                          ----------------------------------------------
    Total, tax expenditures..............................................................................      160       610     7,372   +6,762  +4,508%
MANDATORY OUTLAYS:                                                                                                                                      
  Welfare-to-Work Grants.................................................................................  .......       466     1,299     +833       NA
  Early Learning Fund (see Chapter 2)....................................................................  .......  ........       372     +372       NA
RECEIPTS FROM TOBACCO LEGISLATION:                                                                                                                      
  Class Size Reduction...................................................................................  .......  ........     1,100   +1,100       NA
DISCRETIONARY BUDGET AUTHORITY:                                                                                                                         
  Pre-School (see Chapter 2):                                                                                                                           
    Head Start...........................................................................................    2,776     4,355     4,660     +305     +68%
  Elementary and Secondary Education:                                                                                                                   
    America Reads Challenge:                                                                                                                            
      Department of Education............................................................................  .......  ........       260     +260       NA
      Corporation for National and Community Service.....................................................  .......        64       153      +89       NA
    Goals 2000...........................................................................................  .......       491       501      +10       NA
    Education Opportunity Zones..........................................................................  .......  ........       200     +200       NA
    Education Technology.................................................................................       23       584       721     +137  +3,035%
    Title I--Education for the Disadvantaged.............................................................    6,709     8,022     8,496     +474     +27%
    Eisenhower Professional Development..................................................................      289       335       335  .......     +16%
    Teacher Recruitment and Preparation..................................................................  .......  ........        65      +65       NA
    Special Education....................................................................................    2,966     4,811     4,846      +35     +63%
    Bilingual and Immigrant Education....................................................................      213       354       387      +33     +82%
    Safe and Drug Free Schools and Communities...........................................................      582       556       606      +50      +4%
    Charter Schools......................................................................................  .......        80       100      +20       NA
    After-School Learning Centers........................................................................  .......        40       200     +160       NA
  Postsecondary Aid:                                                                                                                                    
    Pell Grants..........................................................................................    6,372     7,345     7,594     +249     +19%
    College Work-Study...................................................................................      617       830       900      +70     +46%
    Other Campus-based Aid...............................................................................      764       779       709      -70      -7%
    Early Awareness Information Campaign.................................................................  .......  ........        15      +15       NA
  Work Force Development:                                                                                                                               
    Learning Anytime, Anywhere Partnerships (Education and Labor Departments)............................  .......  ........        40      +40       NA
    Opportunity Areas for Out-of-School Youth............................................................  .......  ........       250     +250       NA
    Vocational Education.................................................................................    1,170     1,147     1,150       +3      -2%
    Adult Education......................................................................................      305       361       394      +33     +29%
    Veterans Employment Services and Training............................................................      167       164       264     +100     +58%
    School-to-Work (Education and Labor Departments).....................................................  .......       400       250     -150       NA
    Job Corps............................................................................................      966     1,246     1,308      +62     +35%
    JTPA Low-income Adult Training.......................................................................    1,015       955     1,000      +45      -1%
    JTPA Dislocated Worker Assistance....................................................................      517     1,351     1,451     +100    +181%
    Employment Service and One-Stop Centers..............................................................      895       974       964      -10      +8%
                                                                                                          ----------------------------------------------
      Total, budget authority............................................................................   26,346    35,244    37,819   +2,575     +44%
  TOTAL RESOURCES (tax expenditures; receipts; mandatory outlays; and budget authority)..................   25,506    36,320    47,962  +11,642     +81%
--------------------------------------------------------------------------------------------------------------------------------------------------------
STUDENT LOANS (face value of loans issued):                                                                                                             
  Direct loans...........................................................................................  .......    11,204    12,002     +798    +100%
  Guaranteed loans.......................................................................................   16,089    20,461    21,932   +1,471     +36%
  Consolidation loans....................................................................................    1,540     6,574     6,116     -458    +297%
                                                                                                          ----------------------------------------------
    Total, student loans.................................................................................   17,629    38,239    40,050   +1,811    +127%
--------------------------------------------------------------------------------------------------------------------------------------------------------
DEPARTMENT OF EDUCATION:                                                                                                                                
  Discretionary Budget Authority.........................................................................   23,694    29,559    31,156   +1,597     +31%
                                                                                                                                                        
--------------------------------------------------------------------------------------------------------------------------------------------------------
NA = Not applicable.                                                                                                                                    


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  work force can use technology effectively in the classroom, and that 
  there is at least one teacher who can serve as a technology expert in 
  every school to help other teachers use technology.

   Technology Literacy Challenge Fund: In 1996, the President 
          committed to securing $2 billion over five years to support 
          education technology goals. Through this Fund, States receive 
          formula grants for buying hardware, connecting to the 
          Internet, training teachers, and developing and buying high-
          quality software. Through 1998, the Fund has received $625 
          million and, for 1999, the budget proposes another $475 
          million. In 1999, the Administration will encourage States to 
          spend at least 30 percent of the Fund on teacher training in 
          technology use.
   Technology Innovation Challenge Grants: The budget proposes 
          $106 million for this program, which awards competitive 
          matching funds to partnerships between schools and the private 
          sector to implement innovative applications of educational 
          technology.
   Technology Training for Teachers: The budget provides $75 
          million for new grants to States, teacher colleges, and others 
          to help ensure that all new teachers can use technology 
          effectively.
   Community Computer Centers: The budget proposes $10 million 
          to help establish computer centers in low-income communities 
          so that families that cannot afford to buy computers at home 
          still have access to the technology, and their children will 
          not fall behind classmates with home computers. These centers 
          can help low-income families gain access to on-line job 
          databases and distance learning opportunities.

  America Reads: Last year, the President launched the America Reads 
Challenge, a multi-faceted effort to help States and communities ensure 
that all children can read well and independently by the end of third 
grade. The budget provides $260 million for the Education Department to 
help train reading tutors and coordinate after-school, weekend, and 
summer reading programs that are linked to in-school instruction; help 
train teachers to teach reading; and help parents help children prepare 
to learn to read. The budget also proposes a $89 million increase, to 
$153 million, for the Corporation for National and Community Service to 
recruit America Reads tutors through its AmeriCorps and related 
programs. Responding to the President's challenge, 838 colleges have 
pledged to use tens of thousands of federally-financed work-study 
positions for tutoring programs.
  Mathematics Initiative: The Third International Mathematics and 
Science Study revealed that while the Nation's fourth grade students are 
performing above average in mathematics, eighth graders are performing 
below average. In response, the President asked the Education Department 
and the National Science Foundation to develop an initiative to help 
students meet challenging mathematics standards in the eighth grade. The 
budget proposes $37 million for this initiative, which will improve 
mathematics teaching through better teacher preparation and the use of 
effective instructional materials and technology.
  Goals 2000: Enacted in 1994, Goals 2000 helps States set 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 national targets but 
encourage States to develop their own means to achieve them. The budget 
provides $501 million for Goals 2000 (in which every State 
participates), $10 million more than the 1998 level.
  Charter Schools: Charter schools introduce variety and choice into the 
public school system. Parents, teachers, and communities create the 
schools, and States free them from most rules and regulations. Charter 
schools now number over 700, and some are already producing higher 
student test scores and lower drop-out rates. The budget proposes $100 
million for public charter schools, a $20 million increase over the 1998 
level, to fund start-up costs for 1,300 to 1,500 schools and continue 
progress toward the President's goal of 3,000 charter schools by 2001.

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  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, legislation to focus Title 
I resources 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 greater flexibility in using Title I funds. The budget provides 
$8.5 billion, six percent more than in 1998, including $7.8 billion for 
grants with which school districts can provide educational services to 
over 10 million children in poor communities.
  Comprehensive School Reform Demonstration: This program, which 
Congress enacted last year, will help nearly 3,500 schools Nation-wide 
implement effective, research-based school improvement models. The 
budget proposes $150 million for these demonstrations in high-poverty 
schools, a $30 million increase, and $25 million for similar 
demonstrations in other schools.
  Safe and Drug-Free Schools and Communities: Since 1993, this program 
has provided a total of $3.1 billion to help 97 percent of all school 
districts implement anti-drug and anti-violence programs. The budget 
proposes $556 million, including $125 million in competitive grants for 
projects that use proven program designs in high-need areas. The budget 
also proposes $50 million for a new School Drug Prevention Coordinators 
program to ensure that half of all middle schools have a director of 
drug and violence prevention programs to monitor local programs and link 
school-based programs to community-based programs.
  Special Education: Last year, the President signed into law amendments 
to the Individuals with Disabilities Education Act (IDEA) to help States 
improve educational results for children with disabilities by holding 
States accountable for performance and focusing resources on teaching 
and learning. The budget provides $4.8 billion for IDEA, including an 
increase of $20 million for the Infants and Families program and an 
increase of $10 million to expand State Improvement Grants to reach 35 
to 40 States.

Postsecondary Education and Training

  High school is the first key step to a good job. But it is only a 
first step. Those with more years of schooling consistently earn more 
over their working careers than those with only a high school degree. 
The cost of higher education can be imposing to many families, but 
Federal support through Pell Grants, work-study, student loans, Hope 
Scholarship credits, Lifetime Learning Credits, other tax benefits, and 
other programs now make college affordable for every American. The 
budget proposes to help even more young people go to college and to 
teach all families about the full range of Federal aid.

  College Preparation and Attendance: The budget proposes a new $140 
million initiative to help increase college participation among low-
income students. It also proposes a $15 million College and Financial 
Aid Information program--a Nation-wide information campaign on the 
benefits of higher education and the availability of Federal resources.
  Hope Scholarship Credits and Lifetime Learning Credits: Last year, the 
President proposed, and Congress enacted, new tax benefits for 
postsecondary education for low- and middle-income families. With Hope 
Scholarships, students in the first two years of college or other 
eligible postsecondary training can get a tax credit of up to $1,500 for 
tuition and fees. In 1999, an estimated 5.5 million students will 
receive $4.2 billion in tax credits. Under the Lifetime Learning Credit, 
students beyond the first two years of college, or those taking classes 
part-time to improve or upgrade their job skills, will receive a 20-
percent tax credit for the first $5,000 of tuition and fees each year 
through 2002, and a 20-percent credit for the first $10,000 thereafter. 
In 1999, an estimated 7.2 million students will receive $2.5 billion in 
tax credits.
  Pell Grants: The President proposes to raise the maximum Pell Grant 
award by $100, to $3,100--the highest ever--to reach 3.9 million low- 
and middle-income undergraduates. The budget provides $7.6 billion for 
Pell Grants, a $249 million increase over the 1998 level. In addition, 
in its reauthorization proposals for 2000, the Administration will

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                              Investing in the Special Needs of Hispanic Americans                              
                                                                                                                
                                                                                                                
The education of Hispanic Americans requires special attention. Their high school drop-out rate, for example, is
 unacceptably high. Due in part to 1994 improvements in the way that children with limited English proficiency  
 are served, Latinos now receive 32 percent of services under Title I (the largest elementary and secondary     
 program), more than any other minority group. On top of other efforts to boost funding for programs that serve 
 disadvantaged students, the budget targets funding to programs that show particular promise in addressing these
 needs. The funding increases include:                                                                          
                                                                                                                
                                  $30 million, to a total of $150 million, for Comprehensive School     
                                  Reform in high-poverty schools, providing grants for research-proven reform   
                                  efforts to schools that have low achievement and high drop-out rates;         
                                                                                                                
                                  $25 million, to $50 million, for Bilingual Education Professional     
                                  Development, giving teachers the skills they need to help their students learn
                                  English and meet challenging academic standards;                              
                                                                                                                
                                  $53 million, to $583 million, for the TRIO programs that work with low-
                                  income high school and college students to encourage them to complete high    
                                  school and attend, and graduate from, college;                                
                                                                                                                
                                  $16 million, to $28 million, for assistance for colleges and          
                                  universities that serve large numbers of Hispanic students;                   
                                                                                                                
                                  $5 million, to $15 million, for the High School Equivalency Program   
                                  for migrants and the College Assistance Migrant Program;                      
                                                                                                                
                                  $33 million, to $394 million, for Adult Education to expand services  
                                  and improve English as a Second Language programs by identifying and          
                                  disseminating proven and promising practices;                                 
                                                                                                                
                                  $50 million, to $355 million, for Title I-Migrant Education, which    
                                  provides additional educational assistance to migrant children; and           
                                                                                                                
                                  $5 million for a Labor Department demonstration program to develop new
                                  training, and work and learning opportunities to help young migrant farm      
                                  workers qualify for other job opportunities with career potential.            

  ----------------------------------------------------------------------
propose to expand Pell Grants to reach more low-income independent 
students and others.

  Work-Study: In 1996, the President committed to expanding the Work-
Study program to one million students by the year 2000. The budget 
reaches the goal one year early. In 1999, one million needy students 
would earn their work-study awards by helping their schools or 
surrounding communities. The budget provides $900 million--the highest 
level ever--a $70 million increase over the 1998 level.
  Student Loans: An estimated 6.2 million people will borrow $40 billion 
through the Federal student loan programs in 1999. The Administration 
proposes to improve financial incentives in the Federal Family Education 
Loan program, which guarantees commercial loans through intermediaries 
known as guaranty agencies, and ensure continued innovation in the 
Direct Loan program, which provides capital directly to schools and 
students. The budget proposes to streamline the Government-guaranty 
system, to save money for students and families, and to improve services 
to both schools and borrowers.
  A new interest rate structure for student loans, scheduled to take 
effect on July 1, 1998, may prompt some lenders in the Government-
guaranteed loan system to withdraw rather than accept lower revenues. 
The Administration plans to work with Congress on a rate structure that 
ensures that students continue to enjoy access to loans but that still 
limits student costs.

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                                         Improving Student Loan Programs                                        
                                                                                                                
                                                                                                                
The budget proposes reforms in both the direct and guaranteed student loan programs that will benefit students, 
 taxpayers, and schools, as outlined below.                                                                     
                                                                                                                
Providing More Benefits to Students                                                                             
                                                                                                                
                                  Cut origination fees on new loans to students and parents to three    
                                  percent, from four percent.                                                   
                                                                                                                
                                  Phase out origination fees for needy students.                        
                                                                                                                
                                  Require lenders to offer flexible repayment terms to borrowers.       
                                                                                                                
Streamlining the Government-Guaranteed Loan System                                                              
                                                                                                                
                                  Establish performance agreements with guaranty agencies, with         
                                  compensation tied to the amount and quality of work they perform.             
                                                                                                                
                                  Recapture unneeded Federal funds held by guaranty agencies.           
                                                                                                                
Improving Loan Management                                                                                       
                                                                                                                
                                  Ensure that both loan programs use private industry best practices,   
                                  such as electronic loan origination and access on the Internet to loan balance
                                  information, to improve customer service, minimize defaults, and improve loan 
                                  servicing.                                                                    
                                                                                                                
                                  Standardize processes and data formats as much as possible in both    
                                  Federal loan programs to increase efficiency and lower costs.                 

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

  Innovations for Access and Retention among Low-Income Students, 
Especially Minorities: Although the Federal Government provides 
significant resources to finance higher education for everyone who needs 
the help, some groups of Americans, especially some minorities, still 
attend college at lower rates than others and drop out at higher rates. 
The budget provides $20 million for rigorously designed experiments to 
determine how to promote greater college attendance and completion among 
these groups.
  Learning Anytime, Anywhere Partnerships: The budget proposes $40 
million ($30 million in the Education Department, $10 million in the 
Labor Department) to enhance and promote distance learning opportunities 
(i.e., learning outside the usual classroom settings, via computers and 
other technology) for all adult learners. In Education, the program 
would fund partnerships among educational institutions, software 
developers, subject matter specialists, and private employers to develop 
new means of delivering distance learning, and of assessing competencies 
of distance learners. In Labor, the program would support information 
for job seekers, employers, and workers on the skills required for 
various occupations, and the training needed and available to acquire 
them.

Work Force Development

  With college now affordable to every American through the broad array 
of Federal assistance, the Administration seeks to ensure that every 
adult has access to employment and training services. Adults who lose 
jobs and need new jobs or new skills to get those jobs, adults who are 
seeking jobs for the first time, or adults who want new skills to 
advance or change their careers need a broad array of financial and 
program supports--especially as workers strive to succeed in the fast-
changing new economy.
  To the extent that adults need resources for traditional education and 
certain job training, the major postsecondary programs (described 
earlier in this chapter) cover most of their need. All adults can get 
loan assistance to finance postsecondary degrees or certificates; all 
low-income adults seeking undergraduate degrees can get Pell Grants; and 
all low- and middle-income adults can get tax credits for job training 
and post-secondary education expenses under the Hope Scholarship and 
Lifetime Learning Credits.
  In addition, all adults working in jobs covered by the Unemployment 
Insurance system are eligible, in accord with State laws, for income 
support when they lose jobs.

[[Page 58]]

Many of them are also eligible for other income support if they lose 
jobs for specific reasons, such as the impact of certain trade policy. 
All adults can get job search assistance through One-Stop Career 
Centers, an Administration initiative of the last five years that has 
greatly improved the core Employment Service system and greatly improved 
employment services and job and labor market information. Adults also 
have increasingly greater access to job information through the Internet 
and will have still greater opportunities through the Learning Anytime, 
Anywhere Partnerships described earlier in this chapter. Nevertheless, 
the system for adults is not yet complete.
  The budget proposes to build on the initiatives, enacted in 1997, that 
began the process of ensuring that State unemployment insurance funds 
will be sufficiently solvent in case of an economic downturn. The budget 
also proposes to improve the mechanisms to supplement regular 
unemployment insurance with Extended Benefits when individual States 
experience economic downturns.
  Since 1993, the President has worked with Congress to more than double 
funding for dislocated worker training and employment assistance and is 
proposing major new investments in the employment and training needs of 
veterans. But, many adults need more than financial help for training or 
income support when they are between jobs. The system of programmatic 
support for these adults is primarily represented by the Job Training 
Partnership Act (JTPA), including its Dislocated Worker and Adult 
training programs. The Administration continues to believe that it is 
critical to restructure and streamline Federal work force programs so 
they can better serve workers and those who want to work. The 
Administration first proposed comprehensive reform in its 1995 GI Bill 
for America's Workers, and it is working closely with Congress to 
fashion major reform and streamlining of job training programs, 
vocational education, and adult education programs.
  The Administration is committed to improve the system for adults so 
that, in time, all adults will be able to afford, and have access to, 
the training and job placement and related services they need. The 
budget proposes to make further progress toward this goal through the 
work force development proposals described below.
   Dislocated Worker Training: The budget proposes $1.5 billion, 
          an increase of $100 million and nearly three times the amount 
          available when the President took office, to provide 
          readjustment services, job search assistance, training, and 
          related services to help dislocated workers find new jobs as 
          quickly as possible. Among the workers assisted by the 
          program, and the proposed increase, are those displaced by 
          trade and related causes.
   Low-Income Adult Training: The budget proposes $1 billion, an 
          increase of $45 million, for the JTPA program that provides 
          training for disadvantaged and low-income unemployed adults, 
          including welfare recipients.
   Welfare-To-Work: To help reach the Temporary Assistance for 
          Needy Families program's employment goal for welfare 
          recipients, the Administration sought, and Congress provided, 
          additional targeted funds for a new Labor Department welfare-
          to-work grants program. It will provide a total of $3 billion 
          in 1998 and 1999 for formula and competitive grants to States 
          and local communities to give long-term welfare recipients the 
          job placement services, transitional employment, and job 
          retention and support services they need to achieve economic 
          self-sufficiency.
   Adult Education: This program helps almost four million 
          educationally disadvantaged adults, including welfare 
          recipients and immigrants, develop basic skills (including 
          literacy), achieve their certification of high school 
          equivalency, and learn English. The budget proposes $394 
          million, an increase of $33 million over the 1998 level.
   One-Stop Employment Service: The budget proposes $817 million 
          for grants to the State Employment Service system, and $147 
          million to complete the initial development of the One-Stop 
          Career Center system and to continue building America's Labor 
          Market Information System. By the

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          end of 1999, all States will have received grants to implement 
          One-Stop systems that streamline re-employment and career 
          development activities by improving access to services for job 
          seekers and employers.
   Unemployment Insurance: Experienced workers who lose their 
          jobs generally are eligible for up to 26 weeks of unemployment 
          benefits. Although benefits vary by State, the average benefit 
          Nation-wide is nearly $200 a week. An estimated 8.3 million 
          people will draw benefits in 1999. To make the system even 
          more secure, the Administration will propose legislation in 
          1999 that will strengthen the unemployment insurance safety 
          net so that benefits are available in the event of a 
          recession, improve State administrative operations, and make 
          the standby Extended Benefits program more responsive to State 
          unemployment.
   Trade Adjustment Assistance (TAA): The budget includes 
          several proposals to carry out the President's commitment to 
          help trade-impacted workers by providing better access to 
          training and income support: extending the TAA and NAFTA-
          Transitional Adjustment Assistance (NAFTA-TAA) programs for 
          five years; expanding eligibility for TAA benefits to cover 
          workers who lose jobs when plants or production shifts abroad; 
          raising the statutory cap on training expenses; making 
          training and income support more consistent across the TAA and 
          NAFTA-TAA programs; and adding a contingency provision to 
          ensure that the Federal Government has sufficient funds to 
          finance any unexpected increase in benefit costs for eligible 
          workers. The budget proposes to increase TAA programs by $737 
          million over five years.
   Montgomery GI Bill (MGIB) and Veterans Training and 
          Employment: Over 400,000 veterans and reservists will receive 
          education benefits under the MGIB Active-Duty program, which 
          helps service members readjust to civilian life after military 
          service, and the MGIB Reservist program. The budget proposes a 
          20-percent benefit rate increase for MGIB trainees--the most 
          significant increase since the program's inception--raising 
          the Active-Duty MGIB benefit to over $500 a month in 1999 for 
          full-time enrollment, most of which is in colleges. Along with 
          the MGIB benefit increase, for which the budget provides $1 
          billion over five years, the budget also proposes an increase 
          of $100 million, and $500 million over five years, to expand 
          the Labor Department's veterans employment and training 
          programs.

  Youth Programs: While continuing to improve the education of young 
people and eliminate financial barriers to postsecondary education and 
training for all, the budget continues support for State development of 
school-to-work systems and for Labor Department programs to help 
disadvantaged youth prepare for careers.
   School-to-Work: Funded and administered by the Education and 
          Labor Departments, this initiative makes competitive awards to 
          States and communities to build comprehensive systems that 
          help young people move from high school to careers or 
          postsecondary training and education. School-to-Work supports 
          school reforms and ties between schools and employers, 
          enabling young people to prepare for high-skill, high-wage 
          careers; receive top-quality academic and occupational 
          training; and pursue more postsecondary education or training. 
          The budget proposes $250 million, $150 million less than the 
          1998 level, reflecting the gradual sunsetting of the program 
          as States implement and sustain their own systems.
   Youth Opportunity Areas: Recognizing the special problems of 
          out-of-school youth, especially in inner-cities and other 
          areas where jobless rates can top 50 percent, the budget 
          includes $250 million for competitive grants to selected high-
          poverty urban and rural areas with major youth unemployment 
          problems. The Labor Department will award funds to those high-
          poverty areas, including federally-designated Empowerment 
          Zones and Enterprise Communities, that submit applications 
          showing that they have the best chance of substantially 
          increasing employment among out-of-school youth. These 
          ``seed'' funds will leverage State, local, and pri

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          vate resources to employ youth in private sector jobs with 
          good career opportunities. (For more information on 
          Empowerment Zones and Enterprise Communities, see Chapter 8, 
          ``Strengthening the American Community.'')
   Summer and Year-Round Youth Employment and Training: The 
          summer jobs program gives hundreds of thousands of urban and 
          rural disadvantaged youth their first work experience. The 
          budget provides $871 million to finance 530,000 job 
          opportunities for the summer of 1999, assuming that localities 
          spend this flexible funding entirely on summer jobs. The 
          budget also includes $130 million for the year-round program 
          to help low-income youth--many of them in families on public 
          assistance--who have dropped out of school, or are at risk of 
          doing so, return to school or alternative learning programs. 
          The budget would continue to permit local service delivery 
          areas that receive both types of these funds to shift 
          resources between the summer and year-round programs, as local 
          needs dictate.
   Job Corps: The Job Corps provides intensive, work-related 
          vocational skills training, integrated with academic and 
          social education, and support services to severely 
          disadvantaged young people in a structured residential 
          setting. The budget proposes $1.3 billion, an increase of $62 
          million over the 1998 level, to open three to five new 
          centers, fund opportunities for 70,000 young people, and 
          maintain progress on quality improvements begun in 1998.

Child Labor Abuses

  Responding to growing concern for the working conditions of children 
all over the world, the budget proposes $89 million to address the 
issue. Along with the proposed $50 million increase for Title I--Migrant 
Education, described earlier in this chapter, the budget proposes $39 
million for a two-pronged attack on domestic and international child 
labor abuses.

  International Child Labor Activities: The budget proposes a $27 
million increase, to $30 million, for the Labor Department to enable the 
International Labor Organization's International Programme to Eliminate 
Child Labor to expand its work into more countries and industries. The 
proposed five-year, $150 million investment will help ensure that goods 
produced abroad for the U.S. market are not made with illegal child 
labor. The budget also proposes $3 million to enable the Customs Service 
to enforce the law banning the import of goods made with forced or 
bonded child labor.
  Domestic Child Labor Activities: The budget proposes $9 million for 
the Labor Department, including $4 million to help eliminate domestic 
violations of child labor laws, particularly in the agriculture sector, 
and $5 million for demonstration programs to provide alternatives to 
field work for migrant youth.

Education and Employment for People with Disabilities

  The budget proposes to maintain or increase most programs for people 
with disabilities, providing, for instance, a 16-percent increase for 
certain activities that enforce the Americans with Disabilities Act. The 
Administration will continue to press Congress to enact its proposal to 
help more people leave the disability rolls to return to work. In 
addition, the budget includes $2.4 million for an initiative to develop 
new policies to reduce barriers to employment for people with 
disabilities.