[Appendix]
[Detailed Budget Estimates by Agency]
[Department of Education]
[From the U.S. Government Printing Office, www.gpo.gov]


[[Page 345]]


                         DEPARTMENT OF EDUCATION

 
              OFFICE OF ELEMENTARY AND SECONDARY EDUCATION

                              Federal Funds

General and special funds:

                            Education Reform

    For carrying out activities authorized by titles III and IV of the 
Goals 2000: Educate America Act, the School-to-Work Opportunities Act, 
and sections 3122, 3132, 3136, and 3141 [and], parts B, C, and D of 
title III, and part I of title X of the Elementary and Secondary 
Education Act of 1965, [$1,314,100,000] $1,947,000,000, of which 
[$491,000,000] $459,000,000 for the Goals 2000[: Educate America] Act 
and [$125,000,000] $55,000,000 for the School-to-Work Opportunities Act 
shall become available on July 1, [1999] 2000 and remain available 
through September 30, [2000] 2001, and of which [$87,000,000] 
$177,000,000 shall be for section 3122: Provided, That none of the funds 
appropriated under this heading shall be obligated or expended to carry 
out section 304(a)(2)(A) of the Goals 2000[: Educate America] Act, 
except that no more than [$1,500,000] $2,000,000 may be used to carry 
out activities under section 314(a)(2) of that Act: Provided further, 
That section 315(a)(2) of the Goals 2000 Act shall not apply: Provided 
further, That up to one-half of 1 percent of the amount available under 
section 3132 shall be set aside for the outlying areas, to be 
distributed on the basis of their relative need as determined by the 
Secretary in accordance with the purposes of the program: Provided 
further, That if any State educational agency does not apply for a grant 
under section 3132, that State's allotment under section 3131 shall be 
reserved by the Secretary for grants to local educational agencies in 
that State that apply directly to the Secretary according to the terms 
and conditions published by the Secretary in the Federal Register: 
[Provided further, That $22,000,000 of the funds made available under 
section 3136 shall be for a competition consistent with the subjects 
outlined in the House and Senate reports and the statement of the 
managers, and that such competition should be administered in a manner 
consistent with the authorizing legislation and current departmental 
practices and policies: Provided further, That $9,850,000 of the funds 
made available for star schools shall be for a competition consistent 
with the language outlined in the House and Senate reports and the 
statement of the managers, and that such competition should be 
administered in a manner consistent with current departmental practices 
and policies: Provided further, That $8,000,000 shall be awarded to 
continue and expand the Iowa Communications Network statewide fiber 
optic demonstration project, and $800,000 shall be awarded to the School 
of Agriculture and Land Resources Management at the University of 
Alaska, Fairbanks to enhance distance delivery of natural resources 
management courses; $350,000 shall be for multi-media classrooms for the 
rural education technology center at the Western Montana College in 
Dillon, Montana: Provided further, That of the funds made available for 
section 3136, $2,500,000 shall be to establish the RUNet 2000 project at 
Rutgers, The State University of New Jersey; $500,000 shall be for 
state-of-the-art information technology systems at Mansfield University, 
Mansfield, Pennsylvania; $1,000,000 shall be for professional 
development for technology training at the Krell Institute, Ames, Iowa; 
$850,000 shall be for Internet-based curriculum at the State of Alaska, 
Department of Education; $2,000,000 shall be for ``Magnet E-School'' 
technology training and curriculum initiative at the Hawaii Department 
of Education; $600,000 shall be for technology in the classroom pilot 
program for the Green Bay Public School System, Green Bay, Wisconsin; 
$250,000 shall be for the ``Passport to Chicago Community Network'' 
technology training project; $1,200,000 for LEARN North Carolina and the 
University of North Carolina at Chapel Hill; and $1,500,000 for the Iowa 
Department of Education for community college grants to low-income 
schools for technology]: Provided further, That grantees receiving funds 
under part I of title X shall be required to provide matching funds of 
not less than 50 percent of the total cost over the project period from 
sources other than funds under part I, in cash or in kind, and that 
awards may be for periods of up to 5 years. (Department of Education 
Appropriations Act, 1999, as included in Public Law 105-277, section 
101(f).)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0500-0-1-501      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Goals 2000:

00.01   State and local education 
          systemic improvement..........         469         477         461
00.02   Parental assistance.............          25          30          30
                                           ---------   ---------  ----------
00.91     Total, goals 2000.............         494         507         491
01.01 School-to-work opportunities......         175         313          55
      Educational technology:

02.01   Technology literacy challenge 
          fund..........................         425         425         450
02.02   Technology innovation challenge 
          grants........................         106         115         110
02.03   Regional technology in education 
          consortia.....................          10          10          10
        National activities:
02.04     Teacher training in technology                      75          75
02.05     Community-based technology....                      10          65
02.06     Technology leadership 
            activities..................                       2           2
02.07     Middle school teacher training                                  30
02.08     Software development 
            initiative..................                                   5
02.09   Star schools....................          34          45          45
02.10   Ready to learn television.......           7          11           7
02.11   Telecommunications demonstration 
          project for mathematics.......           2           5           2
                                           ---------   ---------  ----------
02.91     Total, educational technology.         584         698         801
03.01 21st Century community learning 
        centers.........................                                 600
                                           ---------   ---------  ----------
10.00   Total new obligations...........       1,253       1,518       1,947
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    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................         194         204
22.00 New budget authority (gross)......       1,275       1,314       1,947
22.21 Unobligated balance transferred to 
        other accounts..................         -27
22.22 Unobligated balance transferred 
        from other accounts.............          16
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......       1,458       1,518       1,947
23.95 Total new obligations.............      -1,253      -1,518      -1,947
24.40 Unobligated balance available, end 
        of year.........................         204
----------------------------------------------------------------------------

    New budget authority (gross), detail:
40.00 Appropriation.....................       1,275       1,314       1,947
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year         902       1,409       1,660
73.10 Total new obligations.............       1,253       1,518       1,947
73.20 Total outlays (gross).............        -746      -1,267      -1,305
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..       1,409       1,660       2,303
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority         114          66          97
86.93 Outlays from current balances.....         632       1,201       1,207
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         746       1,267       1,305
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................       1,275       1,314       1,947
90.00 Outlays...........................         746       1,267       1,305
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    Note.--Includes $600 million in budget authority in 2000 for 21st 
Century community learning centers previously financed from:

                       (In millions of dollars)
                                          1998 actual      1999 est.
Office of Educational Research and 
 Improvement, Education Research, 
 Statistics, and Improvement............            40             200

    Funds help States and localities undertake comprehensive education 
reform, create State and local systems of school-to-work transition for 
students, and implement educational technology plans.

    Goals 2000:

[[Page 346]]

        State and local education systemic improvement.--State grants 
    support State and local education improvement efforts to help all 
    students reach challenging academic standards in all States. At 
    least 90 percent of the funds are provided to local educational 
    agencies. Funds also support evaluation of educational reform 
    efforts.
        Parental assistance.--Centers in all States would continue to 
    help provide parents with knowledge and skills they need to 
    participate effectively in their children's education.

    School-to-Work Opportunities.--School-to-work programs are jointly 
administered by the Departments of Education and Labor. An identical 
amount is provided for the Department of Labor to support these 
activities. To date, competitive, 5-year grants have been awarded to all 
States.

    Direct grants are also provided to local partnerships serving young 
people who live in high-poverty urban and rural areas, as well as 
partnerships that serve Indian youth. These funds also support national 
evaluation, research, and development activities to provide national 
leadership and analysis of school-to-work opportunities initiatives.

    Educational Technology:
        Technology literacy challenge fund.--All States will receive the 
    fourth year of 5-year grants as part of the President's plan to 
    provide States and school districts with $2 billion over 5 years for 
    computers, connections, training, and software, in order to achieve 
    the President's four goals for fully integrating technology into 
    schools.
        Technology innovation challenge grants.--Competitive grants are 
    made to consortia of schools districts and other partners to improve 
    teaching and learning through the development of effective and 
    innovative uses of technology.
        Regional technology in education consortia.--Funds support 
    technical assistance in the development and implementation of 
    educational technology.
        Teacher training in technology.--Funds support grants to 
    consortia of States, colleges of education, and other public and 
    private entities to provide summer institutes or other activities 
    that will help new teachers learn how to use technology effectively.
        Community-based technology.--Funds support computer learning 
    centers for students and adults in low-income neighborhoods.
        Technology leadership activities.--Funds support leadership 
    activities designed to promote the effective use of educational 
    technology, and to strengthen and coordinate the Department's 
    technology initiatives and other Federal and private sector efforts.
        Middle school teacher training.--Funds will support grants to 
    middle schools to train teacher technology leaders in States that 
    agree to estalish technology literacy requirements.
        Software development initiative.--Funds will support competitive 
    grants to encourage the development of high-quality educational 
    software by partnerships of students, university faculty, and 
    technology and content experts.
        Star schools.--Funds support competitive grants to partnerships 
    for the development of instructional programming and professional 
    development using distance learning technologies.
        Ready to learn television.--Funds support the development of 
    educational programming and outreach activities promoting literacy 
    and school readiness for preschool and elementary school children 
    and their parents.
        Telecommunications demonstration project for mathematics.--Funds 
    support a national telecommunications-based demonstration project to 
    improve the teaching of mathematics so that all students are 
    prepared to achieve State content standards.
        21st Century community learning centers.--Funds support 
    competitive grants to centers providing school-based academic and 
    recreational services for youth and other members of the community 
    during after-school, weekend, and summer hours. Priority will be 
    given to projects that have policies for ending social promotion.

               Object Classification (in millions of dollars)

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Identification code 91-0500-0-1-501      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
25.1  Advisory and assistance services..           5           6           7
25.2  Other services....................           2           3           3
25.5  Research and development contracts           5           6           7
41.0  Grants, subsidies, and 
        contributions...................       1,241       1,503       1,930
                                           ---------   ---------  ----------
99.9    Total new obligations...........       1,253       1,518       1,947
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                     Education for the Disadvantaged

    For carrying out title I of the Elementary and Secondary Education 
Act of 1965, and section 418A of the Higher Education Act, 
[$8,370,520,000] $8,743,920,000, of which [$2,198,134,000] 
$2,561,134,000 shall become available on July 1, [1999] 2000, and shall 
remain available through September 30, [2000] 2001, and of which 
$6,148,386,000 shall become available on October 1, [1999] 2000 and 
shall remain available through September 30, [2000] 2001, for academic 
year [1999-2000] 2000-2001: Provided, That [$6,574,000,000] 
$6,140,000,000 shall be available for basic grants under section 1124: 
Provided further, That up to $3,500,000 of these funds shall be 
available to the Secretary on October 1, [1998] 1999, to obtain updated 
local-educational-agency-level census poverty data from the Bureau of 
the Census: Provided further, That [$1,102,020,000] $1,100,000,000 shall 
be available for concentration grants under section 1124A, and 
$756,020,000 shall be available for targeted grants under section 1125: 
Provided further, That each State shall reserve 2.5 percent of its total 
allocation under sections 1124, 1124A, and 1125 to support efforts to 
improve schools identified under section 1116(c), pursuant to additional 
guidance to be issued by the Secretary: Provided further, That 
[$7,500,000]  $8,900,000 shall be available for evaluations under 
section 1501 and not more than $8,500,000 shall be reserved for section 
1308, of which not more than $3,000,000 shall be reserved for section 
1308(d): [Provided further, That grant awards under section 1124 and 
1124A of title I of the Elementary and Secondary Education Act shall be 
made to each State or local educational agency at no less than 100 
percent of the amount such State or local educational agency received 
under this authority for fiscal year 1998:] Provided further, That 
[$120,000,000] $150,000,000 shall be available under section 1002(g)(2) 
to demonstrate effective approaches to comprehensive school reform to be 
allocated and expended in accordance with the instructions relating to 
this activity in the statement of the managers on the conference report 
accompanying Public Law 105-78 and in the statement of the managers on 
the conference report accompanying [this Act] Public Law 105-277: 
Provided further, That in carrying out this initiative, the Secretary 
and the States shall support only approaches that show the most promise 
of enabling children served by title I to meet challenging State content 
standards and challenging State student performance standards based on 
reliable research and effective practices, and include an emphasis on 
basic academics and parental involvement: Provided further, That [no 
funds appropriated under section 1002(g)(2) shall be available for 
section 1503] sections 1116(c)(5)(B)(ii) and 1116(c)(5)(C) shall not 
apply. (Department of Education Appropriations Act, 1999, as included in 
Public Law 105-277, section 101(f).)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0900-0-1-501      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Direct program:

        Grants to local educational 
            agencies:
00.01     Basic grants..................       5,935       2,982       6,894
00.02     Concentration grants..........       1,279                   1,102
00.03     Capital expenses..............          41          24
00.04     Even start....................         121         138         145
00.05   State agency programs...........         345         399         422
00.06   Evaluation......................           7           8           9

[[Page 347]]

00.07   Demonstrations of comprehensive 
          school reform.................          63         177         150
00.08   Migrant education projects......          10          13          22
                                           ---------   ---------  ----------
10.00   Total new obligations...........       7,801       3,741       8,744
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................          10          71
22.00 New budget authority (gross)......       7,871       3,670       8,744
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......       7,881       3,741       8,744
23.95 Total new obligations.............      -7,801      -3,741      -8,744
23.98 Unobligated balance expiring......          -9
24.40 Unobligated balance available, end 
        of year.........................          71
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Current:

40.00   Appropriation...................       6,573       2,222       2,596
      Permanent:

65.00   Advance appropriation (definite)       1,298       1,448       6,148
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................       7,871       3,670       8,744
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year       7,306       7,304       4,358
73.10 Total new obligations.............       7,801       3,741       8,744
73.20 Total outlays (gross).............      -7,817      -6,687      -7,963
73.40 Adjustments in expired accounts...          14
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..       7,304       4,358       5,139
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority         354         111         130
86.93 Outlays from current balances.....       6,863       4,333       3,101
86.97 Outlays from new permanent 
        authority.......................         276       1,248       4,304
86.98 Outlays from permanent balances...         324         995         428
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........       7,817       6,687       7,963
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................       7,871       3,670       8,744
90.00 Outlays...........................       7,818       6,687       7,963
---------------------------------------------------------------------------

            Summary of Program Level (in millions of dollars)

                                     1998-1999 
                                      academic 
                                        year      1999-2000 
                                                academic year 2000-2001 
                                                            academic year
Current Budget Authority............       6,574       2,223       2,596
Advance appropriation...............       1,448       6,148       6,148
                                    ------------------------------------
  Total program level...............       8,022       8,371       8,774
                                    ====================================
Increase in advance appropriation 
over previous year..................        +150      +4,700          +0

    Grants to local educational agencies.--Funds will be allocated 
through the Basic, Concentration, and Targeted grant formulas for local 
programs that stress the achievement of challenging State education 
standards, support schoolwide improvement, integrate Title I assessment 
and curriculum with State systemic reforms, and target funds to high-
poverty schools. Up to $3.5 million in Basic Grant funds will be used to 
continue work needed to obtain updated poverty data at the local 
educational agency level from the Bureau of the Census for use in 
allocating Title I funds beginning in 1999, as required by the statute.

    Even start.--Funds are provided by formula to States, which in turn 
award grants to partnerships of local educational agencies and other 
organizations to operate family literacy projects integrating early 
childhood education, adult literacy and parenting education for low-
income families with children under age 8.

    State agency migrant program.--Funds are provided by formula to 
States for educational services to children of migratory farmworkers and 
fishers. Funds and services are concentrated on children who have moved 
within the past 36 months.

    State agency neglected and delinquent program.--Funds are provided 
by formula to States for educational services to children and youth 
under age 21 in State facilities for neglected or delinquent children or 
adult correction facilities. Services help institutionalized youth 
achieve the same challenging standards established for students in local 
public schools.

    Evaluation.--Funds support national activities to evaluate Title I 
programs and longitudinal studies of the program's effectiveness in 
helping schools and children achieve to challenging State education 
standards.

    Demonstrations of comprehensive school reform.--Funds are provided 
by formula to States, which in turn award grants to local educational 
agencies to help participating schools initiate and implement 
comprehensive school reforms based on approaches and methods grounded in 
reliable research and practice.

    Migrant education projects.--Funds support grants to institutions of 
higher education and other nonprofit agencies that assist migrant 
students to earn a high school equivalency certificate or to complete 
their first year of college.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0900-0-1-501      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
25.1  Advisory and assistance services..           9           9           9
25.2  Other services....................           7           7           7
25.3  Purchases of goods and services 
        from Government accounts........           2           2           2
41.0  Grants, subsidies, and 
        contributions...................       7,783       3,723       8,726
                                           ---------   ---------  ----------
99.9    Total new obligations...........       7,801       3,741       8,744
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                               Impact Aid

    For carrying out programs of financial assistance to federally 
affected schools authorized by title VIII of the Elementary and 
Secondary Education Act of 1965, [$864,000,000] $736,000,000, of which 
[$704,000,000] $684,000,000 shall be for basic support payments under 
section 8003(b), [$50,000,000] $40,000,000 shall be for payments for 
children with disabilities under section 8003(d), [$70,000,000, to 
remain available until expended, shall be for payments under section 
8003(f),] $7,000,000 shall be for construction under section 8007, [and 
$28,000,000 shall be for Federal property payments under section 8002] 
and $5,000,000 to remain available until expended shall be for 
facilities maintenance under section 8008: [Provided, That Section 
8002(f) of the Elementary and Secondary Education Act of 1965 is 
amended--
        (1) by inserting ``(1)'' after the subsection heading; and
        (2) by adding a new paragraph (2) at the end to read as follows:
        ``(2) For each fiscal year beginning with fiscal year 1999, the 
    Secretary shall treat the Webster School District, Day County, South 
    Dakota as meeting the eligibility requirements of subsection 
    (a)(1)(C) of this section.'':
Provided further, That Section 8002 of the Elementary and Secondary 
Education Act of 1965 is amended by adding at the end thereof a new 
subsection (k) to read as follows:
    ``(k) Special Rule.--For purposes of payments under this section for 
each fiscal year beginning with fiscal year 1998--
        ``(1) the Secretary shall, for the Stanley County, South Dakota 
    local educational agency, calculate payments as if subsection (e) 
    had been in effect for fiscal year 1994; and
        ``(2) the Secretary shall treat the Delaware Valley, 
    Pennsylvania local educational agency as if it had filed a timely 
    application under section 2 of Public Law 81-874 for fiscal year 
    1994.'':
Provided further,  That (a) from the funds appropriated for payments to 
local educational agencies under section 8003(f) of the Elementary and 
Secondary Education Act of 1965 (ESEA) for fiscal year 1999, the 
Secretary of Education shall distribute supplemental payments for 
certain local educational agencies, as follows:
        (1) First, from the amount of $68,000,000, the Secretary shall 
    make supplemental payments to the following agencies under section 
    8003(b) of the ESEA:
                (A) Local educational agencies that received assistance 
            under section 8003(f) for fiscal year 1998.
                (B) Local educational agencies with Impact Aid applicant 
            numbers 20-0019, 51-0504, 51-2801, 51-1903, 51-0010, 51-
            4203, 51-2101, 51-0811, and 51-0904.
                (C) Any eligible local educational agency with at least 
            25,000 children in average daily attendance, at least 55 
            percent feder

[[Page 348]]

            ally connected children described in section 8003(a)(1) in 
            average daily attendance, and at least 6,500 children 
            described in sections 8003(a)(1)(A) and (B) in average daily 
            attendance.
        (2) From the remaining $2,000,000 and any amounts available 
    after making payments under paragraph (1), the Secretary shall then 
    make supplemental payments to local educational agencies that are 
    not described in paragraph (1) of this subsection, but that meet the 
    requirements of paragraphs (2) and (4) of section 8003(f) of the 
    ESEA for fiscal year 1999, except that such agencies may count for 
    purposes of eligibility for these supplemental payments, all 
    students described in section 8003(a)(1).
        (3) After making payments under section 8003(f) to all eligible 
    applicants for fiscal years before fiscal year 1999, the Secretary 
    shall use the combined amount of any funds remaining available under 
    that subsection, and any amounts that may remain for fiscal year 
    1999 after making payments under paragraphs (1) and (2) of this 
    subsection, to make the following payments:
                (A) First, an amount not to exceed $3,000,000 to Impact 
            Aid applicant number 20-0019.
                (B) Second, from any remaining funds, an amount not to 
            exceed $3,000,000 to Impact Aid applicant number 53-0061.
                (C) Third, from any remaining funds, increased basic 
            support payments under section 8003(b) for all eligible 
            applicants.
    (b) In calculating the amounts of supplemental payments for agencies 
described in subparagraphs (1)(A) and (B) and paragraph (2) of 
subsection (a), the Secretary shall use the formula contained in section 
8003(b)(1)(C) of the ESEA, except that--
        (1) eligible local educational agencies may count all children 
    described in section 8003(a)(1) in computing the amount of those 
    payments;
        (2) maximum payments for any of those agencies that use local 
    contribution rates identified in section 8003(b)(1)(C)(i) or (ii) 
    shall be computed by using four-fifths instead of one-half of those 
    rates;
        (3) the learning opportunity threshold percentage of all such 
    agencies under section 8003(b)(2)(B) shall be deemed to be 100;
        (4) for an eligible local educational agency with 35 percent or 
    more of its children in average daily attendance described in either 
    subparagraph (D) or (E) of section 8003(a)(1), the weighted student 
    unit figure from its regular basic support payment shall be 
    recomputed by using a factor of 0.55 for such children;
        (5) for an eligible local educational agency with fewer than 100 
    children in average daily attendance, the weighted student unit 
    figure from its regular basic support payment shall be recomputed by 
    multiplying the total number of children described in section 
    8003(a)(1) by a factor of 1.5; and
        (6) for an eligible local educational agency whose total number 
    of children in average daily attendance is at least 100, but fewer 
    than 750, the weighted student unit figure from its regular basic 
    support payment shall be recomputed by multiplying the total number 
    of children described in section 8003(a)(1) by a factor of 1.25.
    (c) For a local educational agency described in subsection (a)(1)(C) 
above, the Secretary shall use the formula contained in section 
8003(b)(1)(C) of the ESEA, except that the weighted student unit total 
from its regular basic support payment shall be increased by 35 percent 
and its learning opportunity threshold percentage shall be deemed to be 
100.
    (d) For each eligible local educational agency, the calculated 
supplemental basic support payment shall be reduced by subtracting the 
agency's regular fiscal year 1999 section 8003(b) basic support payment.
    (e) The actual supplemental basic support payment that local 
educational agencies receive shall be treated under section 8009 in the 
same manner as payments under section 8003(f).
    (f) If the sums described in subsections (a)(1) and (2) above are 
insufficient to pay in full the calculated supplemental basic support 
payments for the local educational agencies identified in those 
subsections, the Secretary shall ratably reduce the supplemental basic 
support payment to each local educational agency: Provided further, That 
the Secretary of Education shall treat as timely filed, and shall 
process for payment, an application for a fiscal year 1998 payment from 
the local educational agency for Prince Georges County, Maryland, under 
section 8003 of the Elementary and Secondary Education Act of 1965 if 
the Secretary has received that application not later than 30 days after 
the enactment of this Act: Provided further, That from the amount 
appropriated for section 8008 the Secretary shall award $500,000 to the 
Randolph Field Independent School District, Texas: Provided further, 
That for the purposes of computing the amount of payment for a local 
educational agency for children identified under section 8003, children 
residing in housing initially acquired or constructed under section 801 
of the Military Construction Authorization Act of 1984, (Public Law 98-
115) (``Build to Lease'' program) shall be considered as children 
described under section 8003(a)(1)(B) if the property described is 
within the fenced security perimeter of the military facility upon which 
such housing is situated: Provided further, That if such property is not 
owned by the Federal Government, is subject to taxation by a State or 
political subdivision of a State, and thereby generates revenues for a 
local educational agency which received a payment from the Secretary 
under section 8003, the Secretary shall--
        (A) require such local educational agency to provide 
    certification from an appropriate official of the Department of 
    Defense that such property is being used to provide military 
    housing; and
        (B) reduce the amount of such payment by an amount equal to the 
    amount of revenue from such taxation received in the second 
    preceding fiscal year by such local educational agency, unless the 
    amount of such revenue was taken into account by the State for such 
    second preceding fiscal year and already resulted in a reduction in 
    the amount of State aid paid to such local educational agency: 
    Provided further, That of the funds available for payments under 
    section 8002, the Secretary shall pay the San Diego, California, 
    Centennial, Pennsylvania, and Hatboro-Horsham, Pennsylvania, local 
    educational agencies the sum of $500,000 each, in addition to their 
    regularly calculated payments, except that the total funds these 
    agencies receive under this section may not exceed 50 percent of 
    their maximum section 8002 payments] Provided, That payments and 
    eligibility under section 8003 shall be based only on federally 
    connected children described in sections 8003(a)(1)(A), 
    8003(a)(1)(B), and 8003(a)(1)(C): Provided further, That 
    notwithstanding section 8003(b)(1)(B), any local educational agency 
    that received a payment based on federally connected children 
    described in sections 8003(a)(1)(A), 8003(a)(1)(B), and 
    8003(a)(1)(C) for fiscal year 1999 shall be eligible to receive a 
    payment under section 8003(b) for fiscal year 2000: Provided 
    further, That notwithstanding section 8003(d)(1), payments under 
    section 8003(d) for fiscal year 2000 for eligible local educational 
    agencies shall be based only on federally connected children 
    described in sections 8003(a)(1)(A)(ii), 8003(a)(1)(B), and 
    8003(a)(1)(C): Provided further, That notwithstanding section 
    8003(b)(1)(C), the maximum amount of the basic support payment for 
    any local educational agency under section 8003(b)(1) shall be 
    determined by multiplying the number of that agency's weighted 
    student units for children described in sections 8003(a)(1)(A), 
    8003(a)(1)(B), and 8003(a)(1)(C), by the greatest of: (1) the local 
    contribution rate described in section 8003(b)(1)(C)(iii); (2) the 
    amount described in section 8003(b)(1)(C)(iv); or (3) the average 
    per-pupil expenditure of all the States for fiscal year 1997, 
    multiplied by the local contribution percentage of the State in 
    which the agency is located: Provided further, That notwithstanding 
    section 8003(b)(2), if funds appropriated are insufficient to pay 
    each local educational agency the full amount calculated under the 
    preceding proviso, each such payment shall be: (1) multiplied by the 
    sum of: (A) .50; and (B) one-half of the percentage of the agency's 
    average daily attendance (as defined in section 14101(1) of such 
    Act) that is comprised of children described in sections 
    8003(a)(1)(A), 8003(a)(1)(B), and 8003(a)(1)(C); and (2) ratably 
    reduced or increased, as the case may be, but not to exceed the 
    maximum amount described above: Provided further, That none of the 
    funds provided shall be used for payment under section 8003(e). 
    (Department of Education Appropriations Act, 1999, as included in 
    Public Law 105-277, section 101(f).)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0102-0-1-501      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Payments for federally connected children:

00.01   Basic support payments..........         662         704         684
00.02   Supplemental payments for 
          children with disabilities....          50          50          40
00.03   Payments for heavily impacted 
          districts.....................          89          62          50
                                           ---------   ---------  ----------
00.91   Subtotal, payments for federally 
          connected children............         801         816         774
01.01 Facilities maintenance............           1          14           5
02.01 Construction......................           7           7           7
03.01 Payments for Federal property.....          24          28

[[Page 349]]

04.01 Construction (P.L. 81-815)........           9           7
05.01 Penalty mail......................           1
                                           ---------   ---------  ----------
10.00   Total new obligations...........         843         872         786
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................          95          73          65
22.00 New budget authority (gross)......         808         864         736
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................          14
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         917         937         801
23.95 Total new obligations.............        -843        -872        -786
24.40 Unobligated balance available, end 
        of year.........................          73          65          15
----------------------------------------------------------------------------

    New budget authority (gross), detail:
40.00 Appropriation.....................         808         864         736
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year         334         407         294
73.10 Total new obligations.............         843         872         786
73.20 Total outlays (gross).............        -700        -985        -847
73.40 Adjustments in expired accounts...         -57
73.45 Adjustments in unexpired accounts.         -14
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..         407         294         233
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority         563         705         600
86.93 Outlays from current balances.....         137         280         248
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         700         985         847
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................         808         864         736
90.00 Outlays...........................         700         985         847
---------------------------------------------------------------------------

    Funds help to pay the operating costs of local educational agencies 
that are affected by Federal activities. Payments would be made to local 
educational agencies that educate (1) children of Federal employees who 
both live and work on Federal property, (2) children of foreign military 
officers living on Federal property, (3) children living on Indian 
lands, and (4) military dependents living on Federal property.

    Basic support payments.--Payments would be made on behalf of 
approximately 292,000 federally connected children enrolled in 
approximately 1,000 school districts across the country. The request 
would provide an average payment of approximately $2,300 for each of 
these federally connected children.

    Supplemental payments for children with disabilities.--Payments 
would be made for additional assistance to school districts educating 
Federally connected children with disabilities. Approximately 32,000 
such children are enrolled in school districts across the country. The 
request would provide approximately $1,300 in additional assistance for 
the education of each of these children.

    Facilities maintenance.--Funds would be used to provide emergency 
repairs for school facilities that serve federally connected military 
students and are owned by the Department of Education. Funds would also 
be used to transfer the facilities to local educational agencies.

    Construction.--Payments provide assistance for school construction 
for certain school districts with large proportions of federally 
connected children.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0102-0-1-501      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
23.3  Communications, utilities, and 
        miscellaneous charges...........           1
32.0  Land and structures...............           1          14           5
41.0  Grants, subsidies, and 
        contributions...................         841         858         781
                                           ---------   ---------  ----------
99.9    Total new obligations...........         843         872         786
---------------------------------------------------------------------------

                                

                       School Improvement Programs

    For carrying out school improvement activities authorized by titles 
II, IV, V-A and B, VI, IX, X, [XII] and XIII of the Elementary and 
Secondary Education Act of 1965 (``ESEA''); the Stewart B. McKinney 
Homeless Assistance Act; and the Civil Rights Act of 1964 and part B of 
title VIII of the Higher Education Act; [$2,811,134,000] $2,722,534,000, 
of which [$2,381,300,000] $2,205,700,000 shall become available on July 
1, [1999] 2000, and remain available through September 30, [2000] 2001: 
Provided, That of the amount appropriated, $335,000,000 shall be for 
Eisenhower professional development State grants under title II-B and up 
to $750,000 shall be for an evaluation of comprehensive regional 
assistance centers under title XIII of [the Elementary and Secondary 
Education Act of 1965, and $1,575,000,000 shall be for title VI, of 
which $1,200,000,000 shall be available, notwithstanding any other 
provision of law,] ESEA: Provided further, That with respect to funds 
appropriated for title IV-A-1 of ESEA, State educational agencies shall, 
in determining the local educational agencies that have the greatest 
need for additional funds pursuant to section 4113(d)(2)(C)(ii), conduct 
a competition and consider the quality of the programs proposed by 
applicants: Provided further, That of the funds appropriated for title 
IV-A-2 of ESEA, $12,000,000 shall become available on October 1, 1999, 
to remain available until expended to help school districts and 
communities respond to violent deaths and other traumatic crises: 
Provided further, That notwithstanding any other provision of law, 
$1,400,000,000 shall be available to carry out title VI of [the 
Elementary and Secondary Education Act of 1965] ESEA in accordance with 
section 307(b) through (g) of [this Act] the Department of Education 
Appropriations Act, 1999, as included in Public Law 105-277, section 
101(f), in order to reduce class size, particularly in the early grades, 
using highly qualified teachers to improve educational achievement for 
regular and special needs children, from which amount the Secretary of 
Education--
    (1) shall make available a total of $7,000,000 to the Secretary of 
the Interior (on behalf of the Bureau of Indian Affairs) and the 
outlying areas for activities under that section, and
    (2) shall allocate the remainder by providing each State the greater 
of the amount the State would receive if a total of $1,306,950,000 were 
allocated in the same proportion as the amount it received under section 
1122 or under section 2202(b) of ESEA for fiscal year 1999, except that 
such allocations shall be ratably increased or decreased as may be 
necessary: Provided further, That the Federal share of the cost of any 
activities carried out with funds made available to a local educational 
agency under the previous proviso that are in excess of its fiscal year 
1999 allocation may be up to 100 percent in the case of a local 
educational agency with a child-poverty rate of 50 percent or greater, 
and shall not exceed 65 percent in the case of a local educational 
agency with a child-poverty rate below 50 percent; and the non-Federal 
share of such activities assisted shall be through cash expenditures 
from non-Federal sources, except that if an agency has allocated funds 
under section 1113(c) of ESEA to 1 or more schoolwide programs under 
section 1114 of ESEA, the agency may use those funds for the non-Federal 
share of activities under this program that benefit those schoolwide 
programs, to the extent consistent with section 1120A(c) of ESEA and 
notwithstanding section 1114(a)(3)(B) of ESEA. (Department of Education 
Appropriations Act, 1999, as included in Public Law 105-277, section 
101(f).)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-1000-0-1-501      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Professional development and program 
          innovation:

00.01   Eisenhower professional 
          development State grants......         332         338         335
00.02   Innovative education program 
          strategies State grants.......         350         375
00.03   Class size reduction............                   1,200       1,400
      Safe and drug-free schools and communities:

00.04   State grants....................         531         443         439
00.05   National programs...............          25          90          90
00.06   Coordinator Initiative..........                      35          50
00.07   Project SERV....................                                  12
00.08 Inexpensive book distribution.....          12          18          18
00.09 Arts in education.................          11          11          11
00.10 Magnet schools assistance.........         101         104         114
00.11 Education for homeless children 
        and youth.......................          29          29          32
00.12 Women's educational equity........           3           3           3
00.13 Training and advisory services....           7           7           7
00.14 Ellender fellowships..............           2           2

[[Page 350]]

00.15 Education for Native Hawaiians....          18          20          20
00.16 Alaska Native education equity....           8          10          10
00.17 Charter schools...................          80         100         130
00.18 Comprehensive regional assistance 
        centers.........................          27          28          32
00.19 Advanced placement incentives.....                       4          20
                                           ---------   ---------  ----------
10.00   Total obligations...............       1,536       2,817       2,723
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................           3           5
22.00 New budget authority (gross)......       1,538       2,811       2,723
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......       1,541       2,816       2,723
23.95 Total new obligations.............      -1,536      -2,817      -2,723
23.98 Unobligated balance expiring......          -1
24.40 Unobligated balance available, end 
        of year.........................           5
----------------------------------------------------------------------------

    New budget authority (gross), detail:
40.00 Appropriation.....................       1,538       2,811       2,723
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year       1,771       1,941       3,321
73.10 Total new obligations.............       1,536       2,817       2,723
73.20 Total outlays (gross).............      -1,366      -1,437      -2,175
73.40 Adjustments in expired accounts...           2
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..       1,941       3,321       3,869
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority          62         141         136
86.93 Outlays from current balances.....       1,304       1,296       2,039
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........       1,366       1,437       2,175
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................       1,538       2,811       2,723
90.00 Outlays...........................       1,366       1,437       2,175
---------------------------------------------------------------------------

    Eisenhower professional development State grants.--Formula grants 
are provided to States, outlying areas, and the Bureau of Indian Affairs 
to support intensive, high-quality professional development in the core 
academic subject areas.

    Class size reduction.--Formula grants are provided to local school 
districts to help them carry out effective approaches to reducing class 
sizes with highly qualified teachers. School districts give particular 
consideration to reducing class sizes in the early elementary grades.

    Safe and drug-free schools and communities:
        State grants.--Formula grants are made to States, outlying 
    areas, and the Bureau of Indian Affairs to assist in combatting drug 
    use and violence in the Nation's schools.
        National programs.--Funds support activities to promote safe and 
    disciplined academic environments and to prevent illegal drug use 
    and violence among students at all educational levels. Such 
    activities may include training, demonstrations, direct services to 
    school districts with severe drug and violence problems, program 
    evaluation, and development and dissemination of information and 
    materials.
        Coordinator Initiative.--Grants are awarded to local educational 
    agencies to recruit, hire, and train full-time drug and violence 
    prevention coordinators to plan, design, implement, and evaluate 
    drug and violence prevention programs in middle schools with 
    significant drug and violence problems.
        Project SERV (School Emergency Response to Violence).--The 
    Administration proposes a new Federal response to violent deaths and 
    other crises affecting schools. Under this initiative, the 
    Department of Education, in collaboration with the Departments of 
    Justice and Health and Human Services and the Federal Emergency 
    Management Agency Administration, would provide immediate emergency 
    assistance to a community following a violent or traumatic incident 
    to help identify and meet urgent and unplanned local needs, such as 
    additional school security personnel, emergency mental health crisis 
    counseling, and longer-term counseling to students, faculty, and 
    families.

    Other programs.--

    Inexpensive book distribution.--Funds support reading motivation 
activities, including the distribution of free books to children.

    Arts in education.--Funds support education activities of the 
Kennedy Center and Very Special Arts.

    Magnet schools assistance.--Grants are made to local educational 
agencies to establish and operate magnet school programs that are part 
of approved desegregation plans. The 2000 increase will support inter-
district programs.

    Education for homeless children and youth.--Formula grants are 
provided to States, outlying areas, and the Bureau of Indian Affairs to 
provide educational and support services that enable homeless children 
and youth to enroll in, attend, and achieve success in school.

    Women's educational equity.--Funds support implementation of gender-
equity practices at schools and colleges, as well as the development and 
dissemination of educational materials that promote educational equity 
for women and girls.

    Training and advisory services.--Grants are made to regional equity 
assistance centers that provide technical assistance to school districts 
in addressing equity in education related to issues of race, gender, and 
national origin.

    Education for Native Hawaiians.--Grants provide supplemental 
education services to Native Hawaiians in the areas of family-based 
education, special education, gifted and talented education, higher 
education, curriculum development, teacher training and recruitment, and 
community-based learning.

    Alaska Native education equity.--Grants provide supplemental 
education services to Alaska Natives in the areas of educational 
planning, curriculum development, teacher training, teacher recruitment, 
student enrichment, and home-based instruction for pre-school children.

    Charter schools.--Grants are awarded to State educational agencies 
and charter schools to support the planning, design, initial 
implementation, and dissemination of information regarding model charter 
schools. These schools are created by teachers, parents, and members of 
the community, and are exempt from certain local, State, and Federal 
regulations.

    Comprehensive regional assistance centers.--Funds are provided for 
15 comprehensive regional technical assistance centers that provide 
services to States, local educational agencies, schools, and other 
recipients of Federal education funds to improve elementary and 
secondary education programs.

    Advanced placement incentives.--Funds are used by States to pay for 
advanced placement test fees for low-income students who are enrolled in 
advanced placement classes. In States in which no eligible low-income 
individual is required to pay more than a nominal fee to take advanced 
placement tests, funds may be used for other purposes to increase the 
number of low-income students taking these tests, such as curriculum 
development and training of teachers for advanced placement courses.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-1000-0-1-501      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
24.0  Printing and reproduction.........           1           1           1
25.1  Advisory and assistance services..           5           5           4
25.2  Other services....................          20          21          17
25.5  Research and development contracts           2
41.0  Grants, subsidies, and 
        contributions...................       1,508       2,790       2,701
                                           ---------   ---------  ----------

[[Page 351]]


99.9    Total new obligations...........       1,536       2,817       2,723
---------------------------------------------------------------------------

                                

                           Reading Excellence

      For necessary expenses to carry out the Reading Excellence Act, 
[$260,000,000] $286,000,000, which shall become available on July 1, 
[1999] 2000, and shall remain available through September 30, [2000] 
2001. (Department of Education Appropriations Act, 1999, as included in 
Public Law 105-277, section 101(f).)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0011-0-1-501      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Reading Excellence................                     260         286
                                           ---------   ---------  ----------
10.00   Total new obligations...........                     260         286
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......                     260         286
23.95 Total new obligations.............                    -260        -286
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Current:

40.00   Appropriation...................                     260         286
      Permanent:

61.00   Transferred to other accounts...                    -210
65.00   Advance appropriation (definite)                     210
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................                     260         286
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year                                 247
73.10 Total new obligations.............                     260         286
73.20 Total outlays (gross).............                     -13        -105
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..                     247         428
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority                      13          14
86.93 Outlays from current balances.....                                  91
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........                      13         105
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................                     260         286
90.00 Outlays...........................                      13         105
---------------------------------------------------------------------------

    Reading Excellence.--The Reading Excellence Act, authorized in 1999, 
funds programs to provide our children with the readiness skills and 
support they need in early childhood to learn to read once they enter 
school, to help ensure that all children read well and independently by 
the end of the third grade, and to improve the instructional practices 
of teachers and other instructional staff in elementary schools. States 
that receive competitive grants will make subgrants on a competitive 
basis to school districts to help them provide professional development 
opportunities for instructional staff, operate tutoring programs, and 
provide family literacy services.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0011-0-1-501      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
25.1  Advisory and assistance services..                       5           5
25.2  Other services....................                       4           5
41.0  Grants, subsidies, and 
        contributions...................                     251         276
                                           ---------   ---------  ----------
99.9    Total new obligations...........                     260         286
---------------------------------------------------------------------------

                                

                      Chicago Litigation Settlement

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0220-0-1-501      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
10.00 Total obligations (object class 
        41.0)...........................           2           5
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................           7           5
23.95 Total new obligations.............          -2          -5
24.40 Unobligated balance available, end 
        of year.........................           5
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year           3           3           4
73.10 Total new obligations.............           2           5
73.20 Total outlays (gross).............          -2          -4          -3
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..           3           4           1
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.93 Outlays from current balances.....           2           4           3
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................           2           4           3
---------------------------------------------------------------------------

    Funds made available under this account were reappropriated by the 
Supplemental Appropriations Act, 1987 (Public Law 100-71) from funds 
enjoined in United States of America v. Board of Education of the City 
of Chicago. The funds were reappropriated for the specific purpose of 
settling this case. The funds are used by the Chicago Board of Education 
to implement Project CANAL (Creating A New Approach to Learning), the 
project approved by the court to support the Board's desegregation 
efforts.

    The Department of Education provides these funds to the Chicago 
Board of Education in annual increments upon receipt and approval of an 
annual plan for Project CANAL activities.

                                

                            Indian Education

    For expenses necessary to carry out, to the extent not otherwise 
provided, title IX, part A of the Elementary and Secondary Education Act 
of 1965, as amended, [$66,000,000] $77,000,000. (Department of Education 
Appropriations Act, 1999, as included in Public Law 105-277, section 
101(f).)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0101-0-1-501      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Grants to local educational 
        agencies........................          60          62          62
00.02 Special programs for Indian 
        children........................                       3          13
00.03 National activities...............                       1           2
00.04 Federal administration............           3
                                           ---------   ---------  ----------
10.00   Total new obligations...........          63          66          77
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......          63          66          77
23.95 Total new obligations.............         -63         -66         -77
----------------------------------------------------------------------------

    New budget authority (gross), detail:
40.00 Appropriation.....................          63          66          77
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year          67          77          78
73.10 Total new obligations.............          63          66          77
73.20 Total outlays (gross).............         -53         -65         -69
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..          77          78          87
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority           2           8           9

[[Page 352]]

86.93 Outlays from current balances.....          51          57          59
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          53          65          69
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................          63          66          77
90.00 Outlays...........................          53          65          69
---------------------------------------------------------------------------

    The Indian Education program (Title IX, Part A of the Elementary and 
Secondary Education Act) supports the efforts of local educational 
agencies and tribal schools to im- prove teaching and learning for the 
Nation's American Indian and Alaska Native children.

    Grants to local educational agencies.--Formula grants support local 
educational agencies in their efforts to reform elementary and secondary 
school programs that serve Indian students, with the goal of ensuring 
that such programs are based on challenging State standards that are 
used for all students. In 1998, 1,274 formula grants were made to local 
educational agencies and certain tribal schools enrolling approximately 
460,782 Indian students.

    Special Programs for Indian children.--Competitive grants are made 
for a demonstration grants program and a professional development 
program. Increased funding in 2000 will support an initiative to train 
and recruit 1,000 new Indian teachers for positions in school districts 
with high concentrations of Indian students.

    National activities.--Funds support research, evaluation, data 
collection, and related activities.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0101-0-1-501      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
11.1  Personnel compensation: Full-time 
        permanent.......................           2
25.2  Other services....................           1           1
41.0  Grants, subsidies, and 
        contributions...................          60          65          77
                                           ---------   ---------  ----------
99.9    Total new obligations...........          63          66          77
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 91-0101-0-1-501      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
1001  Total compensable workyears: Full-
        time equivalent employment......          24
---------------------------------------------------------------------------

                                


 
      OFFICE OF BILINGUAL EDUCATION AND MINORITY LANGUAGES AFFAIRS

                              Federal Funds

General and special funds:

                    Bilingual and Immigrant Education

    For carrying out, to the extent not otherwise provided, bilingual, 
foreign language and immigrant education activities authorized by parts 
A and C and section 7203 of title VII of the Elementary and Secondary 
Education Act of 1965, [without regard to section 7103(b), $380,000,000] 
$415,000,000: Provided, That State educational agencies may use all, or 
any part of, their part C allocation for competitive grants to local 
educational agencies. (Department of Education Appropriations Act, 1999, 
as included in Public Law 105-277, section 101(f).)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-1300-0-1-501      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Instructional services............         160         160         170
00.02 Support services..................          14          14          14
00.03 Training grants...................          25          50          75
00.04 Foreign language assistance.......           5           6           6
00.05 Immigrant education...............         150         150         150
                                           ---------   ---------  ----------
10.00   Total new obligations...........         354         380         415
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......         354         380         415
23.95 Total new obligations.............        -354        -380        -415
23.98 Unobligated balance expiring......          -1
----------------------------------------------------------------------------

    New budget authority (gross), detail:
40.00 Appropriation.....................         354         380         415
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year         319         465         460
73.10 Total new obligations.............         354         380         415
73.20 Total outlays (gross).............        -207        -385        -416
73.40 Adjustments in expired accounts...          -1
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..         465         460         459
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority           3          46          50
86.93 Outlays from current balances.....         204         340         366
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         207         385         416
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................         354         380         415
90.00 Outlays...........................         207         385         416
---------------------------------------------------------------------------

    Bilingual education.--These programs provide assistance to local 
educational agencies and other entities to develop and enhance their 
capacity to provide high-quality instructional programs to children and 
youth of limited English proficiency. Programs are designed to teach 
English and to assist these students in achieving the same challenging 
State content and performance standards expected of all children and 
youth. Aid is also given to train educational personnel to serve limited 
English proficient children, to build State capacity to improve 
educational services for these children, and for information 
dissemination, studies, and evaluations.

    Foreign language assistance.--The foreign language assistance 
program provides competitive grants to State and local educational 
agencies to improve the quality of foreign language instruction for 
elementary and secondary school students.

    Immigrant education.--The immigrant education program provides 
grants to school districts to help finance educational services for 
immigrant students. Participation is limited to districts with 500 
immigrant students or districts in which immigrant children represent at 
least 3 percent of the enrollment. Awards are made to State educational 
agencies, which make subgrants to eligible local educational agencies. 
Appropriations language permits States to distribute these funds on 
either a formula or discretionary grant basis.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-1300-0-1-501      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
25.1  Advisory and assistance services..           3           3           3
25.2  Other services....................                       3           3
41.0  Grants, subsidies, and 
        contributions...................         351         374         409
                                           ---------   ---------  ----------
99.9    Total new obligations...........         354         380         415
---------------------------------------------------------------------------

[[Page 353]]



                                


 
         OFFICE OF SPECIAL EDUCATION AND REHABILITATIVE SERVICES

                              Federal Funds

General and special funds:

                            Special Education

    For carrying out the Individuals with Disabilities Education Act, 
[$5,124,146,000] $5,449,896,000, of which [$4,879,885,000] 
$3,226,635,000 shall become available for obligation on July 1, [1999] 
2000, and shall remain available through September 30, [2000: Provided, 
That $1,500,000 shall be awarded to The Organizing Committee for The 
1999 Special Olympics World Summer Games and $1,500,000, to remain 
available until expended, shall be for preparation and planning and 
shall be awarded to The Organizing Committee of The 2001 Special 
Olympics World Winter Games: Provided further, That $600,000 shall be 
for the Early Childhood Development Project of the National Easter Seal 
Society for the Mississippi Delta Region, which funds shall be used to 
provide training, technical support, services, and equipment to address 
personnel and other needs] 2001, and of which $1,925,000,000 shall 
become available on October 1, 2000 and shall remain available through 
September 30, 2001, for academic year 2000-2001. (Department of 
Education Appropriations Act, 1999, as included in Public Law 105-277, 
section 101(f).)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0300-0-1-501      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      State grants:

00.01   Grants to States................       3,841       4,336       2,389
00.02   Preschool grants................         380         374         402
00.03   Grants for infants and families.         418         439         390
                                           ---------   ---------  ----------
00.91     Subtotal, State grants........       4,639       5,149       3,181
      National activities:

01.01   State improvement...............          14          57          45
01.02   Research and innovation.........          64          65          65
01.03   Technical assistance and 
          dissemination.................          44          45          45
01.04   Personnel preparation...........          81          82          82
01.05   Parent information centers......          19          19          23
01.06   Technology and media services...          33          35          35
01.07   Primary education intervention..                                  50
                                           ---------   ---------  ----------
01.91     Subtotal, National activities.         255         302         343
                                           ---------   ---------  ----------
10.00   Total new obligations...........       4,895       5,451       3,525
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................         203         118           1
22.00 New budget authority (gross)......       4,811       5,334       3,525
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................           6
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......       5,020       5,452       3,526
23.95 Total new obligations.............      -4,895      -5,451      -3,525
23.98 Unobligated balance expiring......          -7
24.40 Unobligated balance available, end 
        of year.........................         118           1           1
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Current:

40.00   Appropriation...................       4,811       5,124       3,525
      Permanent:

62.00   Transferred from other accounts.                     210
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................       4,811       5,334       3,525
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year       4,778       5,990       7,177
73.10 Total new obligations.............       4,895       5,451       3,525
73.20 Total outlays (gross).............      -3,659      -4,264      -5,129
73.40 Adjustments in expired accounts...         -18
73.45 Adjustments in unexpired accounts.          -6
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..       5,990       7,177       5,573
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority         182         256         273
86.93 Outlays from current balances.....       3,477       3,997       4,720
86.97 Outlays from new permanent 
        authority.......................                      11
86.98 Outlays from permanent balances...                                 137
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........       3,659       4,264       5,129
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................       4,811       5,334       3,525
90.00 Outlays...........................       3,658       4,264       5,129
---------------------------------------------------------------------------

            Summary of Program Level (in millions of dollars)

                                     1998-1999 
                                      academic 
                                        year      1999-2000 
                                                academic year 2000-2001 
                                                            academic year
Current Budget Authority............       4,811       5,334       3,525
Advance appropriation...............           0           0       1,925
                                    ------------------------------------
  Total program level...............       4,811       5,334       5,450
                                    ====================================
Increase in advance appropriation 
over previous year..................          +0          +0      +1,925

    State Grants:
        Grants to States.--Formula grants are provided to States to 
    assist them in providing special education and related services to 
    children with disabilities ages 3 through 21.
        Preschool grants.--Formula grants provide additional funds to 
    States to further assist them in providing special education and 
    related services to children with disabilities ages 3 through 5 
    served under the Grants to States program.
        The goal of both of these programs is to improve results for 
    children with disabilities by assisting State and local educational 
    agencies to provide children with disabilities with access to high 
    quality education that will help them meet challenging standards and 
    prepare them for employment and independent living.
        Grants for infants and families.--Formula grants are provided to 
    assist States to continue to implement statewide systems of 
    coordinated, comprehensive, multi-disciplinary interagency programs 
    to provide early intervention services to children with 
    disabilities, birth through age 2, and their families.
        The goal of this program is to help States provide a 
    comprehensive system of early intervention services that will 
    enhance family and child outcomes.

    National activities.--These activities include research, 
demonstration, personnel preparation, technical assistance, grants to 
States to promote systems change, and other activities to support State 
efforts to improve results for children with disabilities under the 
State grants programs.

    The goal of National activities is to link States, school systems, 
and families to best practices to improve results for infants, toddlers, 
and children with disabilities. Research and Innovation is included in 
the 21st Century Research Fund. The new Primary Education Intervention 
program would help achieve this goal by assisting school districts in 
addressing the needs of children with developmental delays ages 5 
through 9 with marked problems in learning to read or behavioral 
problems.

    Performance data related to these goals include:

                                         1998 actual   1999 est.   2000 est.
Number of children served in first 
    quarter of fiscal year:
  Ages 3 through 21.....................   5,976,000   6,125,000   6,248,000
  Ages 3 through 5......................     571,888     582,200     592,700
  Birth through 2.......................     197,376     203,300     208,400

                                    1993-1994 ac1994-1995 actual  1995-1996 
                                                                      actual
    Educational Environment
Percent of children ages 6 through 21 
    provided special education in:
  Regular classrooms....................        43.4        44.5        45.3
  Resource rooms........................        29.5        28.8        28.7
  Separate classes......................        22.7        22.4        21.7
  Separate schools......................         3.1         3.0         3.1
  Residential facilities................          .8          .7          .7
  Home or hospital......................          .6          .6          .6
    Status of Exiting Students
Percent of students with disabilities 
    aged 14-21 leaving school:
  Graduated with a diploma..............        51.7        52.3        52.6
  Graduated through certification.......        10.9        11.1        10.9

[[Page 354]]

  Reached maximum age and other.........         2.7         2.5         2.4
  Dropped out of school.................        34.7        34.2        34.1

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0300-0-1-501      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
25.2  Other services....................           5           5           5
41.0  Grants, subsidies, and 
        contributions...................       4,890       5,446       3,520
                                           ---------   ---------  ----------
99.9    Total new obligations...........       4,895       5,451       3,525
---------------------------------------------------------------------------

                                

             Rehabilitation Services and Disability Research

    For carrying out, to the extent not otherwise provided, the 
Rehabilitation Act of 1973, the Assistive Technology[-Related Assistance 
for Individuals with Disabilities] Act of 1998, [or successor 
legislation] and the Helen Keller National Center Act, [as amended, 
$2,652,584,000] $2,717,114,000: Provided, That $15,000,000 shall be used 
to support grants for up to three years to States under title III of the 
Assistive Technology Act, of which the Federal share shall not exceed 75 
percent in the first year, 50 percent in the second year, and 25 percent 
in the third year, and that the requirements in section 302 of that Act 
shall not apply to such grants. (Department of Education Appropriations 
Act, 1999, as included in Public Law 105-277, section 101(f).)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0301-0-1-506      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Direct program:

00.01   Vocational rehabilitation State 
          grants........................       2,247       2,304       2,339
00.02   Client assistance State grants..          11          11          11
00.03   Training........................          40          40          42
00.04   Demonstration and training 
          programs......................          16          19          17
00.05   Migrant and seasonal farmworkers           2           2           2
00.06   Recreational programs...........           2           2           2
00.07   Protection and advocacy of 
          individual rights.............          10          11          11
00.08   Projects with industry..........          22          22          22
00.09   Supported employment State 
          grants........................          38          38          38
00.10   Independent living..............          78          80          84
00.11   Program improvement.............           3           2           2
00.12   Evaluation......................           2           2           2
00.13   Helen Keller National Center....           7           9           9
00.14   National Institute on Disability 
          and Rehabilitation Research...          77          81          91
00.15   Assistive technology............          36          30          45
                                           ---------   ---------  ----------
01.00   Total direct program............       2,591       2,653       2,717
09.01 Reimbursable program..............           3           3           3
                                           ---------   ---------  ----------
10.00   Total new obligations...........       2,594       2,656       2,720
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......       2,594       2,656       2,720
23.95 Total new obligations.............      -2,594      -2,656      -2,720
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Current:

40.00   Appropriation...................       2,591       2,653       2,717
      Permanent:

68.00   Spending authority from 
          offsetting collections: 
          Offsetting collections (cash).           3           3           3
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................       2,594       2,656       2,720
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year         997       1,100         875
73.10 Total new obligations.............       2,594       2,656       2,720
73.20 Total outlays (gross).............      -2,485      -2,881      -2,699
73.40 Adjustments in expired accounts...          -6
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..       1,100         875         896
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority       1,620       1,857       1,902
86.93 Outlays from current balances.....         862       1,021         794
86.97 Outlays from new permanent 
        authority.......................           2           2           2
86.98 Outlays from permanent balances...           1           1           1
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........       2,485       2,881       2,699
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........          -3          -3          -3
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................       2,591       2,653       2,717
90.00 Outlays...........................       2,482       2,878       2,696
---------------------------------------------------------------------------

    Vocational rehabilitation State grants.--The basic State grants 
program provides Federal matching funds to State vocational 
rehabilitation (VR) agencies to assist individuals with physical or 
mental impairments to become gainfully employed. Services are tailored 
to the specific needs of the individual. Priority is given to serving 
those with the most significant disabilities. Current law requires that 
between 1.0 percent and 1.5 percent of the funds appropriated for the VR 
State grants program be set aside for Grants for Indians in 2000.

    The table below presents national data on selected performance 
measures for the VR State grants program. The data is based on the 
number of individuals whose service records were closed in fiscal years 
1996 (351,525) and 1997 (347,619). The 2000 target is to increase the 
number of individuals with disabilities achieving an employment outcome 
by one percent over the previous year while maintaining the employment 
outcome rate at 61 percent.

                   CONSUMER OUTCOMES (CASES CLOSED)

                                          1996 actual     1997 actual
Individuals achieving employment 
 outcomes...............................       213,520         211,520
 Percent with severe disabilities.......            78              80
Employment outcomes as a percent all of 
 individuals receiving services.........            61              61

    Client assistance State grants.--Formula grants are made to States 
to provide assistance in informing and advising clients and applicants 
of benefits available under the Rehabilitation Act and, if requested, to 
pursue legal or administrative remedies to ensure the protection of the 
rights of individuals with disabilities.

    Training.--Grants are made to States and public or nonprofit 
agencies and organizations, including institutions of higher education, 
to increase the number of skilled personnel available for employment in 
the field of rehabilitation and to upgrade the skills of those already 
employed.

    Demonstration and training programs.--Grants are made for programs 
that expand, improve, or further the purpose of activities supported 
under the Rehabilitation Act.

    Migrant and seasonal farmworkers.--Grants are made to State VR 
agencies and other nonprofit or local agencies to provide comprehensive 
vocational rehabilitation services to migrant and seasonal farmworkers 
with disabilities.

    Recreational programs.--Grants are made to provide individuals with 
disabilities with recreational and related activities to aid in their 
employment, mobility, independence, socialization, and community 
integration.

    Protection and advocacy of individual rights.--Formula grants are 
made to State protection and advocacy systems to protect the legal and 
human rights of individuals with disabilities.

    Projects with industry (PWI).--Grants are made to a variety of 
public and private organizations to facilitate the establishment of 
partnerships between rehabilitation service providers and business and 
industry in order to create and expand employment and career advancement 
opportunities for individuals with disabilities. In 1997, PWI projects 
placed in competitive employment approximately 59 percent (11,300) of 
the 19,109 individuals with disabilities served by the 119 projects.

[[Page 355]]

 The 2000 target for this program is to place 62 percent of the 
individuals served in competitive employment.

    Supported employment State grants.--Formula grants are made to 
assist States in developing programs with public and nonprofit 
organizations to provide supported employment services for individuals 
with the most significant disabilities who require on-going support 
services to enter or retain competitive employment. In 1997, 70.6 
percent of individuals with a supported employment goal achieved a 
competitive employment outcome. The 2000 target for this program is for 
71.5 percent to achieve competitive employment outcomes.

    Independent living.--Grants are awarded to States and nonprofit 
agencies to assist individuals with significant disabilities in their 
achievement of self-determined independent living goals. State agencies 
and centers for independent living provide training and other direct 
services and also engage in advocacy activities. Performance indicators 
focus on customer satisfaction, achievement of individual goals, and 
broader systemic reforms in the community.

    Program improvement.--Funds are used to promote broad-based planning 
and coordination, improve accountability, and enhance the Department's 
ability to address critical areas of national significance in achieving 
the goals of the Rehabilitation Act. Examples of program improvement 
activities include technical assistance activities and the development 
of an effective data management and reporting system that includes 
program performance measures.

    Evaluation.--Studies are conducted to evaluate the impact and 
effectiveness of various programs authorized under the Rehabilitation 
Act. The Department is conducting a multi-year national longitudinal 
study of the Vocational Rehabilitation State grants program.

    Helen Keller National Center for Deaf-Blind Youths and Adults.--The 
Center provides services to deaf-blind youths and adults and provides 
training and technical assistance to professional and allied personnel 
at its national headquarters center and through its regional 
representatives and affiliate agencies.

    National Institute on Disability and Rehabilitation Research.--The 
Institute carries out a comprehensive and coordinated program of 
rehabilitation research and related activities. Through grants and 
contracts, it supports the conduct and disseminating of research aimed 
at improving the lives of individuals with disabilities. The Institute 
is included in the 21st Century Research Fund.

    Assistive technology.--Activities include the Assistive Technology 
State grant program, protection and advocacy services, and technical 
assistance designed to develop and implement consumer-responsive 
comprehensive statewide programs of technology-related assistance for 
individuals with disabilities. Grants also are made to States to 
establish alternative loan financing programs to increase access to 
assistive technology for individuals with disabilities.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0301-0-1-506      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

      Direct obligations:

25.1    Advisory and assistance services           6           6           6
25.2    Other services..................           3           3           3
25.5    Research and development 
          contracts.....................           1           2           1
41.0    Grants, subsidies, and 
          contributions.................       2,581       2,642       2,707
                                           ---------   ---------  ----------
99.0      Subtotal, direct obligations..       2,591       2,653       2,717
99.0  Reimbursable obligations..........           3           3           3
                                           ---------   ---------  ----------
99.9    Total new obligations...........       2,594       2,656       2,720
---------------------------------------------------------------------------

                                

           Special Institutions for Persons With Disabilities

                  american printing house for the blind

    For carrying out the Act of March 3, 1879, as amended (20 U.S.C. 101 
et seq.), [$8,661,000] $8,973,000. (Department of Education 
Appropriations Act, 1999, as included in Public Law 105-277, section 
101(f).)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0600-0-1-501      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
10.00 Total obligations (object class 
        41.0)...........................           8           9           9
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......           8           9           9
23.95 Total new obligations.............          -8          -9          -9
----------------------------------------------------------------------------

    New budget authority (gross), detail:
40.00 Appropriation.....................           8           9           9
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year           2           2           1
73.10 Total new obligations.............           8           9           9
73.20 Total outlays (gross).............          -8         -10          -9
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..           2           1           1
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority           6           8           8
86.93 Outlays from current balances.....           2           2           1
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........           8          10           9
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................           8           9           9
90.00 Outlays...........................           8          10           9
---------------------------------------------------------------------------

    The Federal appropriation supports the production of free 
educational materials for students below the college level who are 
blind, research related to developing and improving products, and 
advisory services to consumer organizations on the availability and use 
of materials. In 1998, the portion of the Federal appropriation 
allocated to educational materials represented approximately 44.1 
percent of the Printing House's total sales. The full appropriation 
represented approximately 40.4 percent of the Printing House's total 
budget.

                                

                national technical institute for the deaf

    For the National Technical Institute for the Deaf under titles I and 
II of the Education of the Deaf Act of 1986 (20 U.S.C. 4301 et seq.), 
[$45,500,000] $47,925,000, of which $2,651,000 shall be for construction 
and shall remain available until expended: Provided, That from the total 
amount available, the Institute may at its discretion use funds for the 
endowment program as authorized under section 207. (Department of 
Education Appropriations Act, 1999, as included in Public Law 105-277, 
section 101(f).)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0601-0-1-502      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Operations........................          44          46          45
00.02 Construction......................                                   3
                                           ---------   ---------  ----------
10.00   Total obligations (object class 
          41.0).........................          44          46          48
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......          44          46          48
23.95 Total new obligations.............         -44         -46         -48
----------------------------------------------------------------------------

    New budget authority (gross), detail:
40.00 Appropriation.....................          44          46          48
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year                       1           3

[[Page 356]]

73.10 Total new obligations.............          44          46          48
73.20 Total outlays (gross).............         -44         -43         -47
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..           1           3           3
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority          44          43          44
86.93 Outlays from current balances.....                       1           3
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          44          43          47
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................          44          46          48
90.00 Outlays...........................          44          43          47
---------------------------------------------------------------------------

    This residential center provides postsecondary technical and 
professional education for people who are deaf to prepare them for 
employment, provides training, and conducts applied research into 
employment related aspects of deafness. In 1998, Federal appropriations 
represented 81 percent of the Institute's operating budget. The 
Institute may use appropriated funds for the Endowment Grant program. 
The request also includes funds for the first phase of a construction 
project to renovate the Institute's dormitories.

                                

                          gallaudet university

    For the Kendall Demonstration Elementary School, the Model Secondary 
School for the Deaf, and the partial support of Gallaudet University 
under titles I and II of the Education of the Deaf Act of 1986 (20 
U.S.C. 4301 et seq.), [$83,480,000] $85,120,000, of which $2,500,000 
shall be for construction and shall remain available until expended: 
Provided, That from the total amount available, the University may at 
its discretion use funds for the endowment program as authorized under 
section 207. (Department of Education Appropriations Act, 1999, as 
included in Public Law 105-277, section 101(f).)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0602-0-1-502      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Operations........................          81          83          83
00.02 Construction......................                                   2
                                           ---------   ---------  ----------
10.00   Total obligations (object class 
          41.0).........................          81          83          85
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......          81          83          85
23.95 Total new obligations.............         -81         -83         -85
----------------------------------------------------------------------------

    New budget authority (gross), detail:
40.00 Appropriation.....................          81          83          85
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year           2           2           5
73.10 Total new obligations.............          81          83          85
73.20 Total outlays (gross).............         -82         -80         -85
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..           2           5           6
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority          80          78          78
86.93 Outlays from current balances.....           2           2           5
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          82          80          85
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................          81          83          85
90.00 Outlays...........................          82          80          85
---------------------------------------------------------------------------

    This institution provides undergraduate and continuing education 
programs for persons who are deaf, and graduate programs related to 
deafness for students who are deaf and students who are hearing. The 
University also conducts basic and applied research and provides public 
service programs for persons who are deaf and persons who work with 
them.

    Gallaudet operates two elementary and secondary education programs 
on the main campus of the University. The Kendall Demonstration 
Elementary School serves students who are deaf from infancy through age 
15, and the Model Secondary School for the Deaf serves high school age 
students who are deaf. Both schools also develop and disseminate 
information on effective educational techniques and strategies for 
teachers and professionals working with students who are deaf or hard of 
hearing.

    In 1998, the Federal appropriation represented 64 percent of the 
University's operating budget, excluding Federal financial aid, 
vocational rehabilitation, and competitive grants, and 97.4 percent of 
the operating budgets of the related elementary and secondary schools. 
The University may also use appropriated funds for the Endowment Grant 
program. The request also includes funds for a construction project to 
renovate facilities at the Model Secondary School for the Deaf.

                                


 
                OFFICE OF VOCATIONAL AND ADULT EDUCATION

                              Federal Funds

General and special funds:

                     Vocational and Adult Education

    For carrying out, to the extent not otherwise provided, the Carl D. 
Perkins Vocational and [Applied Technology] Technical Education Act 
[and], the Adult Education and Family Literacy Act, and title VIII-D of 
the Higher Education Act of 1965, as amended, [$1,539,247,000] 
$1,750,250,000, of which $3,500,000 shall remain available until 
expended, and of which [$1,535,147,000] $1,734,150,000 shall become 
available on July 1, [1999] 2000 and shall remain available through 
September 30, [2000: Provided, That of the amounts made available for 
title II of the Carl D. Perkins Vocational and Applied Technology 
Education Act, $13,497,000 shall be used by the Secretary for national 
programs under title IV, without regard to section 451] 2001: Provided, 
That of the amounts made available for the Perkins Act, $4,100,000 shall 
be for tribally controlled vocational institutions under section 117: 
Provided further, That, of the amounts made available for the Adult 
Education and Family Literacy Act, [$6,000,000] $101,000,000 shall be 
for national leadership activities under section 243 and $6,000,000 
shall be for the National Institute for Literacy under section 242[: 
Provided further, That no funds shall be awarded to a State Council 
under section 112(f) of the Carl D. Perkins Vocational and Applied 
Technology Education Act, and no State shall be required to operate such 
a Council]: Provided further, That of the amounts made available for 
title I of the Perkins Act, the Secretary may reserve up to 0.54 percent 
for incentive grants under section 503 of the Workforce Investment Act, 
without regard to section 111(a)(1)(C) of the Perkins Act: Provided 
further, That of the amounts made available for the Adult Education and 
Family Literacy Act, the Secretary may reserve up to 1.72 percent for 
incentive grants under section 503 of the Workforce Investment Act, 
without regard to section 211(a)(3) of the Adult Education and Family 
Literacy Act. (Department of Education Appropriations Act, 1999, as 
included in Public Law 105-277, section 101(f).)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0400-0-1-501      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Vocational education:

        Annual appropriations:
          Basic grants:
00.01       Basic State grants..........       1,010       1,013       1,013
00.02       Territorial set-aside.......           2           3           2
00.03       Indian and Hawaiian natives 
              set-aside.................          15          31          15
                                           ---------   ---------  ----------
00.91         Subtotal, basic grants....       1,027       1,047       1,030

[[Page 357]]

01.01     National programs.............          13          27          18
01.02     Tribally controlled 
            postsecondary vocational 
            institutions................           3           4           4
01.03     Tech-prep education...........         103         106         111
                                           ---------   ---------  ----------
01.91       Direct Program by 
              Activities--Subtotal (1 
              level)....................         119         137         133
                                           ---------   ---------  ----------
02.00       Total, vocational education.       1,146       1,184       1,163
          Adult education:
03.01       State grants................         345         365         468
03.02       National Institute for 
              Literacy..................           5          11           6
03.03       National leadership 
              activities................           5          19         101
03.04       Literacy programs for 
              prisoners.................           5           5
                                           ---------   ---------  ----------
03.91       Total, adult education......         360         400         575
04.01   State grants for incarcerated 
          youth offenders...............                                  12
                                           ---------   ---------  ----------
10.00   Total new obligations...........       1,506       1,584       1,750
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................          44          45
22.00 New budget authority (gross)......       1,508       1,539       1,750
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......       1,552       1,584       1,750
23.95 Total new obligations.............      -1,506      -1,584      -1,750
24.40 Unobligated balance available, end 
        of year.........................          45
----------------------------------------------------------------------------

    New budget authority (gross), detail:
40.00 Appropriation.....................       1,508       1,539       1,750
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year       1,735       1,781       2,045
73.10 Total new obligations.............       1,506       1,584       1,750
73.20 Total outlays (gross).............      -1,451      -1,320      -1,486
73.40 Adjustments in expired accounts...          -9
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..       1,781       2,045       2,310
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority          83          78          88
86.93 Outlays from current balances.....       1,361       1,241       1,397
86.98 Outlays from permanent balances...           7           2
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........       1,451       1,320       1,486
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................       1,508       1,539       1,750
90.00 Outlays...........................       1,451       1,320       1,486
---------------------------------------------------------------------------
    Note.--Includes $12 million in budget authority in 2000 for State grants 
for incarcerated youth offenders previously financed from:
                       (In millions of dollars)
                                          1998 actual    1999 estimate
 Office of Postsecondary Education, 
  Higher Education......................            12              17

                                                         Budget 
                                                      authority 
                                                            for 
                                                     vocational 
                                                      and adult 
                                                      education 
                                                       includes 
                                                            the 
                                                      following 
                                                        amounts:


                        [In millions of dollars]

                                     1998 actual  1999 est.   2000 est.
1. Vocational education:
    a. Basic grants.................       1,028       1,031       1,031
    b. National programs............          13          13          18
    c. Tribally controlled 
      postsecondary vocational 
      institutions..................           3           4           4
    d. Tech-prep education..........         103         106         111
2. Adult education:
    a. State grants.................         345         365         468
    b. National Institute for 
      Literacy......................           5           6           6
    c. National leadership 
      activities....................           5          14         101
    d. Literacy programs for 
      prisoners.....................           5           0           0
    3. State grants for incarcerated 
      youth offenders...............           0           0          12
                                    ------------------------------------
          Total.....................       1,508       1,539       1,750
                                    ====================================

    Vocational education.--
        Basic grants.--Formula grants provide funds to States and 
    localities to expand and improve their programs of vocational 
    education and promote equal opportunity in vocational education 
    programs for historically underserved populations. Funds under the 
    Indian program are awarded to federally recognized Indian tribes and 
    are in addition to services provided under other provisions of the 
    Perkins Act. Funds under the Hawaiian Natives program are awarded to 
    organizations primarily serving and representing Hawaiian Natives. 
    Funds under the Territorial set-aside support the expansion and 
    improvement of vocational education programs in American Samoa, 
    Guam, the Northern Marianas, and the Freely Associated States.
        National programs.--Funds are awarded on a competitive basis for 
    activities that contribute to knowledge of how to improve access to 
    vocational education for underserved populations and how to improve 
    vocational education nationally. Activities include a national 
    center for research in vocational education and a program of 
    discretionary research and development projects, including a 
    national assessment of vocational education.
        Tribally controlled postsecondary vocational institutions.--
    Grants support the operation and improvement of tribally controlled 
    postsecondary vocational institutions, to ensure continued and 
    expanded educational opportunities for Indian students.
        Tech-prep education.--Formula grants to States support planning 
    and demonstration grants to consortia of local educational agencies 
    and postsecondary institutions to develop and operate model 4-year 
    programs. Programs begin in high school and provide students with 
    the mathematical, scientific, communications, and technological 
    skills needed to earn a 2-year associate degree or a 2-year 
    certificate in a specific occupational field.

    Adult Education.--
        State programs.--Formula grants are made to States to help 
    eliminate functional illiteracy among the Nation's adults, to assist 
    adults in obtaining a high school diploma or its equivalent, and to 
    promote family literacy.
        National Institute for Literacy.--Funds support the Institute's 
    national leadership activities to improve and expand the Nation's 
    system for delivery of literacy services.
        National leadership activities.--Funds support discretionary 
    activities to evaluate the effectiveness of Federal, State, and 
    local adult education programs and to test and demonstrate methods 
    of improving program quality. New activities initiated in 2000 will 
    include development of model programs for providing English language 
    and citizenship education to recent immigrants, and models for using 
    technology to expand service delivery.
        State Grants for Incarcerated Youth Offenders.--Formula grants 
    are made to State correctional agencies to assist and encourage 
    incarcerated youths to acquire functional literacy skills and life 
    and job skills.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0400-0-1-501      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
11.3  Personnel compensation: Other than 
        full-time permanent.............           1           1           1
23.1  Rental payments to GSA............                       1
25.1  Advisory and assistance services..           2           1
25.2  Other services....................                       1           1
25.5  Research and development contracts          11           5           6
25.7  Operation and maintenance of 
        equipment.......................                       1
41.0  Grants, subsidies, and 
        contributions...................       1,491       1,573       1,741
                                           ---------   ---------  ----------
99.0      Subtotal, direct obligations..       1,505       1,583       1,749
99.5  Below reporting threshold.........           1           1           1
                                           ---------   ---------  ----------
99.9    Total new obligations...........       1,506       1,584       1,750
---------------------------------------------------------------------------

[[Page 358]]



                              Personnel Summary

----------------------------------------------------------------------------
Identification code 91-0400-0-1-501      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
1001  Total compensable workyears: Full-
        time equivalent employment......          12          12          14
---------------------------------------------------------------------------

                                


 
                    OFFICE OF POSTSECONDARY EDUCATION

                              Federal Funds

General and special funds:

                      Student Financial Assistance

    For carrying out subparts 1, 3 and 4 of part A, part C and part E of 
title IV of the Higher Education Act of 1965, as amended, 
[$9,348,000,000] $9,183,000,000, which shall remain available through 
September 30, [2000] 2001.
    The maximum Pell Grant for which a student shall be eligible during 
award year [1999-2000] 2000-2001 shall be [$3,125] $3,250: Provided, 
That notwithstanding section 401(g) of the Act, if the Secretary 
determines, prior to publication of the payment schedule for such award 
year, that the amount included within this appropriation for Pell Grant 
awards in such award year, and any funds available from the fiscal year 
[1998] 1999 appropriation for Pell Grant awards, are insufficient to 
satisfy fully all such awards for which students are eligible, as 
calculated under section 401(b) of the Act, the amount paid for each 
such award shall be reduced by either a fixed or variable percentage, or 
by a fixed dollar amount, as determined in accordance with a schedule of 
reductions established by the Secretary for this purpose[: Provided 
further, That if the Secretary determines that the funds available to 
fund Pell Grants for award year 1999-2000 exceed the amount needed to 
fund Pell Grants at a maximum award of $3,125 for that award year, the 
Secretary may increase the income protection allowances in sections 
475(g)(2)(D), and 476(b)(1)(A)(iv)(I), (II) and (III) up to the amounts 
at which Pell Grant awards calculated using the increased income 
protection allowances equal the funds available to make Pell Grants in 
award year 1999-2000 with a $3,125 maximum award, except that the income 
protection allowance in section 475(g)(2)(D) may not exceed $2,200, the 
income protection allowance in sections 476(b)(1)(A)(iv)(I) and (II) may 
not exceed $4,250, and the income protection allowance in section 
476(b)(1)(A)(iv)(III) may not exceed $7,250]. (Department of Education 
Appropriations Act, 1999, as included in Public Law 105-277, section 
101(f).)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0200-0-1-502      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Federal Pell grants:

01.01   Federal Pell grants.............       6,678       7,667       7,555
      Campus-based aid:

02.01   Federal supplemental educational 
          opportunity grants (SEOG).....         621         619         631
02.02   Federal work-study..............         838         870         934
02.03   Federal Perkins loans: Federal 
          capital contributions.........         136         100         100
02.05   Federal Perkins loans: Loan 
          cancellations.................          30          30          30
                                           ---------   ---------  ----------
02.91     Subtotal, Campus-based 
            activities..................       1,625       1,619       1,695
03.01 State student incentive grants/
        Leveraging educational 
        assistance partnership..........          25          25          25
                                           ---------   ---------  ----------
10.00   Total obligations (object class 
          41.0).........................       8,328       9,311       9,275
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................       2,150       2,891       2,928
22.00 New budget authority (gross)......       8,979       9,348       9,183
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................          91
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......      11,220      12,239      12,111
23.95 Total new obligations.............      -8,328      -9,311      -9,275
23.98 Unobligated balance expiring......          -1
24.40 Unobligated balance available, end 
        of year.........................       2,891       2,928       2,836
----------------------------------------------------------------------------

    New budget authority (gross), detail:
40.00 Appropriation.....................       8,979       9,348       9,183
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year       4,421       4,704       4,663
73.10 Total new obligations.............       8,328       9,311       9,275
73.20 Total outlays (gross).............      -7,934      -9,352      -9,144
73.40 Adjustments in expired accounts...         -21
73.45 Adjustments in unexpired accounts.         -91
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..       4,704       4,663       4,793
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority       1,658       1,950       1,749
86.93 Outlays from current balances.....       6,276       7,402       7,395
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........       7,934       9,352       9,144
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................       8,979       9,348       9,183
90.00 Outlays...........................       7,934       9,352       9,144
---------------------------------------------------------------------------

               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0200-0-1-502      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........         141         137         154
1251  Repayments: Repayments and 
        prepayments.....................         -25         -26         -27
      Write-offs for default:

1263    Direct loans....................          -7          -9          -8
1264    Other adjustments, net..........          28          52          55
                                           ---------   ---------  ----------
1290    Outstanding, end of year........         137         154         174
---------------------------------------------------------------------------
    \1\ Includes in all years institutional matching share of defaulted 
notes assigned from institutions to the Education Department.

    Federal Pell Grants.--Undergraduate students establish eligibility 
for these grants under award and need determination rules set out in the 
authorizing statute and the annual appropriations act.

    The Administration is proposing a $125 increase in the maximum Pell 
Grant award to $3,250 for 2000.

    Campus-based programs.--The Federal Supplemental Educational 
Opportunity Grants, Federal Work-Study, and Federal Perkins Loan 
programs are called the ``campus-based'' programs because participating 
institutions are responsible for administering the programs on their own 
campuses. These programs provide aid administrators with considerable 
flexibility in the packaging of financial aid awards to best meet the 
needs of students. The budget year estimates for the campus-based 
programs reflect funding under current law.

    Federal Supplemental Educational Opportunity Grants.--Federal funds 
are awarded by formula to qualifying institutions, which use these funds 
to award grants to undergraduate students. While institutions have 
discretion in awarding these funds, they are required to give priority 
to Pell Grant recipients and other students with exceptional need. The 
Federal share of such grants may not exceed 75 percent of the total 
grant.

    Federal Work-Study.--Federal funds are awarded by formula to 
qualifying institutions, which develop and provide part-time jobs for 
eligible undergraduate and graduate students with demonstrated need. 
Hourly earnings under the program must be at least equal to the Federal 
minimum wage. Federal funding in most cases pays 75 percent of a 
student's hourly wages, with the remaining 25 percent paid by the 
employer. The Secretary has waived the required 25 percent employer 
funding match for students working in the America Reads Challenge as 
reading tutors of children and in family literacy programs, and for 
students working as math tutors for children in kindergarten through 9th 
grade in support of the America Counts Challenge.

    Perkins Loan Program.--Institutions award low-interest loans from 
institutional revolving funds, which are comprised

[[Page 359]]

of Federal Capital Contributions, institutional matching funds, and 
student repayments on outstanding loans.

    The Higher Education Amendments of 1998 eliminated the Perkins Loan 
Revolving Fund, which was previously authorized under section 467(c) of 
the Higher Education Act. Collections from assigned loans and audits 
would have been deposited into this revolving fund for redistribution to 
institutions to make new loans.

    Perkins Loan Program--Cancellations.--Under the Perkins Loan 
cancellation program, institutional revolving funds are reimbursed for 
indebtedness canceled as a result of a borrower engaging in certain 
public service activities, as specified in the Higher Education Act. As 
the number of borrowers with loans eligible for these loan cancellation 
benefits is rising, the cost of providing these benefits has increased 
in recent years.

    Leveraging Educational Assistance Partnership Program.--Under this 
program, formerly known as the State Student Incentive Grant (SSIG) 
Program, Federal matching funds are awarded to assist States in 
providing programs of grants and work-study assistance to needy students 
attending qualifying institutions. When appropriations are $30 million 
or less, States must match these Federal funds on at least a dollar-for-
dollar basis and comply with statutory maintenance of effort 
requirements. State awards to students may not exceed $5,000 per 
academic year.

    When appropriations exceed $30 million, those funds in excess of $30 
million are reserved for a new program: Special Leveraging Educational 
Assistance Partnership Program. Under Special LEAP, States may use the 
grant funds for several new authorized activities including increasing 
the dollar amount of LEAP grants to students who demonstrate financial 
need. The Federal share of the cost of these new authorized activities 
may not exceed 33\1/3\ percent.

    Funding Tables.--The following tables display student aid funds 
available, the number of aid awards, average awards, and the 
unduplicated count of recipients from any Federal student aid program. 
The tables include the aid from programs in the Student Financial 
Assistance account, as well as aid from the Federal Family Education 
Loan (FFEL) program, and the William D. Ford Federal Direct Loan 
program. Loan amounts reflect the capital actually loaned, not the 
Federal cost of those loans. The data in these tables include the 
effects of matching funds wherever applicable.

      AID FUNDS AVAILABLE FOR POSTSECONDARY EDUCATION AND TRAINING

                        [In millions of dollars]

                                     1998 actual  1999 est.   2000 est.
Pell grants.........................       7,211       7,373       7,893
Student loans:
  Guaranteed student loans:
    Stafford loans..................      10,762      10,905      11,344
    Unsubsidized Stafford loans.....       7,292       7,858       8,477
    PLUS............................       1,949       2,158       2,422
  Direct student loans:
    Stafford loans..................       5,842       6,210       6,463
    Unsubsidized Stafford loans.....       3,501       3,896       4,204
    PLUS............................       1,057       1,257       1,411
  Consolidation:
    FFEL............................       3,234       2,656       2,763
    Direct Loans....................       2,431       4,869       4,077
                                    ------------------------------------
        Student loans, subtotal.....      26,067      39,809      41,161
Work-study..........................       1,002       1,044       1,123
Supplemental educational opportunity 
grants..............................         777         784         799
Perkins loans.......................       1,058       1,058       1,058
Leveraging Educational Assistance 
Partnership.........................          50          50          50
                                    ------------------------------------
        Total aid available.........      46,166      50,118      52,084
                                    ====================================
    Note: Detail may not add to totals due to rounding.

                          NUMBER OF AID AWARDS

                             [In thousands]

                                     1998 actual  1999 est.   2000 est.
Pell grants.........................       3,838       3,811       3,864
Student loans:
  Guaranteed student loans:
    Stafford loans..................       3,169       3,227       3,329
    Unsubsidized Stafford loans.....       1,904       2,068       2,189
    PLUS............................         305         331         361
  Direct student loans:
    Stafford loans..................       1,787       1,840       1,898
    Unsubsidized Stafford loans.....       1,059       1,092       1,157
    PLUS............................         171         191         208
  Consolidation:
    FFEL............................         194         168         173
    Direct Loans....................         107         194         167
                                    ------------------------------------
        Student loans, subtotal.....       8,696       9,110       9,481
  Work-study........................         892         930       1,000
  Supplemental educational 
    opportunity grants..............       1,109       1,118       1,139
  Perkins loans.....................         698         698         698
  Leveraging Educational Assistance 
    Partnership.....................          83          83          83
                                    ------------------------------------
        Total awards................      15,317      15,751      16,265
                                    ====================================
    Note: Detail may not add to totals due to rounding.

                           AVERAGE AID AWARDS

                           [In whole dollars]

                                     1998 actual  1999 est.   2000 est.
Pell grants.........................       1,879       1,935       2,043
Student loans:
  Guaranteed student loans:
    Stafford loans..................       3,396       3,379       3,408
    Unsubsidized Stafford loans.....       3,830       3,799       3,873
    PLUS............................       6,395       6,514       6,710
  Direct student loans:
    Stafford loans..................       3,269       3,376       3,405
    Unsubsidized Stafford loans.....       3,306       3,568       3,634
    PLUS............................       6,174       6,593       6,791
  Consolidation:
    FFEL............................      16,643      15,827      15,964
    Direct Loans....................      22,772      25,116      24,427
Work-study..........................       1,123       1,123       1,123
Supplemental educational opportunity 
grants..............................         701         701         701
Perkins loans.......................       1,516       1,516       1,516
Leveraging Educational Assistance 
Partnership.........................         600         600         600

                        NUMBER OF STUDENTS AIDED

                             [In thousands]

                                     1998 actual  1999 est.   2000 est.
Unduplicated student count..........       8,245       8,462       8,769

    The following table displays institutional administrative costs paid 
from program funds.

                 ADMINISTRATIVE PAYMENTS TO INSTITUTIONS

                        [In millions of dollars]

                                     1998 actual  1999 est.   2000 est.
Pell grants.........................          20          20          20
Work-study..........................          63          65          70
Supplemental educational opportunity 
grants..............................          31          31          32
Perkins loans.......................          42          42          41

    The following table displays the status of defaulted Perkins loans 
held by the Department and by institutions.

                         DEFAULTED PERKINS LOANS

                        [In millions of dollars]

                                     1998 actual  1999 est.   2000 est.
Outstanding defaulted loans, 
    beginning of year:
  Assigned defaulted loans \1\......         141         137         154
  Unassigned defaulted loans \2\....         932         994       1,060
New defaulted loans.................         197         226         235
Collections on assigned loans.......         -25         -26         -27
Collections on unassigned loans.....         -94         -98        -102
Write-offs for assigned loans.......          -7          -9          -8
Write-offs for unassigned loans.....         -13         -10          -7
                                    ------------------------------------
Outstanding defaulted loans, end of 
year................................       1,131       1,214       1,305
                                    ====================================
    \1\ Permanently assigned to the Federal Government for collection. 
Does not include the following amounts in loans made to institutions to 
establish Perkins revolving funds: $94 thousand in 1998, $94 thousand in 
1999, and $94 thousand in 2000. These amounts are recorded as 
outstanding loans in the ``Status of Direct Loans'' schedule.
    \2\ Unassigned loans at institutions.

[[Page 360]]

                                

                            Higher Education

    For carrying out, to the extent not otherwise provided, section 121 
and titles II, III, IV, V, VI, VII, and VIII of the Higher Education Act 
of 1965, as amended, and the Mutual Educational and Cultural Exchange 
Act of 1961 [and Public Law 102-73; $1,307,846,000] $1,527,206,000, of 
which [$13,000,000] $12,000,000 for interest subsidies authorized by 
section 121 of the Higher Education Act, shall remain available until 
expended: [Provided, That $16,723,000 shall be for Youth Offender 
Grants, of which $4,723,000, which shall become available on July 1, 
1999, and remain available until September 30, 2000, shall be used in 
accordance with section 601 of Public Law 102-73 as that section was in 
effect prior to enactment of Public Law 105-220: Provided further, That 
$4,800,000, to be available until expended, shall be for Salem State 
College in Salem, Massachusetts for activities authorized under Title 
III, part A, section 311(c)(2), of the Higher Education Act of 1965, as 
amended: Provided further, That of the funds made available under title 
VII, part B, $5,000,000 shall be awarded to the St. Petersburg Junior 
College for a demonstration of a national method for increasing access 
to four year degrees and work force training for students attending 
community college; $2,000,000 shall be for the Technology-Assisted 
Learning Campus in New Rochelle, New York for high-tech equipment; 
$250,000 shall be awarded to the Center for Urban Research and Learning, 
Loyola University, Chicago; $1,150,000 shall be awarded to the Southeast 
Community College in Letcher County, Kentucky; $3,000,000 shall be for 
the Oregon State University Distance Education Alliance; $1,000,000 
shall be for the Appalachian Center for Economic Networks in Athens, 
Ohio; $6,000,000 shall be to establish the Robert J. Dole Institute for 
Public Service and Public Policy on the University of Kansas campus in 
Lawrence, Kansas; $1,000,000 shall be for the Oregon Institute of Public 
Service and Constitutional Studies at the Mark O. Hatfield School of 
Government at Portland State University; $2,150,000 shall be awarded to 
the College of Natural Resources, University of Wisconsin at Stevens 
Point for technology-enhanced learning; $1,500,000 shall be for the 
Touro Law Center in Central Islip, New York for the use of technology to 
bridge the gap between legal education and the actual practice of law; 
$1,000,000 shall be for the International Center for Educational 
Technology and Distance Learning at Empire State College; $500,000 shall 
be for the University of Northern Iowa National Institute of Technology 
for Inclusive Education; $1,500,000 shall be for a demonstration project 
to expand the successful college student preparation at Prairie View 
A&M, Texas; $750,000 shall be to identify and provide models of alcohol 
and drug abuse prevention and education in higher education at the 
college level; $500,000 shall be for a teacher training program in 
experiential learning to be awarded to the Department of Language 
Teacher Education, School for International Training, Brattleboro, 
Vermont; and $1,000,000 shall be for the Paul Simon Public Policy 
Institute at Southern Illinois University at Carbondale, Illinois: 
Provided further, That $9,500,000 of the funds made available for title 
VII, part B shall be for a competition consistent with the subject areas 
outlined in the House and Senate reports and the statement of the 
managers, and that such competition should be administered in a manner 
consistent with current departmental practices and policies] Provided, 
That notwithstanding section 210 of the Higher Education Act, of the 
funds provided under this heading for title II of the Higher Education 
Act, not less than $35,000,000 shall be for section 204, with the 
remainder divided evenly between sections 202 and 203: Provided further, 
That funds available for part A, subpart 2 of title VII of the Higher 
Education Act shall be available to fund awards for academic year 2000-
2001 for fellowships under part A, subpart 1 of title VII of said Act, 
under the terms and conditions of part A, subpart 1; Provided further, 
That $15,000,000 is for college awareness and preparation activities for 
middle and secondary school students and adults to inform them of the 
importance of postsecondary education and the availability of Federal 
student financial assistance: Provided further, That $4,000,000 is for 
data collection and evaluation activities for programs under the Higher 
Education Act, including such activities needed to comply with the 
Government Performance and Results Act of 1993. (Department of Education 
Appropriations Act, 1999, as included in Public Law 105-277, section 
101(f).)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0201-0-1-502      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Aid for institutional development:

00.01   Strengthening institutions......          55          60          62
00.02   Strengthening tribally 
          controlled colleges and 
          universities..................                       3           6
00.03   Strengthening Alaska Native and 
          Native Hawaiian-serving 
          institutions..................                       3           3
00.04   Strengthening historically black 
          colleges and universities.....         119         134         149
00.05   Strengthening historically black 
          graduate institutions.........          25          30          32
00.06   Minority science and engineering 
          improvement...................           5           8           8
                                           ---------   ---------  ----------
00.91     Subtotal, aid for 
            institutional development...         204         238         260
      Other aid for institutions:

01.01   Developing Hispanic-serving 
          institutions..................          12          28          42
01.02   International education and 
          foreign language studies......          60          68          69
01.03   Fund for the Improvement of 
          Postsecondary Education.......          25          50          28
01.04   Urban community service.........           5           5
01.05   Demonstration projects to ensure 
          quality higher education for 
          students with disabilities....                       5           5
01.06   Interest subsidy grants.........          12          13          12
01.07   Mary McLeod Bethune Memorial 
          Fine Arts Center..............           7
                                           ---------   ---------  ----------
01.91     Subtotal, other aid for 
            institutions................         121         169         156
      Assistance for students:

02.01   Federal TRIO programs...........         530         600         630
02.02   Gaining early awareness and 
          readiness for undergraduate 
          programs (GEAR UP)............                     120         240
02.03   National early intervention 
          scholarships and partnerships.           4
02.04   Byrd honors scholarships........          39          39          39
02.05   Graduate assistance in areas of 
          national need.................          30          31          41
02.06   Child care access means parents 
          in school.....................                       5           5
02.07   Learning anytime anywhere 
          partnerships..................                      10          20
02.08   Preparing for college campaign..                                  15
02.09   Advanced placement fees.........           3
02.10   State grants for incarcerated 
          youth offenders...............          12          17
                                           ---------   ---------  ----------
02.91     Subtotal, aid for students....         618         822         990
03.01 Teacher quality enhancement.......                      77         115
03.02 Minority teacher recruitment......           2
03.03 Underground railroad program......                       2           2
03.04 GPRA data/program evaluation......                                   4
                                           ---------   ---------  ----------
03.91   Subtotal, Other Aid.............           2          79         121
                                           ---------   ---------  ----------
10.00   Total new obligations...........         945       1,308       1,527
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................           4           5           5
22.00 New budget authority (gross)......         947       1,308       1,527
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         951       1,313       1,532
23.95 Total new obligations.............        -945      -1,308      -1,527
24.40 Unobligated balance available, end 
        of year.........................           5           5           5
----------------------------------------------------------------------------

    New budget authority (gross), detail:
40.00 Appropriation.....................         947       1,308       1,527
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year         936       1,095       1,340
73.10 Total new obligations.............         945       1,308       1,527
73.20 Total outlays (gross).............        -785      -1,062      -1,242
73.40 Adjustments in expired accounts...          -1
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..       1,095       1,340       1,626
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority          52         166         192
86.93 Outlays from current balances.....         733         895       1,051
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         785       1,062       1,242
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................         947       1,308       1,527
90.00 Outlays...........................         785       1,062       1,242
---------------------------------------------------------------------------

[[Page 361]]



                 Summary of Budget Authority and Outlays

                        (in millions of dollars)

                                     1998 actual  1999 est.   2000 est.
Enacted/requested:
  Budget Authority..................         947       1,308       1,527
  Outlays...........................         785       1,061       1,243
Legislative proposal, not subject to 
    PAYGO:
  Budget Authority..................                                  52
  Outlays...........................                                   6
                                    ------------------------------------
Total:
  Budget Authority..................         947       1,308       1,579
  Outlays...........................         785       1,061       1,249
                                    ====================================
    Note.--Excludes $12 million in budget authority in 2000 for State grants 
for incarcerated youth offenders, which is transferred to the Office of 
Vocational and Adult Education, vocational and adult education account. 
Comparable amounts for 1998 ($12 million) and 1999 ($17 million) are 
included above.

    Aid for institutional development.--
        Strengthening institutions.--Funds will support planning and 
    development grants for improving academic programs and financial 
    management at schools that enroll high proportions of disadvantaged 
    students and have low per-student expenditures.
        Strengthening tribally controlled colleges and universities.--
    Funds will support grants to American Indian tribally controlled 
    colleges and universities with scarce resources to enable them to 
    improve and expand their capacity to serve Indian students.
        Strengthening Alaska Native and Native Hawaiian-serving 
    institutions.--Funds will support Alaska Native and native Hawaiian-
    serving institutions to enable them to improve and expand their 
    capacity to serve students.
        Strengthening historically black colleges and universities.--
    Funds will support grants to help historically black undergraduate 
    institutions to improve and expand their capacity to serve students, 
    and to strengthen management and fiscal operations.
        Strengthening historically black graduate institutions.--Funds 
    will support grants to help historically black graduate institutions 
    to improve and expand their capacity to serve students, and to 
    strengthen management and fiscal operations.
        Minority science and engineering improvement.--Funds will 
    support grants to predominantly minority institutions to help them 
    make long-range improvements in science and engineering education 
    and to increase the participation of minorities in scientific and 
    technological careers.
    Other aid for institutions.--
        Developing Hispanic-serving institutions.--Funds will support 
    Hispanic-serving institutions to enable them to improve and expand 
    their capacity to serve students.
        International education and foreign language studies programs.--
    Funds will promote the development and improvement of international 
    and foreign language programs.
        Fund for the improvement of postsecondary education.--Funds will 
    support flexible, field-initiated postsecondary improvement projects 
    in a broad range of activities, as well as special focus programs.
        Demonstration projects to ensure students with disabilities 
    receive a quality higher education.--Funds will support model 
    demonstration projects to provide technical assistance or 
    professional development for faculty and administrators in 
    institutions of higher education in order to provide students with 
    disabilities a quality postsecondary education.
        Interest subsidy grants.--Funds will meet mandatory interest 
    subsidy costs of construction loan commitments made prior to 1974.
    Assistance for students.--
        Federal TRIO programs.--Funds will support academic, counseling, 
    and outreach services under 5 major programs to help prepare 
    disadvantaged students for college and graduate studies.
        Gaining early awareness and readiness for undergraduate programs 
    (GEAR UP).--Funds will support State and partnership grants designed 
    to increase secondary school achievement and college enrollment of 
    students in high-poverty schools by providing early college 
    preparation and awareness activities.
        Byrd honors scholarships.--Funds will support postsecondary 
    scholarships for outstanding high school students who show promise 
    of continued academic excellence.
        Graduate assistance in areas of national need.--Funds will 
    support fellowships to financially needy graduate students who are 
    studying in areas of national need, and who are or traditionally 
    have been under-represented in these areas. Funds will also support 
    students of superior ability completing graduate-level education.
        Child care access means parents in school.--Funds will support a 
    new program designed to bolster the participation of low-income 
    parents in postsecondary education through the provision of campus-
    based child care services.
        Learning anytime anywhere partnerships.--Funds will support 
    pilot projects using distance learning technology and other 
    innovations to promote and enhance the delivery of postsecondary 
    education and lifelong learning opportunities.
        Preparing for college.--Funds are for college awareness and 
    preparation activities for middle and secondary school students and 
    adults to inform them of the importance of postsecondary education 
    and the availability of Federal student financial assistance.
    Other Programs.--
        Teacher quality enhancement.--Funds will support programs that 
    seek to make lasting changes in the ways our Nation recruits, 
    prepares, licenses, and supports teachers.
        Underground railroad program.--Funds will support grants to one 
    or more nonprofit educational organizations to establish facilities 
    to house, display, and interpret artifacts relating to the history 
    of the Underground Railroad.
        GPRA data/HEA program evaluation.--Funds are for data collection 
    and evaluation activities for programs under the Higher Education 
    Act of 1965, including such activities needed to comply with the 
    Government Performance and Results Act of 1993.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0201-0-1-502      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
25.1  Advisory and assistance services..           3
25.2  Other services....................           2           5           4
25.3  Purchases of goods and services 
        from Government accounts........           1
41.0  Grants, subsidies, and 
        contributions...................         938       1,303       1,523
                                           ---------   ---------  ----------
99.0      Subtotal, direct obligations..         944       1,308       1,527
99.5  Below reporting threshold.........           1
                                           ---------   ---------  ----------
99.9    Total new obligations...........         945       1,308       1,527
---------------------------------------------------------------------------

                                

                            Higher Education

              (Legislative proposal, not subject to PAYGO)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0201-2-1-502      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Assistance for students:

01.01   College completion challenge 
          grants........................                                  35
01.02   D.C. resident tuition support...                                  17
                                           ---------   ---------  ----------
10.00   Total new obligations...........                                  52
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......                                  52
23.95 Total new obligations.............                                 -52
----------------------------------------------------------------------------

    New budget authority (gross), detail:
40.00 Appropriation.....................                                  52
----------------------------------------------------------------------------

    Change in unpaid obligations:
73.10 Total new obligations.............                                  52
73.20 Total outlays (gross).............                                  -6
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..                                  46
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority                                   6
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................                                  52
90.00 Outlays...........................                                   6
---------------------------------------------------------------------------

    The Administration will propose legislation that will authorize the 
use of funds for the following purposes:
        College completion challenge grants.--Funds will support grants 
    to help institutions of higher education increase the persistence 
    rate of students at risk of dropping out of col

[[Page 362]]

    lege by providing intensive summer programs, larger grant awards, 
    and support services.
        D.C. resident tuition support.--Funds will pay the difference 
    between in-State and out-of-State tuition at public institutions of 
    higher education in Maryland and Virginia on behalf of eligible D.C. 
    residents.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0201-2-1-502      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
25.2  Other services....................                                   1
41.0  Grants, subsidies, and 
        contributions...................                                  51
                                           ---------   ---------  ----------
99.9    Total new obligations...........                                  52
---------------------------------------------------------------------------

                                

                            Howard University

    For partial support of Howard University (20 U.S.C. 121 et seq.), 
[$214,489,000] $219,444,000, of which not less than $3,530,000 shall be 
for a matching endowment grant pursuant to the Howard University 
Endowment Act (Public Law 98-480) [and], of which $3,530,000 shall 
remain available until expended. (Department of Education Appropriations 
Act, 1999, as included in Public Law 105-277, section 101(f).)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0603-0-1-502      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 General support...................         181         185         189
00.02 Howard University Hospital........          29          29          30
                                           ---------   ---------  ----------
10.00   Total obligations (object class 
          41.0).........................         210         214         219
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......         210         214         219
23.95 Total new obligations.............        -210        -214        -219
----------------------------------------------------------------------------

    New budget authority (gross), detail:
40.00 Appropriation.....................         210         214         219
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year           5          10          13
73.10 Total new obligations.............         210         214         219
73.20 Total outlays (gross).............        -206        -211        -219
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..          10          13          13
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority         204         201         206
86.93 Outlays from current balances.....           2          10          13
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         206         211         219
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................         210         214         219
90.00 Outlays...........................         206         211         219
---------------------------------------------------------------------------

    Howard University is a private, nonprofit educational institution 
consisting of 12 schools and colleges. Federal funds are used to provide 
partial support for university programs as well as for the teaching 
hospital facilities. In 1998, direct Federal appropriations for general 
support represented approximately 58 percent of the university's 
educational and general expenditures.

                                

                       Perkins Loan Revolving Fund

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-4248-0-1-502      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Collection costs..................           3
                                           ---------   ---------  ----------
10.00   Total obligations (object class 
          25.2).........................           3
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................           1          53
22.00 New budget authority (gross)......          55
22.40 Capital transfer to general fund..                     -53
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          56
23.95 Total new obligations.............          -3
24.40 Unobligated balance available, end 
        of year.........................          53
----------------------------------------------------------------------------

    New budget authority (gross), detail:
68.00 Spending authority from offsetting 
        collections (gross): Offsetting 
        collections (cash)..............          55
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year                       3
73.10 Total new obligations.............           3
73.20 Total outlays (gross).............                      -3
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..           3
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.98 Outlays from permanent balances...                       3
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.40   Offsetting collections (cash) 
          from: Non-Federal sources.....         -55
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................         -55           3
---------------------------------------------------------------------------

    The Higher Education Amendments of 1998 repealed the Perkins Loan 
Revolving fund. Pursuant to section 467 of the Higher Education 
Amendments of 1998, these funds will be returned to the general fund of 
the Treasury.

                                

              Federal Family Education Loan Insurance Fund

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-4256-0-3-502      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................                      47
22.00 New budget authority (gross)......          47
22.40 Capital transfer to general fund..                     -47
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          47
24.40 Unobligated balance available, end 
        of year.........................          47
----------------------------------------------------------------------------

    New budget authority (gross), detail:
68.00 Spending authority from offsetting 
        collections (gross): Offsetting 
        collections (cash)..............          47
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.40   Offsetting collections (cash) 
          from: Non-Federal sources.....         -47
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................         -47
---------------------------------------------------------------------------

    The Federal Family Education Loan Insurance Fund was established 
under Section 431 of the Higher Education Act of 1965, as amended, for 
use by the Secretary of Education to pay administrative costs related to 
default management

[[Page 363]]

and prevention, guaranty agency oversight, and related expenses. In late 
1998, the Department of Education transferred $46.8 million into this 
insurance fund; these funds had been identified during an account 
reconciliation project as FFEL-related receipts from 1994, 1995, and 
1996 that had never been applied to specific activities. Pursuant to 
section 434 of the Higher Education Amendments of 1998, these funds will 
be returned to the general fund of the Treasury.

                                

Credit accounts:

          Federal Direct Student Loan Program, Program Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0243-0-1-502      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct loan subsidy...............         218          70
00.05 Upward reestimates of subsidy.....         169
00.06 Interest on upward reestimate.....          64
                                           ---------   ---------  ----------
00.91   Direct Program by Activities--
          Subtotal (1 level)............         451          70
07.09 Student loan administrative 
        expenses........................         530         617         735
07.10 Y2K Actvities.....................                       1
                                           ---------   ---------  ----------
07.91   Direct Program by Activities--
          Subtotal (1 level)............         530         618         735
                                           ---------   ---------  ----------
10.00   Total new obligations...........         981         688         735
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................           2           4           4
22.00 New budget authority (gross)......         983         689         735
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................          18
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......       1,003         693         739
23.95 Total new obligations.............        -981        -688        -735
23.98 Unobligated balance expiring......         -18
24.40 Unobligated balance available, end 
        of year.........................           4           4           4
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Current:

42.00   Transferred from other accounts.                       1
      Permanent:

60.00   Appropriation...................         507         618         735
60.05   Appropriation (indefinite)......         390
                                           ---------   ---------  ----------
63.00     Appropriation (total).........         897         618         735
        Spending authority from 
            offsetting collections:
68.00     Offsetting collections (cash).          86         361         651
68.27     Capital transfer to general 
            fund........................                    -291        -651
                                           ---------   ---------  ----------
68.90       Spending authority from 
              offsetting collections 
              (total)...................          86          70
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................         983         689         735
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year         322         323         306
73.10 Total new obligations.............         981         688         735
73.20 Total outlays (gross).............        -962        -703        -703
73.45 Adjustments in unexpired accounts.         -18
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..         323         306         338
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority                       1
86.97 Outlays from new permanent 
        authority.......................         699         468         467
86.98 Outlays from permanent balances...         263         235         237
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         962         703         703
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........         -86        -361        -651
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................         897         328          84
90.00 Outlays...........................         876         342          52
---------------------------------------------------------------------------

                 Summary of Budget Authority and Outlays

                        (in millions of dollars)

                                     1998 actual  1999 est.   2000 est.
Enacted/requested:
  Budget Authority..................         897         328          84
  Outlays...........................         876         343          53
Legislative proposal, subject to 
    PAYGO:
  Budget Authority..................                      98          15
  Outlays...........................                      96          15
Legislative proposal, discretionary 
    offset:
  Budget Authority..................                                -110
  Outlays...........................                                -110
                                    ------------------------------------
Total:
  Budget Authority..................         897         426         -11
  Outlays...........................         876         439         -42
                                    ====================================

Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in 
                            millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0243-0-1-502      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Direct loan levels supportable by subsidy 
                budget authority:
1150  Stafford..........................       6,192       6,872       7,151
1150  Unsubsidized Stafford.............       3,904       4,396       4,743
1150  PLUS..............................       1,175       1,557       1,747
1150  Consolidated......................       2,589       4,947       2,699
                                           ---------   ---------  ----------
1159    Total direct loan levels........      13,860      17,772      16,340
    Direct loan subsidy (in percent):
1320  Stafford..........................       13.12        9.19        4.06
1320  Unsubsidized Stafford.............       -9.22       -9.65      -16.38
1320  PLUS..............................       -9.26       -8.95      -13.41
1320  Consolidated......................       -4.88        0.04       -7.72
                                           ---------   ---------  ----------
1329    Weighted average subsidy rate...        1.57        0.39       -5.69
    Direct loan subsidy budget authority:
1330  Stafford..........................         813         632         189
1330  Unsubsidized Stafford.............        -360        -424        -503
1330  PLUS..............................        -109        -139        -132
1330  Consolidated......................        -126           2        -205
1330  Reestimates of subsidy............         173        -361
                                           ---------   ---------  ----------
1339    Total subsidy budget authority..         391        -290        -651
    Direct loan subsidy outlays:
1340  Stafford..........................         813         607         348
1340  Unsubsidized Stafford.............        -338        -359        -604
1340  PLUS..............................         -90        -102        -166
1340  Consolidated......................        -114          -2        -205
1340  Reestimates of subsidy............         173        -361
                                           ---------   ---------  ----------
1349    Total subsidy outlays...........         444        -217        -627
----------------------------------------------------------------------------

    Student loan administrative expense data:
3510  Budget authority..................         507         618         735
3590  Outlays...........................         432         559         679
---------------------------------------------------------------------------

    The Federal Government operates two major student loan programs: the 
Federal Family Education Loan (FFEL) program--formerly the Guaranteed 
Student Loan (GSL) program--and the William D. Ford Federal Direct Loan 
(Direct Loan) program. The President is committed to improving the 
efficiency of both programs and allowing individual institutions to 
choose which of these two programs best meets their needs and the needs 
of their students.

    This summary section outlines the structure of these two programs, 
highlights their differences and similarities, and provides text tables 
displaying program cost data; loan volume, subsidy, default, and 
interest rates; and other descriptive information. As part of his 2000 
Budget, the President is proposing a number of changes for the Direct 
Loan and FFEL programs. These changes are discussed as part of this 
program description.

    From its inception in 1965 through 1998, the FFEL program has 
provided over $260 billion in loans to postsecondary students and their 
parents. Since July 1, 1994, the Direct Loan program has provided almost 
$45 billion in new loans to students and parents. Taken together, the 
FFEL and Direct Loan programs will make almost $32 billion in new loans 
available in 1999. Because funding for these two programs

[[Page 364]]

is provided on a permanent indefinite basis, for budget purposes they 
are considered separately from other Federal student financial 
assistance programs. The FFEL and Direct Loan programs should be viewed 
in combination with these other programs, however, and with Perkins 
Loans in particular, as part of the overall Federal effort to ensure 
access to higher education.

    Loan capital in the FFEL program is provided by private lenders. 
State and private nonprofit guaranty agencies act as agents of the 
Federal Government, providing a variety of services including collection 
of some defaulted loans, default avoidance activities, and counseling to 
schools, students, and lenders. The Government provides substantial 
payments to these guaranty agencies. The Government also pays interest 
subsidies to lenders for certain borrowers, as well as most costs 
associated with loan defaults and other write-offs.

    The Higher Education Amendments of 1998 (HEA) fundamentally 
restructured the guaranty agency system, reducing the need for agencies 
to hold Federal reserve funds. Accordingly, the President is proposing 
to bring forward $165 million in reserve recalls included in the HEA. In 
addition, the President is proposing $1.6 billion in new recalls over 
2000-2004. (Amounts recalled in 2000 will be used to offset 
discretionary spending.) To provide guaranty agencies the maximum 
flexibility under this new structure, the President is also proposing to 
allow the Secretary of Education to expand the use of voluntary flexible 
agreements. These agreements, a limited number of which were authorized 
in the HEA, afford agencies greater discretion in their financial and 
operational organization.

    The Direct Loan program was created by the Student Loan Reform Act 
(SLRA) of 1993. Under this program, the Federal Government provides loan 
funds to postsecondary institutions directly or through an alternative 
originator. Direct Loans offer a streamlined system that is simpler for 
student and parent borrowers, less prone to waste and abuse, and less 
expensive for the Federal taxpayer than the FFEL program. The program 
also offers income-contingent repayment options that allow borrowers to 
consider lower-paying careers, such as public service, without fear of 
default.

    The Direct Loan program began operation in academic year 1994-1995 
with 7 percent of overall loan volume. The program grew to 31 percent of 
overall volume in academic year 1995-1996, and is expected to account 
for 33 percent in academic year 1998-1999. All eligible institutions are 
free to participate in either the Direct Loan or FFEL program.

    The Direct Loan and FFEL programs share many basic elements. Each 
program offers four types of loans: Stafford, Unsubsidized Stafford, 
PLUS for parents, and Consolidation. Evidence of financial need is 
required for a student to receive a subsidized Stafford loan. The other 
three loan programs are available to borrowers at all income levels. 
Loans can be used only to meet qualified educational expenses.

    As a result of the HEA, the borrower interest rate for new Stafford 
Loans equals the 91-day Treasury bill rate plus 1.7 percent during in-
school, grace, and deferment periods, and the 91-day Treasury bill plus 
2.3 percent at all other times, with a cap of 8.25 percent, adjusted 
annually. Interest payments for these loans are fully subsidized by the 
Government while a student is in school and during grace and deferment 
periods. Unsubsidized Stafford loans carry the same borrower interest 
rate as Stafford loans, but have no interest subsidy. For new PLUS 
loans, the borrower interest rate equals the 91-day Treasury bill rate 
plus 3.1 percent, with a cap of 9 percent and no interest subsidy.

    In the FFEL program, lenders may receive an interest subsidy, called 
a special allowance, from the Government to ensure a guaranteed rate of 
return on their loans. Special allowance payments vary by loan type, are 
determined quarterly, and are based on current borrower interest rates 
and market-yield formulas. For new Stafford and Unsubsidized Stafford 
loans, for example, the Federal Government must pay lenders a special 
allowance if the average 91-day Treasury bill rate for a given quarter 
plus 2.8 percent--or 2.2 percent during in-school, grace, or deferment 
periods--is higher than the current interest rate charged borrowers.

    The Administration is proposing to reduce interest subsidy payments 
to 20 basis points on FFEL loans funded through tax-exempt securities. 
This reduction will bring lender returns on these loans in line with 
those realized on loans funded with private capital.

    Consolidation loans allow borrowers to combine loans made under 
Title IV of the Higher Education Act--FFEL, Direct Loans, and Perkins 
Loans--as well as some loans made under the Public Health Service Act. 
As a result of the HEA, the interest rate for new FFEL Consolidation 
loans equals the weighted average of the interest rate on the loans 
consolidated, rounded up to the nearest one-eighth of one percent. 
Lenders may choose to offer a lower rate.

    The interest rate for new Direct Consolidation Loans for which 
applications are received prior to February 1, 1999, equals the 91-day 
Treasury bill plus 2.3 percent. The rate for Direct Consolidation Loans 
for which applications are received after January 30, equals the 
weighted average of the interest rate on the loans consolidated, rounded 
up to the nearest one-eighth of one percent. Interest rates for all new 
FFEL and Direct Consolidation Loans are capped at 8.25 percent.

    The Administration is proposing to extend the temporary 
Consolidation Loan policies included in the recent Higher Education 
Amendments of 1998 (HEA) through the end of 2000, producing significant 
savings for students while encouraging competition between the Direct 
Loan and Federal Family Education Loan programs. The proposal would also 
maintain the FFEL Consolidated Loan holder fee at 0.62 percent of 
outstanding volume, rather increase the fee to 1.05 percent on February 
1, 1999, as required under the HEA. (The fee would increase to 1.05 
percent as of October 1, 2000.)

    Origination/insurance fees for each loan type are essentially the 
same across the two programs. Direct Loan borrowers are charged an 
origination fee equal to 4 percent of principal, which partially offsets 
Federal program operation costs. FFEL borrowers pay an origination fee 
to the Government equal to 3 percent of principal, and are also liable 
for a guaranty agency insurance premium of up to 1 percent of principal.

    Guaranty agencies have the option of waiving this premium. In 
addition, FFEL lenders have the option of paying some or all of a 
borrower's origination fee for Stafford Loan borrowers.

    Loan limits are also identical across the two programs. In addition, 
loans made under both programs are discharged when borrowers die, are 
totally and permanently disabled, or, under some circumstances, declare 
bankruptcy. The HEA limited discharges due to bankruptcy to borrowers 
who can demonstrate that repayment would constitute an ``undue 
hardship.''

    Borrowers under Direct Loans may choose from among five repayment 
plans including income-contingent repayment (``pay-as-you-can''), under 
which annual repayment amounts vary based on the income of the borrower 
and the amount borrowed, and payments can be made over 25 years. 
Borrowers may switch between repayment plans at any time. (Income-
contingent repayment is not available to Direct PLUS borrowers).

    FFEL borrowers may choose from among four repayment plans. Repayment 
periods under standard, graduated, and income-sensitive repayment may 
not exceed 10 years. The

[[Page 365]]

HEA created an extended repayment plan of up to 25 years for new 
borrowers with outstanding loans totalling more than $30,000. FFEL 
borrowers may change repayment plans annually.

    The President is proposing a number of changes to improve the 
management and collection of defaulted loans which build on provisions 
enacted in the HEA. The amount guaranty agencies may retain on default 
collections will be reduced from 24 percent to 18.5 percent--
approximately the rate paid on loans collected by the Department of 
Education through competitively awarded contracts. (The HEA lowered the 
guaranty agency retention rate from 27 percent to 24 percent through 
fiscal year 2003, and to 23 percent thereafter.) Second, the HEA lowered 
the amount guaranty agencies are reimbursed for most defaulted loans 
from 98 percent to 95 percent of outstanding principal and accrued 
interest. The President is proposing to create true risk-sharing by 
eliminating provisions that allow agencies to recoup this 5 percent cost 
from subsequent default collections.

    Third, the HEA extended the time before lenders may submit a default 
claim on a delinquent loan by 90 days--from 180 days to 270 days. In 
order to promote risk-sharing and increase lenders' incentive to bring 
these loans back into repayment, the President is proposing that 
interest not continue to accrue during this additional 90-day period.

    Lastly, data from the Department of Health and Human Services' 
National Directory of New Hires will be made available to assist in the 
Department of Education's default collection efforts.

    This proposal will increase collections by enhancing the 
Department's ability to locate and garnish the wages of borrowers in 
default. Savings from this proposal will be used as an offset to 
discretionary spending.

    In order to ensure the uninterrupted availability of aid funds for 
students and parents, Congress provided permanent funding to support 
student aid administration and expenses. These funds support Department 
personnel and contractors for Direct Loan origination and servicing, 
payments to guaranty agencies, as well as certain costs associated with 
activities common to Direct Loans, FFEL and other student assistance 
programs, such as application printing and processing. Discretionary 
funds requested for the FFEL program support additional Department 
personnel and administrative activities associated with operating the 
program.

    Performance indicators have been developed on a broad spectrum of 
policy objectives in both the Direct Loan and FFEL programs. These 
indicators measure program efficiency, Federal costs, and financial 
management, as well as borrower and institutional satisfaction.

    The following tables display performance indicators and program 
data; including projected overall Direct Loan and FFEL costs; loan 
volume, number of loans, and average loan amount; descriptive data, and 
program activity under the President's budget and legislative request.

                  Funding Levels (In thousands of dollars)

----------------------------------------------------------------------------
                                         1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
Budget Authority:
FFEL:
  Liquidating \1\.......................     550,973    -411,421    -665,069
  Program \2\...........................   2,054,499   3,397,638   3,250,195
  Reestimate of Prior Year Costs........          --    -687,572          --
  Non-Contractual Modifications \3\.....          --          --    -539,522
                                           ---------   ---------  ----------
    Subtotal, FFEL \2\..................   2,605,422   2,298,645   2,045,604
Direct Loans:
  Program \2\...........................     217,551      67,956    -447,678
  Reestimate of Prior Year Costs........     229,613    -552,730          --
  Non-Contractual Modifications \3\.....          --          --    -108,000
                                           ---------   ---------  ----------
    Subtotal, Direct Loans \2\..........     447,164    -484,774    -555,678
Consolidation Loans:
  FFEL..................................     -73,208     127,674     116,786
  Reestimate of Prior Year Costs........          --     534,438          --
  Non-Contractual Modifications \3\.....          --          --     -51,918
  Direct Loans..........................    -126,382      99,923    -189,646
  Reestimate of Prior Year Costs........     -56,921     191,850          --
  Non-Contractual Modifications \3\.....          --          --          --
                                           ---------   ---------  ----------
    Subtotal, Consolidation Loans.......    -256,510     953,885    -124,778
Administration:
  FFEL \4\..............................      46,371      47,276      48,000
  Student Aid \5\.......................     532,000     617,531     735,000
                                           ---------   ---------  ----------
    Subtotal, Administration............     578,371     617,531     783,000
    Total, FFEL and Direct Loans........   3,374,447   3,432,563   2,148,148
Outlays:
FFEL:
  Liquidating \1\.......................    -117,527     213,055    -626,817
  Program \2\...........................   2,351,721   2,800,813   2,948,393
  Reestimate of Prior Year Costs \2\....          --    -687,572          --
  Non-Contractual Modifications \3\.....          --          --    -539,522
                                           ---------   ---------  ----------
    Subtotal, FFEL \2\..................   2,234,194   2,326,296   1,782,054
Direct Loans:
  Program \2\...........................     217,403     145,909    -423,569
  Reestimate of Prior Year Costs \2\....     229,613    -552,730          --
  Non-Contractual modification..........          --          --     108,000
                                           ---------   ---------  ----------
    Subtotal, Direct Loans \2\..........     501,016    -406,821    -315,569
Consolidation Loans:
  FFEL..................................    -104,355     158,622     116,603
  Reestimate of Prior Year Costs........          --     534,438          --
  Non-Contractual Modifications \3\.....          --          --     -51,918
  Direct Loans..........................    -114,401      94,225    -189,646
  Reestimate of Prior Year Costs........     -56,921     191,850          --
  Non-Contractual Modifications \3\.....          --          --          --
                                           ---------   ---------  ----------
    Subtotal, Consolidation Loans.......    -275,676     979,135    -124,961
Administration:
  FFEL \4\..............................      37,811      46,742      51,310
  Student Aid \5\.......................     456,167     559,524     679,347
                                           ---------   ---------  ----------
    Subtotal, Administration............     493,978     606,266     730,657
    Total, FFEL and Direct Loans........   2,953,512   3,504,876   2,072,181
---------------------------------------------------------------------------
    \1\ Liquidating account reflects loans made prior to 1992.
    \2\ Account-specific totals are derived by combining program and 
consolidation loan totals.
    \3\ Reflect costs and savings associated with policy changes that do not 
change the terms of existing or future loans.
    \4\ Reflects annual discretionary appropriation. Amount for 1999 
reflects transfer from Treasury of $794,000 for Year 2000-related 
activities.
    \5\ Supports account maintenance fee payments to FFEL guaranty agencies, 
as well as a range of administrative activities such as application 
printing, mailing, and processing that are common to all Federal student 
financial assistance programs. Amount for 1998 reflects transfer of $25 
million from Higher Education Assistance Foundation Account. Amount for 1999 
reflects transfer from Treasury of $531,000 for Year 2000-related 
activities.

   Summary of Loans Available (net commitments in millions of dollars) \1\

----------------------------------------------------------------------------
                                         1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
FFEL:
  Stafford..............................      10,762      10,905      11,344
  Unsubsidized Stafford.................       7,292       7,858       8,477
  PLUS..................................       1,949       2,158       2,422
                                           ---------   ---------  ----------
    Total, FFEL.........................      20,003      20,921      22,243
Direct Loans:
  Stafford..............................       5,842       6,210       6,463
  Unsubsidized Stafford.................       3,501       3,896       4,204
  PLUS..................................       1,057       1,257       1,411
                                           ---------   ---------  ----------
    Total, Direct Loans.................      10,400      11,363      12,078
Consolidation Loans:
  FFEL..................................       3,234       2,656       2,763
  Direct Loans..........................       2,431       4,869       4,077
                                           ---------   ---------  ----------
    Subtotal, Consolidation Loans.......       5,665       7,525       6,840
    Total, All Loans....................      36,067      39,809      41,161
---------------------------------------------------------------------------
    \1\ Net commitments equal gross commitments minus loan cancellations.

                       Number of Loans (In thousands)

----------------------------------------------------------------------------
                                         1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
FFEL:
  Stafford..............................       3,169       3,227       3,329
  Unsubsidized Stafford.................       1,904       2,068       2,189
  PLUS..................................         305         331         361
                                           ---------   ---------  ----------
    Total, FFEL.........................       5,378       5,627       5,878
Direct Loans:
  Stafford..............................       1,787       1,840       1,898

[[Page 366]]

  Unsubsidized Stafford.................       1,059       1,092       1,157
  PLUS..................................         171         191         208
                                           ---------   ---------  ----------
    Total, Direct Loans.................       3,018       3,122       3,263
Consolidation Loans:
  FFEL..................................         194         168         173
  Direct Loans..........................         107         194         167
                                           ---------   ---------  ----------
    Subtotal, Consolidation Loans.......         301         362         340
    Total, All Loans....................       8,696       9,110       9,481
---------------------------------------------------------------------------

                    Average Loan Size (in whole dollars)

----------------------------------------------------------------------------
                                         1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
FFEL:
  Stafford..............................       3,396       3,379       3,408
  Unsubsidized Stafford.................       3,830       3,799       3,873
  PLUS..................................       6,395       6,514       6,710
                                           ---------   ---------  ----------
    Weighted Average, FFEL..............       3,720       3,718       3,784
Direct Loans:
  Stafford..............................       3,269       3,376       3,405
  Unsubsidized Stafford.................       3,306       3,568       3,634
  PLUS..................................       6,174       6,593       6,791
                                           ---------   ---------  ----------
    Weighted Average, Direct Loans......       3,447       3,640       3,702
Consolidation Loans:
  FFEL..................................      16,643      15,827      15,964
  Direct Loans..........................      22,772      25,116      24,427
                                           ---------   ---------  ----------
    Subtotal, Consolidation Loans.......      18,816      20,806      20,118
    Weighted Average, All Loans.........       4,147       4,370       4,341
---------------------------------------------------------------------------

                     Composition of Consolidation Loans

----------------------------------------------------------------------------
                                         1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
Net commitments (in millions of 
    dollars):
FFEL:
  Standard consolidations...............       2,790       2,291       2,383
  Consolidations from Default...........         444         365         380
                                           ---------   ---------  ----------
    Subtotal, FFEL......................       3,234       2,656       2,763
Direct Loans:
  Standard consolidations...............       1,886       4,257       3,440
  Consolidations from Default...........         545         612         636
                                           ---------   ---------  ----------
    Subtotal, Direct Loans..............       2,431       4,869       4,077
Total:
  Standard consolidations...............       5,195       7,744       7,115
  Consolidations from Default...........       1,072       1,168       1,222
                                           ---------   ---------  ----------
    Total, Consolidated Loans...........       5,665       7,525       6,840
---------------------------------------------------------------------------

 Summary of Subsidy Rates, Default Rates, Interest Rates, and Discount Rates

----------------------------------------------------------------------------
                                         1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
Subsidy Rates (in percent) \1\
FFEL:
  Stafford..............................       20.25       21.02       19.70
  Unsubsidized Stafford.................        5.73        7.80        6.21
  PLUS..................................        5.18        6.05        5.93
                                           ---------   ---------  ----------
    Weighted Average, FFEL \2\..........       13.42       14.44       12.99
Direct Loans:
  Stafford..............................        9.99       10.14        5.83
  Unsubsidized Stafford.................     (10.13)      (8.70)     (14.15)
  PLUS..................................      (6.87)      (6.78)     (10.45)
                                           ---------   ---------  ----------
    Weighted Average, Direct Loans \2\..        1.33        1.63      (3.20)
Consolidation Loans:
  FFEL..................................        2.91        4.80        4.22
  Direct Loans..........................        3.29        6.75        2.89
                                           ---------   ---------  ----------
    Weighted Average, Consolidation 
      Loans.............................        3.07        6.07        3.42
Default Rates (in percent) \3\
FFEL:
  Stafford..............................       16.64       15.99       15.69
  Unsubsidized Stafford.................       15.66       15.53       15.23
  PLUS..................................        9.81        9.80        9.63
                                           ---------   ---------  ----------
    Weighted Average, FFEL \2\..........       15.62       15.18       14.85
Direct Loans:
  Stafford..............................       16.05       16.46       16.16
  Unsubsidized Stafford.................       15.81       16.21       15.91
  PLUS..................................        9.33        9.55        9.56
                                           ---------   ---------  ----------
    Weighted Average, Direct Loans \2\..       15.29       15.61       15.30
Consolidation Loans:
  FFEL..................................       22.11       22.02       21.96
  Direct Loans..........................       22.11       22.02       21.96
                                           ---------   ---------  ----------
    Weighted Average, Consolidation 
      Loans.............................       22.11       22.02       21.96
Borrower Interest Rates (in percent)
FFEL:
  Stafford \4\..........................        8.25        7.46        6.71
  Unsubsidized Stafford \4\.............        8.25        7.46        6.71
  PLUS \4\..............................        8.98        8.26        7.51
Direct Loans:
  Stafford \4\..........................        8.25        7.46        6.71
  Unsubsidized Stafford \4\.............        8.25        7.46        6.71
  PLUS \4\..............................        8.98        8.26        7.51
Consolidation Loans:
  FFEL\5\...............................          --          --          --
  Direct Loans \5\......................          --          --          --
Federal Borrowing Rate for Direct Loans 
    (in percent)........................        5.85        6.03        5.01
---------------------------------------------------------------------------
    \1\ Subsidy rates represent the Federal portion of non-administrative 
costs--principally interest subsidies and defaults--associated with each 
borrowed dollar. For example, a $1,000 loan with Federal subsidy costs of 
$100 would have a subsidy rate of 10 percent. For comparative purposes, the 
subsidy rates shown for Direct Loans reflect only the standard repayment 
option.
    \2\ Account-specific totals are derived by combining program and 
consolidation loan totals.
    \3\ Default rates displayed in this table, which reflect projected 
defaults over the life of a loan cohort, are used in developing program cost 
estimates. The Department uses other rates based on defaults occurring in 
the first three years of repayment to determine institutional eligibility to 
participate in Federal loan programs. These three-year rates tend to be 
lower than those included in this table.
    \4\ Rates shown are those set beginning July 1st of the previous fiscal 
year.
    \5\ Interest rates under the FFEL Consolidation Loan program reflect a 
weighted average of the rates of the loans consolidated, rounded up to the 
nearest eighth of a percent. For Direct Loan Consolidation Loans, interest 
rates reflect the 91-day Treasury bill rate plus 2.3 percent.

          Composition of Loan Collections (In thousands of dollars)

----------------------------------------------------------------------------
                                         1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
FFEL:
  Collections by Guaranty Agencies \1\..   1,154,544   1,355,582   1,401,324
  Collections by Department of Education     427,824     422,537     430,809
  Internal Revenue Service Tax Refund 
    Offsets.............................     598,085     552,975     560,156
                                           ---------   ---------  ----------
      Total, FFEL \2\...................   2,180,453   2,331,095   2,392,288
Direct Loans:
  Collections by Department of Education      10,270      76,822     149,461
  Internal Revenue Service Tax Refund 
    Offsets.............................       4,558      10,976      24,997
                                           ---------   ---------  ----------
    Total, Direct Loans \2\.............      14,828      87,798     174,458
    Total, FFEL and Direct Loan.........   2,195,281   2,418,893   2,566,747
---------------------------------------------------------------------------
    \1\ These figures show total collections by guaranty agencies. Actual 
Federal revenues resulting from these collections are lower than the amount 
shown because agencies retain a portion of the amount collected.

         Projected Participation in Repayment Plans \1\ (in percent)

----------------------------------------------------------------------------
                                         1998 cohort 1999 cohort 2000 cohort
----------------------------------------------------------------------------
Direct Loans \1\
  Standard:
    Percent of Loan Volume: \2\
      Stafford..........................       83.08       78.97       75.06
      Unsubsidized Stafford.............       79.24       74.75       70.52
      PLUS..............................       76.90       76.90       76.90
      Consolidation.....................       25.26       25.26       25.26
  Subsidy Rate (in percent):
      Stafford..........................        9.99       10.14        5.83
      Unsubsidized Stafford.............      -10.13       -8.70      -14.15
      PLUS..............................       -6.87       -6.78      -10.45
      Consolidation.....................        3.29        6.75        2.89
  Graduated: \3\
    Percent of Loan Volume: \2\
      Stafford..........................       12.10       15.24       18.22
      Unsubsidized Stafford.............       14.31       17.61       20.71
      PLUS..............................       16.77       16.77       16.77
      Consolidation.....................       23.44       23.44       23.44
    Subsidy Rate (in percent):
      Stafford..........................        5.65        6.12       -0.99
      Unsubsidized Stafford.............      -15.61      -13.51      -22.47

[[Page 367]]

      PLUS..............................      -15.10      -15.64      -23.10
      Consolidation.....................       -3.49        2.63       -5.23
  Extended: \3\
    Percent of Loan Volume: \2\
      Stafford..........................        3.74        4.71        5.63
      Unsubsidized Stafford.............        5.22        6.42        7.55
      PLUS..............................        6.32        6.32        6.32
      Consolidation.....................       20.22       20.22       20.22
    Subsidy Rate (in percent):
      Stafford..........................        5.71        6.10       -0.99
      Unsubsidized Stafford.............      -15.51      -13.41      -22.44
      PLUS..............................      -15.18      -15.72      -23.35
      Consolidation.....................       -3.26        2.68       -5.10
  Income-Contingent:
    Percent of Loan Volume: \2\
      Stafford..........................        1.08        1.08        1.08
      Unsubsidized Stafford.............        1.22        1.22        1.22
      Consolidation.....................       31.08       31.08       31.08
    Subsidy Rate (in percent):
      Stafford..........................        4.25        2.71       -4.15
      Unsubsidized Stafford.............        4.16        2.76       -4.20
      Consolidation.....................       -3.58       -3.21      -10.98
---------------------------------------------------------------------------
    \1\ No data is included for the Alternative repayment plan. Borrowers 
are not expected to participate in this plan due to the flexibility 
available under the other options. Income-contingent repayment is not 
available for PLUS borrowers.
    \2\ Percent of Loan Volume represents aggregate data. Individual 
borrowers may move between plans over time.
    \3\ Maximum terms under the Extended and Graduated repayment plans 
reflect the following ``classes'' based on borrower debt levels.
                    Debt Level      Maximum Term 
                                     (in years)  Percent of 
                                                   Volume 
                                                   Within 
                                                   Direct 
                                                Extended and 
                                                 Graduated 
                                                   Plans 
                                                 (Stafford) 
                                                   FY 1999

                                                                   
               Below $10,000........          12       12.65            
               $10,000-$20,000......          15       22.89            
               $20,000-$40,000......          20       31.97            
               $40,000-$60,000......          25       15.81            
               Above $60,000........          30       16.68            

    The Higher Education Amendments of 1998 broadened the availability 
of alternative repayment plans in the FFEL program. Data on the extent 
to which FFEL borrowers will take advantage of these plans is not yet 
available.

    Subsidy costs for the FFEL and Direct Loan programs are estimated in 
accordance with procedures set out in the Credit Reform Act of 1990. 
Subsidy costs for each loan type are estimated separately and, because 
costs can vary widely within a program depending on the characteristics 
of the individual borrower, cost estimates are aggregated from data for 
homogeneous groups within risk categories.

    Risk categories for Stafford and Unsubsidized Stafford Loans are 
based on the type of school attended by the borrower. Since PLUS loan 
borrowers are all parents, they are assumed to share similar risk 
profiles and are grouped together in a single category. For 
Consolidation Loans, risk categories distinguish between standard 
Consolidation Loans--in which borrowers in repayment consolidate a 
number of outstanding loans--and loans consolidated out of default.

    Default rates are a major cause of differences in subsidy between 
risk categories. The default rates in the following tables reflect 
estimates of the percent of borrowers who will default over the lifetime 
of the loans. These estimates are revised annually based on an analysis 
of default trends prepared each year by an independent auditor. Within 
each risk group, it is assumed that borrowers choosing similar repayment 
plans will have similar default rates, regardless of whether they borrow 
under the FFEL or Direct Loan program.

    The risk group data below also reflect proposed policy changes and 
interest rate projections in the President's 2000 Budget. These factors 
substantially decrease subsidy rates across years in the FFEL program.

                  FFEL RISK CATEGORIES: STAFFORD LOANS

           Subsidy Rate (as a percentage of loan commitments)

                                     1998 actual  1999 est.   2000 est.
Risk Categories:
  Category 1: 4 year college, 1st 
    and 2nd year students...........       24.62       25.56       24.39
  Category 2: 4 year college, 3rd 
    and 4th year students...........       16.91       18.08       16.96
  Category 3: 2 year college, all 
    students........................       20.76       21.56       19.84
  Category 4: Proprietary school, 
    all students....................       23.00       23.55       21.54
  Category 5: Graduate students.....       18.91       20.14       19.32

                    Gross Default Rates (in percent)

                                     1998 actual  1999 est.   2000 est.
Risk Categories:
  Category 1: 4 year college, 1st 
    and 2nd year students...........       19.58       19.56       19.23
  Category 2: 4 year college, 3rd 
    and 4th year students...........       13.14       13.16       12.92
  Category 3: 2 year college, all 
    students........................       32.70       32.66       32.07
  Category 4: Proprietary school, 
    all students....................       49.13       49.21       48.29
  Category 5: Graduate students.....        8.83        8.84        8.69

                       UNSUBSIDIZED STAFFORD LOANS

           Subsidy Rate (as a percentage of loan commitments)

                                     1998 actual  1999 est.   2000 est.
Risk Categories:
  Category 1: 4 year college, 1st 
    and 2nd year students...........        5.99        8.52        6.94
  Category 2: 4 year college, 3rd 
    and 4th year students...........        3.58        5.99        4.68
  Category 3: 2 year college, all 
    students........................        9.83       11.76        9.94
  Category 4: Proprietary school, 
    all students....................       15.48       16.81       14.64
  Category 5: Graduate students.....        3.61        6.15        5.05

                    Gross Default Rates (in percent)

                                     1998 actual  1999 est.   2000 est.
Risk Categories:
  Category 1: 4 year college, 1st 
    and 2nd year students...........       19.07       19.11       18.79
  Category 2: 4 year college, 3rd 
    and 4th year students...........       13.06       13.09       12.87
  Category 3: 2 year college, all 
    students........................       32.06       32.09       31.51
  Category 4: Proprietary school, 
    all students....................       47.96       48.16       47.30
  Category 5: Graduate students.....        8.71        8.73        8.58

                               PLUS LOANS

           Subsidy Rate (as a percentage of loan commitments)

                                     1998 actual  1999 est.   2000 est.
  All PLUS Loans....................        5.18        6.05        5.93

                    Gross Default Rates (in percent)

  All PLUS Loans....................        9.81        9.80        9.63

               DIRECT LOAN RISK CATEGORIES: STAFFORD LOANS

           Subsidy Rate (as a percentage of loan commitments)

                                     1998 actual  1999 est.   2000 est.
Risk Categories:
  Category 1: 4 year college, 1st 
    and 2nd year students...........       14.30       14.27        9.72
  Category 2: 4 year college, 3rd 
    and 4th year students...........        7.28        7.23        2.94
  Category 3: 2 year college, all 
    students........................       11.53       12.21        7.65
  Category 4: Proprietary school, 
    all students....................       16.16       17.21       13.21
  Category 5: Graduate students.....        9.26        9.08        4.95

                    Gross Default Rates (in percent)

                                     1998 actual  1999 est.   2000 est.
Risk Categories:
  Category 1: 4 year college, 1st 
    and 2nd year students...........       19.89       20.14       19.80
  Category 2: 4 year college, 3rd 
    and 4th year students...........       13.10       13.15       12.92
  Category 3: 2 year college, all 
    students........................       33.01       33.25       32.64
  Category 4: Proprietary school, 
    all students....................       49.16       49.44       48.52
  Category 5: Graduate students.....        8.81        8.82        8.66

                       UNSUBSIDIZED STAFFORD LOANS

           Subsidy Rate (as a percentage of loan commitments)

                                     1998 actual  1999 est.   2000 est.
Risk Categories:
  Category 1: 4 year college, 1st 
    and 2nd year students...........       -9.48       -7.78      -14.01
  Category 2: 4 year college, 3rd 
    and 4th year students...........      -11.66      -10.37      -15.71
  Category 3: 2 year college, all 
    students........................       -6.34       -4.09       -9.58
  Category 4: Proprietary school, 
    all students....................        0.37        3.26       -1.71
  Category 5: Graduate students.....      -11.06      -10.29      -15.55

                    Gross Default Rates (in percent)

                                     1998 actual  1999 est.   2000 est.
Risk Categories:
  Category 1: 4 year college, 1st 
    and 2nd year students...........       20.02       20.26       19.92

[[Page 368]]

  Category 2: 4 year college, 3rd 
    and 4th year students...........       13.01       13.05       12.82
  Category 3: 2 year college, all 
    students........................       31.10       32.53       31.95
  Category 4: Proprietary school, 
    all students....................       48.01       48.33       47.47
  Category 5: Graduate students.....        8.70        8.71        8.56

                               PLUS LOANS

           Subsidy Rate (as a percentage of loan commitments)

                                     1998 actual  1999 est.   2000 est.
  All PLUS Loans....................       -6.87       -6.78      -10.45

                    Gross Default Rates (in percent)

  All PLUS Loans....................        9.33        9.55        9.56

       Summary of Program Costs and Offsets (in thousands of dollars)

----------------------------------------------------------------------------
                                         1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
Interest costs:
Interest benefits:
  FFEL Liquidating......................      98,311       8,105       1,960
  FFEL Program..........................   3,099,000   1,947,809   1,785,488
  Direct Loans \1\......................     817,352     900,569     912,983
                                           ---------   ---------  ----------
                                           4,014,663   2,856,483   2,700,431
Special allowance:
  FFEL Liquidating......................     321,979     293,716     211,759
  FFEL Program..........................     320,000     237,779     378,190
                                           ---------   ---------  ----------
                                             641,979     531,494     589,949
Default costs and offsets:
Default costs \2\:
  FFEL Liquidating......................     356,943     261,507     166,399
  FFEL Program..........................   1,699,000   2,979,425   3,247,440
  Direct Loans..........................      76,490     184,555     348,906
                                           ---------   ---------  ----------
                                           2,132,433   3,425,486   3,762,744
Gross default collections:
  FFEL Liquidating......................     898,676   1,315,627   1,092,054
  FFEL Program..........................   1,281,777   1,015,468   1,300,234
  Direct Loans..........................      14,828      87,798     174,458
                                           ---------   ---------  ----------
                                           2,195,281   2,418,893   2,566,747
Default collection costs:
  FFEL Liquidating:
    Contract collection costs...........      95,612      46,467      42,785
    Guaranty agency retention...........     107,918     139,983      88,075
                                           ---------   ---------  ----------
                                             203,530     186,450     130,860
  FFEL Program:
    Contract collection costs...........       8,000      11,499      19,805
    Guaranty agency retention...........     180,777     172,381     171,170
                                           ---------   ---------  ----------
                                             188,777     183,880     190,975
  Direct Loans:
    Collection costs \3\................       1,129         254         847
    Net default costs:\4\
      FFEL Liquidating..................   (338,203)   (867,670)   (794,795)
      FFEL Program......................     606,000   2,147,838   2,138,180
      Direct Loans......................      62,790      97,010     175,295
                                           ---------   ---------  ----------
                                             330,587   1,377,178   1,518,680
  Death, disability, and bankruptcy 
      costs:
    FFEL Liquidating....................      43,618      37,656      26,825
    FFEL Program........................     243,000     223,169     252,586
    Direct Loans........................      28,419      54,989      80,629
                                           ---------   ---------  ----------
                                             315,037     315,814     360,039
Administrative Costs:
Federal administration:
  FFEL..................................      46,371      47,276      48,000
  Student Aid Management \7\............     529,970     617,531     735,000
Guaranty agency administrative payments:
  Account Maintenance Fee...............     170,000     177,000     180,000
  Loan Issuance and Processing Fee......          --     152,895     162,580
  Supplemental preclaims assistance \5\.      91,463          --          --
  Lender-paid default prevention fee....          --          --          --
Fees:
  Borrower origination fees:
    FFEL................................     924,000     626,833     665,449
    Direct Loans........................     381,968     447,010     475,044
  Lender origination fee \5\............     154,000     104,472     110,908
  Sallie Mae offset fee \5\.............     102,000      27,300      20,900
  Consolidation loan holder fees \5\....     233,000     165,621     169,877
---------------------------------------------------------------------------
    \1\ This represents net interest costs associated with Direct Loans.
    \2\ Default costs under FFEL reflect claims paid to guaranty agencies. 
Default costs under Direct Loans reflect non-repayment of defaulted loans.
    \3\ In the budget schedules, Direct Loan collections are displayed net 
of collection costs.
    \4\ Net default costs equal default claims minus net collections (gross 
collections minus contract collection costs and guaranty agency retention).
    \5\ Applies to FFEL program only.
    \6\ Amount for 1999 reflects transfer from Treasury of $794,000 for Year 
2000-related activities.
    \7\ A number of expenses related to the administration of the student 
assistance programs are paid out of Student Aid Management funds. One of 
these expenses, account maintenance fee payments to guaranty agencies, is 
shown as a separate line. Amount for 1998 reflects transfer of $25 million 
from the Higher Education Assistance Foundation Account. Amount for FY 1999 
includes transfer from Treasury of $531,000 for Year 2000-related 
activities.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0243-0-1-502      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

      Personnel compensation:

11.1    Full-time permanent.............          28          32          34
11.3    Other than full-time permanent..           1           1           1
                                           ---------   ---------  ----------
11.9      Total personnel compensation..          29          33          35
12.1  Civilian personnel benefits.......           6           7           8
21.0  Travel and transportation of 
        persons.........................           3           4           3
23.1  Rental payments to GSA............           5           5           6
23.3  Communications, utilities, and 
        miscellaneous charges...........          30          36          40
24.0  Printing and reproduction.........           6           7           9
25.1  Advisory and assistance services..                       1           1
25.2  Other services....................           6          10           8
25.3  Purchases of goods and services 
        from Government accounts........           6           2           3
25.7  Operation and maintenance of 
        equipment.......................         265         334         438
26.0  Supplies and materials............           1           1           1
31.0  Equipment.........................           2           1           3
32.0  Land and structures...............           1
41.0  Grants, subsidies, and 
        contributions...................         621         247         180
                                           ---------   ---------  ----------
99.9    Total new obligations...........         981         688         735
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 91-0243-0-1-502      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
1001  Total compensable workyears: Full-
        time equivalent employment......         517         571         571
---------------------------------------------------------------------------

                                

          Federal Direct Student Loan Program, Program Account

                (Legislative proposal, subject to PAYGO)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0243-4-1-502      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
02.01 Direct loan subsidy...............                      98
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 41.0)...................                      98
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......                      98
23.95 Total new obligations.............                     -98
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Spending authority from offsetting 
          collections:

68.00   Offsetting collections (cash)...                                 -15
68.27   Capital transfer to general fund                      98          15
                                           ---------   ---------  ----------
68.90     Spending authority from 
            offsetting collections 
            (total).....................                      98
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year                                   1
73.10 Total new obligations.............                      98
73.20 Total outlays (gross).............                     -96
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..                       1           1
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new permanent 
        authority.......................                      96
----------------------------------------------------------------------------

[[Page 369]]



    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........                                  15
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................                      98          15
90.00 Outlays...........................                      96          15
---------------------------------------------------------------------------

    The Administration will propose legislation to extend the temporary 
consolidation loan policies included in the HEA through 2000.

Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in 
                            millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0243-4-1-502      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Direct loan levels supportable by subsidy 
                budget authority:
1150  Consolidated......................                               1,443
                                           ---------   ---------  ----------
1159    Total direct loan levels........                               1,443
    Direct loan subsidy (in percent):
1320  Consolidated......................                    1.98        3.07
                                           ---------   ---------  ----------
1329    Weighted average subsidy rate...                    0.55        0.53
    Direct loan subsidy budget authority:
1330  Consolidated......................                      98          16
1330  Non-contractual modifications.....
                                           ---------   ---------  ----------
1339    Total subsidy budget authority..                      98          16
    Direct loan subsidy outlays:
1340  Consolidated......................                      96
                                           ---------   ---------  ----------
1349    Total subsidy outlays...........                      96
---------------------------------------------------------------------------

                                

          Federal Direct Student Loan Program, Program Account

              (Legislative proposal, discretionary offset)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0243-6-1-502      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Spending authority from offsetting 
          collections:

68.00   Offsetting collections (cash)...                                 110
68.27   Capital transfer to general fund                                -110
                                           ---------   ---------  ----------
68.90     Spending authority from 
            offsetting collections 
            (total).....................
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........                                -110
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................                                -110
90.00 Outlays...........................                                -110
---------------------------------------------------------------------------

    The Administration will propose legislation to improve the 
collection of defaulted student loans. Data from the National Directory 
of New Hires will be made available to assist the Department of 
Education's default collection efforts and will apply the offset to 
discretionary spending.

Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in 
                            millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0243-6-1-502      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Direct loan subsidy budget authority:
1330  Stafford..........................                                  -2
1330  Unsubsidized Stafford.............                                  -1
1330  Non-contractual modifications.....                                -108
                                           ---------   ---------  ----------
1339    Total subsidy budget authority..                                -111
    Direct loan subsidy outlays:
1340  Stafford..........................                                  -1
1340  Unsubsidized Stafford.............                                  -1
1340  Non-contractual modifications.....                                -108
                                           ---------   ---------  ----------
1349    Total subsidy outlays...........                                -110
---------------------------------------------------------------------------

                                

         Federal Direct Student Loan Program, Financing Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-4253-0-3-502      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Direct loans:

01.01   Stafford........................       6,191       6,872       7,151
01.02   Unsubsidized Stafford...........       3,905       4,396       4,743
01.03   PLUS............................       1,175       1,557       1,747
01.04   Consolidated....................       2,589       4,947       2,699
                                           ---------   ---------  ----------
01.91     Subtotal, direct loans 
            obligations.................      13,860      17,772      16,340
      Payment for consolidations:

02.04   Consolidated....................          13          22          14
      Payment of contract collection costs:

03.01   Stafford........................           1
04.01 Interest payment to Treasury......       2,320       2,379       3,213
08.01 Payment of negative subsidy to 
        program account.................                                 651
08.02 Payment of downward reestimate to 
        program account.................          61         361
                                           ---------   ---------  ----------
08.91   Direct Program by Activities--
          Subtotal (1 level)............          61         361         651
                                           ---------   ---------  ----------
10.00   Total new obligations...........      16,255      20,534      20,218
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New financing authority (gross)...      16,238      20,535      20,219
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................          18
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......      16,256      20,535      20,219
23.95 Total new obligations.............     -16,255     -20,534     -20,218
----------------------------------------------------------------------------

    New financing authority (gross), detail:
67.15 Authority to borrow (indefinite)..      13,703      18,048      17,185
      Spending authority from offsetting 
          collections:

68.00   Offsetting collections (cash)...       3,889       3,629       4,966
68.10   From Federal sources: Change in 
          receivables and unpaid, 
          unfilled orders...............         -72         -59        -194
68.47   Portion applied to debt 
          reduction.....................      -1,282      -1,083      -1,738
                                           ---------   ---------  ----------
68.90     Spending authority from 
            offsetting collections 
            (total).....................       2,535       2,487       3,034
                                           ---------   ---------  ----------
70.00   Total new financing authority 
          (gross).......................      16,238      20,535      20,219
----------------------------------------------------------------------------

    Change in unpaid obligations:
      Unpaid obligations, start of year:

72.40   Obligated balance, start of year       3,872       5,396       3,549
72.95   Receivables from program account         160          88          29
                                           ---------   ---------  ----------
72.99     Total unpaid obligations, 
            start of year...............       4,032       5,484       3,578
73.10 Total new obligations.............      16,255      20,534      20,218
73.20 Total financing disbursements 
        (gross).........................     -14,785     -22,441     -19,988
73.45 Adjustments in unexpired accounts.         -18
      Unpaid obligations, end of year:

74.40   Obligated balance, end of year..       5,396       3,549       3,973
74.95   Receivables from program account          88          29        -165
                                           ---------   ---------  ----------
74.99     Total unpaid obligations, end 
            of year.....................       5,484       3,578       3,808
87.00 Total financing disbursements 
        (gross).........................      14,785      22,441      19,988
----------------------------------------------------------------------------

    Offsets:
      Against gross financing authority and 
          financing disbursements:

        Offsetting collections (cash) 
            from:
          Federal sources:
            Payments from subsidy 
              account:

88.00         Stafford..................        -814        -607
88.00         Unsubsidized Stafford.....         338         359
88.00         PLUS......................          90         102
88.00         Consolidated..............         114           2
88.00         Upward reestimate.........        -233
88.25     Interest on uninvested funds..        -634
          Non-Federal sources:
            Stafford loans:

88.40         Repayment of principal, 
                Stafford................        -838        -554        -895
88.40         Interest received on 
                loans, Stafford.........        -165        -598        -827
88.40         Fees, Stafford............        -216        -246        -256
88.40         Repayment of principal, 
                Unsubsidized Stafford...        -459        -325        -552

[[Page 370]]

            Unsubsidized Stafford loans:

88.40         Interest received on 
                loans, Unsubsidized 
                Stafford................        -154        -363        -531
88.40         Fees, Unsubsidized 
                Stafford................        -130        -152        -165
88.40         Repayment of principal, 
                PLUS....................        -272        -162        -236
88.40         Interest received on 
                loans, PLUS.............        -145        -246        -305
            PLUS loans:

88.40         Fees, PLUS................         -36         -48         -55
88.40         Payment of principal, 
                Consolidated............        -188        -273        -432
88.40         Interest received on 
                loans, Consolidated.....        -147        -518        -712
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........      -3,889      -3,629      -4,966
88.95 Change in receivables from program 
        accounts........................          72          59         194
----------------------------------------------------------------------------

    Net financing authority and financing 
        disbursements:
89.00 Financing authority...............      12,421      16,965      15,447
90.00 Financing disbursements...........      10,894      18,812      15,022
---------------------------------------------------------------------------

               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-4253-0-3-502      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
          STAFFORD
    Position with respect to appropriations act 
                limitation on obligations:
1111  Limitation on direct loans........
1131  Direct loan obligations exempt 
        from limitation.................       6,192       6,953       7,236
                                           ---------   ---------  ----------
1150    Total direct loan obligations...       6,192       6,953       7,236
----------------------------------------------------------------------------

    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........      11,443      15,988      21,545
1231  Disbursements: Direct loan 
        disbursements...................       5,448       6,156       6,392
1251  Repayments: Repayments and 
        prepayments.....................        -837        -576        -928
1261  Adjustments: Capitalized interest.          50
      Write-offs for default:

1263    Direct loans....................                      -1          -3
1264    Other adjustments, net..........        -116         -22         -32
                                           ---------   ---------  ----------
1290    Outstanding, end of year........      15,988      21,545      26,974
----------------------------------------------------------------------------

          UNSUBSIDIZED STAFFORD
    Position with respect to appropriations act 
                limitation on obligations:
1111  Limitation on direct loans........
1131  Direct loan obligations exempt 
        from limitation.................       3,905       4,396       4,743
                                           ---------   ---------  ----------
1150    Total direct loan obligations...       3,905       4,396       4,743
----------------------------------------------------------------------------

    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........       5,887       8,769      12,228
1231  Disbursements: Direct loan 
        disbursements...................       3,237       3,809       4,120
1251  Repayments: Repayments and 
        prepayments.....................        -459        -337        -570
1261  Adjustments: Capitalized interest.         197
      Write-offs for default:

1263    Direct loans....................                      -1          -1
1264    Other adjustments, net..........         -93         -12         -18
                                           ---------   ---------  ----------
1290    Outstanding, end of year........       8,769      12,228      15,759
----------------------------------------------------------------------------

          PLUS
    Position with respect to appropriations act 
                limitation on obligations:
1111  Limitation on direct loans........
1131  Direct loan obligations exempt 
        from limitation.................       1,175       1,557       1,747
                                           ---------   ---------  ----------
1150    Total direct loan obligations...       1,175       1,557       1,747
----------------------------------------------------------------------------

    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........       1,539       2,180       3,200
1231  Disbursements: Direct loan 
        disbursements...................         915       1,210       1,364
1251  Repayments: Repayments and 
        prepayments.....................        -272        -176        -257
1261  Adjustments: Capitalized interest.          13
      Write-offs for default:

1263    Direct loans....................                                  -1
1264    Other adjustments, net..........         -15         -14         -20
                                           ---------   ---------  ----------
1290    Outstanding, end of year........       2,180       3,200       4,286
----------------------------------------------------------------------------

          CONSOLIDATED
    Position with respect to appropriations act 
                limitation on obligations:
1111  Limitation on direct loans........
1131  Direct loan obligations exempt 
        from limitation.................       2,589       4,947       2,699
                                           ---------   ---------  ----------
1150    Total direct loan obligations...       2,589       4,947       2,699
----------------------------------------------------------------------------

    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........       2,343       4,733       9,390
1231  Disbursements: Direct loan 
        disbursements...................       2,540       4,942       2,696
1251  Repayments: Repayments and 
        prepayments.....................        -188        -279        -443
1261  Adjustments: Capitalized interest.          75
      Write-offs for default:

1263    Direct loans....................          -1
1264    Other adjustments, net..........         -36          -6         -11
                                           ---------   ---------  ----------
1290    Outstanding, end of year........       4,733       9,390      11,632
---------------------------------------------------------------------------

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   91-4253-0-3-502    1997 actual    1998 actual     1999 est.      2000 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
1101  Federal assets: Fund balances with 
        Treasury........................       4,032          5,396         3,549          3,973
      Net value of assets related to 
          post-1991 direct loans 
          receivable:

        Direct loans receivable, gross:
1401      Stafford......................      11,443         15,988        21,544         26,974
1401      Unsubsidized Stafford.........       5,887          8,769        12,228         15,760
1401      PLUS..........................       1,539          2,180         3,199          4,285
1401      Consolidated..................       2,343          4,733         9,390         11,631
        Interest receivable:
1402      Interest receivable, Stafford.          41             80           107            134
1402      Interest receivable, Unsub 
            Stafford....................         239            462           644            830
1402      Interest receivable, PLUS.....          11              3             4              6
1402      Interest receivable, 
            Consolidated................          46             77           153            190
1405    Allowance for subsidy cost (-)..        -764         -1,575        -2,019         -1,857
                                        ------------ --------------  ------------  -------------
1499      Net present value of assets 
            related to direct loans.....      20,785         30,717        45,250         57,953
                                        ------------ --------------  ------------  -------------
1999    Total assets....................      24,817         36,113        48,799         61,926
    LIABILITIES:
2103  Federal liabilities: Debt.........      22,713         35,097        52,063         67,509
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............      22,713         35,097        52,063         67,509
    NET POSITION:
3100  Appropriated capital..............       2,104          1,016        -3,263         -5,582
                                        ------------ --------------  ------------  -------------
3999    Total net position..............       2,104          1,016        -3,263         -5,582
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position      24,817         36,113        48,800         61,927
-----------------------------------------------------------------------------------------------

    As required by the Federal Credit Reform Act of 1990, this non-
budgetary account records all cash flows to and from the Government 
resulting from Direct Loans. The amounts in this account are a means of 
financing and are not included in the budget totals.

                                

         Federal Direct Student Loan Program, Financing Account

                (Legislative proposal, subject to PAYGO)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-4253-4-3-502      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
01.04 Consolidated......................                               1,443
      Payment of consolidations:

03.04   Consolidated....................                                   6
05.01 Interest Payments to Treasury.....                      -2          29
08.01 Payment of negative subsidy to 
        program account.................                                 -15
                                           ---------   ---------  ----------
10.00   Total new obligations...........                      -2       1,463
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New financing authority (gross)...                      -2       1,463
23.95 Total new obligations.............                       2      -1,463
----------------------------------------------------------------------------

    New financing authority (gross), detail:
67.15 Authority to borrow (indefinite)..                     -96       1,428
      Spending authority from offsetting 
          collections:

68.00   Offsetting collections (cash)...                      90          49

[[Page 371]]

68.47   Portion applied to debt 
          reduction.....................                       4         -14
                                           ---------   ---------  ----------
68.90     Spending authority from 
            offsetting collections 
            (total).....................                      94          35
                                           ---------   ---------  ----------
70.00   Total new financing authority 
          (gross).......................                      -2       1,463
----------------------------------------------------------------------------

    Change in unpaid obligations:
73.10 Total new obligations.............                      -2       1,463
73.20 Total financing disbursements 
        (gross).........................                       2      -1,463
87.00 Total financing disbursements 
        (gross).........................                      -2       1,463
----------------------------------------------------------------------------

    Offsets:
      Against gross financing authority and 
          financing disbursements:

        Offsetting collections (cash) 
            from:
88.00     Federal sources...............                     -96
          Consolidated:
            Non-Federal sources:

88.40         Payment of prinipcal......                      -2         -28
88.40         Interest received on loans                       8         -21
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........                     -90         -49
----------------------------------------------------------------------------

    Net financing authority and financing 
        disbursements:
89.00 Financing authority...............                     -92       1,414
90.00 Financing disbursements...........                     -92       1,414
---------------------------------------------------------------------------

    The Administration will propose legislation to extend the temporary 
consolidation loan policies included in the HEA through 2000.

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   91-4253-4-3-502    1997 actual    1998 actual     1999 est.      2000 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
1101  Federal assets: Fund balances with 
        Treasury........................
      Net value of assets related to 
          post-1991 direct loans 
          receivable:

1401    Direct loans receivable, gross..                                       -2          1,412
1403    Accounts receivable from 
          foreclosed property...........                                                      23
1405    Allowance for subsidy cost (-)..                                                    -164
                                        ------------ --------------  ------------  -------------
1499      Net present value of assets 
            related to direct loans.....                                       -2          1,271
                                        ------------ --------------  ------------  -------------
1999    Total assets....................                                       -2          1,271
    LIABILITIES:
2103  Federal liabilities: Debt.........                                      -93          1,321
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............                                      -93          1,321
    NET POSITION:
3100  Appropriated capital..............                                       91            -50
                                        ------------ --------------  ------------  -------------
3999    Total net position..............                                       91            -50
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position                                       -2          1,271
-----------------------------------------------------------------------------------------------

                                

          Federal Direct Student Loan Program Financing Account

              (Legislative proposal, discretionary offset)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-4253-6-3-502      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
05.01 Interest payments to treasury.....                                   2
08.01 Payment of negative subsidy to 
        program account.................                                   2
08.05 Payment of non-contract 
        modifications to program account                                 108
                                           ---------   ---------  ----------
08.91   Direct Program by Activities--
          Subtotal (1 level)............                                 110
                                           ---------   ---------  ----------
10.00   Total new obligations...........                                 112
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New financing authority (gross)...                                 112
23.95 Total new obligations.............                                -112
----------------------------------------------------------------------------

    New financing authority (gross), detail:
67.15 Authority to borrow (indefinite)..                                 111
      Spending authority from offsetting 
          collections:

68.00   Offsetting collections (cash)...                                  12
68.10   From Federal sources: Change in 
          receivables and unpaid, 
          unfilled orders...............                                  -1
68.47   Portion applied to debt 
          reduction.....................                                 -10
                                           ---------   ---------  ----------
68.90     Spending authority from 
            offsetting collections 
            (total).....................                                   1
                                           ---------   ---------  ----------
70.00   Total new financing authority 
          (gross).......................                                 112
----------------------------------------------------------------------------

    Change in unpaid obligations:
73.10 Total new obligations.............                                 112
73.20 Total financing disbursements 
        (gross).........................                                -112
      Unpaid obligations, end of year:

74.40   Obligated balance, end of year..                                   1
74.95   Receivables from program account                                  -1
                                           ---------   ---------  ----------
74.99     Total unpaid obligations, end 
            of year.....................
87.00 Total financing disbursements 
        (gross).........................                                 112
----------------------------------------------------------------------------

    Offsets:
      Against gross financing authority and 
          financing disbursements:

        Offsetting collections (cash) 
            from:
          Non-Federal sources:
88.40       Payment of principal-
              Stafford..................                                  -7
88.40       Payment of principal-
              Unsubsidized Stafford.....                                  -4
88.40       Payment of principal-PLUS...                                  -1
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........                                 -12
88.95 Change in receivables from program 
        accounts........................                                   1
----------------------------------------------------------------------------

    Net financing authority and financing 
        disbursements:
89.00 Financing authority...............                                 101
90.00 Financing disbursements...........                                 100
---------------------------------------------------------------------------

    The Administration will propose legislation to improve the 
collection of defaulted student loans. Data from the National Directory 
of New Hires will be made available to assist the Department of 
Education's default collection efforts. The offset will be applied to 
discretionary spending.

               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-4253-6-3-502      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Stafford
      Position with respect to appropriations act 
          limitation on obligations:

1111    Limitation on direct loans......
                                           ---------   ---------  ----------
1150      Total direct loan obligations.
----------------------------------------------------------------------------

      Cumulative balance of direct loans 
          outstanding:

1210    Outstanding, start of year......
1251    Repayments: Repayments and 
          prepayments...................                                  -7
                                           ---------   ---------  ----------
1290      Outstanding, end of year......                                  -7
----------------------------------------------------------------------------

    Unsubsidized Stafford
      Cumulative balance of direct loans 
          outstanding:

1210    Outstanding, start of year......
1251    Repayments: Repayments and 
          prepayments...................                                  -4
                                           ---------   ---------  ----------
1290      Outstanding, end of year......                                  -4
----------------------------------------------------------------------------

    PLUS
      Cumulative balance of direct loans 
          outstanding:

1210    Outstanding, start of year......
1251    Repayments: Repayments and 
          prepayments...................                                  -1
                                           ---------   ---------  ----------
1290      Outstanding, end of year......                                  -1
---------------------------------------------------------------------------

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   91-4253-6-3-502    1997 actual    1998 actual     1999 est.      2000 est.
-----------------------------------------------------------------------------------------------
    Stafford
      ASSETS:

1101    Federal assets: Fund balances 
          with Treasury.................                                                       1
        Net value of assets related to 
            post-1991 direct loans 
            receivable:
          Direct loans receivable, 
              gross:
1401        Stafford....................                                                      -7

[[Page 372]]

1401        Unsubsidized Stafford.......                                                      -4
1401        PLUS........................                                                      -1
                                        ------------ --------------  ------------  -------------
1499        Net present value of assets 
              related to direct loans...                                                     -12
                                        ------------ --------------  ------------  -------------
1999      Total assets..................                                                     -11
      LIABILITIES:

2103    Federal liabilities: Debt.......                                                     101
                                        ------------ --------------  ------------  -------------
2999      Total liabilities.............                                                     101
      NET POSITION:

3100    Appropriated capital............                                                    -113
                                        ------------ --------------  ------------  -------------
3999      Total net position............                                                    -112
                                        ------------ --------------  ------------  -------------
4999    Total liabilities and net 
          position......................                                                     -12
-----------------------------------------------------------------------------------------------

                                

              Federal Family Education Loan Program Account

    For Federal administrative expenses to carry out guaranteed student 
loans authorized by title IV, part B, of the Higher Education Act, as 
amended, [$46,482,000] $48,000,000. (Department of Education 
Appropriations Act, 1999, as included in Public Law 105-277, section 
101(f).)
    Note.--The following tables display the program account which 
includes the subsidy costs and administrative expenses associated with 
guaranteed student loan commitments beginning in 1992.

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0231-0-1-502      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Guaranteed loan subsidy:

02.01   Stafford........................       1,964       2,554       2,685
02.02   Unsubsidized Stafford...........         161         695         759
02.03   PLUS............................           3         149         174
02.05   Consolidated....................         -73          91          65
02.07   Upward reestimate...............                   1,150
02.08   Interest on reestimate..........                     157
                                           ---------   ---------  ----------
02.91     Subtotal, subsidy cost........       2,055       4,796       3,683
      Administrative expenses:

07.01   Administrative expenses due to 
          limitations...................          46          46          48
07.02   Y2K Activities..................                       1
                                           ---------   ---------  ----------
07.91     Direct Program by Activities--
            Subtotal (1 level)..........          46          47          48
                                           ---------   ---------  ----------
10.00   Total new obligations...........       2,101       4,843       3,731
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......       2,101       4,842       3,732
23.95 Total new obligations.............      -2,101      -4,843      -3,731
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Current:

40.00   Appropriation (Federal 
          administration)...............          46          46          48
42.00   Transferred from other accounts.                       1
                                           ---------   ---------  ----------
43.00     Appropriation (total).........          46          47          48
      Permanent:

60.05   Appropriation (indefinite)......       2,055       3,335       3,684
68.00   Spending authority from 
          offsetting collections: 
          Offsetting collections (cash).                   1,460
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................       2,101       4,842       3,732
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year       1,148         859       1,426
73.10 Total new obligations.............       2,101       4,843       3,731
73.20 Total outlays (gross).............      -2,390      -4,276      -3,281
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..         859       1,426       1,875
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority          29          35          36
86.93 Outlays from current balances.....           9          12          15
86.97 Outlays from new permanent 
        authority.......................       1,228       3,402       2,200
86.98 Outlays from permanent balances...       1,124         827       1,031
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........       2,390       4,276       3,281
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........                  -1,460
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................       2,101       3,382       3,732
90.00 Outlays...........................       2,390       2,816       3,281
---------------------------------------------------------------------------

                 Summary of Budget Authority and Outlays

                        (in millions of dollars)

                                     1998 actual  1999 est.   2000 est.
Enacted/requested:
  Budget Authority..................       2,101       3,382       3,732
  Outlays...........................       2,390       2,816       3,282
Legislative proposal, subject to 
    PAYGO:
  Budget Authority..................                      37        -746
  Outlays...........................                      37        -597
Legislative proposal, discretionary 
    offset:
  Budget Authority..................                                -768
  Outlays...........................                                -766
                                    ------------------------------------
Total:
  Budget Authority..................       2,101       3,419       2,218
  Outlays...........................       2,390       2,853       1,919
                                    ====================================

Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in 
                            millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0231-0-1-502      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Guaranteed loan levels supportable by subsidy 
                budget authority:
2150  Stafford..........................      12,199      12,146      12,635
2150  Unsubsidized Stafford.............       8,458       8,916       9,618
2150  PLUS..............................       2,114       2,460       2,760
2150  Consolidated......................       4,048       2,660       2,767
                                           ---------   ---------  ----------
2159    Total loan guarantee levels.....      26,819      26,182      27,780
    Guaranteed loan subsidy (in percent):
2320  Stafford..........................       17.31       21.02       21.25
2320  Unsubsidized Stafford.............        0.88        7.80        7.89
2320  PLUS..............................       -1.90        6.05        6.32
2320  Consolidated......................       -3.52        3.41        2.35
                                           ---------   ---------  ----------
2329    Weighted average subsidy rate...        7.47       13.32       13.26
    Guaranteed loan subsidy budget authority:
2330  Stafford..........................       1,964       2,554       2,685
2330  Unsubsidized Stafford.............         161         695         759
2330  PLUS..............................           3         149         174
2330  Consolidated......................         -73          91          65
2330  Upward reestimate.................                   1,307
2330  Downward reestimate...............                  -1,460
                                           ---------   ---------  ----------
2339    Total subsidy budget authority..       2,055       3,336       3,683
    Guaranteed loan subsidy outlays:
2340  Stafford..........................       2,222       2,201       2,370
2340  Unsubsidized Stafford.............         222         499         650
2340  PLUS..............................          12         101         145
2340  Consolidated......................        -104         121          65
2340  Upward reestimate.................                   1,307
2340  Downward reestimate...............                  -1,460
                                           ---------   ---------  ----------
2349    Total subsidy outlays...........       2,352       2,769       3,230
----------------------------------------------------------------------------

    Administrative expense data:
3510  Budget authority..................          46          47          47
3590  Outlays...........................          38          47          51
---------------------------------------------------------------------------

    As required by the Federal Credit Reform Act of 1990, this program 
account records for this program the subsidy costs associated with 
Federal Family Education Loans (FFEL), formerly guaranteed student loans 
(GSL), committed in 1992 and beyond, as well as certain administrative 
expenses of the program. Administrative expenses include discretionary 
expenses for salaries, expenses and overhead of employees working 
directly on the program. Beginning with

[[Page 373]]

the 1993 cohort, mandatory administrative costs, specifically contract 
collection costs and supplemental pre-claims assistance, are included in 
the FFEL subsidy estimates of each year's cohort. The subsidy amounts 
are estimated on a net present value basis.

    A description of the FFEL program and accompanying tables are 
included under the Federal Direct Student Loan program account.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0231-0-1-502      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
11.1  Personnel compensation: Full-time 
        permanent.......................          19          20          22
12.1  Civilian personnel benefits.......           4           4           4
23.1  Rental payments to GSA............           2           2           2
23.3  Communications, utilities, and 
        miscellaneous charges...........           1           1           1
24.0  Printing and reproduction.........           1           1           1
25.2  Other services....................           1           1           1
25.3  Purchases of goods and services 
        from Government accounts........           1           1           1
25.7  Operation and maintenance of 
        equipment.......................          17          17          16
41.0  Grants, subsidies, and 
        contributions...................       2,055       4,796       3,683
                                           ---------   ---------  ----------
99.9    Total new obligations...........       2,101       4,843       3,731
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 91-0231-0-1-502      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
1001  Total compensable workyears: Full-
        time equivalent employment......         361         368         368
---------------------------------------------------------------------------

                                

              Family Federal Education Loan Program Account

                (Legislative proposal, subject to PAYGO)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0231-4-1-502      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Guaranteed loan subsidy:

02.01   Stafford........................                                -192
02.02   Unsubsidized Stafford...........                                -161
02.03   PLUS............................                                 -11
02.05   Consolidated....................                      37          52
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 41.0)...................                      37        -312
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......                      37        -312
23.95 Total new obligations.............                     -37         312
----------------------------------------------------------------------------

    New budget authority (gross), detail:
60.05 Appropriation (indefinite)........                      37        -746
68.00 Spending authority from offsetting 
        collections: Offsetting 
        collections (cash)..............                                 434
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................                      37        -312
----------------------------------------------------------------------------

    Change in unpaid obligations:
73.10 Total new obligations.............                      37        -312
73.20 Total outlays (gross).............                     -37         163
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..                                -149
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new permanent 
        authority.......................                      37        -163
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........                                -434
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................                      37        -746
90.00 Outlays...........................                      37        -597
---------------------------------------------------------------------------

    The Administration will propose legislation to do the following: 
improve the management and collection of defaulted loans; extend the 
temporary loan consolidation policies included in the HEA; reduce 
interest subsidy on loans financed through tax exempt securities; and 
expand the availability of Voluntary Flexible Agreements.

Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in 
                            millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0231-4-1-502      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Guaranteed loan subsidy (in percent):
2320  Stafford..........................                    0.00       -1.52
2320  Unsubsidized Stafford.............                    0.00       -1.67
2320  PLUS..............................                    0.00       -0.39
2320  Consolidated......................                    1.39        1.87
                                           ---------   ---------  ----------
2329    Weighted average subsidy rate...                    0.14       -1.12
    Guaranteed loan subsidy budget authority:
2330  Stafford..........................                                -192
2330  Unsubsidized Stafford.............                                -161
2330  PLUS..............................                                 -11
2330  Consolidated......................                      37          52
2330  Non-contract Modifications........                                -434
                                           ---------   ---------  ----------
2339    Total subsidy budget authority..                      37        -746
    Guaranteed loan subsidy outlays:
2340  Stafford..........................                                -115
2340  Unsubsidized Stafford.............                                 -94
2340  PLUS..............................                                  -6
2340  Consolidated......................                      37          52
2340  Non-contract Modifications........                                -434
                                           ---------   ---------  ----------
2349    Total subsidy outlays...........                      37        -597
---------------------------------------------------------------------------

                                

              Family Federal Education Loan Program Account

              (Legislative proposal, discretionary offset)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0231-6-1-502      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Guaranteed loan subsidy:

02.01   Stafford........................                                  -4
02.02   Unsubsidized Stafford...........                                  -1
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 41.0)...................                                  -5
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......                                  -5
23.95 Total new obligations.............                                   5
----------------------------------------------------------------------------

    New budget authority (gross), detail:
60.05 Appropriation (indefinite)........                                -768
68.00 Spending authority from offsetting 
        collections: Offsetting 
        collections (cash)..............                                 763
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................                                  -5
----------------------------------------------------------------------------

    Change in unpaid obligations:
73.10 Total new obligations.............                                  -5
73.20 Total outlays (gross).............                                   3
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..                                  -2
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new permanent 
        authority.......................                                  -3
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........                                -763
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................                                -768
90.00 Outlays...........................                                -766
---------------------------------------------------------------------------

    The Administration will propose legislation to improve the 
collection of defaulted student loans. Data from the National Directory 
of New Hires will be made available to assist the Department of 
Education's default collection efforts.

[[Page 374]]

Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in 
                            millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0231-6-1-502      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Guaranteed loan subsidy (in percent):
2320  Stafford..........................                               -0.03
2320  Unsubsidized Stafford.............                               -0.01
                                           ---------   ---------  ----------
2329    Weighted average subsidy rate...                               -0.02
    Guaranteed loan subsidy budget authority:
2330  Stafford..........................                                  -4
2330  Unsubsidized Stafford.............                                  -1
2330  Non-contract modifications........                                -763
                                           ---------   ---------  ----------
2339    Total subsidy budget authority..                                -768
    Guaranteed loan subsidy outlays:
2340  Stafford..........................                                  -3
2340  Unsubsidized Stafford.............                                  -1
2340  Non-contract modifications........                                -763
                                           ---------   ---------  ----------
2349    Total subsidy outlays...........                                -767
---------------------------------------------------------------------------

                                

        Federal Family Education Loan Program, Financing Account

    Note.--The financing account includes all cash flows to and from the 
Government from guaranteed student loans committed after 1991.

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-4251-0-3-502      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Stafford loans:

01.01   Interest benefits...............       3,099       1,948       1,785
01.02   Special allowance...............         169         136         218
01.03   Default claims..................         934       1,511       1,593
01.04   Death, disability, and 
          bankruptcy claims.............         101         103         113
01.06   Supplemental preclaims 
          assistance....................          25
01.07   Contract collection costs.......           2           7          12
01.08   Loan Processing Fee.............                      79          82
                                           ---------   ---------  ----------
01.91     Subtotal, Stafford loans......       4,330       3,784       3,803
      Unsubsidized Stafford loans:

02.02   Special allowance...............          62          77         137
02.03   Default claims..................         260         691         853
02.04   Death, disability, and 
          bankruptcy claims.............          37          39          50
02.06   Supplemental preclaims 
          assistance....................           7
02.07   Contract collection costs.......           3           1           2
02.08   Loan Processing Fee.............                      58          63
                                           ---------   ---------  ----------
02.91     Subtotal, Unsubsidized 
            Stafford loans..............         369         866       1,105
      PLUS loans:

03.02   Special allowance...............          27          22          25
03.03   Default claims..................          63         128         147
03.04   Death, disability, and 
          bankruptcy claims.............          31          45          51
03.05   Supplemental preclaims 
          assistance....................           3
03.06   Contract collection costs.......           1
03.07   Loan Processing Fee.............                      16          18
                                           ---------   ---------  ----------
03.91     Subtotal, PLUS loans..........         125         211         241
      SLS loans:

04.02   Special allowance...............           9           3           2
04.03   Default claims..................         123         134         101
04.04   Death, disability and bankruptcy 
          claims........................          13          11           9
04.06   Supplemental preclaims 
          assistance....................           4
04.07   Contract collection costs.......           1           3           3
                                           ---------   ---------  ----------
04.91     Subtotal, SLS loans...........         150         151         115
      Consolidation loans:

05.02   Special allowance...............          53                       8
05.03   Default claims..................         319         515         553
05.04   Death, disability, and 
          bankruptcy claims.............          61          25          29
05.06   Supplemental preclaims 
          assistance....................          13
05.07   Contract collection costs.......           1           1           2
                                           ---------   ---------  ----------
05.91     Subtotal, Consolidations loans         447         541         592
07.01 Interest paid to Treasury.........          26           9
08.02 Downward reestimate...............                   1,128
08.03 Interest on downward reestimate...                     331
                                           ---------   ---------  ----------
08.91   Direct Program by Activities--
          Subtotal (1 level)............                   1,459
                                           ---------   ---------  ----------
10.00   Total new obligations...........       5,447       7,021       5,856
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................       9,292       8,657       8,340
22.00 New financing authority (gross)...       4,812       6,704       6,066
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......      14,104      15,361      14,406
23.95 Total new obligations.............      -5,447      -7,021      -5,856
24.40 Unobligated balance available, end 
        of year.........................       8,657       8,340       8,549
----------------------------------------------------------------------------

    New financing authority (gross), detail:
      Spending authority from offsetting 
          collections:

68.00   Offsetting collections (cash)...       5,381       6,821       5,862
68.10   From Federal sources: Change in 
          receivables and unpaid, 
          unfilled orders...............        -332                     204
68.47   Portion applied to debt 
          reduction.....................        -237        -117
                                           ---------   ---------  ----------
68.90     Spending authority from 
            offsetting collections 
            (total).....................       4,812       6,704       6,066
----------------------------------------------------------------------------

    Change in unpaid obligations:
      Unpaid obligations, start of year:

72.40   Obligated balance, start of year        -981        -557        -479
72.95   Receivables from program account       1,159         827         827
                                           ---------   ---------  ----------
72.99     Total unpaid obligations, 
            start of year...............         178         270         348
73.10 Total new obligations.............       5,447       7,021       5,856
73.20 Total financing disbursements 
        (gross).........................      -5,355      -6,943      -5,915
      Unpaid obligations, end of year:

74.40   Obligated balance, end of year..        -557        -479        -740
74.95   Receivables from program account         827         827       1,031
                                           ---------   ---------  ----------
74.99     Total unpaid obligations, end 
            of year.....................         270         348         291
87.00 Total financing disbursements 
        (gross).........................       5,355       6,943       5,915
----------------------------------------------------------------------------

    Offsets:
      Against gross financing authority and 
          financing disbursements:

        Offsetting collections (cash) 
            from:
          Federal sources:
            Payment from subsidy 
              account:

88.00         Stafford loans............      -1,963      -2,293      -2,411
88.00         Unsubsidized Stafford.....        -161        -613        -669
88.00         PLUS loans................          -3        -131        -153
88.00         Consolidated loans........          73         -91         -65
88.00         Upward reestimate.........                  -1,307
88.00         Scheduled payments from 
                Liquidating account for 
                noncontractual 
                modifications...........        -263        -125
88.25     Interest on uninvested funds: 
            Stafford loans..............        -550        -491        -493
          Non-Federal sources:
            Stafford loans:

88.40         Recoveries on defaults....        -707        -509        -631
88.40         Origination fees..........        -575        -378        -392
88.40         Sallie Mae offset fees....         -65         -14         -11
88.40         Recoveries on defaults....        -115        -112        -174
88.40         Origination fees..........        -384        -268        -289
            Unsubsidized Stafford:

88.40         Sallie Mae offset fees....         -24          -6          -6
88.40         Recoveries on defaults....         -73         -38         -47
88.40         Origination fees..........         -96         -72         -81
            PLUS:

88.40         Sallie Mae offset fees....         -13          -3          -2
88.40         Recoveries on defaults....        -165         -89         -98
88.40         Recoveries on defaults....         -41         -95        -137
            SLS:

88.40         Origination fees..........         -23         -13         -14
88.40         Consolidated Loan Holders 
                Fee.....................        -233        -173        -189
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........      -5,381      -6,821      -5,862
88.95 Change in receivables from program 
        accounts........................         332                    -204
----------------------------------------------------------------------------

    Net financing authority and financing 
        disbursements:
89.00 Financing authority...............        -237        -117
90.00 Financing disbursements...........         -26         122          53
---------------------------------------------------------------------------

             Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-4251-0-3-502      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
          STAFFORD
    Position with respect to appropriations act 
                limitation on commitments:
2111  Limitation on guaranteed loans 
        made by private lenders.........
2131  Guaranteed loan commitments exempt 
        from limitation.................      12,199      12,146      12,635
                                           ---------   ---------  ----------

[[Page 375]]


2150    Total guaranteed loan 
          commitments...................      12,199      12,146      12,635
----------------------------------------------------------------------------

    Cumulative balance of guaranteed loans 
                outstanding:
2210  Outstanding, start of year........      43,955      47,355      51,455
2231  Disbursements of new guaranteed 
        loans...........................      10,382      10,802      11,194
2251  Repayments and prepayments........      -5,274      -5,150      -6,487
      Adjustments:

2261    Terminations for default that 
          result in loans receivable....      -1,607      -1,449      -1,608
2263    Terminations for default that 
          result in claim payments......        -101        -103        -113
                                           ---------   ---------  ----------
2290    Outstanding, end of year........      47,355      51,455      54,441
----------------------------------------------------------------------------

    Memorandum:
2299  Guaranteed amount of guaranteed 
        loans outstanding, end of year..      47,355      51,455      54,441
----------------------------------------------------------------------------

    Addendum:
      Cumulative balance of defaulted guaranteed 
          loans that result in loans receivable:

2310    Outstanding, start of year......       2,709       3,515       4,394
2331    Disbursements for guaranteed 
          loan claims...................       1,607       1,449       1,608
2351    Repayments of loans receivable..        -707        -509        -632
2361    Write-offs of loans receivable..         -94         -61         -76
                                           ---------   ---------  ----------
2390      Outstanding, end of year......       3,515       4,394       5,294
----------------------------------------------------------------------------

          UNSUBSIDIZED STAFFORD
    Position with respect to appropriations act 
                limitation on commitments:
2131  Guaranteed loan commitments exempt 
        from limitation.................       8,458       8,916       9,618
                                           ---------   ---------  ----------
2150    Total guaranteed loan 
          commitments...................       8,458       8,916       9,618
----------------------------------------------------------------------------

    Cumulative balance of guaranteed loans 
                outstanding:
2210  Outstanding, start of year........      14,284      19,229      24,468
2231  Disbursements of new guaranteed 
        loans...........................       6,915       7,649       8,269
2251  Repayments and prepayments........      -1,506      -1,734      -2,525
      Adjustments:

2261    Terminations for default that 
          result in loans receivable....        -427        -637        -843
2263    Terminations for default that 
          result in claim payments......         -37         -39         -50
                                           ---------   ---------  ----------
2290    Outstanding, end of year........      19,229      24,468      29,319
----------------------------------------------------------------------------

    Memorandum:
2299  Guaranteed amount of guaranteed 
        loans outstanding, end of year..      19,229      24,468      29,319
----------------------------------------------------------------------------

    Addendum:
      Cumulative balance of defaulted guaranteed 
          loans that result in loans receivable:

2310    Outstanding, start of year......         320         617       1,129
2331    Disbursements for guaranteed 
          loan claims...................         427         637         843
2351    Repayments of loans receivable..        -115        -112        -174
2361    Write-offs of loans receivable..         -15         -13         -21
                                           ---------   ---------  ----------
2390      Outstanding, end of year......         617       1,129       1,777
----------------------------------------------------------------------------

          PLUS
    Position with respect to appropriations act 
                limitation on commitments:
2131  Guaranteed loan commitments exempt 
        from limitation.................       2,114       2,460       2,760
                                           ---------   ---------  ----------
2150    Total guaranteed loan 
          commitments...................       2,114       2,460       2,760
----------------------------------------------------------------------------

    Cumulative balance of guaranteed loans 
                outstanding:
2210  Outstanding, start of year........       4,635       5,107       6,157
2231  Disbursements of new guaranteed 
        loans...........................       1,722       2,064       2,325
2251  Repayments and prepayments........      -1,103        -849      -1,071
      Adjustments:

2261    Terminations for default that 
          result in loans receivable....        -116        -120        -147
2263    Terminations for default that 
          result in claim payments......         -31         -45         -51
                                           ---------   ---------  ----------
2290    Outstanding, end of year........       5,107       6,157       7,213
----------------------------------------------------------------------------

    Memorandum:
2299  Guaranteed amount of guaranteed 
        loans outstanding, end of year..       5,107       6,157       7,213
----------------------------------------------------------------------------

    Addendum:
      Cumulative balance of defaulted guaranteed 
          loans that result in loans receivable:

2310    Outstanding, start of year......         335         368         445
2331    Disbursements for guaranteed 
          loan claims...................         116         120         147
2351    Repayments of loans receivable..         -73         -38         -47
2361    Write-offs of loans receivable..         -10          -5          -6
                                           ---------   ---------  ----------
2390      Outstanding, end of year......         368         445         539
----------------------------------------------------------------------------

          SLS
    Cumulative balance of guaranteed loans 
                outstanding:
2210  Outstanding, start of year........       4,116       3,036       2,263
2251  Repayments and prepayments........        -862        -627        -636
      Adjustments:

2261    Terminations for default that 
          result in loans receivable....        -205        -135        -108
2263    Terminations for default that 
          result in claim payments......         -13         -11          -9
                                           ---------   ---------  ----------
2290    Outstanding, end of year........       3,036       2,263       1,510
----------------------------------------------------------------------------

    Memorandum:
2299  Guaranteed amount of guaranteed 
        loans outstanding, end of year..       3,036       2,263       1,510
----------------------------------------------------------------------------

    Addendum:
      Cumulative balance of defaulted guaranteed 
          loans that result in loans receivable:

2310    Outstanding, start of year......         829         847         882
2331    Disbursements for guaranteed 
          loan claims...................         205         135         108
2351    Repayments of loans receivable..        -165         -89         -98
2361    Write-offs of loans receivable..         -22         -11         -12
                                           ---------   ---------  ----------
2390      Outstanding, end of year......         847         882         880
----------------------------------------------------------------------------

          CONSOLIDATED
    Position with respect to appropriations act 
                limitation on commitments:
2131  Guaranteed loan commitments exempt 
        from limitation.................       4,049       2,660       2,767
                                           ---------   ---------  ----------
2150    Total guaranteed loan 
          commitments...................       4,049       2,660       2,767
----------------------------------------------------------------------------

    Cumulative balance of guaranteed loans 
                outstanding:
2210  Outstanding, start of year........       8,396       9,675      10,744
2231  Disbursements of new guaranteed 
        loans...........................       2,947       2,655       2,762
2251  Repayments and prepayments........      -1,118      -1,067      -1,309
      Adjustments:

2261    Terminations for default that 
          result in loans receivable....        -489        -494        -557
2263    Terminations for default that 
          result in claim payments......         -61         -25         -29
                                           ---------   ---------  ----------
2290    Outstanding, end of year........       9,675      10,744      11,611
----------------------------------------------------------------------------

    Memorandum:
2299  Guaranteed amount of guaranteed 
        loans outstanding, end of year..       9,675      10,744      11,611
----------------------------------------------------------------------------

    Addendum:
      Cumulative balance of defaulted guaranteed 
          loans that result in loans receivable:

2310    Outstanding, start of year......         293         736       1,124
2331    Disbursements for guaranteed 
          loan claims...................         489         494         557
2351    Repayments of loans receivable..         -41         -95        -137
2361    Write-offs of loans receivable..          -5         -11         -16
                                           ---------   ---------  ----------
2390      Outstanding, end of year......         736       1,124       1,528
---------------------------------------------------------------------------

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   91-4251-0-3-502    1997 actual    1998 actual     1999 est.      2000 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
1101  Federal assets: Fund balances with 
        Treasury........................       9,292          7,830         8,340          8,549
      Net value of assets related to 
          post-1991 acquired defaulted 
          guaranteed loans receivable:

1501    Defaulted guaranteed loans 
          receivable, gross.............       4,485          6,083         7,974         10,018
                                        ------------ --------------  ------------  -------------
1599      Net present value of assets 
            related to defaulted 
            guaranteed loans............       4,485          6,083         7,974         10,018

[[Page 376]]

1704  Net value of assets related to 
        pre-1992 direct loans receivable 
        and acquired defaulted 
        guaranteed loans receivable: 
        Defaulted guaranteed loans and 
        interest receivable, net........
                                        ------------ --------------  ------------  -------------
1999    Total assets....................      13,777         13,913        16,314         18,567
    LIABILITIES:
2103  Federal liabilities: Debt.........         680            354           117
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............         680            354           117
    NET POSITION:
3100  Appropriated capital..............      13,097         13,559        16,197         18,567
                                        ------------ --------------  ------------  -------------
3999    Total net position..............      13,097         13,559        16,197         18,567
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position      13,777         13,913        16,314         18,567
-----------------------------------------------------------------------------------------------

    As required by the Federal Credit Reform Act of 1990, this 
nonbudgetary account records all cash flows to and from the Government 
resulting from Federal Family Education Loans (FFEL), formerly 
guaranteed student loans (GSL), committed in 1992 and beyond. The 
amounts in this account are a means of financing and are not included in 
the budget totals.

                                

        Federal Family Education Loan Program, Financing Account

                (Legislative proposal, subject to PAYGO)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-4251-4-3-502      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Stafford loans:

01.02   Special allowance...............                                  -7
01.06   Contract collection costs.......                                   1
                                           ---------   ---------  ----------
01.91     Subtotal, Stafford loans......                                  -6
      Unsubsidized Stafford loans:

02.02   Special allowance...............                                  -5
08.05 Payment of non-contractual 
        modifications to program account                                 434
                                           ---------   ---------  ----------
10.00   Total new obligations...........                                 423
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................                                  31
22.00 New financing authority (gross)...                      31        -192
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......                      31        -161
23.95 Total new obligations.............                                -423
24.40 Unobligated balance available, end 
        of year.........................                      31        -584
----------------------------------------------------------------------------

    New financing authority (gross), detail:
68.00 Spending authority from offsetting 
        collections (gross): Offsetting 
        collections (cash)..............                      31        -192
----------------------------------------------------------------------------

    Change in unpaid obligations:
73.10 Total new obligations.............                                 423
73.20 Total financing disbursements 
        (gross).........................                                -425
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..                                  -2
87.00 Total financing disbursements 
        (gross).........................                                 425
----------------------------------------------------------------------------

    Offsets:
      Against gross financing authority and 
          financing disbursements:

        Offsetting collections (cash) 
            from:
          Federal sources:
88.00       Stafford loans..............                                 172
88.00       Unsubsidized Stafford loans.                                 142
88.00       PLUS loans..................                                   9
88.00       Consolidated loans..........                     -37         -52
88.00       Payment from liquidating 
              account for non-
              contractual modifications.                                 -69
88.25     Interest on uninvested funds..                      -1          13
          Non-Federal sources:
88.40       Recoveries on defaults-
              Stafford loans............                                 -24
88.40       Recoveries on defaults-Unsub 
              Stafford loans............                                  -7
88.40       Recoveries on defaults-PLUS 
              loans.....................                                  -2
88.40       Recoveries on defaults-SLS 
              loans.....................                                  -3
88.40       Recoveries on defaults-
              Consolidated loans........                                  -6
88.40       Consolidated loan holder's 
              fee.......................                       7          19
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........                     -31         192
----------------------------------------------------------------------------

    Net financing authority and financing 
        disbursements:
89.00 Financing authority...............
90.00 Financing disbursements...........                     -31         617
---------------------------------------------------------------------------

    The Administration will propose legislation to do the following: 
improve the management and collection of defaulted loans; extend the 
temporary loan consolidation policies included in the HEA; reduce 
interest subsidy on loans financed through tax exempt securities; and, 
expand the availability of Voluntary Flexible Agreements.

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   91-4251-4-3-502    1997 actual    1998 actual     1999 est.      2000 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
1101  Federal assets: Fund balances with 
        Treasury........................                                       30           -585
      Net value of assets related to 
          post-1991 acquired defaulted 
          guaranteed loans receivable:

1501    Defaulted guaranteed loans 
          receivable, gross.............                                                     -47
                                        ------------ --------------  ------------  -------------
1599      Net present value of assets 
            related to defaulted 
            guaranteed loans............                                                     -47
                                        ------------ --------------  ------------  -------------
1999    Total assets....................                                       30           -632
    LIABILITIES:
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............
    NET POSITION:
3100  Appropriated capital..............                                       30           -632
                                        ------------ --------------  ------------  -------------
3999    Total net position..............                                       30           -632
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position                                       30           -632
-----------------------------------------------------------------------------------------------

                                

        Family Federal Education Loan Program, Financial Account

              (Legislative proposal, discretionary offset)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-4251-6-3-502      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
08.05 Payment to Program account for 
        non-contractual modifications...                                 763
                                           ---------   ---------  ----------
10.00   Total new obligations...........                                 763
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New financing authority (gross)...                                 554
23.95 Total new obligations.............                                -763
24.40 Unobligated balance available, end 
        of year.........................                                -210
----------------------------------------------------------------------------

    New financing authority (gross), detail:
68.00 Spending authority from offsetting 
        collections (gross): Offsetting 
        collections (cash)..............                                 554
----------------------------------------------------------------------------

    Change in unpaid obligations:
73.10 Total new obligations.............                                 763
73.20 Total financing disbursements 
        (gross).........................                                -763
87.00 Total financing disbursements 
        (gross).........................                                 763
----------------------------------------------------------------------------

[[Page 377]]



    Offsets:
      Against gross financing authority and 
          financing disbursements:

        Offsetting collections (cash) 
            from:
          Federal sources:
            Payment from subsidy 
              account:

88.00         Stafford loans............                                   4
88.00         Payment from liquidating 
                account for non-
                contractual 
                modifications...........                                -537
88.25     Interest on uninvested funds: 
            Stafford loans..............                                   5
          Non-Federal sources:
            Stafford loans:

88.40         Recoveries on defaults....                                 -20
88.40         Recoveries on defaults....                                  -4
88.40         Recoveries on defaults....                                  -2
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........                                -554
----------------------------------------------------------------------------

    Net financing authority and financing 
        disbursements:
89.00 Financing authority...............
90.00 Financing disbursements...........                                 209
---------------------------------------------------------------------------

    The Administration will propose legislation to improve the 
collection of defaulted student loans. Data from the National Directory 
of New Hires will be made available to assist the Department of 
Education's default collection efforts and the offset will be applied to 
discretionary spending.

             Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-4251-6-3-502      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Stafford loans
      Position with respect to appropriations act 
          limitation on commitments:

2111    Limitation on guaranteed loans 
          made by private lenders.......
                                           ---------   ---------  ----------
2150      Total guaranteed loan 
            commitments.................
----------------------------------------------------------------------------

      Addendum:

        Cumulative balance of defaulted 
            guaranteed loans that result 
            in loans receivable:
2310      Outstanding, start of year....
2351      Repayments of loans receivable                                 -20
                                           ---------   ---------  ----------
2390        Outstanding, end of year....                                 -20
----------------------------------------------------------------------------

    Unsubsidized stafford loans
      Position with respect to appropriations act 
          limitation on commitments:

2111    Limitation on guaranteed loans 
          made by private lenders.......
                                           ---------   ---------  ----------
2150      Total guaranteed loan 
            commitments.................
----------------------------------------------------------------------------

      Addendum:

        Cumulative balance of defaulted 
            guaranteed loans that result 
            in loans receivable:
2310      Outstanding, start of year....
2351      Repayments of loans receivable                                  -4
                                           ---------   ---------  ----------
2390        Outstanding, end of year....                                  -4
----------------------------------------------------------------------------

    PLUS loans
      Position with respect to appropriations act 
          limitation on commitments:

2111    Limitation on guaranteed loans 
          made by private lenders.......
                                           ---------   ---------  ----------
2150      Total guaranteed loan 
            commitments.................
----------------------------------------------------------------------------

      Addendum:

        Cumulative balance of defaulted 
            guaranteed loans that result 
            in loans receivable:
2310      Outstanding, start of year....
2351      Repayments of loans receivable                                  -2
                                           ---------   ---------  ----------
2390        Outstanding, end of year....                                  -2
---------------------------------------------------------------------------

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   91-4251-6-3-502    1997 actual    1998 actual     1999 est.      2000 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
1101  Federal assets: Fund balances with 
        Treasury........................                                                    -210
      Net value of assets related to 
          post-1991 acquired defaulted 
          guaranteed loans receivable:

1501    Defaulted guaranteed loans 
          receivable, gross.............                                                     -26
                                        ------------ --------------  ------------  -------------
1599      Net present value of assets 
            related to defaulted 
            guaranteed loans............                                                     -26
                                        ------------ --------------  ------------  -------------
1999    Total assets....................                                                    -236
    LIABILITIES:
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............
    NET POSITION:
3100  Appropriated capital..............                                                    -236
                                        ------------ --------------  ------------  -------------
3999    Total net position..............                                                    -236
-----------------------------------------------------------------------------------------------

                                

            Federal Family Education Loan Liquidating Account

    Note.--The following tables display the liquidating account, which 
includes all cash flows to and from the Government from guaranteed 
student loan commitments prior to 1992.

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0230-0-1-502      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Stafford loans:

01.01   Interest benefits, net of 
          origination fees..............          98           8           2
01.02   Special allowance net of 
          origination fees..............         316         292         210
01.03   Default claims..................         325         215         141
01.04   Death, disability, and 
          bankruptcy claims.............          33          31          23
01.06   Supplemental preclaims 
          assistance....................          33
01.07   Contract collection costs.......          85          40          35
                                           ---------   ---------  ----------
01.91     Subtotal, Stafford loans......         890         586         411
      PLUS/SLS loans:

02.01   Default claims..................          32          48          26
02.02   Death, disability, and 
          bankruptcy claims.............          11           7           4
02.04   Supplemental preclaims 
          assistance....................           7
02.05   Contract collection costs.......          10           9           7
02.06   Special allowance net of 
          origination fees..............           6           2           2
                                           ---------   ---------  ----------
02.91     Subtotal, PLUS/SLS loans......          66          66          39
      Miscellaneous costs:

03.01   Scheduled payments to finance 
          account for non-contractual 
          modifications.................         263         125
                                           ---------   ---------  ----------
10.00   Total new obligations...........       1,219         777         450
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................                     149
22.00 New budget authority (gross)......       1,342         777         450
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................          26
22.40 Capital transfer to general fund..                    -149
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......       1,368         777         450
23.95 Total new obligations.............      -1,219        -777        -450
24.40 Unobligated balance available, end 
        of year.........................         149
----------------------------------------------------------------------------

    New budget authority (gross), detail:
60.05 Appropriation (indefinite)........         551
      Spending authority from offsetting 
          collections:

68.00   Offsetting collections (cash)...         791       1,188         989
68.27   Capital transfer to general fund                    -411        -539
                                           ---------   ---------  ----------
68.90     Spending authority from 
            offsetting collections 
            (total).....................         791         777         450
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................       1,342         777         450
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year         220         741         117
73.10 Total new obligations.............       1,219         777         450
73.20 Total outlays (gross).............        -673      -1,401        -499

[[Page 378]]

73.45 Adjustments in unexpired accounts.         -26
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..         741         117          68
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new permanent 
        authority.......................         453         660         383
86.98 Outlays from permanent balances...         220         741         116
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         673       1,401         499
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

        Offsetting collections (cash) 
            from:
          Non-Federal sources:
            Stafford loans:

88.40         Federal collections on 
                defaulted loans.........        -245        -274        -233
88.40         Federal collections on 
                bankruptcies............         -12          -8          -5
88.40         Offsets against Federal 
                tax refunds.............        -156        -327        -286
            Other collections:

88.40         Reimbursements from 
                guaranty agencies.......        -287        -406        -316
88.40         Sallie Mae Offset Fee.....                      -3          -1
88.40         Federal collections on 
                defaulted loans, PLUS/
                SLS.....................         -32         -65         -62
88.40         Federal collections on 
                bankruptcies, PLUS/SLS..          -2          -2          -1
88.40         Offsets against Federal 
                tax refunds, PLUS/SLS...         -20         -41         -36
88.40         Reimbursements from 
                guaranty agencies, PLUS/
                SLS.....................         -37         -62         -49
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........        -791      -1,188        -989
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................         551        -411        -539
90.00 Outlays...........................        -118         213        -490
---------------------------------------------------------------------------

                 Summary of Budget Authority and Outlays

                        (in millions of dollars)

                                     1998 actual  1999 est.   2000 est.
Enacted/requested:
  Budget Authority..................         551        -411        -539
  Outlays...........................        -118         213        -490
Legislative proposal, not subject to 
    PAYGO:
  Budget Authority..................                                 480
  Outlays...........................                                 468
                                    ------------------------------------
Total:
  Budget Authority..................         551        -411         -59
  Outlays...........................        -118         213         -22
                                    ====================================

             Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0230-0-1-502      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
          STAFFORD LOANS
    Cumulative balance of guaranteed loans 
                outstanding:
2210  Outstanding, start of year........      20,540      14,217       9,552
2251  Repayments and prepayments........      -5,411      -4,387      -3,433
      Adjustments:

2261    Terminations for default that 
          result in loans receivable....        -868        -240        -158
2263    Terminations for default that 
          result in claim payments......         -44         -38         -27
                                           ---------   ---------  ----------
2290    Outstanding, end of year........      14,217       9,552       5,934
----------------------------------------------------------------------------

    Memorandum:
2299  Guaranteed amount of guaranteed 
        loans outstanding, end of year..      14,217       9,552       5,934
----------------------------------------------------------------------------

    Addendum:
      Cumulative balance of defaulted guaranteed 
          loans that result in loans receivable:

2310    Outstanding, start of year......       9,236       8,818       8,098
2331    Disbursements for guaranteed 
          loan claims...................         868         240         158
2351    Repayments of loans receivable..        -836        -593        -476
2361    Write-offs of loans receivable..        -284        -272        -250
2364    Other adjustments, net..........        -166         -95         -75
                                           ---------   ---------  ----------
2390      Outstanding, end of year......       8,818       8,098       7,455
----------------------------------------------------------------------------

          PLUS/SLS LOANS
    Cumulative balance of guaranteed loans 
                outstanding:
2210  Outstanding, start of year........       3,043       1,901       1,199
2251  Repayments and prepayments........      -1,046        -648        -423
      Adjustments:

2261    Terminations for default that 
          result in loans receivable....         -85         -47         -30
2263    Terminations for default that 
          result in claim payments......         -11          -7          -4
                                           ---------   ---------  ----------
2290    Outstanding, end of year........       1,901       1,199         742
----------------------------------------------------------------------------

    Memorandum:
2299  Guaranteed amount of guaranteed 
        loans outstanding, end of year..       1,901       1,199         742
----------------------------------------------------------------------------

    Addendum:
      Cumulative balance of defaulted guaranteed 
          loans that result in loans receivable:

2310    Outstanding, start of year......       2,766       2,640       2,493
2331    Disbursements for guaranteed 
          loan claims...................          85          47          30
2351    Repayments of loans receivable..        -104         -97         -82
2361    Write-offs of loans receivable..         -85         -82         -77
2364    Other adjustments, net..........         -22         -15         -12
                                           ---------   ---------  ----------
2390      Outstanding, end of year......       2,640       2,493       2,352
---------------------------------------------------------------------------

                        Statement of Operations (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   91-0230-0-1-502    1997 actual    1998 actual     1999 est.      2000 est.
-----------------------------------------------------------------------------------------------
    Stafford:
0111  Revenue...........................       1,095            699         1,019            842
0112  Expense...........................      -1,170           -889          -585           -410
                                        ------------ --------------  ------------  -------------
0119  Net income or loss (-)............         -75           -190           434            432
    PLUS/SLS:
0121  Revenue...........................         140             91           169            147
0122  Expense...........................         -42            -67           -66            -40
                                        ------------ --------------  ------------  -------------
0129  Net income or loss (-)............          98             24           103            107
                                        ------------ --------------  ------------  -------------
0199  Net income or loss................          23           -166           537            539
-----------------------------------------------------------------------------------------------

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   91-0230-0-1-502    1997 actual    1998 actual     1999 est.      2000 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
1101  Federal assets: Fund balances with 
        Treasury........................         220            741           116             68
      Net value of assets related to 
          pre-1992 direct loans 
          receivable and acquired 
          defaulted guaranteed loans 
          receivable:

1701    Defaulted guaranteed loans, 
          gross.........................      11,244         11,458        10,591          9,807
1704    Defaulted guaranteed loans and 
          interest receivable, net......      11,244         11,458        10,591          9,807
                                        ------------ --------------  ------------  -------------
1799      Value of assets related to 
            loan guarantees.............      11,244         11,458        10,591          9,807
                                        ------------ --------------  ------------  -------------
1999    Total assets....................      11,464         12,199        10,707          9,875
    NET POSITION:
3100  Appropriated capital..............      11,464         12,199        10,707          9,875
                                        ------------ --------------  ------------  -------------
3999    Total net position..............      11,464         12,199        10,707          9,875
-----------------------------------------------------------------------------------------------
    \1\ Excludes interest and premium collections on insured loans.

    As required by the Federal Credit Reform Act of 1990, this 
liquidating account records, for this program, all cash flows to and 
from the Government resulting from guaranteed student loans committed 
prior to 1992. This account is shown on a cash basis. All new loan 
activity in this program in 1992 and beyond is recorded in corresponding 
program and financing accounts. 

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0230-0-1-502      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
25.2  Other services....................          96          49          43

[[Page 379]]

33.0  Investments and loans.............         357         262         167
41.0  Grants, subsidies, and 
        contributions...................         723         428         213
42.0  Insurance claims and indemnities..          43          38          27
                                           ---------   ---------  ----------
99.9    Total new obligations...........       1,219         777         450
---------------------------------------------------------------------------

                                

            Family Federal Education Loan Liquidating Account

              (Legislative proposal, not subject to PAYGO)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0230-2-1-502      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Stafford loans:

01.07   Contract collection costs.......                                   2
      PLUS/SLS loans:

02.04   Contract collection costs.......                                   1
03.01 Payment to financing account for 
        non-contract modifications......                                 606
                                           ---------   ---------  ----------
10.00   Total new obligations...........                                 609
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......                                 609
23.95 Total new obligations.............                                -609
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Spending authority from offsetting 
          collections:

68.00   Offsetting collections (cash)...                                 129
68.27   Capital transfer to general fund                                 480
                                           ---------   ---------  ----------
68.90     Spending authority from 
            offsetting collections 
            (total).....................                                 609
----------------------------------------------------------------------------

    Change in unpaid obligations:
73.10 Total new obligations.............                                 609
73.20 Total outlays (gross).............                                -597
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..                                  12
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new permanent 
        authority.......................                                 597
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

        Offsetting collections (cash) 
            from:
          Stafford loans:
            Non-Federal sources:

88.40         Federal collections on 
                defaulted loans.........                                -107
88.40         Offsets against Federal 
                tax refunds.............
88.40         Reimbursements from 
                guaranty agencies.......                                 -19
              Other collections:
88.40
  Federal collections on defaulted 
    loans, PLUS/SLS.....................
88.40
  Offsets against Federal tax refunds, 
    PLUS/SLS............................
88.40
  Reimbursements from guaranty agencies, 
    PLUS/SLS............................                                  -3
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........                                -129
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................                                 480
90.00 Outlays...........................                                 468
---------------------------------------------------------------------------

    The Administration will propose legislation to improve the 
collection of defaulted student loans. Data from the National Directory 
of New Hires will be made available to assist the Department of 
Education's default collection efforts.

             Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0230-2-1-502      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
          STAFFORD LOANS
    Cumulative balance of guaranteed loans 
                outstanding:
2210  Outstanding, start of year........
2251  Repayments and prepayments........
      Adjustments:

2261    Terminations for default that 
          result in loans receivable....
2263    Terminations for default that 
          result in claim payments......
                                           ---------   ---------  ----------
2290    Outstanding, end of year........
----------------------------------------------------------------------------

    Memorandum:
2299  Guaranteed amount of guaranteed 
        loans outstanding, end of year..
----------------------------------------------------------------------------

    Addendum:
      Cumulative balance of defaulted guaranteed 
          loans that result in loans receivable:

2310    Outstanding, start of year......
2331    Disbursements for guaranteed 
          loan claims...................
2351    Repayments of loans receivable..                                -119
2361    Write-offs of loans receivable..
2364    Other adjustments, net..........                                  -4
                                           ---------   ---------  ----------
2390      Outstanding, end of year......                                -123
----------------------------------------------------------------------------

          PLUS/SLS LOANS
    Cumulative balance of guaranteed loans 
                outstanding:
2210  Outstanding, start of year........
2251  Repayments and prepayments........
      Adjustments:

2261    Terminations for default that 
          result in loans receivable....
2263    Terminations for default that 
          result in claim payments......
                                           ---------   ---------  ----------
2290    Outstanding, end of year........
----------------------------------------------------------------------------

    Memorandum:
2299  Guaranteed amount of guaranteed 
        loans outstanding, end of year..
----------------------------------------------------------------------------

    Addendum:
      Cumulative balance of defaulted guaranteed 
          loans that result in loans receivable:

2310    Outstanding, start of year......
2331    Disbursements for guaranteed 
          loan claims...................
2351    Repayments of loans receivable..                                  -2
2361    Write-offs of loans receivable..
2364    Other adjustments, net..........                                  -1
                                           ---------   ---------  ----------
2390      Outstanding, end of year......                                  -3
---------------------------------------------------------------------------

                        Statement of Operations (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   91-0230-2-1-502    1997 actual    1998 actual     1999 est.      2000 est.
-----------------------------------------------------------------------------------------------
    Stafford:
0111  Revenue...........................                                                     126
0112  Expense...........................                                                       2
                                        ------------ --------------  ------------  -------------
0119  Net income or loss (-)............                                                     128
    PLUS/SLS:
0121  Revenue...........................                                                       3
0122  Expense...........................                                                       1
                                        ------------ --------------  ------------  -------------
0129  Net income or loss (-)............                                                       4
                                        ------------ --------------  ------------  -------------
0199  Net income or loss................                                                     132
-----------------------------------------------------------------------------------------------

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   91-0230-2-1-502    1997 actual    1998 actual     1999 est.      2000 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
1101  Federal assets: Fund balances with 
        Treasury........................                                                      12
      Net value of assets related to 
          pre-1992 direct loans 
          receivable and acquired 
          defaulted guaranteed loans 
          receivable:

1701    Defaulted guaranteed loans, 
          gross.........................                                                    -126
1704    Defaulted guaranteed loans and 
          interest receivable, net......                                                    -126
                                        ------------ --------------  ------------  -------------
1799      Value of assets related to 
            loan guarantees.............                                                    -126
                                        ------------ --------------  ------------  -------------
1999    Total assets....................                                                    -114
    NET POSITION:
3100  Appropriated capital..............                                                    -114
                                        ------------ --------------  ------------  -------------
3999    Total net position..............                                                    -114
-----------------------------------------------------------------------------------------------

[[Page 380]]



               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0230-2-1-502      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
25.2  Other services....................                                   3
41.0  Grants, subsidies, and 
        contributions...................                                 606
                                           ---------   ---------  ----------
99.9    Total new obligations...........                                 609
---------------------------------------------------------------------------

                                

          College Housing and Academic Facilities Loans Program

    For Federal administrative expenses authorized under section 121 of 
the Higher Education Act, [$698,000] $737,000 to carry out activities 
related to existing facility loans entered into under the Higher 
Education Act. (Department of Education Appropriations Act, 1999, as 
included in Public Law 105-277, section 101(f).)

  Historically Black College and University Capital Financing Program 
                                 Account

    The total amount of bonds insured pursuant to section 344 of title 
III, part D of the Higher Education Act shall not exceed $357,000,000, 
and the cost, as defined in section 502 of the Congressional Budget Act 
of 1974, of such bonds shall not exceed zero.
    For administrative expenses to carry out the Historically Black 
College and University Capital Financing Program entered into pursuant 
to title III, part D of the Higher Education Act, as amended, [$96,000] 
$207,000. (Department of Education Appropriations Act, 1999, as included 
in Public Law 105-277, section 101(f).)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0241-0-1-502      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.09 Federal administration............           1           1           1
                                           ---------   ---------  ----------
10.00   Total obligations (object class 
          99.5).........................           1           1           1
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......           1           1           1
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................           1
22.70 Balance of authority to borrow 
        withdrawn.......................          -1
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......           1           1           1
23.95 Total new obligations.............          -1          -1          -1
----------------------------------------------------------------------------

    New budget authority (gross), detail:
40.00 Appropriation (Federal 
        administration).................           1           1           1
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year           2           1           1
73.10 Total new obligations.............           1           1           1
73.20 Total outlays (gross).............          -1          -1          -1
73.45 Adjustments in unexpired accounts.          -1
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..           1           1           1
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority           1           1           1
86.93 Outlays from current balances.....                                   1
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........           1           1           1
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................           1           1           1
90.00 Outlays...........................           1           1           1
---------------------------------------------------------------------------

Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in 
                            millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0241-0-1-502      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Direct loan subsidy outlays:
1340  Subsidy outlays...................
----------------------------------------------------------------------------

    Administrative expense data:
3510  Budget authority..................           1           1           1
3590  Outlays from new authority........           1           1           1
---------------------------------------------------------------------------

    The College Housing and Academic Facilities Loan (CHAFL) Program 
account and the Historically Black College and University (HBCU) Capital 
Financing Program account are consolidated for presentation purposes 
only. The College Housing and Academic Facilities Loans and Historically 
Black College and University Capital Financing programs will continue to 
be administered separately.

    The College Housing and Academic Facilities Loans (CHAFL) Program.--
The Department began issuing CHAFL facility loans in 1987 and made its 
last awards in 1993. Prior to 1987, loans were made under two separate 
loan programs: Higher Education Facilities Loans (HEFL) and College 
Housing Loans (CHL). The loans support financing for the reconstruction, 
renovation, and construction of academic facilities, housing and other 
postsecondary education facilities for students and faculty. Although 
the Department no longer makes new loans, the Department continues to be 
responsible for conducting architectural and engineering reviews before 
disbursing payments to institutions and servicing the outstanding loans 
under an agreement with the Federal Reserve Bank.

    In prior years, funding for CHAFL administration was in this 
account, and funding for CHL and HEFL administration was split between 
the Department's Program Administration account and the liquidating 
accounts for these two programs. Beginning in 1998, the Department 
consolidated funding for administrative activities for CHAFL, HEFL, and 
CHL under a single account. The 2000 request includes funding for 
personnel and other discretionary costs for all three programs. Loan 
servicing and architectural and engineering services for the HEFL and 
CHL programs are funded from their respective liquidating accounts.

    Historically Black College and University Capital Financing 
Program.--The Historically Black College and University (HBCU) Capital 
Financing Program provides HBCUs with private capital for capital 
projects such as repairs, renovation, and construction of classrooms, 
libraries, laboratories, dormitories, instructional equipment, and 
research instrumentation. The 1994 appropriation granted the Department 
authority to enter into insurance agreements with a private for-profit 
Designated Bonding Authority to guarantee no more than $357,000,000 loan 
principal plus accrued unpaid interest for taxable bonds. The bonding 
authority issues the bonds and maintains an escrow account in which 5 
percent of each institution's principal is deposited. This amount is 
estimated to be sufficient to cover all potential delinquencies and 
defaults.

    The first loan was issued in 1996 for $3.5 million, and another loan 
for $4.7 million was made in 1997. Additional loans are expected in 1999 
and 2000. No subsidy appropriations are required. The 2000 budget 
requests funds for continuing Federal administrative activities only.

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 91-0241-0-1-502      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
1001  Total compensable workyears: Full-
        time equivalent employment......           7           7           7
---------------------------------------------------------------------------

                                

     College Housing and Academic Facilities Loans Financing Account

    Note.--The financing account includes all cash flows to and from the 
Government from college housing and academic facilities loans committed 
after 1991.


[[Page 381]]



               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-4252-0-3-502      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.02 Interest paid to Treasury.........           1           1           1
                                           ---------   ---------  ----------
10.00   Total new obligations...........           1           1           1
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New financing authority (gross)...           2           1           1
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................           5
22.70 Balance of authority to borrow 
        withdrawn.......................          -4
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......           3           1           1
23.95 Total new obligations.............          -1          -1          -1
----------------------------------------------------------------------------

    New financing authority (gross), detail:
      Spending authority from offsetting 
          collections:

68.00   Offsetting collections (cash)...           2           1           1
68.10   Change in receivables from 
          Program Account...............          -1
68.15   Adjustments to receivables......           1
                                           ---------   ---------  ----------
68.90     Spending authority from 
            offsetting collections 
            (total).....................           2           1           1
----------------------------------------------------------------------------

    Change in unpaid obligations:
      Unpaid obligations, start of year:

        Obligated balance, start of 
            year:
72.40     Obligated balance: Borrowing 
            Authority...................          13           8           8
72.40     Obligated balance, Treasury 
            Interest....................           1           2
72.95   Receivables from program account           2           1           1
                                           ---------   ---------  ----------
72.99     Total unpaid obligations, 
            start of year...............          16          11           9
73.10 Total new obligations.............           1           1           1
73.20 Total financing disbursements 
        (gross).........................          -3          -4          -2
73.45 Adjustments in unexpired accounts.          -5
      Unpaid obligations, end of year:

        Obligated balance, end of year:
74.40     Obligated balance: Borrowing 
            Authority...................           8           8           7
74.40     Obligated balance: Treasury 
            Interest....................           2
74.95   Receivables from program account           1           1           1
                                           ---------   ---------  ----------
74.99     Total unpaid obligations, end 
            of year.....................          11           9           8
87.00 Total financing disbursements 
        (gross).........................           3           4           2
----------------------------------------------------------------------------

    Offsets:
      Against gross financing authority and 
          financing disbursements:

        Offsetting collections (cash) 
            from:
88.25     Interest on uninvested funds..          -1
88.40     Interest repayments...........          -1          -1          -1
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........          -2          -1          -1
88.95 Change in receivables from program 
        accounts........................           1
88.96 From Federal sources: Adjustment 
        to receivables and unpaid, 
        unfilled orders.................          -1
----------------------------------------------------------------------------

    Net financing authority and financing 
        disbursements:
89.00 Financing authority...............
90.00 Financing disbursements...........           1           3           1
---------------------------------------------------------------------------

               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-4252-0-3-502      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Position with respect to appropriations act 
                limitation on obligations:
1111  Limitation on direct loans........
1112  Unobligated direct loan limitation
1113  Unobligated limitation carried 
        forward.........................
1131  Direct loan obligations exempt 
        from limitation.................
                                           ---------   ---------  ----------
1150    Total direct loan obligations...
----------------------------------------------------------------------------

    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........          20          21          22
1231  Disbursements: Direct loan 
        disbursements...................           1           1           1
                                           ---------   ---------  ----------
1290    Outstanding, end of year........          21          22          23
---------------------------------------------------------------------------

    The reestimate of the subsidy from prior year obligations may 
require the Department to exercise its permanent indefinite authority to 
borrow funds to cover outstanding Treasury interest expenses due on 
September 30, 2000.

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   91-4252-0-3-502    1997 actual    1998 actual     1999 est.      2000 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
      Investments in US securities:

1106    Federal assets: Receivables, net           4              2             3              3
      Net value of assets related to 
          post-1991 direct loans 
          receivable:

1401    Direct loans receivable, gross..          18             21            22             22
1402    Interest receivable.............                          1             1              1
1405    Allowance for subsidy cost (-)..          -1
                                        ------------ --------------  ------------  -------------
1499      Net present value of assets 
            related to direct loans.....          17             22            23             23
                                        ------------ --------------  ------------  -------------
1999    Total assets....................          21             24            26             26
    LIABILITIES:
      Federal liabilities:

2102    Interest payable................           1              1             1              1
2103    Debt............................          20             27            27             27
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............          21             28            28             28
    NET POSITION:
3100  Appropriated capital..............           2             -2            -2             -2
                                        ------------ --------------  ------------  -------------
3999    Total net position..............           2             -2            -2             -2
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position          23             26            26             26
-----------------------------------------------------------------------------------------------

                                

    College Housing and Academic Facilities Loans Liquidating Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0242-0-1-502      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
10.00 Total obligations (object class 
        43.0)...........................          25          24          23
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................          58          15
22.00 New budget authority (gross)......          67          57          53
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................           3
22.40 Capital transfer to general fund..         -88         -48         -30
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          40          24          23
23.95 Total new obligations.............         -25         -24         -23
24.40 Unobligated balance available, end 
        of year.........................          15
----------------------------------------------------------------------------

    New budget authority (gross), detail:
68.00 Spending authority from offsetting 
        collections (gross): Offsetting 
        collections (cash)..............          67          57          53
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year          30          29          29
73.10 Total new obligations.............          25          24          23
73.20 Total outlays (gross).............         -23         -24         -23
73.45 Adjustments in unexpired accounts.          -3
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..          29          29          29
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new permanent 
        authority.......................          23          23          22
86.98 Outlays from permanent balances...                       1           1
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          23          24          23
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

        Offsetting collections (cash) 
            from:
          Non-Federal sources:
88.40       Repayments of principal.....         -46         -38         -35
88.40       Interest received on loans..         -21         -19         -18
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........         -67         -57         -53
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................

[[Page 382]]

90.00 Outlays...........................         -44         -33         -30
---------------------------------------------------------------------------

    The College Housing and Academic Facilities Loans Liquidating 
Account records all cash flows to and from the Government resulting from 
direct loans made prior to 1992 to schools and colleges for the 
reconstruction, renovation, and construction of academic facilities, 
housing and other postsecondary education facilities. Loans were made 
under three separate loan programs: Higher Education Facilities Loans, 
College Housing Loans, and College Housing and Academic Facilities 
Loans. Beginning in 1998, the Department consolidated the three loan 
programs into the CHAFL Liquidating account for budget presentation 
purposes only. The three individual programs continue to be administered 
separately. 

               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0242-0-1-502      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
          CHAFL LIQUIDATING
    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........         154         151         151
1231  Disbursements: Direct loan 
        disbursements...................           4
1251  Repayments: Repayments and 
        prepayments.....................          -7
                                           ---------   ---------  ----------
1290    Outstanding, end of year........         151         151         151
----------------------------------------------------------------------------

          HIGHER EDUCATION FACILITIES 
              LOANS
    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........          44          35          31
1251  Repayments: Repayments and 
        prepayments.....................          -9          -4          -2
                                           ---------   ---------  ----------
1290    Outstanding, end of year........          35          31          29
----------------------------------------------------------------------------

          COLLEGE HOUSING LOANS
    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........         416         380         349
1251  Repayments: Repayments and 
        prepayments.....................         -36         -31         -30
                                           ---------   ---------  ----------
1290    Outstanding, end of year........         380         349         319
---------------------------------------------------------------------------

                                

Historically Black College and University Capital Financing Direct Loan 
                            Financing Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-4255-0-3-502      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
87.00 Total financing disbursements 
        (gross).........................           4           9          23
----------------------------------------------------------------------------

    Net financing authority and financing 
        disbursements:
89.00 Financing authority...............
90.00 Financing disbursements...........           4           9          23
---------------------------------------------------------------------------

    In 1997, the Federal Financing Bank (FFB) began purchasing bonds 
issued by the HBCU Designated Bonding Authority. Under the policies 
governing Federal credit programs, bonds purchased by the FFB and 
supported by the Department of Education with a letter of credit create 
the equivalent of a Federal direct loan. For Budget purposes, all FFB 
loans shall be treated as direct loans. HBCU bonds are still available 
for purchase by the private sector, and these will be treated as loan 
guarantees. The Department expects some future loans may be financed 
from private sources.

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   91-4255-0-3-502    1997 actual    1998 actual     1999 est.      2000 est.
-----------------------------------------------------------------------------------------------
    LIABILITIES:
2204  Non-Federal liabilities: 
        Liabilities for loan guarantees.                          4            13             36
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............                          4            13             36
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position                          4            13             36
-----------------------------------------------------------------------------------------------

                                

Historically Black College and University Capital Financing, Guaranteed 
                         Loan Financing Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-4254-0-3-502      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
87.00 Total financing disbursements 
        (gross).........................                       1           7
----------------------------------------------------------------------------

    Net financing authority and financing 
        disbursements:
89.00 Financing authority...............
90.00 Financing disbursements...........                       1           7
---------------------------------------------------------------------------
    Note.--The appropriations language for this program specifies a 
limitation that applies to direct and guaranteed loans in total.

    As noted above, this account represents the HBCU capital financing 
loans that the Department of Education expects to be financed from 
private sources.

             Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-4254-0-3-502      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Position with respect to appropriations act 
                limitation on commitments:
2111  Limitation on guaranteed loans 
        made by private lenders.........
                                           ---------   ---------  ----------
2150    Total guaranteed loan 
          commitments...................
----------------------------------------------------------------------------

    Cumulative balance of guaranteed loans 
                outstanding:
2210  Outstanding, start of year........                                   1
2231  Disbursements of new guaranteed 
        loans...........................                       1           7
2251  Repayments and prepayments........
                                           ---------   ---------  ----------
2290    Outstanding, end of year........                       1           8
----------------------------------------------------------------------------

    Memorandum:
2299  Guaranteed amount of guaranteed 
        loans outstanding, end of year..                       1           8
---------------------------------------------------------------------------

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   91-4254-0-3-502    1997 actual    1998 actual     1999 est.      2000 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
1101  Federal assets: Fund balances with 
        Treasury........................                                        1              7
                                        ------------ --------------  ------------  -------------
1999    Total assets....................                                        1              7
-----------------------------------------------------------------------------------------------

                                


 
             OFFICE OF EDUCATIONAL RESEARCH AND IMPROVEMENT

                              Federal Funds

General and special funds:

             Education Research, Statistics, and Improvement

    For carrying out activities authorized by the Educational Research, 
Development, Dissemination, and Improvement Act of 1994, including part 
E; the National Education Statistics Act of 1994, including sections 411 
and 412; section 2102 of title II, and parts A, B, [I,] and K and 
section 10601 of title X, and part C of title XIII of the Elementary and 
Secondary Education Act of 1965, as amended, and title VI of Public Law 
103-227, [$664,867,000] $540,282,000: Provided, That funds shall be 
available to the National Assessment Governing Board to support 
continuation of its contract for the devel

[[Page 383]]

opment of voluntary national tests in reading and mathematics, including 
pilot testing and field testing of test items and test forms: Provided 
further, That $25,000,000 shall be available to demonstrate effective 
approaches to comprehensive school reform, to be allocated and expended 
in accordance with the instructions relating to this activity in the 
statement of managers on the conference report accompanying Public Law 
105-78 [and in the statement of the managers on the conference report 
accompanying this Act]: Provided further, That the funds made available 
for comprehensive school reform shall become available on July 1, [1999] 
2000, and remain available through September 30, [2000] 2001, and in 
carrying out this initiative, the Secretary and the States shall support 
only approaches that show the most promise of enabling children to meet 
challenging State content standards and challenging State student 
performance standards based on reliable research and effective 
practices, and include an emphasis on basic academics and parental 
involvement: [Provided further, That $16,000,000 of the funds made 
available for title X, part A of the Elementary and Secondary Education 
Act, shall be carried out consistent with the subject areas outlined in 
the House and Senate reports and the statement of the managers, and 
should be administered in a manner consistent with current departmental 
practices and policies:] Provided further, That of the funds available 
for part A of title X of the Elementary and Secondary Education Act, 
$5,000,000 shall be awarded to the National Constitution Center, 
established by Public Law 100-433, for exhibition design, program 
planning, and operation of the Center: Provided further, That the 
Secretary may require recipients of awards under part A of title X of 
the Elementary and Secondary Education Act to provide matching funds 
from sources other than Federal funds and may limit competitions to 
State or local educational agencies: Provided further, That of the funds 
available for section 10601 of title X of such Act, $2,000,000 shall be 
awarded to the Center for Educational Technologies for production and 
distribution of an effective CD ROM product that would complement the 
``We the People: The Citizen and the Constitution'' curriculum: Provided 
further, That, in addition to the $6,000,000 for Title VI of Public Law 
103-227 and notwithstanding the provisions of section 601(c)(1)(C) of 
that Act, $1,000,000 shall be available to the Center for Civic 
Education to conduct a civic education program with Northern Ireland and 
the Republic of Ireland and, consistent with the civics and government 
activities authorized in section 601(c)(3) of Public Law 103-227, to 
provide civic education assistance to democracies in developing 
countries. The term ``developing countries'' shall have the same meaning 
as the term ``developing country'' in the Education for the Deaf Act: 
[Provided further, That of the amount provided for part A of title X of 
the Elementary and Secondary Education Act of 1965, $2,000,000 shall be 
for a demonstration of full service community school sites in Charles 
County, Maryland, Westchester County, New York, Cranston, Rhode Island, 
and Skagit County, Washington; $2,000,000 shall be awarded to First Book 
for literacy programs; $1,750,000 shall be awarded to the Whitaker 
Center for Science and the Arts, Harrisburg, Pennsylvania for teaching 
of science education using the arts; $350,000 shall be awarded to the 
School of Education at the University of Montana and the Montana Board 
of Crime Control for community-based initiatives to promote non-violent 
behavior in schools; $1,000,000 shall be awarded to the NetDay 
organization to assist schools in connecting K-12 classrooms to the 
Internet; $1,000,000 shall be awarded to the National Museum of Women in 
the Arts; $1,000,000 shall be awarded to Youth Friends of Kansas City to 
improve attendance and academic performance; $750,000 shall be awarded 
to the Thornberry Center for Youth and Families, Kansas City, Missouri 
to assist at-risk children; $400,000 shall be for Bay Shore, New York 
for Literacy Education and Assessment Partnerships; $1,150,000 shall be 
awarded to provide technology assistance and for operation of a math/
science learning center in Perry County, Kentucky; $100,000 shall be for 
Presidio School District, Texas for library equipment and materials; 
$1,200,000 shall be for the Southeastern Pennsylvania Consortium for 
Higher Education; $1,000,000 shall be for the Dowling College Global 
Learning Center at the former LaSalle Academy in New York for a master 
teacher training and education center; $10,000,000 for continuing a 
demonstration of public school facilities repair and construction to the 
Iowa Department of Education; and $1,000,000 shall be awarded to the 
Hechkscher Museum of Art, Long Island, New York for incorporating arts 
into education curriculum: Provided further, That of the amount provided 
for part I of title X of the Elementary and Secondary Education Act of 
1965, $500,000 shall be for after school programs for the Chippewa Falls 
Area United School System, Wisconsin; $400,000 shall be for after-school 
programs for the Wausau School System, Wisconsin; $350,000 shall be for 
the New Rochelle School System, New York, after-school programs; 
$100,000 shall be for the New York Hall of Science, Queens, New York, 
after-school program; $25,000 shall be for Louisville Central Community 
Centers Youth Education Program to support after-school programming; 
$25,000 shall be for Canaan's Community Development Corporation in 
Louisville, Kentucky for the Village Learning Center after-school 
program; $300,000 shall be for the Bay Shore Community Learning Wellness 
and Fitness Center for Drug Free Lifestyles in Bay Shore, New York; 
$2,500,000 shall be for an after school anti-drug pilot program in the 
Chicago Public Schools; and $400,000 shall be for the Green Bay, 
Wisconsin Public School System after school program:] Provided further, 
That [$10,000,000] $55,000,000 of the funds provided for the national 
education research institutes shall be allocated notwithstanding 
[section] sections 912(m)(1)(B)--(F) and  931(c)(2)(B)--(C) of Public 
Law 103-227. (Department of Education Appropriations Act, 1999, as 
included in Public Law 105-277, section 101(f).)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-1100-0-1-503      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Research, development and dissemination:

00.01   National education research 
          institutes....................          54          64         109
00.02   Regional educational 
          laboratories..................          56          61          65
00.03   National dissemination 
          activities....................          19          19          24
00.04 Statistics........................          59          68          78
00.05 Assessment........................          35          40          44
00.06 Eisenhower professional 
        development federal activities..          23          23          30
00.07 Fund for the improvement of 
        education.......................          96         159         140
00.08 Javits gifted and talented 
        education.......................           6           6           6
00.09 Eisenhower regional mathematics 
        and science education consortia.          15          15          17
00.10 21st Century community learning 
        centers.........................          40         200
00.11 National writing project..........           5           7          10
00.12 Civic education...................           6           8          10
00.13 International education exchange..           5           7           7
                                           ---------   ---------  ----------
01.00   Total direct program............         419         677         540
09.01 Reimbursable program..............           6
                                           ---------   ---------  ----------
10.00   Total new obligations...........         425         677         540
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................                      12
22.00 New budget authority (gross)......         437         665         540
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         437         677         540
23.95 Total new obligations.............        -425        -677        -540
24.40 Unobligated balance available, end 
        of year.........................          12
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Current:

40.00   Appropriation...................         431         665         540
      Permanent:

68.00   Spending authority from 
          offsetting collections: 
          Offsetting collections (cash).           6
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................         437         665         540
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year         610         496         643
73.10 Total new obligations.............         425         677         540
73.20 Total outlays (gross).............        -520        -530        -659
73.40 Adjustments in expired accounts...         -19
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..         496         643         524
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority          63         151         156
86.93 Outlays from current balances.....         455         375         503
86.97 Outlays from new permanent 
        authority.......................           2
86.98 Outlays from permanent balances...                       3           1
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         520         530         659
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........          -6
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................         431         665         540

[[Page 384]]

90.00 Outlays...........................         514         530         659
---------------------------------------------------------------------------
    Note.--Excludes $600 million in budget authority in 2000 for 21st 
Century community learning centers transferred to the Education Reform 
account. Comparable amounts for 1998 ($40 million) and 1999 ($200 million) 
are included above.

    Research, development, and dissemination.--
        National education research institutes.--Funds support the 
    activities of five research institutes organized to address topics 
    of national concern in education. The institutes carry out 
    comprehensive programs of research and development by funding 
    research centers, field-initiated research studies, and other 
    research projects, with particular emphasis on interagency 
    collaboration. The National Education Research Institutes are 
    included in the 21st Century Research Fund.
        Regional educational laboratories.--Ten laboratories provide 
    applied research and development, dissemination, and technical 
    assistance services to address needs in specified regions throughout 
    the country.
        National dissemination activities.--Funds support information 
    clearinghouses, a national dissemination system, and a national 
    library of education, which serves as a central location within the 
    Federal government for information on education.

    Statistics.--Funds support the collection of statistics on 
educational institutions and on individuals to monitor trends in 
education. Funds also support a coordinated program of statistical 
services to assist States in the development of comparable databases and 
analyses of the implications of data.

    Assessment.--Funds support the National Assessment of Educational 
Progress, which surveys young Americans to provide reliable information 
about educational attainment in important skill areas. Both national- 
and State-representative data are collected.

    Eisenhower professional development Federal activities.--Funds 
support activities to promote excellence in teaching by improving 
professional development in the core subject areas and disseminating 
information on effective programs and practices. Such activities include 
new projects in the America Counts national mathematics initiative as 
well as continued support for the Eisenhower National Mathematics and 
Science Clearinghouse and the National Board for Professional Teaching 
Standards.

    Fund for the improvement of education (FIE).--Funds support 
nationally significant projects to improve the quality of education, 
assist all students to meet challenging standards, and contribute to 
achievement of the National Education Goals. Included under FIE are 
funds supporting the comprehensive school reform demonstration program 
that allow non-title I schools to participate.

    Javits gifted and talented education.--Funds support projects 
designed to help educators identify and meet the special educational 
needs of gifted and talented students and, where appropriate, to adapt 
strategies successful with those students to improve instruction for all 
students.

    Eisenhower regional mathematics and science education consortia.--
Funds support regional consortia to disseminate exemplary mathematics 
and science education materials and provide technical assistance to help 
teachers and administrators implement new teaching methods and 
assessment tools.

    National writing project.--Funds support a national professional 
development project to improve the teaching of writing by teachers of 
all subject areas.

    Civic education.--Funds are used to provide an award to the Center 
for Civic Education to help educate students about the history and 
principles of the Constitution, including the Bill of Rights, and to 
support the production and distribution of a CD ROM product that 
complements the ``We the People'' curriculum.

    International education exchange.--Funds are used for international 
exchange programs to help improve civics and economics education in 
central and eastern European countries, countries that were part of the 
former Soviet Union, and the United States. Funds are also used to 
conduct a civic education program with Northern Ireland and the Republic 
of Ireland.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-1100-0-1-503      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

      Direct obligations:

11.3    Personnel compensation: Other 
          than full-time permanent......           1           1           1
24.0    Printing and reproduction.......           2           3           3
25.1    Advisory and assistance services          14          14          14
25.2    Other services..................          44          54          75
25.3    Purchases of goods and services 
          from Government accounts......          13          13          13
25.5    Research and development 
          contracts.....................          85         109         133
25.7    Operation and maintenance of 
          equipment.....................           6           7           7
31.0    Equipment.......................           1           1           1
41.0    Grants, subsidies, and 
          contributions.................         253         475         293
                                           ---------   ---------  ----------
99.0      Subtotal, direct obligations..         419         677         540
99.0  Reimbursable obligations..........           6
                                           ---------   ---------  ----------
99.9    Total new obligations...........         425         677         540
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 91-1100-0-1-503      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
1001  Total compensable workyears: Full-
        time equivalent employment......          13          15          15
---------------------------------------------------------------------------

                                


 
                         DEPARTMENTAL MANAGEMENT

                              Federal Funds

General and special funds:

                         Program Administration

    For carrying out, to the extent not otherwise provided, the 
Department of Education Organization Act, including rental of conference 
rooms in the District of Columbia and hire of two passenger motor 
vehicles, [$362,000,000] $386,000,000. (Department of Education 
Appropriations Act, 1999, as included in Public Law 105-277, section 
101(f).)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0800-0-1-503      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct program....................         340         362         386
00.02 Y2K Activities....................           1           3
09.01 Reimbursable program..............           1           1           1
                                           ---------   ---------  ----------
10.00   Total new obligations...........         342         366         387
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......         342         366         387
23.95 Total new obligations.............        -342        -366        -387
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Current:

40.00   Appropriation...................         341         362         386
42.00   Transferred from other accounts.                       3
                                           ---------   ---------  ----------
43.00     Appropriation (total).........         341         365         386
      Permanent:

68.00   Spending authority from 
          offsetting collections: 
          Offsetting collections (cash).           1           1           1
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................         342         366         387
----------------------------------------------------------------------------

[[Page 385]]



    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year         119         128         120
73.10 Total new obligations.............         342         366         387
73.20 Total outlays (gross).............        -328        -374        -380
73.40 Adjustments in expired accounts...          -5
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..         128         120         126
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority         247         276         292
86.93 Outlays from current balances.....          72          94          85
86.97 Outlays from new permanent 
        authority.......................           1
86.98 Outlays from permanent balances...           8           4           2
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         328         374         380
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........          -1          -1          -1
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................         341         365         386
90.00 Outlays...........................         327         373         379
---------------------------------------------------------------------------

    The Program Administration account includes the direct Federal costs 
of providing grants and administering elementary and secondary 
education, bilingual education, Indian education, higher education, 
vocational and adult education, and special education programs, programs 
for persons with disabilities and a portion of the direct Federal costs 
for administering student financial aid programs. It also supports 
assessment, statistics, research and improvement activities, and costs 
for the Year 2000 computer conversion process.

    In addition, this account includes the cost of providing centralized 
support and administrative services, overall policy development, and 
strategic planning for the Department. Included in the centralized 
activities are rent and mail services; telecommunciations; contractual 
services; financial management and accounting, including payments to 
schools, education agencies and other grant recipients, and preparation 
of auditable financial statements; information technology services; 
personnel management; budget formulation and execution; program 
evaluation; legal services; congressional and public relations; and 
intergovernmental affairs.

    Also included in this account are contributions from the public. 
Activities supported include the Millennium Project, Satellite Town 
Meetings, Goals 2000 Teachers' Forum, School Recognition, Professional 
Development Awards, and the Gifts and Bequests Miscellaneous Fund. No 
new contributions are currently anticipated for 2000.

    Reimbursable program.--Reimbursements to this account include the 
costs of providing administrative services to other agencies.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0800-0-1-503      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

      Direct obligations:

        Personnel compensation:
11.1      Full-time permanent...........         134         159         170
11.3      Other than full-time permanent          22          10          10
11.5      Other personnel compensation..           3           3           3
                                           ---------   ---------  ----------
11.9        Total personnel compensation         159         172         183
12.1    Civilian personnel benefits.....          32          37          40
21.0    Travel and transportation of 
          persons.......................           7           7           8
23.1    Rental payments to GSA..........          22          24          25
23.3    Communications, utilities, and 
          miscellaneous charges.........          13          15          18
24.0    Printing and reproduction.......           6           7           3
25.1    Advisory and assistance services           6           5           5
25.2    Other services..................          26          23          30
25.3    Purchases of goods and services 
          from Government accounts......           7           7           6
25.7    Operation and maintenance of 
          equipment.....................          47          52          56
26.0    Supplies and materials..........           3           3           3
31.0    Equipment.......................          11          12           8
32.0    Land and structures.............           2           1           1
                                           ---------   ---------  ----------
99.0      Subtotal, direct obligations..         341         365         386
99.0  Reimbursable obligations..........           1           1           1
                                           ---------   ---------  ----------
99.9    Total new obligations...........         342         366         387
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 91-0800-0-1-503      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
1001  Total compensable workyears: Full-
        time equivalent employment......       2,610       2,712       2,753
---------------------------------------------------------------------------

                                

                         Office for Civil Rights

    For expenses necessary for the Office for Civil Rights, as 
authorized by section 203 of the Department of Education Organization 
Act, [$66,000,000] $73,262,000. (Department of Education Appropriations 
Act, 1999, as included in Public Law 105-277, section 101(f).)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0700-0-1-751      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Civil rights......................          61          66          73
                                           ---------   ---------  ----------
10.00   Total new obligations...........          61          66          73
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......          62          66          73
23.95 Total new obligations.............         -61         -66         -73
----------------------------------------------------------------------------

    New budget authority (gross), detail:
40.00 Appropriation.....................          62          66          73
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year           6          17          12
73.10 Total new obligations.............          61          66          73
73.20 Total outlays (gross).............         -50         -71         -70
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..          17          12          15
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority          47          56          60
86.93 Outlays from current balances.....           3          15          10
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          50          71          70
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................          62          66          73
90.00 Outlays...........................          50          71          70
---------------------------------------------------------------------------

    The Office for Civil Rights is responsible for ensuring that no 
person is unlawfully discriminated against on the basis of race, color, 
national origin, sex, disability, or age in the delivery of services or 
the provision of benefits in programs or activities of schools and 
institutions receiving financial assistance from the Department of 
Education. The authorities under which the Office for Civil Rights 
operates are title VI of the Civil Rights Act of 1964 (racial and ethnic 
discrimination), title IX of the Education Amendments of 1972 (sex 
discrimination), section 504 of the Rehabilitation Act of 1973 
(discrimination against individuals with a disability), the Age 
Discrimination Act of 1975, and the Americans with Disabilities Act of 
1990.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0700-0-1-751      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

      Personnel compensation:

11.1    Full-time permanent.............          36          40          42
11.3    Other than full-time permanent..           2           2           2
                                           ---------   ---------  ----------
11.9      Total personnel compensation..          38          42          44
12.1  Civilian personnel benefits.......           8           9           9
21.0  Travel and transportation of 
        persons.........................           1           1           1
23.1  Rental payments to GSA............           4           5           5
23.3  Communications, utilities, and 
        miscellaneous charges...........           1           2           2

[[Page 386]]

25.2  Other services....................           1           1           1
25.3  Purchases of goods and services 
        from Government accounts........           1           1           1
25.7  Operation and maintenance of 
        equipment.......................           2           3           6
26.0  Supplies and materials............           1
31.0  Equipment.........................           3           2           3
                                           ---------   ---------  ----------
99.0      Subtotal, direct obligations..          60          66          72
99.5  Below reporting threshold.........           1                       1
                                           ---------   ---------  ----------
99.9    Total new obligations...........          61          66          73
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 91-0700-0-1-751      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
1001  Total compensable workyears: Full-
        time equivalent employment......         685         724         724
---------------------------------------------------------------------------

                                

                     Office of the Inspector General

    For expenses necessary for the Office of the Inspector General, as 
authorized by section 212 of the Department of Education Organization 
Act, [$31,242,000] $34,000,000. (Department of Education Appropriations 
Act, 1999, as included in Public Law 105-277, section 101(f).)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-1400-0-1-751      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Inspector General.................          30          31          34
                                           ---------   ---------  ----------
10.00   Total new obligations...........          30          31          34
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    Budgetary resources available for obligation:
22.00 New budget authority (gross)......          30          31          34
23.95 Total new obligations.............         -30         -31         -34
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    New budget authority (gross), detail:
40.00 Appropriation.....................          30          31          34
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    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year           5          11           6
73.10 Total new obligations.............          30          31          34
73.20 Total outlays (gross).............         -24         -36         -33
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..          11           6           7
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    Outlays (gross), detail:
86.90 Outlays from new current authority          20          26          28
86.93 Outlays from current balances.....           4          10           5
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          24          36          33
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    Net budget authority and outlays:
89.00 Budget authority..................          30          31          34
90.00 Outlays...........................          24          36          33
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    The Inspector General is responsible for the quality, coverage, and 
coordination of audit, investigation, and security functions relating to 
Federal education activities. The Inspector General has the authority to 
inquire into all activities of the Department including those performed 
under Federal education contracts, grants, or other agreements. Under 
the Chief Financial Officers Act of 1990, the Inspector General is also 
responsible for internal reviews of the Department's financial systems 
and audits of its financial statements.

               Object Classification (in millions of dollars)

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Identification code 91-1400-0-1-751      1998 actual   1999 est.   2000 est.
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      Personnel compensation:

11.1    Full-time permanent.............          16          17          18
11.3    Other than full-time permanent..           1           1           1
11.5    Other personnel compensation....           1           1           1
                                           ---------   ---------  ----------
11.9      Total personnel compensation..          18          19          20
12.1  Civilian personnel benefits.......           4           4           5
21.0  Travel and transportation of 
        persons.........................           2           2           2
23.1  Rental payments to GSA............           2           2           2
23.3  Communications, utilities, and 
        miscellaneous charges...........                                   1
25.1  Advisory and assistance services..           1           1           1
25.3  Purchases of goods and services 
        from Government accounts........           1           1           1
25.7  Operation and maintenance of 
        equipment.......................           1           1           1
31.0  Equipment.........................                       1           1
                                           ---------   ---------  ----------
99.0      Subtotal, direct obligations..          29          31          34
99.5  Below reporting threshold.........           1
                                           ---------   ---------  ----------
99.9    Total new obligations...........          30          31          34
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                              Personnel Summary

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Identification code 91-1400-0-1-751      1998 actual   1999 est.   2000 est.
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1001  Total compensable workyears: Full-
        time equivalent employment......         279         285         285
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                         Headquarters Renovation

               Program and Financing (in millions of dollars)

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Identification code 91-1500-0-1-503      1998 actual   1999 est.   2000 est.
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    Obligations by program activity:
10.00 Total new obligations (object 
        class 25.2).....................           1
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    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................           1
23.95 Total new obligations.............          -1
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    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year           5           2
73.10 Total new obligations.............           1
73.20 Total outlays (gross).............          -3          -2
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..           2
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    Outlays (gross), detail:
86.93 Outlays from current balances.....           3           2
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    Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................           3           2
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    This account provides the Department of Education's portion of funds 
to renovate its headquarters building, including costs for 
administrative services, information technology, telecommunications 
cabling, and systems furniture. The remaining funds required for the 
renovation, which began in October 1994, will be provided by the General 
Services Administration.

                                

  


 
                      GENERAL FUND RECEIPT ACCOUNTS

                           (in millions of dollars)

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                                         1998 actual   1999 est.   2000 est.
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Offsetting receipts from the public:
  91-022100  FFEL Guarantee agency 
    reserve recoveries: Legislative 
    proposal, subject to PAYGO..........                     142         103

[[Page 387]]

  91-291500  Repayment of loans, capital 
    contributions, higher education 
    activities, Education...............                      50          50
                                           ---------   ---------  ----------
General Fund Offsetting receipts from 
 the public.............................                     192         153
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                           GENERAL PROVISIONS

    Sec. 301. No funds appropriated in this Act may be used for the 
transportation of students or teachers (or for the purchase of equipment 
for such transportation) in order to overcome racial imbalance in any 
school or school system, or for the transportation of students or 
teachers (or for the purchase of equipment for such transportation) in 
order to carry out a plan of racial desegregation of any school or 
school system.
    Sec. 302. None of the funds contained in this Act shall be used to 
require, directly or indirectly, the transportation of any student to a 
school other than the school which is nearest the student's home, except 
for a student requiring special education, to the school offering such 
special education, in order to comply with title VI of the Civil Rights 
Act of 1964. For the purpose of this section an indirect requirement of 
transportation of students includes the transportation of students to 
carry out a plan involving the reorganization of the grade structure of 
schools, the pairing of schools, or the clustering of schools, or any 
combination of grade restructuring, pairing or clustering. The 
prohibition described in this section does not include the establishment 
of magnet schools.
    Sec. 303. No funds appropriated under this Act may be used to 
prevent the implementation of programs of voluntary prayer and 
meditation in the public schools.

                           (transfer of funds)

    Sec. 304. Not to exceed 1 percent of any discretionary funds 
(pursuant to the Balanced Budget and Emergency Deficit Control Act, as 
amended) which are appropriated for the Department of Education in this 
Act may be transferred between appropriations, but no such appropriation 
shall be increased by more than 3 percent by any such transfer: 
Provided, That the Appropriations Committees of both Houses of Congress 
are notified at least fifteen days in advance of any transfer.

                           [National Testing]

    [Sec. 305. (a) In General.--Part C of the General Education 
Provisions Act (20 U.S.C. 1231 et seq.) is amended by adding at the end 
the following:



``SEC. 447. PROHIBITION ON FEDERALLY SPONSORED TESTING.

    ``(a) General Prohibition.--Notwithstanding any other provision of 
Federal law and except as provided in subsection (b), no funds provided 
to the Department of Education or to an applicable program, may be used 
to pilot test, field test, implement, administer or distribute in any 
way any federally sponsored national test in reading, mathematics, or 
any other subject that is not specifically and explicitly provided for 
in authorizing legislation enacted into law.
    ``(b) Exceptions.--Subsection (a) shall not apply to the Third 
International Mathematics and Science Study or other international 
comparative assessments developed under the authority of section 
404(a)(6) of the National Education Statistics Act of 1994 (20 U.S.C. 
9003(a)(6) et seq.) and administered to only a representative sample of 
pupils in the United States and in foreign nations.''.
    (b) Authority of National Assessment Governing Board.--Subject to 
section 447 of the General Education Provisions Act, the exclusive 
authority over the direction and all policies and guidelines for 
developing voluntary national tests pursuant to contract RJ97153001 
previously entered into between the United States Department of 
Education and the American Institutes for Research and executed on 
August 15, 1997, and subsequently modified by the National Assessment 
Governing Board on February 11, 1998, shall continue to be vested in the 
National Assessment Governing Board established under section 412 of the 
National Education Statistics Act of 1994 (20 U.S.C. 9011).
    (c) Studies.--
        (1) Purpose, definition, and achievement levels.--The National 
    Assessment Governing Board shall determine and clearly articulate in 
    a report the purpose and intended use of any proposed federally 
    sponsored national test. Such report shall also include--
                (A) a definition of the meaning of the term 
            ``voluntary'' in regards to the administration of any 
            national test; and
                (B) a description of the achievement levels and 
            reporting methods to be used in grading any national test.
        The report shall be submitted to the White House, the Committees 
    on Education and the Workforce of the House of Representatives, the 
    Committee on Labor and Human Resources of the Senate, and the 
    Committees on Appropriations of the House of Representatives and the 
    Senate not later than September 30, 1999.
        (2) Response to report.--The National Assessment Governing Board 
    shall develop and submit to the entities identified in paragraph (1) 
    a report, not later than September 30, 1999, that addresses and 
    responds to the findings reported by the National Academy of 
    Sciences in the report entitled ``Grading the Nation's Report Card: 
    Evaluating NAEP and transforming the Assessment of Educational 
    Progress'' that assert that the achievement levels of the National 
    Assessment of Educational Progress (NAEP) are fundamentally flawed.
        (3) Technical feasibility.--The National Academy of Sciences 
    shall conduct a study regarding the technical feasibility, validity, 
    and reliability of including test items from the National Assessment 
    of Educational Progress (NAEP) for 4th grade reading and 8th grade 
    mathematics or from other tests in State and district assessments 
    for the purpose of providing a common measure of individual student 
    performance. The National Academy of Sciences shall submit, to the 
    entities identified under paragraph (1), an interim progress report 
    not later than June 30, 1999 and a final report not later than 
    September 30, 1999.]
    [Sec. 306. Notwithstanding any other provision of law, any 
institution of higher education which receives funds under title III of 
the Higher Education Act, except for grants made under section 326, may 
use up to 20 percent of its award under part A or part B of the Act for 
endowment building purposes authorized under section 331. Any 
institution seeking to use part A or part B funds for endowment building 
purposes shall indicate such intention in its application to the 
Secretary and shall abide by departmental regulations governing the 
endowment challenge grant program.]
    [Sec. 307. (a) From the amount appropriated for title VI of the 
Elementary and Secondary Education Act of 1965 in accordance with this 
section, the Secretary of Education--
        (1) shall make available a total of $6,000,000 to the Secretary 
    of the Interior (on behalf of the Bureau of Indian Affairs) and the 
    outlying areas for activities under this section; and
        (2) shall allocate the remainder by providing each State the 
    greater of the amount the State would receive if a total of 
    $1,124,620,000 were allocated under section 1122 of the Elementary 
    and Secondary Education Act of 1965 or under section 2202(b) of the 
    Act for fiscal year 1998, except that such allocations shall be 
    ratably increased or decreased as may be necessary.
    (b)(1) Each State that receives funds under this section shall 
distribute 100 percent of such funds to local educational agencies, of 
which--
        (A) 80 percent of such amount shall be allocated to such local 
    educational agencies in proportion to the number of children, aged 5 
    to 17, who reside in the school district served by such local 
    educational agency from families with incomes below the poverty line 
    (as defined by the Office of Management and Budget and revised 
    annually in accordance with section 673(2) of the Community Services 
    Block Grant Act (42 U.S.C. 9902(2))) applicable to a family of the 
    size involved for the most recent fiscal year for which satisfactory 
    data is available compared to the number of such individuals who 
    reside in the school districts served by all the local educational 
    agencies in the State for that fiscal year; and
        (B) 20 percent of such amount shall be allocated to such local 
    educational agencies in accordance with the relative enrollments of 
    children, aged 5 to 17, in public and private nonprofit elementary 
    and secondary schools within the boundaries of such agencies;
    (2) Notwithstanding paragraph (1), if the award to a local 
educational agency under this section is less than the starting salary 
for a new teacher in that agency, the State shall not make the award 
unless the local educational agency agrees to form a consortium with not 
less than 1 other local educational agency for the purpose of reducing 
class size.
    (c)(1) Each local educational agency that receives funds under this 
section shall use such funds to carry out effective approaches to

[[Page 388]]

reducing class size with highly qualified teachers to improve 
educational achievement for both regular and special-needs children, 
with particular consideration given to reducing class size in the early 
elementary grades for which some research has shown class size reduction 
is most effective.
    (2)(A) Each such local educational agency may pursue the goal of 
reducing class size through--
        (i) recruiting, hiring, and training certified regular and 
    special education teachers and teachers of special-needs children, 
    including teachers certified through State and local alternative 
    routes;
        (ii) testing new teachers for academic content knowledge, and to 
    meet State certification requirements that are consistent with title 
    II of the Higher Education Act of 1965; and
        (iii) providing professional development to teachers, including 
    special education teachers and teachers of special-needs children, 
    consistent with title II of the Higher Education Act of 1965.
    (B) A local educational agency may use not more than a total of 15 
percent of the award received under this section for activities 
described in clauses (ii) and (iii) of subparagraph (A).
    (C) A local educational agency that has already reduced class size 
in the early grades to 18 or less children may use funds received under 
this section--
        (i) to make further class-size reductions in grades 1 through 3;
        (ii) to reduce class size in kindergarten or other grades; or
        (iii) to carry out activities to improve teacher quality, 
    including professional development.
    (3) Each such agency shall use funds under this section only to 
supplement, and not to supplant, State and local funds that, in the 
absence of such funds, would otherwise be spent for activities under 
this section.
    (4) No funds made available under this section may be used to 
increase the salaries or provide benefits, other than participation in 
professional development and enrichment programs, to teachers who are, 
or have been, employed by the local educational agency.
    (d)(1) Each State receiving funds under this section shall report on 
activities in the State under this section, consistent with section 
6202(a)(2) of the Elementary and Secondary Education Act of 1965.
    (2) Each school benefiting from this section, or the local 
educational agency serving that school, shall produce an annual report 
to parents, the general public, and the State educational agency, in 
easily understandable language, on student achievement that is a result 
of hiring additional highly qualified teachers and reducing class size.
    (e) If a local educational agency uses funds made available under 
this section for professional development activities, the agency shall 
ensure for the equitable participation of private nonprofit elementary 
and secondary schools in such activities. Section 6402 of the Elementary 
and Secondary Education Act of 1965 shall not apply to other activities 
under this section.
    (f) Administrative Expenses.--A local educational agency that 
receives funds under this section may use not more than 3 percent of 
such funds for local administrative costs.
    (g) Request for Funds.--Each local educational agency that desires 
to receive funds under this section shall include in the application 
required under section 6303 of the Elementary and Secondary Education 
Act of 1965 a description of the agency's program to reduce class size 
by hiring additional highly qualified teachers.] (Department of 
Education Appropriations Act, 1999, as included in Public Law 105-277, 
section 101(f).)