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


 
                   V. PREPARING FOR THE 21st CENTURY

[[Page 63]]

                 3.  INVESTING IN EDUCATION AND TRAINING

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  We must redouble our efforts to make sure every American child, regardless of race, ethnicity, or income, has
access to the finest public elementary and secondary schools in the world. This is the fair and right thing to
do, because we live in an information age in which education is everything. If we believe in the value that
every American should share in the bounty of prosperity, then every American deserves a first-class education.
 
                                      President Clinton
                                      September 1998
 

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   A century ago, as the economy was shifting from agriculture to 
manufacturing, the way that Americans lived and worked changed 
dramatically. Today, the economy has shifted once again--this time from 
manufacturing to information and technology. These changes have been, in 
many ways, the engine of our economic growth. Yet Americans who have not 
had access to education and training to prepare them for this new 
economy risk being left behind.
   For the past six years, the President has worked hard to ensure that 
all Americans have the tools they need for the 21st Century. Education 
and training have been the corner-stone of the Administration's efforts. 
After World War II, American workers could enjoy basic economic security 
with just a high school diploma. But in the late 20th Century, the 
workplace demands workers with the analytical skills to reason and adapt 
quickly, especially to innovations in technology. The need for highly 
educated workers will continue to increase, making the quality of our 
educational system in the next century the key to the success of our 
people, our economy, and our Nation.
   The Clinton Administration has launched new initiatives and built on 
existing programs to: provide children in the early grades with the 
attention and instruction they need to acquire fundamental skills; 
enable all students to reach their full potential; make available 
resources to pay for postsecondary education to all who need them; 
ensure that those who need another chance at education and training, or 
who need to improve or learn new skills during their working lives, get 
those opportunities; and ensure that States and communities receiving 
Federal funds can use them more flexibly with fewer regulations and less 
paperwork.
   In order to strengthen elementary and secondary school education, the 
Administration proposed, and worked with Congress to enact, new laws in 
1994 that have built the foundation for a fundamental restructuring of 
K-12 education programs. These efforts include: Goals 2000, which helps 
States and school districts set and meet challenging educational 
standards; the Improving America's Schools Act, which focuses on student 
achievement, helps students reach challenging standards, and expands 
public school choice through charter schools initiatives; and the 
School-to-Work Opportunities Act, which financed the first efforts 
toward State-wide systems to link high school students more effectively 
to high-skill careers and postsecondary education. In 1998, the 
President proposed an inititive on class size which took an important 
first step toward adding 100,000 new teachers to the classroom by 2005.
   Expanding access to, and preparing students for, postsecondary 
education is a central part of the President's education agenda. The 
Administration has: increased the maximum Pell Grant award to $3,125 in 
1999, up 36 percent from $2,300 when President Clinton took office; 
established the Direct Student Loan program, which reduced costs and 
increased efficiency in the $41 billion loan

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programs and which offered income-contingent repayment options to 
students; made higher education more affordable through the proposal and 
enactment of the Hope Scholarship and Lifetime Learning tax credits; and 
helped students in high poverty schools prepare for and attend college 
through the GEAR-UP program.
   To improve and expand job training and employment services, the 
Administration has more than doubled the resources devoted to assisting 
dislocated workers. In addition, the Administration proposed, and worked 
with the Congress to pass, the Workforce Investment Act, to streamline 
the job training system, empower people with individual training 
accounts, enhance accountability, and increase customer information and 
choice. The Administration also proposed and obtained funding for the 
Youth Opportunity Grants program to provide intensive, comprehensive 
education and training services to raise significantly the employment 
rate of young people in high poverty areas.
   The budget builds upon this record. It includes: $1.4 billion for the 
second annual installment of support to States and school districts to 
hire new teachers in the early grades; $22 billion in school 
construction and modernization bonds, financed through tax credits to 
investors; $600 million for after-school and summer programs, increasing 
funding three-fold; a $320 million increase for Title I--Education for 
the Disadvantaged to support increased accountability for educational 
achievement; and other increases for serving dislocated workers and 
enhancing one-stop career centers. The budget includes resources to 
enhance public school choice, advance the Hispanic Education Agenda, and 
improve adult education.
   A central part of the President's efforts to increase accountability 
is the focus on ending social promotion, the practice of promoting 
students from grade to grade without regard to whether they have 
mastered the skills and met academic standards required to succeed at 
the next grade level. The budget provides $600 million for 21st Century 
Community Learning Centers, tripling funding for after-school and summer 
school programs, to end social promotion the right way--by giving 
students the tools they need to succeed.

Elementary and Secondary Education

  The budget increases support for key Education Department programs to 
help all children in school, especially those in high-poverty areas, 
achieve at higher levels (see Table 3-1). Early in 1999, the 
Administration will transmit to Congress its reform proposal for the 
reauthorization of the Elementary and Secondary Education Act. That 
proposal will focus on improving accountability to raise the educational 
achievement of all students, especially those in low-income communities. 
The budget includes the proposals below that will prepare the way for 
these broader reforms. (For information on Head Start, see Chapter 4, 
``Supporting Working Families.'')

  Performance Accountability: All children deserve to attend high 
quality public schools. When schools fail to help children reach 
rigorous standards of academic achievement, they must be held 
accountable for their performance. The budget includes $200 million in 
Title I to hold States and school districts more accountable for raising 
student achievement. States will use funds to fix their lowest 
performing schools through a variety of approaches including bringing in 
new management and teachers. Funds will also be used to ensure that 
students receive extra educational help while the school is being 
reformed. The increase described below for new funds for after-school 
and summer school activities is an integral part of this initiative.
  21st Century Community Learning Centers/After-School and Summer School 
Programs: The budget proposes to triple this program to $600 million, as 
part of a comprehensive approach to fix failing schools and help end 
social promotion the way successful schools do it--without harming the 
children. School districts will have a competitive advantage for these 
new funds if they combine before- and after-school, as well as summer 
school programs, with other resources that support State and school 
commitments to high standards, more qualified teachers, smaller classes 
and accept accountability for increasing

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    Table 3-1.   THE BUDGET INCREASES RESOURCES FOR SELECTED EDUCATION AND TRAINING PROGRAMS BY $5 BILLION, OR 10.9 PERCENT OVER 1999, AND BY A TOTAL
                                                            INCREASE OVER 1993 OF 101 PERCENT
                                                              (Dollar amounts in millions)
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                                                                                                                                        Dollar   Percent
                                                                                                            1993     1999      2000    Change:   Change:
                                                                                                           Actual  Estimate  Proposed  1999 to   1993 to
                                                                                                                                         2000     2000
--------------------------------------------------------------------------------------------------------------------------------------------------------
TAX EXPENDITURES:
  Hope Scholarships Credit..............................................................................  .......     4,015     4,855     +840        NA
  Lifetime Learning Credit..............................................................................  .......     2,510     2,655     +145        NA
  Student Loan Interest Deduction.......................................................................  .......       245       283      +38        NA
  School Construction...................................................................................  .......  ........       146     +146        NA
  Work Opportunity Tax Credit (Targeted Jobs Tax Credit in 1993)........................................      160       358       446      +88     +179%
  Welfare/Jobs Tax Credit...............................................................................  .......        38        54      +16        NA
                                                                                                         -----------------------------------------------
    Total, tax expenditures.............................................................................      160     7,140     8,426   +1,260   +5,116%
MANDATORY OUTLAYS:
  Welfare-to-Work Grants................................................................................  .......       872     1,597     +725        NA
  Early Learning Fund (see Chapter 4)...................................................................  .......  ........       372     +372        NA
DISCRETIONARY BUDGET AUTHORITY:
   Pre-School: Head Start (see Chapter 4)...............................................................    2,776     4,660     5,267     +607      +90%
   Elementary and Secondary Education:
    Class Size Reduction................................................................................  .......     1,200     1,400     +200        NA
    America Reads/Reading Excellence....................................................................  .......       260       286      +26        NA
    Goals 2000..........................................................................................  .......       491       491  .......        NA
    Education Technology (Education Department grant programs)..........................................       23       698       801     +103   +3,383%
    Title I - Education for the Disadvantaged/Accountability............................................    6,709     8,371     8,744     +373      +30%
    Special Education...................................................................................    2,966     5,334     5,450     +116      +84%
    Bilingual and Immigrant Education...................................................................      213       380       415      +35      +95%
    Safe and Drug Free Schools Communities..............................................................      582       566       591      +25       +2%
    Charter Schools.....................................................................................  .......       100       130      +30        NA
    Troops to Teachers..................................................................................  .......  ........        18      +18        NA
    Comprehensive School Reform Demonstration...........................................................  .......       145       175      +30        NA
    21st Century Community Learning Centers.............................................................  .......       200       600     +400        NA
   Postsecondary Education:
    Pell Grants.........................................................................................    6,372     7,704     7,463     -241       17%
      Pell Grant maximum award (non-add, in dollars)....................................................    2,300     3,125     3,250     +125      +41%
    College Work-Study..................................................................................      617       870       934      +64      +51%
    Other Campus-based Aid..............................................................................      764       749       761      +12        -*
    College Completion Challenge Grant..................................................................  .......  ........        35      +35        NA
    Teacher Quality Enhancement.........................................................................  .......        75       115      +40        NA
    GEAR-UP.............................................................................................  .......       120       240     +120        NA
    Preparing for College Campaign......................................................................  .......         7        15       +8        NA
   Work Force Development:
    Learning Anytime, Anywhere Partnerships (Education and Labor Departments)...........................  .......        20        30      +10        NA
    Right Track Partnerships............................................................................  .......  ........       100     +100        NA
    Job Corps...........................................................................................      966     1,309     1,347      +38      +39%
    Youth Opportunity Grants/Rewarding Achievement in Youth.............................................  .......       250       250  .......        NA
    Vocational Education................................................................................    1,170     1,154     1,163       +9       -1%
    Adult Education.....................................................................................      305       385       575     +190      +89%
    Veterans Employment Services and Training...........................................................      167       167       169       +2       +1%
    Dislocated Worker Training..........................................................................      517     1,406     1,596     +190     +209%
    Employment Service and One-Stop Centers.............................................................      895       968     1,048      +80      +17%
                                                                                                         -----------------------------------------------
      Total, budget authority...........................................................................   25,042    37,589    40,209   +2,620      +61%
TOTAL RESOURCES FOR SELECTED PROGRAMS (tax expenditures; receipts; mandatory outlays; and budget
 authority)                                                                                                25,202    45,601    50,604   +4,977     +101%
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STUDENT LOANS (face value of loans issued):
  Direct loans..........................................................................................  .......    11,363    12,078     +715        NA
  Guaranteed Loans......................................................................................   16,089    20,921    22,243   +1,322      +38%
  Consolidated Loans....................................................................................    1,540     7,525     6,840     -685     +344%
                                                                                                         -----------------------------------------------
    Total, student loans................................................................................   17,629    39,809    41,161   +1,352     +133%
--------------------------------------------------------------------------------------------------------------------------------------------------------
DEPARTMENT OF EDUCATION:
  Discretionary Program Level...........................................................................   23,977    33,467    34,711   +1,244      +45%
DEPARTMENT OF LABOR:
  Discretionary Budget Authority........................................................................    6,019     6,986     7,285     +299      +21%
--------------------------------------------------------------------------------------------------------------------------------------------------------
NA = Not applicable.
* Less than 0.5 percent.

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student achievement. The program will reach 7,500 schools in 2000.

  New, Qualified Teachers and Smaller Class Sizes: Soaring school 
enrollments have overwhelmed school capacity, causing severe teacher 
shortages and classroom overcrowding, which hinder the ability of 
students to learn. The budget provides $1.4 billion as the second 
installment of the President's plan to help schools recruit, hire, and 
train 100,000 new teachers by 2005 and reduce class size in the early 
grades. Research shows that reducing class size to 15-18 students in the 
early grades improves student achievement, particularly among low-income 
and minority students in inner cities. The budget also proposes a new 
initiative to recruit and train 1,000 new Indian teachers to serve in 
school districts with high concentrations of Indian children.
  Recruitment, Preparation, and Training of High-Quality Teachers: 
Children in all communities should have highly-qualified and effective 
teachers.
   Teacher quality enhancement: The budget provides $115 million 
          to help improve the quality of teacher preparation programs at 
          colleges and universities and address shortages of well-
          prepared teachers, particularly in urban and rural schools. 
          The budget will fund approximately 16 partnerships of 
          exemplary teaching colleges and universities, urban and rural 
          schools, and subsidiary colleges and universities with 
          teaching programs. It also will fund up to 7,000 scholarships 
          to help recruit teachers to teach in high priority areas.
   Eisenhower professional development: The budget proposes $335 
          million to help States provide high-quality, professional 
          development for teachers and administrators.
   Troops-to-Teachers: The budget proposes $18 million to 
          recruit and train retiring military personnel and other to 
          mid-career professionals to serve as new teachers in public 
          schools.
   Bilingual education: The budget includes an increase of $25 
          million, for a total of $75 million, for the bilingual 
          education professional development program to give 6,000 
          teachers the skills they need to help their students learn 
          English and meet challenging academic standards.

  New Classrooms: A third of all schools across the country, with 14 
million students, have one or more buildings that need extensive repair, 
according to the General Accounting Office. School districts also face 
the cost of upgrading schools to accommodate computers and modern 
technology, and of constructing new classrooms and schools to meet 
expected record enrollment levels over the next decade. To help States 
and school districts meet this need, the budget proposes $22 billion in 
school construction and modernization bonds, and $2.4 billion in 
additonal Qualified Zone Academy bonds financed through tax credits to 
investors, currently valued at $3.7 billion over five years and $8.9 
billion over 10 years. The President also proposes $10 million for 
Schools as Centers of Community, a new initiative to promote broad 
community involvement in the planning and design of new schools.
  Indian reservations have some of the most critical needs for school 
construction assistance. Within the new school construction initiative, 
$400 million in bonding authority will be provided for Bureau of Indian 
Affairs schools. For those schools serving the poorest Tribes who would 
have difficulty issuing such bonds, the budget proposes $30 million for 
the Interior Department to pay the principal of about $75 million in 
bonds.

  Education Technology: In February 1996, the President challenged the 
public and private sectors to work together to ensure that all children 
are technologically literate by the dawn of the 21st Century, and that 
schools take full advantage of the benefits of technology to raise 
student achievement. Achieving this goal will require progress in four 
areas: connecting every classroom to the Internet; expanding access to 
multimedia computers; increasing the availability of high-quality 
educational software and content; and ensuring that teachers can teach 
effectively using technology.
  The most significant program that advances these goals is the 
Technology Literacy Challenge Fund. In 1997, the President committed to 
providing States $2 billion by 2002 through this Fund to support the 
education technology goals. Through 1999, $1.05 billion has been

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provided. The budget includes $450 million for the Fund.
  Other technology programs include:
  Technology Innovation Challenge Grants, which provides $110 
          million for competitive grants to develop innovative education 
          technology applications;
  Technology Training for Teachers, which provides $75 million 
          to help ensure that new teachers know how to use technology 
          effectively;
  Computing Technology Centers, which provides $65 million, an 
          increase of $55 million over 1999, to establish computer 
          centers in low-income communities for those who cannot afford 
          home computers;
  Middle School Teacher Training Initiative, which provides $30 
          million to train technology leaders in all middle schools; and 
          the
  Software Development Initiative, which provides $5 million for 
          a competition open to students in partnership with others to 
          develop high quality software and websites.

  E-Rate: The education rate, or E-rate, was created under the 
Telecommunications Act of 1996 to provide discounts for schools and 
libraries to buy high-speed Internet access, internal wiring, and 
telecommunications services. Over the first 18 months of the program, 
$1.9 billion has been provided to start connecting up to 47,000 schools 
and libraries and more than 30 million children to the Internet. In 
2000, $1.3 billion will be made available.
  America Reads/Reading Excellence: Two years ago, the President 
launched the America Reads Challenge, a multi-faceted effort to help 
States and communities ensure that all children can read well and 
independently by the end of third grade. This budget builds upon last 
year's commitment of $260 million, by proposing an investment of $286 
million to continue this program in 2000. The funds help train reading 
tutors and coordinate after-school, weekend, and summer reading programs 
linked to in-school instruction; help train teachers to teach reading; 
and help parents help children prepare to learn to read. In addition, 
more than 1,000 colleges have pledged to use federally-financed work-
study positions for tutoring programs.
  Public School Choice: Choice in education has become one of the most 
hotly debated education issues in the last decade. The Administration 
firmly supports expanding school choice through its Charter Schools, 
Magnet Schools, and Satellite Work-Site Schools initiatives. These 
efforts strengthen the public education system by giving it the support 
it needs to fulfill its mission of providing equal educational 
opportunities for all while still providing children their choice of 
schools that best meet their needs. The budget supports the expansion of 
public school choice in three ways:
   Charter Schools: Through public charter schools, parents, 
          teachers, and communities create innovative schools to raise 
          student achievement, while States free these schools from 
          unnecessary rules and regulations. The budget proposes $130 
          million for charter schools, a $30 million increase over 1999, 
          to fund start-up costs for approximately 2,200 schools, 
          continuing progress toward the President's goal of 3,000 
          charter schools by 2002.
   Magnet Schools: Magnet schools offer a special curriculum to 
          encourage students of different racial backgrounds to attend 
          previously racially isolated schools. The budget proposes a 
          $10 million increase, to a total of $114 million, to fund 
          inter-district magnet programs where, for example, an urban 
          school district with high concentrations of minority and poor 
          students can partner with neighboring suburban districts to 
          form a specialized (e.g., math or art) curriculum which 
          students of both districts attend.
  Satellite Work-Site Schools: These schools generally operate 
          as public-private partnerships between large employers and 
          school districts, with employers providing facilities on site 
          for the schools. Experience shows that these schools can: (1) 
          be more racially diverse than other schools because worksites 
          are more diverse than residential neighborhoods; (2) save the 
          school districts the cost of new facilities; (3) increase 
          parental involvement in the schools; and (4) provide safe and 
          enriching after-school programs. The budget proposes $10 mil

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          lion for a demonstration project to support the planning and 
          implementation of approximately 100 work-site elementary 
          schools.

  Safe and Drug-Free Schools and Communities: Since 1993, this program 
has provided $3.7 billion to help 97 percent of all school districts 
implement anti-drug and anti-violence programs. The budget proposes $591 
million, including $90 million in competitive grants for projects that 
use proven program designs in high-need areas and $50 million for the 
Administration-proposed, newly established School Drug Prevention 
Coordinators program to ensure that at least half of all middle schools 
have a director of drug and violence prevention programs to link school-
based programs to community-based programs. This program also provides 
$12 million to fund SERV, the Administration's initiative to support 
efforts in the Departments of Education, Justice, and Health and Human 
Services to respond to serious incidents of school violence.
  Special Education: The budget proposes $5.4 billion to support State 
and local education for children with disabilities, an increase of $116 
million over 1999. The increase is targeted toward improving educational 
results for children with disabilities through early intervention. The 
new resources support: a $50 million initiative to help schools 
implement research-based practices for how best to serve children with 
disabilities in the primary grades; an increase of $28 million to 
preschool grants, for a total of $402 million; and an increase of $20 
million for grants to infants and families, for a total of $390 million.
  Comprehensive School Reform Demonstration: This program funds 
competitive grants to schools to implement research-based school 
improvement models. The budget includes $150 million for such grants in 
high-poverty schools, an increase of $30 million over 1999, and $25 
million for such grants in other schools. Nearly 3,500 schools will 
receive grants.
  Advanced Placement and Other Courses: To ensure greater preparation 
for college, the budget proposes $20 million primarily to help schools 
provide advanced placement and other higher level courses to high-
poverty schools that do not currently offer them.
  Education Coordinator for Empowerment Zones: The 10 Education Regional 
Offices will each have a designated Empowerment Zones (EZ) coordinator 
to augment the existing Department of Education Empowerment Zones and 
Enterprise Community Task Force. The Coordinators will help EZs by 
fostering communication with educational institutions, facilitating 
access to Education technical assistance and program evaluation 
resources, providing technical assistance to EZ schools applying for 
competitive grants, and coordinating education reform efforts among EZs.

Investing in the Special Needs of Hispanic Americans

  Raising the educational achievement of Hispanic Americans continues to 
require special attention. Their high school dropout rate, for example, 
is unacceptably high: in 1996, 29 percent of Hispanics aged 16 to 24 
were high school dropouts, compared to seven percent of non-Hispanic 
whites and 13 percent of non-Hispanic blacks. Hispanic now receive 32 
percent of services under Title I, more than any other minority group. 
For the second year in a row, the budget targets new funding to programs 
that are part of the Administration's Hispanic Education Agenda. The 
funding increases include:
   $100 million for a new Right Track Partnership initiative to 
          help keep young people from dropping out of school, with 
          special emphasis on the needs of limited-English proficient 
          youth. (See discussion under ``Work Force Development,'' later 
          in this chapter.)
   $35 million, for a total of $415 million, for Bilingual and 
          Immigrant Education. During the ESEA reauthorization, the 
          Administration will look at ways to strengthen the Bilingual 
          Education program to help limited-English proficient students 
          become proficient in English as rapidly as possible, and 
          prepare them to meet high standards in academic subjects.
   $14 million, for a total of $42 million, for assistance for 
          colleges and universities that serve large numbers of Hispanic 
          students;

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   $9 million, for a total of $22 million, for the High School 
          Equivalency Program for migrants and the College Assistance 
          Migrant Program;
   $190 million, for a total of $575 million, for Adult 
          Education, including $70 million to expand services and 
          improve English as a second language and civics programs;
   $25 million, for a total of $380 million, for Title I-Migrant 
          Education, which provides additional educational assistance to 
          migrant children;
   $10 million for a Labor Department program to provide 
          training and education assistance to migrant youth, including 
          literacy assistance, worker safety training, English language 
          assistance, and dropout prevention activities;
   $30 million, for a total of $630 million, for the TRIO 
          programs that work with disadvantaged high school and college 
          students to encourage them to complete high school and attend, 
          and graduate from, college;
   $30 million, for a total of $150 million, for Comprehensive 
          School Reform demonstrations in high-poverty schools, 
          providing grants for research-proven reform efforts to schools 
          that have low achievement and high dropout rates; and
   A portion of the Head Start expansion dollars will be used to 
          boost participation by underepresented groups, particularly in 
          areas with recent influxes of immigrants and limited-English 
          proficient children, including seasonal farmworkers.

Postsecondary Education and Training

  High school is the first stepping stone to a good job. However, those 
with more years of schooling consistently earn more over their working 
careers than those with only a high school degree. Meeting the cost of 
higher education can be difficult for many families, but Federal support 
through Pell Grants, work-study, student loans, Hope Scholarship and 
Lifetime Learning tax credits, other tax benefits, and other programs 
now make college affordable for every American. The budget proposes even 
more to help young people go to and stay in college.

  College Preparation and Attendance: The budget proposes to double 
funding for GEAR-UP, the early intervention program based on the 
President's High Hopes proposal, from $120 million to $240 million in 
2000. GEAR-UP provides funds for States and local partnerships to help 
students in high-poverty schools prepare for and attend college. The 
budget also provides $15 million for a Nation-wide information campaign 
on the importance of higher education, the steps necessary to enroll in 
college, and the availability of Federal resources.
  Hope Scholarship and Lifetime Learning Tax Credits: The President 
proposed and obtained major tax relief for the rising costs of higher 
education. With Hope Scholarships, students in the first two years of 
college or other eligible postsecondary training can get a tax credit of 
up to $1,500 for tuition and fees each year. In 1999, an estimated 5.5 
million students will receive $4.5 billion in Hope Scholarship tax 
credits. Under the Lifetime Learning tax credit, students beyond the 
first two years of college, or those taking classes part-time to improve 
or upgrade their job skills, will receive a 20-percent tax credit for 
the first $5,000 of tuition and fees each year through 2002, and a 20-
percent credit for the first $10,000 thereafter. In 1999, an estimated 
7.2 million students will receive approximately $2.5 billion in Lifetime 
Learning tax credits.
  Pell Grants: The President proposes to raise the maximum Pell Grant 
award by $125, to $3,250--the highest ever--to reach nearly four million 
low-income undergraduates.
  Work-Study: In 1996, the President committed to expanding the Work-
Study program to one million students by the year 2000 to give more 
students the opportunity to work their way through college. In this 
budget, the Administration reaches the goal of one million students by 
providing $934 million, a $64 million increase over the 1999 level.
  College Completion Challenge Grants: The budget proposes $35 million 
for an initiative to help disadvantaged undergraduates succeed in school 
and complete their studies. Institutions of higher education that show 
they

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have already invested their own resources in persistence programs for 
at-risk students, but still experience a gap between the dropout rates 
of disadvantaged students and other students, may apply for competitive 
grants. Grants may be used to strengthen support services, provide 
larger grant awards, and/or offer an intensive summer program, for 
students at risk of dropping out of college.
  Student Loans: An estimated 6.2 million people will borrow $41 billion 
through the Federal student loan programs in 2000. In the Higher 
Education Amendments of 1998, the President's proposal to significantly 
lower interest rates for borrowers on student loans was adopted, easing 
the burden of repayment for new borrowers and borrowers who consolidate. 
The budget also proposes net savings of $4.5 billion over five years 
from excess profits of banks, guaranty agencies and secondary markets, 
and through improved debt collection. (See also chapter 22, ``Education, 
Training, Employment, and Social Services,'' for a discussion of student 
aid management issues.)
  In 1993, the Adminsitration proposed and obtained authority to offer 
students the opportunity to consolidate multiple student loans into one 
direct loan with lower payments, much less paperwork, and more efficient 
servicing. The Administration has continued to improve the quality of 
servicing for these loans and, in 1998, obtained a still lower interest 
rate for students who consolidate. The budget proposes to extend this 
authority for lower rates through 2000.

  Learning Anytime, Anywhere Partnerships: The budget includes $30 
million ($20 million in the Education Department and $10 million in the 
Labor Department) for the second year of this program to enhance and 
promote learning opportunities outside the usual classroom settings, via 
computers and other technology, for all adult learners.
  D.C. Resident Tuition Support: The budget proposes up to $17 million 
for D.C. Resident Tuition Support, a new initiative that would enable 
eligible District of Columbia residents to attend public institutions of 
higher education in Maryland and Virginia at in-State tuition. Under the 
initiative, the Federal Government would provide funds to reimburse 
these institutions for the difference between in-State and out-of-State 
tuition for students who are District residents.
  Adult Literacy: The 1990 Census found that over 44 million adults did 
not have a high school degree or General Educational Development (GED) 
credential, without which it is increasingly difficult to obtain a good 
job. Illiteracy is a serious bar to employment and to obtaining 
citizenship for many legal immigrants. Throughout his tenure, the 
President has sought to improve the education and skills of the Nation's 
low-literate population. The budget proposes an increase for Adult 
Education of $190 million, or nearly 50 percent, for a total of $575 
million. The increase will help recent immigrants learn English and give 
them instruction in civics to help prepare for citizenship, as well as 
support innovative uses of technology in adult education, and 
preparation for passing the GED examination. In addition, the budget 
includes a new tax credit for employers who provide certain workplace 
literacy programs to eligible adults.

Work Force Development

  Many who lose jobs and need new jobs or new skills to get those jobs, 
adults who are seeking jobs for the first time, or adults who want new 
skills to advance or change their careers, need a broad array of 
financial and program supports--especially as workers strive to succeed 
in the fast-changing new economy.

  Reemployment Services for All Who Need Them: In 2000, the President 
proposes a major step toward the goals of: providing all dislocated 
workers who want and need assistance the resources to train for or find 
new jobs; expanding and raising the quality of the employment services 
now available to all job seekers and enhancing them for individuals 
receiving Unemployment Insurance; and ensuring that One-Stop Career 
Centers are available to all, either in person or electronically. The 
budget includes increases totaling $368 million as a first step towards 
achieving this goal.
   Dislocated Worker Training: The budget proposes $1.6 billion, 
          an increase of $190 million--over three times the amount 
          available when the President took office--to provide 
          readjustment services, job search assistance, training, and 
          related

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          services to help dislocated workers find new jobs as quickly 
          as possible. Among the workers assisted by the program, and 
          the proposed increase, are those displaced by trade and 
          related causes.
   Reemployment Services: The budget proposes an increase of $53 
          million, for a total of $849 million, for grants to the State 
          Employment Service system. The increase is targeted to 
          expanding services to help workers receiving Unemployment 
          Insurance benefits obtain the help they need in finding new 
          jobs. In addition, $10 million is proposed for the new 
          America's Agricultural Labor Network, an information system 
          that helps growers to find workers and workers to find 
          employment opportunities that meet their needs.
   One-Stop Career Centers: The budget includes $65 million for 
          new methods of providing employment and related information 
          through America's Labor Market Information System and the One-
          Stop system recently expanded in the Workforce Investment Act. 
          Activities include a ``talking'' America's Job Bank for the 
          blind, mobile service centers for sparsely populated areas, 
          and a 1-800 service for easier access to information to 
          upgrade skills. Also included is $50 million to help the 
          disabled return to work (see Work Incentive Assistance Grants 
          discussion later in this chapter).

  Welfare-To-Work: To help reach the Temporary Assistance for Needy 
Families program's employment goal for the severely disadvantaged 
welfare recipients, the Administration sought, and Congress provided to 
the Labor Department, a total of $3 billion in 1998 and 1999. The budget 
provides $1 billion for 2000 to continue the effort and provide non-
custodial parents of children on welfare the work and employment 
services they need to help support their children.
  Trade Adjustment Assistance (TAA): The budget proposes consolidating, 
reforming, and extending the TAA and NAFTA-Transitional Adjustment 
Assistance (NAFTA-TAA) programs for workers who lose jobs due to trade 
policies. It would expand eligibility for TAA benefits to cover workers 
who lose jobs when plants or production shifts abroad; raise the 
statutory cap on training expenses; and add a contingency provision to 
ensure that the Federal Government has sufficient funds to finance any 
unexpected increase in benefit costs for eligible workers. The budget 
proposes to increase funding for the TAA programs by $151 million in 
2000 to a total of $465 million.
  Unemployment Insurance (UI): These programs are the major source of 
temporary income support for laid-off workers. Experienced workers who 
lose their jobs generally are eligible for up to 26 weeks of 
unemployment benefits at an average benefit of $210 a week. An estimated 
8.3 million people will draw benefits in 2000.
  A recent dialogue involving the States, employers, workers, and the 
Federal Government identified a number of possible system improvements. 
The budget includes several initial system changes as evidence of the 
Administration's commitment to program reforms and its desire to work 
with stakeholders and the Congress to develop a broader legislative 
proposal for the future. That proposal should be developed within the 
overarching goal of budget neutrality and should be based on the 
following principles: 1) expanding coverage and eligibility for 
benefits, 2) streamlining filing and reducing tax burden where possible, 
3) emphasizing reemployment, 4) combating fraud and abuse, and 5) 
improving administration.

  Youth Programs: The budget provides specialized support to help 
disadvantaged youth prepare for college and careers.
   Youth Opportunity Grants: Youth Opportunity Grants address 
          the special problems of out-of-school youth, especially in 
          inner-cities and other areas where jobless rates can top 50 
          percent. The budget includes $250 million for the second year 
          of competitive grants. Included in the funding is $20 million 
          for Rewarding Achievement in Youth--a new initiative to 
          provide comprehensive employment training, counseling and 
          education services to over 9,000 academically high-achieving, 
          low-income youth. Encouraging school completion, this program 
          will provide students who excel academically extended summer 
          employment opportunities and

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          the opportunity to earn an end of the summer bonus.
   Job Corps: The Job Corps provides intensive, vocational 
          skills training, integrated with academic and social 
          education, and support services to severely disadvantaged 
          young people in a structured residential setting. The budget 
          proposes $1.3 billion, an increase of $38 million over the 
          1999 level.
   Youth Activity Formula Grants: Recognizing that the 
          traditional division of youth formula funding between the 
          summer and year-round programs constrained the ability to 
          construct comprehensive youth training programs, the WIA 
          consolidated the funding streams of these two programs into a 
          single formula grant. Funded at $1 billion, this program will 
          continue to provide essential job opportunities to roughly 
          578,000 urban and rural disadvantaged youth through year-round 
          training and summer jobs.
   Right-Track Partnerships: The budget includes $100 million 
          for a new competitive grant in the Department of Labor 
          designed to prevent youth from dropping out of school, and to 
          encourage those who have already dropped out to complete their 
          high school education. Strong partnerships will be formed 
          between the private sector, the schools, and community-based 
          organizations to tailor services to local needs. Special 
          emphasis will be placed on the needs of limited-English 
          proficient youth.
   School-to-Work: Funded and administered jointly by the 
          Education and Labor Departments, this initiative has made over 
          $1.7 billion available since 1995 to build comprehensive 
          systems that link Federal, State, and local activities to help 
          young people move from high school to careers or postsecondary 
          training and education. The budget proposes $110 million to 
          complete the scheduled final year of Federal funding.

Encouraging Work for People with Disabilities

  To advance the ability of people with disabilities to have full 
opportunity to participate in, contribute to, and reap the benefits of a 
growing economy, this budget provides a new package of work incentives, 
and builds upon current programs for people with disabilities.

  The Work Incentives Improvement Act: The budget includes a 
comprehensive package of work incentives modeled after legislation 
developed by Senators Jeffords and Kennedy in 1998. The package forms 
the centerpiece of the President's initiative to provide economic 
opportunities to people with disabilities.
   Health Insurance Protections for Working Disabled: Many 
          people with disabilities want to work, but working can end 
          their access to critical services provided by Medicaid or 
          Medicare. Others incur prohibitive costs associated with work, 
          such as extra personal assistance and assistive technology. 
          The budget improves access to health care for people with 
          disabilities who work by allowing States to expand Medicaid 
          coverage to additional categories of workers with 
          disabilities. States offering new coverage options would 
          receive grants to develop systems that support people with 
          disabilities who return to work, and to build the capacity of 
          States and communities to provide home- and community-based 
          services. The budget also allows Social Security Disability 
          Insurance (DI) recipients who return to work to retain 
          Medicare Part A coverage indefinitely, as long as they remain 
          disabled.
   Ticket-to-Work: The budget includes a new program to 
          encourage new partnerships to help DI and Supplemental 
          Security Income (SSI) disabled beneficiaries re-enter the 
          workforce. Currently, most beneficiaries who could benefit 
          from employment-related services are referred to State 
          Vocational Rehabilitation agencies. Under the proposal, 
          beneficiaries can choose from a variety of participating 
          public or private employment-related service providers, which 
          would then be reimbursed with a share of the DI and SSI 
          benefits saved once these individuals leave the rolls.

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   DI Benefit Offset Demonstration: The budget includes a 
          demonstration project that reduces an individual's DI benefits 
          by $1 for each $2 earned above a specified level. Under 
          current law, a DI beneficiary in the extended period of 
          eligibility who earns more than the ``substantial gainful 
          activity'' level, currently $500 a month, does not receive a 
          cash benefit.
   Work Incentive Assistance Grants: Competitive grants 
          (totaling $50 million a year) would be awarded to partnerships 
          of organizations in every State, including organizations of 
          people with disabilities, to help One-Stop Career Centers and 
          Workforce Investment Boards provide a range of high-quality 
          services to people with disabilities working or returning to 
          work. Such services include benefits planning and assistance 
          and providing information on services and work incentives 
          (e.g., availability of transportation services in the local 
          area) available in the public, private, and nonprofit sectors.

  Tax Credit for Workers with Disabilities: The budget proposes a $1,000 
tax credit for workers with disabilities or their spouses. Workers with 
disabilities usually have extra costs associated with working--special 
transportation or personal assistance to get to and from work, for 
example. This credit helps compensate for these costs.
  In addition, the largest non-benefit proposals for improving the 
education and employment of people with disabilities are $5.4 billion 
for Special Education, described earlier in this chapter, and $2.3 
billion for Vocational Rehabilitation. Other enhancements include a 
combined increase of $4.5 million for the President's Committee on the 
Employment of People with Disabilities, the Task Force on Employment of 
Adults with Disabilities, the National Council on Disability, the 
National Technical Institute for the Deaf, and Gallaudet University. The 
set aside for children with disabilities in Head Start increases from 
$590 million in 1999 to $667 million. The Department of Justice's 
Disability Rights Section funding increases by 26 percent, for a total 
of $14 million.

International and Domestic Child Labor and International Labor Standards 
Activities

  Continuing the Administration's commitment to improving the working 
conditions of children at home and abroad, the budget proposes $16 
million in additional funding to address this issue. In addition, the 
budget proposes $40 million for a new initiative targeted at raising 
international labor standards to enhance economic stability abroad.

  International Child Labor Activities: The budget continues to provide 
$30 million for the Labor Department to enable the International Labor 
Organization's International Programme to Eliminate Child Labor to 
expand its work into more countries and industries. The five-year 
initiative, which began in 1999, provides a $150 million investment 
which will help reduce the incidence of exploitative and abusive child 
labor. The budget proposes $10 million for a new School Works program 
for the U.S. Agency for International Development to assist developing 
countries with high levels of abusive child labor to enroll and retain 
these children in basic education, as part of comprehensive strategies 
to eliminate child labor. The budget also proposes $2 million over the 
1999 level to enable the Customs Service to enforce the law banning the 
import of goods made with forced or bonded child labor.
  International Labor Standards Activities: The budget proposes $25 
million to help the International Labor Organization create a 
multilateral technical assistance program to help developing countries 
implement core labor standards and build their own social safety nets, 
and $10 million for the Labor Department to provide technical assistance 
on these same issues in support of important U.S. bilateral 
relationships. In addition, the budget provides $5 million for the 
Economic Support Fund to establish a grant program to promote innovative 
approaches to eliminating overseas sweatshops.
  Domestic Child Labor Activities: The budget continues $9 million for 
the Labor Department, including $4 million to help eliminate domestic 
violations of child labor laws, particularly in the agriculture sector, 
and $5 million for demonstration programs to provide alternatives to 
field work for migrant youth.

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 In addition, the budget proposes $4 million for the Department of Labor 
to increase its current enforcement and compliance assistance efforts in 
the agriculture and garment industries which are focused on increasing 
compliance with labor standards, including child labor.