[Budget of the United States Government]
[VI. Investing in the Common Good: Program Performance in Federal Functions]
[21. Education, Training, Employment, and Social Services]
[From the U.S. Government Publishing Office, www.gpo.gov]
21. EDUCATION, TRAINING, EMPLOYMENT, AND SOCIAL SERVICES
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Table 21-1. FEDERAL RESOURCES IN SUPPORT OF EDUCATION, TRAINING, EMPLOYMENT, AND SOCIAL SERVICES
(In millions of dollars)
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Estimate
Function 500 1997 -----------------------------------------------------------
Actual 1998 1999 2000 2001 2002 2003
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Spending:
Discretionary Budget Authority.......... 42,488 46,365 48,608 49,139 49,420 49,297 48,883
Mandatory Outlays:
Existing law.......................... 13,690 13,126 12,090 11,157 10,867 10,067 12,085
Proposed legislation.................. ........ -158 1,789 2,877 3,490 3,968 4,442
Credit Activity:
Direct loan disbursements............... 10,286 13,338 13,671 14,483 15,280 16,093 16,951
Guaranteed loans........................ 19,542 25,052 25,690 27,301 28,841 30,402 32,035
Tax Expenditures:
Existing law............................ 27,430 33,755 57,295 59,510 61,140 62,905 64,625
Proposed legislation.................... ........ 15 1,010 2,859 3,205 2,839 2,738
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The Federal Government helps States and localities educate young
people, helps the low-skilled and jobless train for and find jobs, helps
youth and adults of all ages overcome financial barriers to
postsecondary education and training, helps employers and employees
maintain safe and stable workplaces, and helps provide social services
for the needy.
The Government spends over $62 billion a year on grants to States and
localities; on grants, loans, and scholarships to individuals; on direct
Federal program administration; and on subsidies leveraging nearly $40
billion in loans to individuals. It also allocates about $58 billion a
year in tax incentives for individuals.
Education
Education is the principal means of upward mobility for Americans who
want better lives for themselves and their families. While education is
mainly the province of State and local governments, and of families and
individuals, the Federal government plays an essential role.
The Federal role is focused in the following areas.
Pre-School: Head Start gives low-income children a comprehensive
approach to child development, stressing language and cognitive
development, health, nutrition, and social competency.
In 1999, Head Start will serve an additional 30,000 to 36,000
children, for a total of 860,000 to 866,000 children,
continuing progress toward the Administration's goal of one
million children served in 2002.
Within the overall total of children served, in 1999 an
additional 10,000 children under age three will participate in
the Early Head Start component, for a total of nearly 50,000--
the first step toward the Administration's goal of doubling
Early Head Start participation from its 1998 level of nearly
40,000 to 80,000 by 2002.
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National evaluation studies of both the regular Head Start program and
the Early Head Start component are under way, for which preliminary
results are expected in the spring and summer of 1998.
Elementary and Secondary Education: Federal spending for elementary
and secondary education targets important national needs, such as equal
opportunity and higher academic standards to improve student
achievement. For example, most low-performing children in low-income
schools get extra educational assistance through the Title I-Education
for the Disadvantaged program. Other programs provide related support
for children with disabilities and limited English proficient children;
support teacher and administrator training; help finance and encourage
State, school, and system reforms; and support research and technical
assistance.
The Administration's long-term goal is to help all children, and
especially low-income and minority children, make steady gains over
time. Federal programs make a significant contribution to improved
learning results.
Citing Title I, as well as Head Start and child nutrition
programs, a 1994 RAND study found that ``the most plausible''
way to explain big education gains of low-income and minority
children in the past 30 years is ``some combination of
increased public investment in education and social programs
and changed social policies aimed at equalizing educational
opportunities.''
Minority students have made substantial gains in science,
math, and reading since the 1970s, narrowing the gap between
minority and Caucasian student achievement by about a third.
The Federal focus began to change in 1994 from supporting individual
programs to emphasizing school-wide and school system reforms, through
the President's Goals 2000 Educate America Act and his Improving
America's Schools Act. These laws support State and local standards-
based reform efforts and speed the use of technology in education to
help raise learning gains. Overall, these new approaches freed States
and schools from Federal restrictions, providing greater flexibility
while requiring more accountability for results. Early results show that
the new approaches are having a significant impact:
A 1997 review of State plans showed that 44 had content
standards in at least reading and math, and 26 States had
performance standards.
All States have established school support teams that provide
high-quality guidance to Title I schools.
All States now have plans to ensure that (1) classrooms are
equipped with modern computers and connected to the Internet,
(2) software is an integral part of the curriculum, and (3)
teachers are ready to use and teach with technology.
Business-school partnerships are developing new software and
new ways to use technology to raise student achievement.
By the end of the 1998-1999 school year, nearly all States
will have challenging content and performance standards in
place for two or more core subjects, and by 2001 nearly all
States will have assessments aligned to the standards. Before
Goals 2000, almost no States had challenging academic
standards in place.
In 1999, Title I grants to school districts will provide
educational services to over 10 million students in high
poverty communities, over half a million more children than in
1998.
Each year, the National Assessment of Education Progress
(NAEP) will help measure progress toward achieving the goal
that rising percentages of all students will meet or exceed
basic, proficient, and advanced performance levels in national
and State assessments of reading, math, and other core
subjects, and the goal that students in high-poverty schools
will show improvement gains comparable to those for all
students.
Title VI Education Block Grant: This program provides general
resources for education. It does not have clear, measurable goals and is
not designed in law to produce specific results in terms of student
achievement gains. Evaluations of the program show that school
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districts generally use the funds for routine activities that do not
improve teaching and learning. As a result, the budget eliminates
funding for this program in order to support other programs, such as
Title I, for which there are strong indicators of results in terms of
student achievement gains.
Individuals with Disabilities: Under the Individuals with Disabilities
Education Act, the Education Department works with States to ensure that
children with disabilities benefit from the Act's requirement for a
``free appropriate public education'' and are part of all accountability
systems. The Education Department and the States actively work to
monitor and improve the performance of those students. In 1998, all
States will have performance goals and strategies in place for children
with disabilities aged three to 21, and will begin to report their
progress toward meeting those goals.
In 1999, all States will participate in regular assessments
of children with disabilities and in reporting the results.
Limited English-Proficient Children: With regard to the growing
population of children with limited English proficiency, the
Administration proposes that rising percentages of teachers and other
staff have the skills needed to enable these students to meet
challenging standards.
In 1999, the Administration will help States hire and train
4,000 new teachers for children with limited English
proficiency.
Reading: A student's most basic skill to master is reading. Although
reading problems are particularly severe for disadvantaged students,
students with reading difficulties represent a cross-section of American
children. In 1994, only 30 percent of 4th graders scored at the
proficient level in reading on NAEP, while 40 percent scored below the
basic level. In 1998, the President launched the America Reads Challenge
to provide extra help to meet the goal that every child will read well
and independently by the end of the third grade.
In 1999, America Reads will continue to help increase the
percentages of fourth-graders that meet basic, proficient, and
advanced levels in reading on the 4th grade NAEP (administered
in 1998 and every two years thereafter).
Public School Choice: Charter schools introduce innovation and choice
into public schools. In 1997, about 700 charter schools were operating
around the Nation, of which about 420 received Federal funding. In 1999,
at least 1,500 charter schools will be operating, continuing progress
toward the President's goal of 3,000 charter schools by 2001.
Voluntary National Tests: The Administration's proposed voluntary
national 4th grade reading and 8th grade mathematics tests for students
will help students and their parents and teachers know, for the first
time, how well students perform compared to other students nationally
and internationally. They will also provide important information about
how well education reform efforts are working.
Postsecondary Education: The economic returns to a college education
are dramatic. Full-time male workers over 25 years old with at least a
bachelor's degree earned 89 percent more in 1993 than comparable workers
with just a high school degree. Moreover, the benefits of college extend
beyond the college graduates themselves. The resulting higher
socioeconomic status of parents with college degrees leads to greater
educational achievement by their children.
Since the 1960s, the Federal Government has played a growing role in
helping Americans go to college. Federal programs finance two-thirds of
all direct student aid (i.e., excluding general State and local support
for public higher education). From 1964 to 1993, these programs have
helped nearly triple college enrollment, increasing by a third the share
of high school graduates who attended college, and raise college
enrollment rates for minority high school graduates by nearly two-
thirds.
In 1999, the Education Department will help an estimated 8.8
million students under its student aid programs.
In 1999, an estimated 12.6 million students will receive
college tax credits.
Scholarships for Low-Income Students: Research shows that, at the
levels of median income and below, Pell Grant recipients are
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twice as likely to earn a bachelor's degree as are non-recipients. The
President has proposed, and Congress has enacted, increases in the
maximum Pell Grant award from $2,300 in 1993 to $3,000 in 1998. In 1998,
an estimated 3.9 million needy students will receive Pell Grants to
finance their college educations.
In 1999, the Pell Grant maximum award will total $3,100 and
3.9 million students will receive Pell grants.
Easing Loan Repayment: The President proposed, and Congress enacted,
the 1993 Student Loan Reform Amendments that created the Income
Contingent Repayment (ICR) option for loans. With ICR, students who have
significant debt burdens and who want to take lower-paying community
service jobs can make their payments affordable through ICR. In
addition, students who have trouble repaying loans under other schedules
can switch to ICR. By the end of calendar 1997, the third year ICR was
available, 65,000 borrowers had already signed up for this repayment
option.
In 1999, ICR will continue to be available to as many
students who want it.
Modernization of the Student Aid Delivery System: The Education
Department manages the delivery of student aid benefits to over seven
million students in nearly 7,000 postsecondary schools, and oversees the
direct and guaranteed loan systems affecting 37 million individuals,
4,800 lenders, and 36 guarantee agencies. The Department has made
modernization of student financial aid management one of its highest
priorities. Major parts of the effort include improving customer service
at lower cost through better contracting practices and using new
information technology. For example, students can now apply for student
financial aid electronically and access their direct student loan
information over the Internet.
In 1999, the Department expects to continue to make progress toward
the goals it has set for 2000, including to:
increase, to three million, the annual number of students
applying for Federal aid electronically;
enable students and families applying for Federal aid
electronically to have their eligibility determined in four
days, cutting in half the current processing time;
make the Department's website the most comprehensive and
efficient source of information on Federal student aid and
program requirements, reducing hard copies of materials that
now must be printed and mailed by at least a third;
test a multi-year promissory note for student loans to
streamline application procedures, minimize delays in
receiving funds, and provide better consumer information for
borrowers; and
establish, with its partners in the financial aid community,
mutually agreed upon industry-wide standards for data
exchanges needed in administering student aid.
Student Loan Defaults: In recent years, the Education Department has
made great progress in reducing defaults and increasing collections from
defaulters. The national student loan cohort default rate used for
institutional eligibility dropped for the fifth straight year to 10.4
percent for 1995, down from 10.7 percent for 1994. The 1995 rate
represents the group of borrowers whose first loan repayments came due
in 1995 and who defaulted before October 1, 1996.
Over the most recent five-year period, the default rate has fallen by
over half, from 22.4 percent in 1990. This dramatic reduction is due, in
large part, to the Education Department's improved institutional
oversight that has, in turn, led to the removal of 875 schools,
including 672 schools from all student aid programs and 203 schools from
the Federal loan programs. In addition, the department has implemented
rigorous recertification standards for institutions to participate in
the student aid programs. As a result, it has rejected about a third of
initial applications to participate in the student aid programs over the
last three years--twice the rate in 1990.
In 1999, the default rate will continue to decline toward the
goal of 10 percent or less by 2002.
Direct Loan Consolidations: By relying more on performance-based
contracting, the Education Department is ensuring the smooth
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running of the loan consolidation contract. The Department is also
improving the loan consolidation process by improving the accuracy of
its data, strengthening managerial controls through better tracking and
reporting, increasing the number and expertise of consolidation
contractor staff, and speeding up the loan certification process. As a
result of new procedures in 1998, the department will average no more
than 60 to 90 days to complete a loan consolidation application.
In 1999, average time to complete a loan consolidation
application will continue to decline.
In 1999, surveys of borrowers will show that applicants for
loan consolidation are highly satisfied with the timeliness
and accuracy of the loan consolidation process.
Education Department Year 2000 Compliance: The Department has launched
a major effort to ensure that its systems are not adversely affected by
the year 2000 date change.
In March 1999, all of the Education Department's mission-
critical and mission-important systems will be verified as
year 2000 compliant.
Labor
Elementary, secondary, and postsecondary investments enable Americans
to acquire the skills to get good jobs in an increasingly competitive
global economy. In addition, most workers acquire more skills on the job
or through billions of dollars that employers spend to enhance worker
skills and productivity.
Some workers however, also benefit from special, targeted assistance.
In addition to Pell Grants, student loans, and tax credits, the Federal
Government spends nearly $7 billion a year through Department of Labor
(DOL) programs that finance job training. In addition, workers who want
to learn about job openings can tap into the State Employment Service
and One-Stop Career Center System, a labor exchange that's universally
available through DOL's popular America's Job Bank (AJB) website, which
lists over 750,000 job vacancies every day and receives 40 to 45 million
``hits'' a month.
DOL has launched several longitudinal evaluations of its job training
programs over the past two decades, including major impact evaluations
of the Job Corps and Dislocated Worker Assistance programs. Past studies
have found mixed, but generally positive, results for the DOL job
training programs.
While impact evaluations are the best measure of program
effectiveness, DOL also sets annual performance goals for its major job
training programs. Performance goals for 1999 will continue to emphasize
job placement, employment retention, and earnings levels.
The Job Training Partnership Act's (JTPA) Dislocated Worker
Assistance: This program provides training and employment services to
about 685,000 displaced workers a year.
In 1999, about 76 percent of those who receive services will
be working three months after leaving the program, earning an
average hourly wage that represents 97 percent of the wage in
their previous job.
JTPA's Adult Training Grants: This program helps over 400,000 low-
income individuals get training, support services, and job placement
assistance.
In 1999, about 60 percent of those who receive services will
be working three months after leaving the program, with weekly
earnings averaging $270.
Job Corps: The Corps provides skill training, academic and social
education, and support services in a structured, residential setting to
nearly 70,000 very disadvantaged youth a year at 118 centers.
In 1999, about 75 percent of those who leave the program will
get jobs or pursue further education, while those beginning
work will start at an average hourly wage of $6.25.
Employment Service/One-Stop Career Centers: The Employment Service
provides a free labor exchange for all workers and job seekers, and is
growing more and more effective by expanding its implementation of One-
Stop Career Centers.
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In 1999, DOL will continue to expand the One-Stop Career
Center System to include 40 percent of all local employment
service and JTPA offices, compared to 16 percent in 1997, and
increase the number of employers listing jobs with the AJB
website by 20 percent over the 1997 level.
School-to-Work: All States are implementing school-to-work systems,
using the five-year Federal ``venture capital'' grants to devise new
collaborations between schools and the private sector. In 1996, the
program, which began in 1994, was serving one million youth and 23
percent of schools.
In 1999, 1.5 million youth will be actively engaged in
school-to-work activities, and 25 percent of high schools will
offer key school-to-work components.
Workplace Protections
DOL regulates compliance with various laws that give workers certain
workplace protections--a minimum wage for virtually all workers,
prevailing wages and equal employment opportunity for workers on
government contracts, overtime pay, restrictions on child labor, and
time off for family illness or childbirth. In these areas, the Federal
Government is working to increase industry's compliance with labor
protections through voluntary compliance initiatives (coupled with
continued strong enforcement), outreach to new and small business, and
targeted enforcement in specific industries, with specific measurable
goals.
In 1999, compared to 1997, labor law compliance will increase
by five percentage points in such industries as domestic
garments in certain targeted cities, and in poultry
processing.
National Service
The Corporation for National and Community Service supports programs
providing service opportunities Nation-wide for Americans of all ages
and backgrounds. Through Corporation-supported projects, over 1.5
million participants work to address the Nation's unmet, critical needs.
The Corporation organizes its programs into three streams of service,
with various annual performance goals.
AmeriCorps: AmeriCorps will engage 56,000 Americans of all ages and
backgrounds in community service, and provide education awards in return
for such service.
In 1999, AmeriCorps VISTA members will generate cash and in-
kind resources for their sponsoring organizations at a rate of
$2.50 for every $1 of Federal funds.
Learn and Serve America: This program provides opportunities for one
million students to improve their academic learning while participating
in service-learning projects in schools, universities, and communities.
In 1999, 200,000 high school and college students in Learn
and Serve projects will provide literacy tutoring to children
in grades K-3.
National Senior Service Corps: The Corps, comprising over 500,000
people age 55 and older, encourages seniors to use their experience,
skills and talents while serving as Foster Grandparents, Senior
Companions, and the Retired and Senior Volunteers.
In 1999, the program will serve 150,000 special needs youth
and frail elderly.
Social Services
Vocational Rehabilitation Services: The Vocational Rehabilitation
program provides funds to States to help about 750,000 individuals with
disabilities prepare for independent living or gainful employment each
year. In 1997, the program helped to rehabilitate 217,500 individuals
with disabilities. The program has not had consistent performance goals
and measures of progress.
In 1999, under proposed legislation, all States will develop
challenging State-specific goals based on a comprehensive
assessment of the vocational rehabilitation needs of
individuals with disabilities in the State, describe the
strategies it will use to address those needs, and report on
progress made towards those goals.
Social Services Block Grant: The budget targets funding to programs
that can better demonstrate positive performance. The Social Services
Block Grant supports a broad range of social service programs, but
without statutory performance goals or measures of prog
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ress. As a result, the budget reduces funding for this program in order
to help provide funding for other higher priority programs with greater
demonstrated outcomes, such as Head Start and child care.
Tax Incentives
The Federal Government helps individuals, families, and employers (on
behalf of their employees) plan for and buy education and training
through numerous tax benefits, which will cost an estimated $57.3
billion in 1999. Along with the new Hope and Lifetime Learning tax
credits for college costs, the tax code provides other ways to pay for
education and training. State and local governments, for instance, can
issue tax-exempt debt to finance student loans or to build the
facilities of non-profit educational institutions. Interest from certain
U.S. Savings Bonds is tax-free if the bonds go solely to pay for
education. Many employers provide employee benefits that do not count as
income. Starting in 1998, many taxpayers can deduct the interest on
student loans. Finally, the tax code gives employers a Work Opportunity
Tax Credit and a Welfare-to-Work Tax Credit, letting them claim a tax
credit for part of the wages they pay to certain hard-to-employ people
who work for them for a minimum period.