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

    [[Page 343]]

                             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, parts B, C, and D of title III,
    and part I of title X of the Elementary and Secondary Education Act of
    1965, $1,768,370,000, of which $456,500,000 for the Goals 2000: Educate
    America Act and $55,000,000 for the School-to-Work Opportunities Act
    shall become available on July 1, 2000 and remain available through
    September 30, 2001, and of which $109,500,000 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 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: Educate
    America 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 of the funds made available to
    carry out section 3136 and notwithstanding any other provision of law,
    $500,000 shall be awarded to the Houston Independent School District for
    technology infrastructure, $8,000,000 shall be awarded to the I CAN
    LEARN program, $3,000,000 shall be awarded to the Linking Education
    Technology and Educational Reform (LINKS) project for educational
    technology, $1,000,000 shall be awarded to the Center for Advanced
    Research and Technology (CART) for comprehensive secondary education
    reform, $250,000 shall be awarded to the Vaughn Reno Starks Community
    Center in Elizabethtown, Kentucky for a technology program, $125,000
    shall be awarded to the Wyandanch Compel Youth Academy Educational
    Assistance Program in New York, $3,000,000 shall be awarded to Hi-
    Technology High School in San Bernardino County, California for
    technology enhancement, $300,000 shall be awarded to the Long Island
    21st Century Technology and E-Commerce Alliance, $800,000 shall be
    awarded to Montana State University-Billings for a distance learning
    initiative, $2,000,000 for the Tupelo School District in Tupelo,
    Mississippi for technology innovation in education, $900,000 for the
    University of Alaska at Anchorage for distance learning education,
    $1,000,000 shall be awarded to the Seton Hill College in Greensburg,
    Pennsylvania for a model education technology training program, $500,000
    shall be awarded to the University of Alaska-Fairbanks, in Fairbanks,
    Alaska for a teacher technology training program, $200,000 shall be
    awarded to the Alaska Department of Education for the Alaska State
    Distance Education Technology Consortium, $1,000,000 shall be awarded to
    the North East Vocational Area Cooperative in Washington State for a
    multi-district technology education center, $400,000 shall be awarded to
    the University of Vermont for the Vermont Learning Gateway Program,
    $2,500,000 shall be awarded to the State University of New Jersey for
    the RUNet 2000 project at Rutgers for an integrated voice-video-data
    network to link students, faculty and administration via a high-speed,
    broad band fiber optic network, $500,000 shall be awarded to the Iowa
    Area Education Agency 13 for a public/private partnership to demonstrate
    the effective use of technology in grades 1-3, $235,000 shall be for the
    Louisville Deaf Oral School for technology enhancements: Provided
    further, That in the State of Alabama $50,000 shall be awarded to the
    Bibb County Board of Education for technology enhancements, $50,000
    shall be awarded to the Calhoun County Board of Education for technology
    enhancements, $50,000 shall be awarded to the Chambers County Board of
    Education for technology enhancements, $50,000 shall be awarded to the
    Chilton County Board of Education for technology enhancements, $50,000
    shall be awarded to the Clay County Board of Education for technology
    enhancements, $50,000 shall be awarded to the Cleburne County Board of
    Education for technology enhancements, $50,000 shall be awarded to the
    Coosa County Board of Education for technology enhancements, $50,000
    shall be awarded to the Lee County Board of Education for technology
    enhancements, $50,000 shall be awarded to the Macon County Board of
    Education for technology enhancements, $50,000 shall be awarded to the
    St. Clair County Board of Education for technology enhancements, $50,000
    shall be awarded to the Talladega County Board of Education for
    technology enhancements, $50,000 shall be awarded to the Tallapoosa
    County Board of Education for technology enhancements, $50,000 shall be
    awarded to the Randolph County Board of Education for technology
    enhancements, $50,000 shall be awarded to the Russell County Board of
    Education for technology enhancements, $50,000 shall be awarded to the
    Alexander City Board of Education for technology enhancements, $50,000
    shall be awarded to the Anniston City Board of Education for technology
    enhancements, $50,000 shall be awarded to the Lanett City Board of
    Education for technology enhancements, $50,000 shall be awarded to the
    Pell City Board of Education for technology enhancements, $50,000 shall
    be awarded to the Roanoke City Board of Education for technology
    enhancements, $50,000 shall be awarded to the Talledega City Board of
    Education for technology enhancements, $500,000 shall be to continue a
    state-of-the-art information technology system at Mansfield University,
    Mansfield, Pennsylvania, $250,000 shall be awarded to the Chicago Public
    School Science and Technology Academy to establish a curriculum of math,
    science, and technology, $500,000 shall be awarded to Prairie Hills,
    Illinois Elementary School District 144 for a public/private teacher
    technology training program, $1,000,000 shall be awarded to Adelphi
    University in New York for the Information Commons project, $250,000
    shall be awarded to the Oakland School District in California to support
    a distance education initiative, $800,000 shall be awarded to the
    Kennedy Krieger Career and Technology Center in Maryland for a distance
    learning project, $1,000,000 shall be awarded to Augsburg College and
    Twin Cities Public Television to demonstrate interactive technology to
    assist teachers and parents in effectively using emerging innovations in
    education, $100,000 shall be awarded to the Santa Barbara Industry
    Education Council in California to provide technology education to area
    students and teachers, $200,000 shall be awarded to the Nebraska
    Community College for technology training, and $250,000 shall be awarded
    to the Providence Public School System, in partnership with the
    Metropolitan Regional Career and Technical Center, for Project Family
    Net to provide computer technology training to children and their
    parents: Provided further, That of the funds made available to carry out
    title III, part B of the Elementary and Secondary Education Act of 1965
    and notwithstanding any other provision of law, $750,000 shall be
    awarded to the Technology Literacy Center at the Museum of Science and
    Industry, Chicago, $1,000,000 shall be awarded to an on-line math and
    science training program at Oklahoma State University, $4,000,000 shall
    be awarded to continue and expand the Iowa Communications Network State-
    wide fiber optic demonstration project, and $250,000 shall be awarded to
    the WinstonNet distance learning project in Winston Salem, North
    Carolina: Provided further, That of the funds made available for title
    X, part I of the Elementary and Secondary Education Act of 1965 and
    notwithstanding any other provision of law, $6,000 shall be awarded to
    the Study Partners Program, Inc., in Louisville, Kentucky, $12,000 shall
    be awarded to the Shawnee Gardens Tenants Association Inc., in
    Louisville, Kentucky for a tutorial program, $12,000 shall be awarded to
    the 100 Black Men of Louisville, Kentucky for a mentoring and leadership
    training program, $500,000 shall be awarded to the Omaha, Nebraska
    Public Schools for the OPS 21st Century Learning Grant, $25,000 shall be
    for the Plymouth Renewal Center in Kentucky for a tutoring program,
    $25,000 shall be for the Canaan Community Development Corporation's
    Village Learning Center Program, $25,000 shall be for the St. Stephen
    Life Center

    [[Page 344]]

    After School Program, $25,000 shall be for the Louisville Central
    Community Centers Youth Education Program, $15,000 shall be for the
    Trinity Family Life Center tutoring program, $15,000 shall be for the
    New Zion Community Development Foundation, Inc., after school mentoring
    program, $20,000 shall be for the St. Joseph Catholic Orphan Society
    program for abused and neglected children, $25,000 shall be for the
    Portland Neighborhood House after school program, $25,000 shall be for
    the St. Anthony Community Outreach Center, Inc., for the Education PAYs
    program, $250,000 shall be awarded to the Harvey Public School District
    152 in Chicago, Illinois for the ``Project CAFE'' after-school program,
    $200,000 shall be awarded to the St. Clair County, Michigan Intermediate
    School District for after-school programs, $400,000 shall be awarded to
    the Macomb County, Michigan Intermediate School District for after-
    school programs, $200,000 shall be awarded to the Danbury Public School
    System in Connecticut for an ESCAPE Arts after-school program, $50,000
    shall be awarded to the Tuckahoe School District for an after-school
    program in Eastchester, New York, $100,000 shall be awarded to
    Innovative Directions, an Educational Alliance (IDEA), based at the City
    Island School (P.S. 175) in the Bronx, New York City, New York, $250,000
    shall be awarded to the New York Hall of Science in Queens, New York for
    after-school education programs, $60,000 shall be awarded to the
    Mamaroneck School District in Mamaroneck, New York for expansion of an
    after-school program, $250,000 shall be awarded to the White Plains
    School District for an after-school program in White Plains, New York,
    $200,000 shall be awarded to the New Rochelle School District for an
    after-school program in New Rochelle, New York, $250,000 shall be
    awarded to the Community School District 30 in Queens, New York for the
    expansion of after-school activities, $500,000 shall be awarded to the
    Jefferson Elementary School for a joint after-school program with the
    Madison Elementary School in Stevens Point, Wisconsin, $400,000 shall be
    awarded to the School District of Superior in Wisconsin for an after-
    school center, $100,000 shall be awarded to the Independence School
    District in Kansas City, Missouri for an after-school program, and
    $500,000 shall be awarded to the Clark County School District in Nevada
    for an after-school program.] (Department of Education Appropriations
    Act, 2000, as enacted by section 1000(a)(4) of the Consolidated
    Appropriations Act, 2000 (P.L. 106-113).)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0500-0-1-501      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Goals 2000:

    00.01   State and local education
              systemic improvement..........         469         457           9
    00.02   Parental assistance.............          30          33
                                               ---------   ---------  ----------
    00.91     Total, goals 2000.............         499         490           9
    01.01 School-to-work opportunities......         128         125          55
          Educational technology:

    02.01   Technology literacy challenge
              fund..........................         425         425
    02.02   Technology innovation challenge
              grants........................         115         146
    02.03   Regional technology in education
              consortia.....................          10          10
            National activities:
    02.04     Teacher training in technology          75          75
    02.05     Community-based technology....          10          33
    02.06     Technology leadership
                activities..................           2           2
    02.07     Star schools..................          45          51
    02.08     Ready to learn television.....          11          16
    02.09   Telecommunications demonstration
              project for mathematics.......           5           8
                                               ---------   ---------  ----------
    02.91     Total, educational technology.         698         766
    03.01 21st Century community learning
            centers.........................                     453
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       1,325       1,834          64
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year...................         204         133          64
    22.00 New budget authority (gross)......       1,314       1,765
    22.21 Unobligated balance transferred to
            other accounts..................         -64
    22.22 Unobligated balance transferred
            from other accounts.............           5
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       1,459       1,898          64
    23.95 Total new obligations.............      -1,325      -1,834         -64
    23.98 Unobligated balance expiring or
            withdrawn.......................          -1
    24.40 Unobligated balance available, end
            of year.........................         133          64
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................       1,314       1,768
    40.76   Reduction pursuant to P.L. 106-
              113...........................                      -3
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............       1,314       1,765
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance, start of year       1,409       1,847       2,556
    73.10 Total new obligations.............       1,325       1,834          64
    73.20 Total outlays (gross).............        -887      -1,125      -1,385
    74.40 Unpaid obligations, end of year:
            Obligated balance, end of year..       1,847       2,556       1,235
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         124          88
    86.93 Outlays from discretionary
            balances........................         763       1,037       1,385
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         887       1,125       1,385
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       1,314       1,765
    90.00 Outlays...........................         887       1,125       1,385
    ---------------------------------------------------------------------------

        The Administration has proposed legislation reauthorizing programs
    included in the expiring Elementary and Secondary Education Act. When
    new authorizing legislation is enacted, resources for the affected
    programs will be requested. See the ``Legislative proposal, not subject
    to PAYGO'' schedule for additional details.

                     Summary of Budget Authority and Outlays

                            (in millions of dollars)

                                         1999 actual  2000 est.   2001 est.
    Enacted/requested:
      Budget Authority..................       1,314       1,765
      Outlays...........................         887       1,125       1,385
    Legislative proposal, not subject to
        PAYGO:
      Budget Authority..................                               2,073
      Outlays...........................                                 104
                                        ------------------------------------
    Total:
      Budget Authority..................       1,314       1,765       2,073
      Outlays...........................         887       1,125       1,489
                                        ====================================

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0500-0-1-501      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
    25.1  Advisory and assistance services..          15          21
    25.2  Other services....................           4           5
    25.3  Purchases of goods and services
            from Government accounts........           6           8
    25.5  Research and development contracts           3           4
    41.0  Grants, subsidies, and
            contributions...................       1,297       1,796          64
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       1,325       1,834          64
    ---------------------------------------------------------------------------

                                Education Reform

                  (Legislative proposal, not subject to PAYGO)

        Of the funds to be made available under this heading, $120,000,000
    shall be available to support activities under section 10105 of part A,
    title X of the Elementary and Secondary Education Act of 1965, of which
    up to 5 percent may be available for evaluation, technical assistance,
    and school networking activities: Provided, That funds made available to
    local educational agencies under section 10105 shall be used only for
    activities related to establishing smaller learning communities in high
    schools: Provided further, That funds to be made available for section
    10105 shall become available on July 1, 2001, and remain available
    through September 30, 2002.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0500-2-1-501      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 21st century community learning
            centers.........................                               1,000
    00.02 Small, safe and successful high
            schools.........................                                 120
                                               ---------   ---------  ----------

    [[Page 345]]

    00.91   Direct Program Subtotal.........                               1,120
          Educational technology:

    01.01   Technology literacy challenge
              fund..........................                                 450
    01.02   Regional technology in education
              consortia.....................                                 170
    01.03   Next generation technology
              innovation....................                                  10
    01.04   Technology leadership activities                                   2
    01.05   Ready to learn digital
              television....................                                  16
    01.06   Telecommunications program for
              professional development......                                   5
    01.07   Community technology centers....                                 100
    01.08   Preparing tomorrow's teachers to
              use technology................                                 150
                                               ---------   ---------  ----------
    01.91   Subtotal, educational technology                                 903
    02.01 Recognition and reward............                                  50
                                               ---------   ---------  ----------
    10.00   Total new obligations...........                               2,073
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                               2,073
    23.95 Total new obligations.............                              -2,073
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................                               2,073
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    73.10 Total new obligations.............                               2,073
    73.20 Total outlays (gross).............                                -104
    74.40 Unpaid obligations, end of year:
            Obligated balance, end of year..                               1,969
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................                                 104
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                               2,073
    90.00 Outlays...........................                                 104
    ---------------------------------------------------------------------------

        The resources in this schedule are proposed for later transmittal
    under proposed legislation to revise and reauthorize programs currently
    authorized under the Elementary and Secondary Education Act of 1965 and
    the Goals 2000: Educate America Act, as amended. Proposed appropriations
    language for Small, Safe and Successful Schools is provided to continue
    appropriations policy established in FY 2000. Appropriations language
    for the remainder of the account will be transmitted at a later date.

        21st Century community learning centers.--Funds would support grants
    to centers providing school-based academic and recreational services for
    youths and other members of the community. The budget expands this
    program dramatically to provide more high-quality extended learning
    opportunities for children and to make after or summer school programs
    universally available to help turn around failing schools.

        Small, safe and successful high schools.--Funds would be used to
    assist high schools to create smaller, safer learning environments
    through such strategies as schools-within-schools, career academies, or
    magnet schools.

        Educational Technology
            Technology Literacy Challenge Fund.--Funds would be provided by
        formula to States, which in turn award grants competitively to local
        educational agencies to acquire computers, connections, training,
        and software to achieve the President's four goals for fully
        integrating technology into classrooms.
            Next generation technology innovation.--The proposal would
        combine the Technology Innovation Challenge Grants and the Star
        Schools program into a new program designed to develop and expand
        cutting-edge technologies such as Web-based instruction to improve
        instruction. Funds would be used for competitive awards to consortia
        that include at least one State or local educational agency and at
        least one institution of higher education, for-profit business,
        museum, library, or other entity with relevant experience.
            Regional technology in education consortia.--Under the proposal,
        funds would continue to support technical assistance to promote the
        effective use of technology in education.
            Technology leadership activities.--Funds would 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.
            Ready to learn digital television.--Under the proposal, funds
        would continue to support the development of educational programming
        and outreach activities promoting literacy and school readiness for
        preschool and elementary school children and their parents.
            Telecommunications program for professional development.--
        Currently, funds support a national telecommunications-based
        demonstration project to improve teaching in mathematics. The
        reauthorization proposal would expand the program to include
        teaching in core content areas, not just in mathematics.
            Community technology centers.--Funds support computer learning
        centers for students and adults in low-income neighborhoods.
            Preparing tomorrow's teachers to use technology.--Funds would
        support grants to consortia of States, colleges of education, and
        other public and private entities to prepare new teachers to use
        technology effectively in their classrooms.
            Recognition and reward.--Funds would be used to reward States
        that are improving student achievement; narrowing the achievement
        gap between high- and low-performing students; and that have
        strategies in place for continuous improvement.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0500-2-1-501      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
    25.1  Advisory and assistance services..                                  23
    25.2  Other services....................                                   5
    25.5  Research and development contracts                                   9
    41.0  Grants, subsidies, and
            contributions...................                               2,036
                                               ---------   ---------  ----------
    99.9    Total new obligations...........                               2,073
    ---------------------------------------------------------------------------

                         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 of 1965,
    $30,000,000 [$8,700,986,000, of which $2,461,823,000 shall become
    available on July 1, 2000, and shall remain available through September
    30, 2001, and of which $6,204,763,000 shall become available on October
    1, 2000 and shall remain available through September 30, 2001, for
    academic year 2000-2001: Provided, That $6,783,000,000 shall be
    available for basic grants under section 1124: Provided further, That
    $134,000,000 shall be allocated among the States in the same proportion
    as funds are allocated among the States under section 1122, to carry out
    section 1116(c): Provided further, That 100 percent of these funds shall
    be allocated to local educational agencies for the purposes of carrying
    out section 1116(c) and that local educational agencies shall provide
    all students enrolled in a school identified under section 1116(c) with
    the option to transfer to another public school within the local
    educational agency, including a public charter school, that has not been
    identified for school improvement under section 1116(c): Provided
    further, That if the local educational agency demonstrates to the
    satisfaction of the State educational agency that the local educational
    agency lacks the capacity to provide all students with the option to
    transfer to another public school, and after giving notice to the
    parents of children affected that it is not possible, consistent with
    State and local law, to accommodate the transfer request of every
    student, the local educational agency shall permit as many students as
    possible (who shall be selected by the local educational agency on an
    equitable basis) to transfer to a public school that has not been
    identified for school improvement under section 1116(c): Provided
    further, That up to $3,500,000 of these funds shall be available to the
    Secretary on October 1, 1999, to obtain updated local-educational-
    agency-level census poverty data from the Bureau of the Census: Provided
    further, That $1,158,397,000 shall be available for concentration grants
    under sec

    [[Page 346]]

    tion 1124A: Provided further, That $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
    sections 1124 and 1124A of title I of the Elementary and Secondary
    Education Act of 1965 shall be made to each State and 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 1999:
    Provided further, That notwithstanding any other provision of law, grant
    awards under section 1124A of title I of the Elementary and Secondary
    Education Act of 1965 shall be made to those local educational agencies
    that received a Concentration Grant under the Department of Education
    Appropriations Act, 1998, but are not eligible to receive such a grant
    for fiscal year 2000: Provided further, That each such local educational
    agency shall receive an amount equal to the Concentration Grant the
    agency received in fiscal year 1998, ratably reduced, if necessary, to
    ensure that these local educational agencies receive no greater share of
    their hold-harmless amounts than other local educational agencies:
    Provided further, That the Secretary shall not take into account the
    hold harmless provisions in this section in determining State
    allocations under any other program administered by the Secretary in any
    fiscal year: Provided further, That $170,000,000 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
    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]. (Department of Education Appropriations Act, 2000, as
    enacted by section 1000(a)(4) of the Consolidated Appropriations Act,
    2000 (P.L. 106-113).)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0900-0-1-501      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct program:

            Grants to local educational
                agencies:
    00.01     Basic grants..................       2,965       6,786       5,058
    00.02     Concentration grants..........          11       1,160       1,147
    00.03   Capital expenses................          24          12
    00.04   Even start......................         134         154
    00.05   State agency programs...........         393         403
    00.06   Evaluation......................           7           9
    00.07   Demonstrations of comprehensive
              school reform.................         176         171
    00.08   Migrant education projects......          13          22          30
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       3,723       8,717       6,235
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year...................          71          16
    22.00 New budget authority (gross)......       3,670       8,701       6,235
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       3,742       8,717       6,235
    23.95 Total new obligations.............      -3,723      -8,717      -6,235
    23.98 Unobligated balance expiring or
            withdrawn.......................          -1
    24.40 Unobligated balance available, end
            of year.........................          16
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................       2,222       2,496          30
    55.00   Advance appropriation...........       1,448       6,205       6,205
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       3,670       8,701       6,235
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance, start of year       7,304       3,472       3,811
    73.10 Total new obligations.............       3,723       8,717       6,235
    73.20 Total outlays (gross).............      -7,554      -8,378      -8,108
    73.40 Adjustments in expired accounts
            (net)...........................          -2
    73.45 Adjustments in unexpired accounts.          -1
    74.40 Unpaid obligations, end of year:
            Obligated balance, end of year..       3,472       3,811       1,938
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................       1,425       5,399       4,966
    86.93 Outlays from discretionary
            balances........................       6,129       2,980       3,143
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       7,554       8,378       8,108
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       3,670       8,701       6,235
    90.00 Outlays...........................       7,554       8,378       8,108
    ---------------------------------------------------------------------------

                            SUMMARY OF PROGRAM LEVEL

                            (in millions of dollars)

                                         1999-2000
                                          academic
                                            year      2000-2001
                                                    academic year 2001-2002
                                                                academic year
    Current Budget Authority............       2,222       2,496       2,935
    Advance appropriation...............       6,205       6,205       6,205
                                        ------------------------------------
          Total program level...........       8,427       8,701       9,140
                                        ====================================
    Increase in advance appropriation
    over previous year..................

        Title I programs.--The Administration has proposed legislation
    reauthorizing programs under Title I of the Elementary and Secondary
    Education Act. When new authorizing legislation is enacted, resources
    will be requested for these programs. See the ``Legislative proposal,
    not subject to PAYGO'' schedule for additional details.

        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.

                     Summary of Budget Authority and Outlays

                            (in millions of dollars)

                                         1999 actual  2000 est.   2001 est.
    Enacted/requested:
      Budget Authority..................       3,670       8,701       6,235
      Outlays...........................       7,554       8,379       8,109
    Legislative proposal, not subject to
        PAYGO:
      Budget Authority..................                               2,915
      Outlays...........................                                 456
                                        ------------------------------------
    Total:
      Budget Authority..................       3,670       8,701       9,150
      Outlays...........................       7,554       8,379       8,565
                                        ====================================

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0900-0-1-501      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
    25.1  Advisory and assistance services..           9          11
    25.2  Other services....................           8           9
    25.3  Purchases of goods and services
            from Government accounts........           4           4
    41.0  Grants, subsidies, and
            contributions...................       3,702       8,693       6,235
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       3,723       8,717       6,235
    ---------------------------------------------------------------------------

                         Education for the Disadvantaged

                  (Legislative proposal, not subject to PAYGO)

        Of the funds to be made available under this heading, $250,000,000
    of funds for part A of title I of the Elementary and Secondary Education
    Act of 1965 shall be allocated among the States in the same proportion
    as funds are allocated among them under section 1122, to carry out
    sections 1116(c), 1116(d), and 1117 of that Act: Provided, That each
    State shall allocate at least 70 percent of such funds to local
    educational agencies to carry out section 1116(c), giving priority first
    to local educational agencies with schools identified for corrective
    action under section 1116(c)(5) and second to local educational agencies
    with schools identified for program improvement under section 1116(c)(1)
    that are farthest from meeting State standards, which those agencies
    shall use for the benefit of students in those schools: Provided
    further, That each State shall use the remainder of such funds in the
    following priority: (1) to take corrective action, under section

    [[Page 347]]

    1116(c)(6)(B), with respect to schools and local educational agencies
    described in that section; (2) to take corrective action with respect to
    local educational agencies in accordance with section 1116(d)(6); and
    (3) to provide technical assistance to remaining schools that are
    farthest from meeting State standards: Provided further, That a State
    educational agency shall require any local educational agency receiving
    funds under part A, title I, except where prohibited by State or local
    law (including school board-approved local educational agency policy),
    to permit students attending any school identified for corrective action
    under section 1116(c)(5) to transfer, at no cost to the student, to
    another public school of the agency that has not been so identified, in
    addition to taking at least one other action described in section
    1116(c)(5)(B), except that no agency may use more than 10 percent of the
    funds, if any, it receives from the $250,000,000 reserved above for the
    costs of transportation.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0900-2-1-501      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct program:

            Grants to local educational
                agencies:
    00.01     Basic grants..................                               2,120
    00.02     Concentration grants..........                                  12
    00.03     Targeted grants...............                                  21
    00.04   Even start......................                                 150
    00.05   State agency programs...........                                 422
    00.08   Demonstrations of comprehensive
              school reform.................                                 190
                                               ---------   ---------  ----------
    10.00   Total new obligations...........                               2,915
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                               2,915
    23.95 Total new obligations.............                              -2,915
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................                               2,915
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    73.10 Total new obligations.............                               2,915
    73.20 Total outlays (gross).............                                -456
    74.40 Unpaid obligations, end of year:
            Obligated balance, end of year..                               2,459
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................                                 456
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                               2,915
    90.00 Outlays...........................                                 456
    ---------------------------------------------------------------------------

        The resources in this schedule are proposed for later transmittal
    under proposed legislation to revise and reauthorize programs currently
    authorized under the Elementary and Secondary Education Act (ESEA), as
    amended. Proposed appropriations language for the Title I Accountability
    Fund is provided to continue and modify appropriations policy
    established in 2000. Appropriations language for the remainder of the
    account will be transmitted at a later date.

        Under the Administration's proposal for Title I of that Act, funds
    would be provided to States and to local school districts for the
    activities shown below.

        Grants to local education agencies.--Funds would be allocated
    through the Basic, Concentration, and Targeted grants formulas for local
    programs that help Title I students meet high standards, hold school
    districts and schools accountable for improved student achievement and
    reduce the number of failing schools, support schoolwide reforms and the
    use of research-based strategies for improving teaching and learning,
    dedicate more resources to professional development, and target funds to
    high-poverty schools. To improve Title I accountability, funds would be
    included to help turn around low-achieving schools in all States.

        Even start.--Funds would be provided by formula to States, which
    would award grants for local projects 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 would be provided by formula to
    States for educational services to children of migratory farmworkers and
    fishers. Funds and services would be concentrated on children who have
    moved within the past 36 months.

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

        Demonstrations of comprehensive school reform.--Funds would be
    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.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0900-2-1-501      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
    25.1  Advisory and assistance services..                                  20
    25.2  Other services....................                                   9
    25.3  Purchases of goods and services
            from Government accounts........                                   4
    41.0  Grants, subsidies, and
            contributions...................                               2,882
                                               ---------   ---------  ----------
    99.9    Total new obligations...........                               2,915
    ---------------------------------------------------------------------------

                                   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, $910,500,000, of which $737,200,000
    shall be for basic support payments under section 8003(b), $50,000,000
    shall be for payments for children with disabilities under section
    8003(d), $76,000,000, to remain available until expended, shall be for
    payments under section 8003(f ), $10,300,000 shall be for construction
    under section 8007, $32,000,000 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
    of the funds available for section 8007 and notwithstanding any other
    provision of law, $500,000 shall be awarded to the Fort Sam Houston
    Independent School District, Texas, $800,000 shall be awarded to the
    Hays Lodgepole School District, Montana, and $2,000,000 shall be awarded
    to the North Chicago Community Unit SD 187: Provided further, That these
    funds shall remain available until expended: Provided further, That the
    Secretary of Education shall treat as timely filed, and shall process
    for payment, an application for a fiscal year 1999 payment from the
    local educational agency for Brookeland, Texas under section 8002 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 section 8002(f ) of the Elementary and
    Secondary Education Act of 1965 is amended by adding a new paragraph
    ``(3)'' at the end to read as follows:
            ``(3) For each fiscal year beginning with fiscal year 2000, the
        Secretary shall treat the Central Union, California; Island,
        California; Hill City, South Dakota; and Wall, South Dakota local
        educational agencies as meeting the eligibility requirements of
        subsection (a)(1)(C) of this section.'':
        Provided further, That the Secretary of Education shall consider all
    payments received by the educational agency for Hatboro-Horsham and
    Delaware Valley, Pennsylvania for fiscal year 1995 under section 8002(a)
    of the Elementary and Secondary Education Act of 1965 (20 U.S.C.
    7702(a)), and all payments under section 8002(h)(2)(A) for subsequent
    years through fiscal year 1999, to be correct: Provided further, That
    section 8002(f ) of the Elementary and Secondary Education Act of 1965
    is amended by adding at the end thereof a new paragraph (4) to read as
    follows:
            ``(4) For the purposes of payments under this section for each
        fiscal year beginning with fiscal year 2000, the Secretary shall

    [[Page 348]]

        treat the Hot Springs, South Dakota local educational agency as if
        it had filed a timely application under section 8002 of the
        Elementary and Secondary Education Act of 1965 for fiscal year 1994
        if the Secretary has received the fiscal year 1994 application, as
        well as Exhibits A and B not later than December 1, 1999.'':
        Provided further, That section 8002(f ) of the Elementary and
    Secondary Education Act of 1965 is amended by adding at the end thereof
    a new paragraph (5) to read as follows:
            ``(5) For purposes of payments under this section for each
        fiscal year beginning with fiscal year 2000, the Secretary shall
        treat the Hueneme, California local educational agency as if it had
        filed a timely application under section 8002 of the Elementary and
        Secondary Education Act of 1965 if the Secretary has received the
        fiscal year 1995 application not later than December 1, 1999.'':
        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 Hydaburg,
    Alaska, 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 the
    Secretary of Education shall treat as timely, and process for payment,
    an application for fiscal years 1996 and 1997 payment from the local
    education agency for Fallbrook Unified High School District, California,
    under section 8002 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 for the
    purpose of computing the amount of a payment for a local educational
    agency for children identified under section 8003 of the Elementary and
    Secondary Education Act of 1965, 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: (1) 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 (2) 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.] (Department of Education
    Appropriations Act, 2000, as enacted by section 1000(a)(4) of the
    Consolidated Appropriations Act, 2000 (P.L. 106-113).)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0102-0-1-501      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Payments for federally connected children:

    00.01   Basic support payments..........         704         737
    00.02   Supplemental payments for
              children with disabilities....          50          50
    00.03   Payments for heavily impacted
              districts.....................         106          78
                                               ---------   ---------  ----------
    00.91   Subtotal, payments for federally
              connected children............         860         865
    01.01 Facilities maintenance............          12           4           3
    02.01 Construction (formula)............           7           7
    03.01 Payments for Federal property.....          28          32
    04.01 Special construction..............           5           3           2
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         912         911           5
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year...................          73          24          19
    22.00 New budget authority (gross)......         864         906
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         937         930          19
    23.95 Total new obligations.............        -912        -911          -5
    24.40 Unobligated balance available, end
            of year.........................          24          19          14
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         864         910
    40.76   Reduction pursuant to P.L. 106-
              113...........................                      -4
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         864         906
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance, start of year         407         249         126
    73.10 Total new obligations.............         912         911           5
    73.20 Total outlays (gross).............      -1,081      -1,034        -102
    73.40 Adjustments in expired accounts
            (net)...........................          11
    74.40 Unpaid obligations, end of year:
            Obligated balance, end of year..         249         126          29
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         790         809
    86.93 Outlays from discretionary
            balances........................         291         225         102
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       1,081       1,034         102
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         864         906
    90.00 Outlays...........................       1,081       1,034         102
    ---------------------------------------------------------------------------

        The Administration has proposed legislation reauthorizing Impact Aid
    programs included in the expiring Elementary and Secondary Education
    Act. When new authorizing legislation is enacted, resources will be
    requested for these programs. See the ``Legislative proposal, not
    subject to PAYGO'' schedule for additional details.

                     Summary of Budget Authority and Outlays

                            (in millions of dollars)

                                         1999 actual  2000 est.   2001 est.
    Enacted/requested:
      Budget Authority..................         864         906
      Outlays...........................       1,081       1,034         102
    Legislative proposal, not subject to
        PAYGO:
      Budget Authority..................                                 770
      Outlays...........................                                 689
                                        ------------------------------------
    Total:
      Budget Authority..................         864         906         770
      Outlays...........................       1,081       1,034         791
                                        ====================================

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0102-0-1-501      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
    25.3  Purchases of goods and services
            from Government accounts........           1
    32.0  Land and structures...............          10           7           3
    41.0  Grants, subsidies, and
            contributions...................         901         904           2
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         912         911           5
    ---------------------------------------------------------------------------

                                   Impact Aid

                  (Legislative proposal, not subject to PAYGO)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0102-2-1-501      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Payments for federally connected children:

    00.01   Basic support payments..........                                 720
    00.02   Supplemental payments for
              children with disabilities....                                  40
                                               ---------   ---------  ----------
    00.91   Subtotal, payments for federally
              connected children............                                 760
    01.01 Facilities maintenance............                                   3
    01.02 Construction......................                                   5
                                               ---------   ---------  ----------
    01.91   Subtotal........................                                   8
                                               ---------   ---------  ----------
    10.00   Total new obligations...........                                 768
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                                 770

    [[Page 349]]

    23.95 Total new obligations.............                                -768
    24.40 Unobligated balance available, end
            of year.........................                                   3
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................                                 770
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    73.10 Total new obligations.............                                 768
    73.20 Total outlays (gross).............                                -689
    74.40 Unpaid obligations, end of year:
            Obligated balance, end of year..                                  79
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................                                 689
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                                 770
    90.00 Outlays...........................                                 689
    ---------------------------------------------------------------------------

        The resources in this schedule are proposed for later transmittal
    under the proposed legislation to revise and reauthorize programs
    currently authorized under the Elementary and Secondary Education Act,
    as amended. Under the Administration proposal for Impact Aid, funds
    would be provided to assist local educational agencies that are affected
    by Federal activities. Payments would be made to local educational
    agencies that educate (1) children of members of the uniformed services
    living on Federal property; (2) children living on Indian lands; (3)
    children of Federal employees who both live and work on Federal
    property; and (4) children of foreign military officers living on
    Federal property.

        Basic support payments.--Payments would be made on behalf of
    approximately 292,000 federally connected children enrolled in
    approximately 950 local educational agencies across the country. The
    request would provide an average payment of approximately $2,500 for
    each of these federally connected children.

        Payments for children with disabilities.--Payments would be made for
    additional assistance to local educational agencies educating federally
    connected children with disabilities. Approximately 33,000 such children
    are enrolled in school districts across the country. The request would
    provide approximately $1,200 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 would provide assistance for school
    construction for local educational agencies in which at least 50 percent
    of the students reside on Indian lands.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0102-2-1-501      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
    32.0  Land and structures...............                                   3
    41.0  Grants, subsidies, and
            contributions...................                                 765
                                               ---------   ---------  ----------
    99.9    Total new obligations...........                                 768
    ---------------------------------------------------------------------------

                           School Improvement Programs

        For carrying out school improvement activities authorized by [titles
    II, IV, V-A and B, VI, IX,] title X-C, [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 of 1965[; $3,026,884,000, of
    which $975,300,000 shall become available on July 1, 2000, and remain
    available through September 30, 2001, and of which $1,515,000,000 shall
    become available on October 1, 2000 and shall remain available through
    September 30, 2001 for academic year 2000-2001: Provided, That of the
    amount appropriated, $335,000,000 shall be for Eisenhower professional
    development State grants under title II-B and $1,680,000,000 shall be
    for title VI and up to $750,000 shall be for an evaluation of
    comprehensive regional assistance centers under title XIII of ESEA:
    Provided further, That of the amount made available for title VI
    $1,300,000,000 shall be available, notwithstanding any other provision
    of law, to carry out title VI of Elementary and Secondary Education Act
    of 1965 in accordance with section 310 of this Act, 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], $202,334,000. (Department of Education Appropriations
    Act, 2000, as enacted by section 1000(a)(4) of the Consolidated
    Appropriations Act, 2000 (P.L. 106-113).)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-1000-0-1-501      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
        Direct program:
          Obligations by program activity:

            Professional development and
                program innovation:
    00.01     Eisenhower professional
                development State grants....         337         336
    00.02     Innovative education program
                strategies State grants.....         375          81         285
    00.03     Class size reduction..........       1,199         401         900
            Safe and drug-free schools and
                communities:
    00.04     State grants..................         441         111         330
    00.05     National programs.............          90         111
    00.06     Coordinator Initiative........          35          50
    00.08   Inexpensive book distribution...          18          20
    00.09   Arts in education...............          11          12
    00.10   Magnet schools assistance.......         104         110
    00.11   Education for homeless children
              and youth.....................          29          29
    00.12   Women's educational equity......           3           3
    00.13   Training and advisory services..           7           7           7
    00.14   Ellender fellowships............           2           2
    00.15   Education for Native Hawaiians..          20          23
    00.16   Alaska Native education equity..          10          13
    00.17   Charter schools.................         100         145         175
    00.18   Advanced placement incentives...           4          15          20
    00.19   Comprehensive regional
              assistance centers............          28          28
                                               ---------   ---------  ----------
    01.00 Total direct program..............       2,813       1,497       1,717
    09.01 Reimbursable program..............          36
                                               ---------   ---------  ----------
    10.00 Total new obligations.............       2,849       1,497       1,717
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year...................           5           4
    22.00 New budget authority (gross)......       2,847       1,492       1,717
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       2,852       1,496       1,717
    23.95 Total new obligations.............      -2,849      -1,497      -1,717
    24.40 Unobligated balance available, end
            of year.........................           4
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................       2,811       1,512         202
    40.76   Reduction pursuant to P.L. 106-
              113...........................                     -20
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............       2,811       1,492         202
    55.00   Advance appropriation...........                               1,515
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............          36
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       2,847       1,492       1,717
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance, start of year       1,941       3,423       2,393
    73.10 Total new obligations.............       2,849       1,497       1,717
    73.20 Total outlays (gross).............      -1,362      -2,527      -2,627
    73.40 Adjustments in expired accounts
            (net)...........................          -4
    74.40 Unpaid obligations, end of year:
            Obligated balance, end of year..       3,423       2,393       1,483
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         155         150       1,026
    86.93 Outlays from discretionary
            balances........................       1,207       2,377       1,602
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       1,362       2,527       2,627
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........         -36
    ----------------------------------------------------------------------------

    [[Page 350]]

        Net budget authority and outlays:
    89.00 Budget authority..................       2,811       1,492       1,717
    90.00 Outlays...........................       1,326       2,527       2,627
    ---------------------------------------------------------------------------
        Note.--Includes $15 million in budget authority in 2001 for Eisenhower
    regional mathematics and science education consortia previously financed
    from:
                           (in millions of dollars)
                                              1999 actual      2000 est.
    Office of Educational Research and
     Improvement, Education Research,
     Statistics, and Improvement............            15              15

        The Administration has proposed legislation to reauthorize the
    Elementary and Secondary Education Act and portions of the Stewart B.
    McKinney Homeless Assistance Act. When new authorizing legislation is
    enacted, resources will be requested for most programs in the School
    Improvement Programs account. See the ``Legislative proposal, not
    subject to PAYGO''.

        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.

        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.

        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.

                     Summary of Budget Authority and Outlays

                            (in millions of dollars)

                                         1999 actual  2000 est.   2001 est.
    Enacted/requested:
      Budget Authority..................       2,811       1,492       1,717
      Outlays...........................       1,326       2,527       2,628
    Legislative proposal, not subject to
        PAYGO:
      Budget Authority..................                               2,200
      Outlays...........................                                 186
                                        ------------------------------------
    Total:
      Budget Authority..................       2,811       1,492       3,917
      Outlays...........................       1,326       2,527       2,814
                                        ====================================

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-1000-0-1-501      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    25.1    Advisory and assistance services           4           2           1
    25.2    Other services..................          30          11           4
    25.3    Purchases of goods and services
              from Government accounts......           1
    41.0    Grants, subsidies, and
              contributions.................       2,777       1,484       1,712
                                               ---------   ---------  ----------
    99.0      Subtotal, direct obligations..       2,812       1,497       1,717
    99.0  Reimbursable obligations..........          36
    99.5  Below reporting threshold.........           1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       2,849       1,497       1,717
    ---------------------------------------------------------------------------

                           School Improvement Programs

                  (Legislative proposal, not subject to PAYGO)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-1000-2-1-501      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          High standards in the classroom:

    00.01   Teaching to high standards......                                 405
            National programs:
    00.02     School leadership initiative..                                  40
    00.03     National activities for the
                improvement of teaching and
                school leadership...........                                  25
    00.04     Eisenhower regional
                mathematics and science
                education consortia.........                                  15
    00.05     Hometown teachers initiative..                                  75
    00.06     Higher standards, higher pay..                                  50
    00.07     Teacher quality incentives....                                  50
    00.08   Transition to teaching: Troops
              to teachers...................                                  25
    00.09   Early childhood educator
              professional development......                                  30
    00.10 Class size reduction..............                                 850
          Safe and drug-free schools and communities:

    00.11   State grants....................                                 109
    00.12   National programs...............                                 201
    00.13   Project SERV....................                                  10
    00.14 Inexpensive book distribution.....                                  20
    00.15 Arts in education.................                                  23
    00.16 Magnet schools assistance.........                                 110
    00.17 Education for homeless children
            and youth.......................                                  32
    00.18 Women's educational equity........                                   3
    00.19 Education for Native Hawaiians....                                  23
    00.20 Alaska Native education equity....                                  13
    00.21 Opportunities to improve our
            Nation's schools (OPTIONS)......                                  20
    00.22 Strengthening technical assistance
            capacity grants.................                                  38
    00.23 Parental information resource
            centers.........................                                  33
                                               ---------   ---------  ----------
    10.00   Total new obligations...........                               2,200
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                               2,200
    23.95 Total new obligations.............                              -2,200
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................                               2,200
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    73.10 Total new obligations.............                               2,200
    73.20 Total outlays (gross).............                                -186
    74.40 Unpaid obligations, end of year:
            Obligated balance, end of year..                               2,014
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................                                 186
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                               2,200
    90.00 Outlays...........................                                 186
    ---------------------------------------------------------------------------

                            SUMMARY OF PROGRAM LEVEL

                            (in millions of dollars)

                                         1999-2000
                                          academic
                                            year      2000-2001
                                                    academic year 2001-2002
                                                                academic year
    Current Budget Authority............       2,811       1,492       2,402
    Advance appropriation...............           0       1,515       1,515
                                        ------------------------------------
          Total program level...........       2,811       3,007       3,917
                                        ====================================
    Increase in advance appropriation
    over previous year..................          +0      +1,515          +0

        The resources in this schedule are proposed for later transmittal
    under proposed legislation to revise and reauthorize programs currently
    authorized under the Elementary and Secondary Education Act of 1965 and
    the Stewart B. McKinney Homeless Assistance Act.

        Teaching to high standards State grants.--Under this new program,
    funds would be allocated by formula to States, outlying areas, and the
    Bureau of Indian Affairs to support standards-based reform and sustained
    and intensive high-

    [[Page 351]]

    quality professional development for educators in the core academic
    subjects.

        School leadership initiative.--This new program would fund centers
    that would provide professional development to principals and other
    school and district level administrators.

        National activities for the improvement of teaching and school
    leadership.--This program will continue to support projects previously
    funded by Eisenhower Professional Development Federal activities,
    including the National Clearinghouse for Mathematics and Science
    Education and the National Board for Professional Teaching Standards.

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

        Hometown teachers initiative.--This new program would encourage high
    school students to become teachers and support them in their
    undergraduate teacher training programs and their first years in the
    classroom.

        Higher standards, higher pay.--This initiative would award
    competitive grants to high-poverty school districts that implement peer
    review systems to attract and retain high-quality teachers and
    principals through better pay.

        Teacher quality incentives.--This new program would encourage the
    use of fully certified and licensed teachers and discourage out-of-field
    teaching.

        Transition to teaching: Troops to teachers.--This program would fund
    the Troops to Teachers program, which encourages and supports former
    members of the military to become teachers, and would expand the program
    to encourage other mid-career professionals to become teachers.

        Early childhood educator professional development.--Under this new
    program, funds would be awarded competitively to partnerships of higher
    education institutions and other entities to create high-quality
    professional development for early childhood educators and caregivers
    working in communities with high concentrations of young children living
    in poverty.

        Class size reduction.--Formula grants would be 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 would be made to States, outlying
        areas, and the Bureau of Indian Affairs to help create and maintain
        drug-free, safe, and orderly environments for learning in and around
        schools by supporting effective, research-based approaches to drug
        and violence prevention
            National programs.--Funds would support activities to promote
        drug-free, safe, and orderly learning environments for students at
        all educational levels. Such activities may include programs
        implemented in conjunction with other Federal agencies, such as the
        Safe Schools/Healthy Students initiative, that support local
        educational agencies and communities in developing and implementing
        comprehensive programs that create safe, disciplined, and drug-free
        learning environments and promote healthy childhood development;
        recruiting, hiring, and training program coordinators to assist
        school districts in implementing high-quality, effective, research-
        based drug and violence prevention programs; and other forms of
        training and technical assistance, demonstrations, and direct
        services to school districts, as well as developing and
        disseminating prevention and education materials and evaluating the
        effectiveness of drug and violence prevention programs.
            Project SERV (School Emergency Response to Violence).--A new
        Federal response to violent deaths and other crises in schools under
        which the Department of Education, in collaboration with the
        Departments of Justice and Health and Human Services and the Federal
        Emergency Management Administration, would provide immediate
        emergency assistance to a community following a school-related
        violent or traumatic incident to help identify and meet urgent and
        unplanned local needs, such as additional security personnel,
        emergency mental health crisis counseling, and longer-term
        counseling to students, faculty, and families.

        Other Programs.--

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

        Arts in education.--Funds would support education activities of the
    Kennedy Center and VSA arts, as well as collaborative, arts education
    programs with the National Endowment for the Arts.

        Magnet schools assistance.--Grants would be made to local
    educational agencies to establish and operate magnet school programs
    that are part of approved desegregation plans.

        Education for homeless children and youth.--Formula grants would be
    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 would 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.

        Education for Native Hawaiians.--Grants would 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 would 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.

        Opportunities to improve our Nation's schools (OPTIONS).--Under this
    new program, grants would be awarded to States and local educational
    agencies to support the planning, design, and implementation of public
    school choice projects.

        Strengthening technical assistance capacity grants.--Under this new
    program, funds would be allocated by formula to States and large school
    districts to purchase, and to strengthen their capacity to acquire and
    use, technical assistance that best fits their needs to increase
    opportunities for all children to achieve the State's academic
    performance standards and to implement the State's or district's plan or
    policies for comprehensive standards-based education reform.

        Parental information resource centers.--Funds would be provided for
    centers in all States to provide training, information, and support to
    State and local educational agencies and schools--particularly high-
    poverty, low-performing schools--to remove barriers to parent
    involvement in their child's education.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-1000-2-1-501      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
    25.2  Other services....................                                   2
    41.0  Grants, subsidies, and
            contributions...................                               2,198
                                               ---------   ---------  ----------
    99.9    Total new obligations...........                               2,200
    ---------------------------------------------------------------------------

    [[Page 352]]

                               Reading Excellence

        [For necessary expenses to carry out the Reading Excellence Act,
    $65,000,000, which shall become available on July 1, 2000 and shall
    remain available through September 30, 2001 and $195,000,000 which shall
    become available on October 1, 2000 and remain available through
    September 30, 2001.] (Department of Education Appropriations Act, 2000,
    as enacted by section 1000(a)(4) of the Consolidated Appropriations Act,
    2000 (P.L. 106-113).)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0011-0-1-501      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Reading Excellence................         233          92         195
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         233          92         195
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year...................                      27
    22.00 New budget authority (gross)......         260          65         195
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         260          92         195
    23.95 Total new obligations.............        -233         -92        -195
    24.40 Unobligated balance available, end
            of year.........................          27
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         260          65
    41.00   Transferred to other accounts...        -210
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............          50          65
    55.00   Advance appropriation...........         210                     195
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         260          65         195
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance, start of year                     233         192
    73.10 Total new obligations.............         233          92         195
    73.20 Total outlays (gross).............                    -133        -205
    74.40 Unpaid obligations, end of year:
            Obligated balance, end of year..         233         192         182
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................                       3          98
    86.93 Outlays from discretionary
            balances........................                     130         108
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........                     133         205
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         260          65         195
    90.00 Outlays...........................                     133         205
    ---------------------------------------------------------------------------

        Reading Excellence.--The Administration has proposed legislation to
    reauthorize the Reading Excellence program included in the Elementary
    and Secondary Education Act. When new authorizing legislation is
    enacted, resources will be requested for this program. See the
    ``Legislative proposal, not subject to PAYGO'' schedule for additional
    details.

                     Summary of Budget Authority and Outlays

                            (in millions of dollars)

                                         1999 actual  2000 est.   2001 est.
    Enacted/requested:
      Budget Authority..................         260          65         195
      Outlays...........................                     133         206
    Legislative proposal, not subject to
        PAYGO:
      Budget Authority..................                                  91
      Outlays...........................                                   3
                                        ------------------------------------
    Total:
      Budget Authority..................         260          65         286
      Outlays...........................                     133         209
                                        ====================================

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0011-0-1-501      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
    25.1  Advisory and assistance services..                       5
    25.2  Other services....................           1           4
    41.0  Grants, subsidies, and
            contributions...................         232          83         195
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         233          92         195
    ---------------------------------------------------------------------------

                               Reading Excellence

                  (Legislative proposal, not subject to PAYGO)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0011-2-1-501      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Reading Excellence................                                  91
                                               ---------   ---------  ----------
    10.00   Total new obligations...........                                  91
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                                  91
    23.95 Total new obligations.............                                 -91
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................                                  91
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    73.10 Total new obligations.............                                  91
    73.20 Total outlays (gross).............                                  -3
    74.40 Unpaid obligations, end of year:
            Obligated balance, end of year..                                  88
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................                                   3
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                                  91
    90.00 Outlays...........................                                   3
    ---------------------------------------------------------------------------

                            SUMMARY OF PROGRAM LEVEL

                            (in millions of dollars)

                                         1999-2000
                                          academic
                                            year      2000-2001
                                                    academic year 2001-2002
                                                                academic year
    Current Budget Authority............         260          65          91
    Advance appropriation...............                     195         195
                                        ------------------------------------
          Total program level...........         260         260         286
                                        ====================================
    Increase in advance appropriation
    over previous year..................                     195

        The resources in this schedule are proposed for later transmittal
    under proposed legislation to revise and reauthorize programs currently
    authorized under the Elementary and Secondary Education Act.

        Reading Excellence.--The Reading Excellence Act funds programs to
    provide 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, to support programs to assist kindergarten children who are not
    ready for the transition to first 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 professional staff,
    operate tutoring programs, and provide family literacy services.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0011-2-1-501      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
    25.1  Advisory and assistance services..                                   5
    25.2  Other services....................                                   4
    41.0  Grants, subsidies, and
            contributions...................                                  82
                                               ---------   ---------  ----------
    99.9    Total new obligations...........                                  91
    ---------------------------------------------------------------------------

    [[Page 353]]

                          Chicago Litigation Settlement

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0220-0-1-501      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total new obligations (object
            class 41.0).....................           3           2
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year...................           5           2
    23.95 Total new obligations.............          -3          -2
    24.40 Unobligated balance available, end
            of year.........................           2
    ----------------------------------------------------------------------------

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

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

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................           2           3           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, $77,000,000.] (Department of Education
    Appropriations Act, 2000, as enacted by section 1000(a)(4) of the
    Consolidated Appropriations Act, 2000 (P.L. 106-113).)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0101-0-1-501      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

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

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

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          66          77
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance, start of year          77          86          82
    73.10 Total new obligations.............          66          77
    73.20 Total outlays (gross).............         -57         -81         -65
    74.40 Unpaid obligations, end of year:
            Obligated balance, end of year..          86          82          17
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           2           9
    86.93 Outlays from discretionary
            balances........................          55          71          65
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          57          81          65
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          66          77
    90.00 Outlays...........................          57          81          65
    ---------------------------------------------------------------------------

        The administration has proposed legislation reauthorizing programs
    included in the expiring Elementary and Secondary Education Act. When
    new authorizing legislation is enacted, resources for Indian Education
    programs will be requested. See the ``Legislative proposal, not subject
    to PAYGO'' schedule for additional details.

                     Summary of Budget Authority and Outlays

                            (in millions of dollars)

                                         1999 actual  2000 est.   2001 est.
    Enacted/requested:
      Budget Authority..................          66          77
      Outlays...........................          57          80          65
    Legislative proposal, not subject to
        PAYGO:
      Budget Authority..................                                 116
      Outlays...........................                                  14
                                        ------------------------------------
    Total:
      Budget Authority..................          66          77         116
      Outlays...........................          57          80          79
                                        ====================================

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0101-0-1-501      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
    25.2  Other services....................           1           2
    41.0  Grants, subsidies, and
            contributions...................          65          75
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          66          77
    ---------------------------------------------------------------------------

                                Indian Education

                  (Legislative proposal, not subject to PAYGO)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0101-2-1-501      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Grants to local educational
            agencies........................                                  93
    00.02 Special programs for Indian
            children........................                                  20
    00.03 National activities...............                                   3
                                               ---------   ---------  ----------
    10.00   Total new obligations...........                                 116
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                                 116
    23.95 Total new obligations.............                                -116
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................                                 116
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance, start of year
    73.10 Total new obligations.............                                 116
    73.20 Total outlays (gross).............                                 -14
    74.40 Unpaid obligations, end of year:
            Obligated balance, end of year..                                 102
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................                                  14
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                                 116
    90.00 Outlays...........................                                  14
    ---------------------------------------------------------------------------

        The resources in this schedule are proposed for later transmittal
    under proposed legislation to revise and reauthorize Indian Education
    programs currently authorized under the Elementary and Secondary
    Education Act of 1965.

        Grants to local education agencies.--Formula grants support local
    educational agencies in their efforts to reform elemen

    [[Page 354]]

    tary 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 1999, 1,274 formula grants
    were made to local educational agencies and certain tribal schools
    enrolling approximately 460,782 students.

        Special Programs for Indian Children.--Competitive grants are made
    for a demonstration grants program, a professional development program,
    and to support the American Indian Teacher Corps, an initiative to train
    and recruit 1,000 new Indian teachers for positions in school districts
    with high concentrations of Indian students. Increased funding in 2001
    will support an initiative to train and recruit 500 new Indian school
    administrators 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 91-0101-2-1-501      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
    25.2  Other services....................                                   3
    41.0  Grants, subsidies, and
            contributions...................                                 113
                                               ---------   ---------  ----------
    99.9    Total new obligations...........                                 116
    ---------------------------------------------------------------------------

                        School Renovation Program Account

        For grants and loans to carry out school renovation under Title XII
    of the Elementary and Secondary Education Act of 1965, $1,300,000,000,
    to become available on July 1, 2001 and remain available until expended,
    of which (1) $50,000,000 shall be for grants to local educational
    agencies (as defined in section 8013(9) of such Act) in which the number
    of children determined under section 8003(a)(1)(C) of such Act
    constituted at least 50 percent of the number of children who were in
    average daily attendance in the schools of such agency during the
    preceding school year; (2) $125,000,000 shall be for grants to local
    educational agencies (other than those under (1)); and (3)
    $1,125,000,000 shall be for the costs of loans to local educational
    agencies: Provided, That such costs, including the cost of modifying
    such loans, shall be as defined in section 502 of the Congressional
    Budget Act of 1974: Provided further, That these funds are available to
    subsidize gross obligations for the principal amount of direct loans not
    to exceed $7,000,000,000: Provided further, That notwithstanding any
    provision of titles XII and XIV, the Secretary shall make these grants
    and loans subject to such terms and conditions as the Secretary shall
    establish.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0009-0-1-501      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          School renovation:

    00.01   Grants to Indian LEAs...........                                  50
    00.02   Grants to other high-need LEAs..                                 125
    00.03 School renovation loan subsidies..                               1,125
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................                               1,300
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year...................
    22.00 New budget authority (gross)......                               1,300
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......                               1,300
    23.95 Total new obligations.............                              -1,300
    24.40 Unobligated balance available, end
            of year.........................
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................                               1,300
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance, start of year
    73.10 Total new obligations.............                               1,300
    73.20 Total outlays (gross).............                                 -74
    74.40 Unpaid obligations, end of year:
            Obligated balance, end of year..                               1,226
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................                                  74
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                               1,300
    90.00 Outlays...........................                                  74
    ---------------------------------------------------------------------------

        School Renovation.--Under the Administration's proposal, grants and
    loans would be provided to high-need local educational agencies (LEAs)
    that have little or no capacity to fund urgent repairs. Grants would be
    provided to the neediest LEAs, including $50 million to LEAs in which 50
    percent or more of the students reside on certain Indian lands, and $125
    million to other school districts. The loan subsidy would generate
    approximately $6.5 billion in 7-year, no-interest loans for school
    renovation in high-need LEAs. Renovation funded through these loans and
    grants could include such projects as repairs to roofs, climate control
    systems, or plumbing.

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

    ----------------------------------------------------------------------------
    Identification code 91-0009-0-1-501      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
        Direct loan levels supportable by subsidy
                    budget authority:
    1150  Direct loan levels................                               6,541
                                               ---------   ---------  ----------
    1159    Total direct loan levels........                               6,541
        Direct loan subsidy (in percent):
    1320  Subsidy rate......................                               17.20
                                               ---------   ---------  ----------
    1329    Weighted average subsidy rate...                               17.20
        Direct loan subsidy budget authority:
    1330  Subsidy budget authority..........                               1,125
                                               ---------   ---------  ----------
    1339    Total subsidy budget authority..                               1,125
        Direct loan subsidy outlays:
    1340  Subsidy outlays...................                                  56
                                               ---------   ---------  ----------
    1349    Total subsidy outlays...........                                  56
    ---------------------------------------------------------------------------

                School Renovation, Direct Loan Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-4247-0-3-501      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program activity...........                               6,541
    00.02 Interest payments to Treasury.....                                   6
                                               ---------   ---------  ----------
    10.00   Total new obligations...........                               6,547
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New financing authority (gross)...                               6,546
    23.95 Total new obligations.............                              -6,547
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Discretionary:

    47.00   Authority to borrow.............                               6,485
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...                                 102
    68.47   Portion applied to repay debt...                                 -41
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total discretionary).......                                  61
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................                               6,546
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    73.10 Total new obligations.............                               6,547
    73.20 Total financing disbursements
            (gross).........................                                -333
    74.40 Unpaid obligations, end of year:
            Obligated balance, end of year..                               6,214

    [[Page 355]]

    87.00 Total financing disbursements
            (gross).........................                                 333
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............                                 -56
    88.40     Non-Federal sources...........                                 -46
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........                                -102
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............                               6,444
    90.00 Financing disbursements...........                                 231
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-4247-0-3-501      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........
    1131  Direct loan obligations exempt
            from limitation.................                               6,541
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...                               6,541
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........
    1231  Disbursements: Direct loan
            disbursements...................                                 327
    1251  Repayments: Repayments and
            prepayments.....................                                 -46
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........                                 281
    ---------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   91-4247-0-3-501    1998 actual    1999 actual     2000 est.      2001 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101  Federal assets: Fund balances with
            Treasury........................                                                   6,214
          Net value of assets related to
              post-1991 direct loans
              receivable:

    1401    Direct loans receivable, gross..                                                     281
    1405    Allowance for subsidy cost (-)..                                                      -4
                                            ------------ --------------  ------------  -------------
    1499      Net present value of assets
                related to direct loans.....                                                     277
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................                                                   6,491
        LIABILITIES:
    2103  Federal liabilities: Debt.........                                                   6,444
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............                                                   6,444
        NET POSITION:
    3100  Appropriated capital..............                                                      46
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............                                                      46
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position                                                   6,490
    -----------------------------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-4247-0-3-501      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
    33.0  Investments and loans.............                               5,241
    41.0  Grants, subsidies, and
            contributions...................                               1,300
    43.0  Interest and dividends............                                   6
                                               ---------   ---------  ----------
    99.9    Total new obligations...........                               6,547
    ---------------------------------------------------------------------------

          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), $406,000,000:
    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, 2000, as enacted
    by section 1000(a)(4) of the Consolidated Appropriations Act, 2000 (P.L.
    106-113).)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-1300-0-1-501      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Instructional services............         160         162
    00.02 Support services..................          14          14
    00.03 Training grants...................          49          72
    00.04 Foreign language assistance.......           6           8
    00.05 Immigrant education...............         150         150
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         379         406
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......         380         406
    23.95 Total new obligations.............        -379        -406
    23.98 Unobligated balance expiring or
            withdrawn.......................          -1
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         380         406
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance, start of year         465         531         440
    73.10 Total new obligations.............         379         406
    73.20 Total outlays (gross).............        -311        -497        -351
    73.40 Adjustments in expired accounts
            (net)...........................          -2
    74.40 Unpaid obligations, end of year:
            Obligated balance, end of year..         531         440          89
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          16          49
    86.93 Outlays from discretionary
            balances........................         295         448         351
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         311         497         351
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         380         406
    90.00 Outlays...........................         311         497         351
    ---------------------------------------------------------------------------

        Bilingual and Immigrant Education.--The Administration has proposed
    legislation to reauthorize the Elementary and Secondary Education Act.
    When the new authorizing legislation is enacted, resources will be
    requested for bilingual, foreign language, and immigrant education
    programs. See the ``Legislative proposal, not subject to PAYGO''
    schedule for additional details.

                     Summary of Budget Authority and Outlays

                            (in millions of dollars)

                                         1999 actual  2000 est.   2001 est.
    Enacted/requested:
      Budget Authority..................         380         406
      Outlays...........................         311         497         351
    Legislative proposal, not subject to
        PAYGO:
      Budget Authority..................                                 460
      Outlays...........................                                  55
                                        ------------------------------------
    Total:
      Budget Authority..................         380         406         460
      Outlays...........................         311         497         406
                                        ====================================

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-1300-0-1-501      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
    25.1  Advisory and assistance services..           4           5
    25.2  Other services....................           2           2
    41.0  Grants, subsidies, and
            contributions...................         373         399
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         379         406
    ---------------------------------------------------------------------------

    [[Page 356]]

                        Bilingual and Immigrant Education

                  (Legislative proposal, not subject to PAYGO)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-1300-2-1-501      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Instructional services............                                 180
    00.02 Support services..................                                  16
    00.03 Training grants...................                                 100
    00.04 Foreign language assistance.......                                  14
    00.05 Immigrant education...............                                 150
                                               ---------   ---------  ----------
    10.00   Total new obligations...........                                 460
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                                 460
    23.95 Total new obligations.............                                -460
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................                                 460
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    73.10 Total new obligations.............                                 460
    73.20 Total outlays (gross).............                                 -55
    74.40 Unpaid obligations, end of year:
            Obligated balance, end of year..                                 407
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................                                  55
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                                 460
    90.00 Outlays...........................                                  55
    ---------------------------------------------------------------------------

        The resources in this schedule are proposed for later transmittal
    under proposed legislation to revise and reauthorize programs currently
    authorized under the Elementary and Secondary Education Act of 1965.

        Bilingual education.--The bilingual education programs would 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. Projects
    would be 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 would also support training
    education personnel to serve limited English proficient children,
    building State capacity to improve educational services for these
    children, and information dissemination, studies, and evaluations.

        Foreign language assistance.--The foreign language assistance
    program would provide competitive grants to States and local educational
    agencies that are linked to State foreign language standards and are
    designed to improve the quality of foreign language instruction for
    elementary and secondary school students.

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

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-1300-2-1-501      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
    25.1  Advisory and assistance services..                                   2
    25.2  Other services....................                                   5
    41.0  Grants, subsidies, and
            contributions...................                                 453
                                               ---------   ---------  ----------
    99.9    Total new obligations...........                                 460
    ---------------------------------------------------------------------------

             OFFICE OF SPECIAL EDUCATION AND REHABILITATIVE SERVICES

                                  Federal Funds

    General and special funds:

                                Special Education

        For carrying out the Individuals with Disabilities Education Act,
    [$6,036,646,000] $6,368,841,000, of which [$2,047,885,000]
    $2,356,452,000 shall become available for obligation on July 1, [2000]
    2001, and shall remain available through September 30, [2001] 2002, and
    of which $3,742,000,000 shall become available on October 1, [2000] 2001
    and shall remain available through September 30, [2001] 2002, for
    academic year [2000-2001] 2001-2002: Provided, That [$1,500,000 shall be
    for the recipient of funds provided by Public Law 105-78 under section
    687(b)(2)(G) of the Act to provide information on diagnosis,
    intervention, and teaching strategies for children with disabilities:
    Provided further, That $1,500,000 shall be awarded to the Organizing
    Committee for the 2001 Special Olympics World Winter Games in Alaska and
    $1,000,000 shall be awarded to the Salt Lake City Organizing Committee
    for the VIII Paralympic Winter Games: Provided further, That $1,000,000
    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: Provided further, That $1,000,000
    shall be awarded to the Center for Literacy and Assessment at the
    University of Southern Mississippi for research dissemination and
    teacher and parent training] the amount for section 611(c) of the Act
    shall be equal to the amount available for that section under Public Law
    106-113, increased by the rate of inflation as specified in section
    611(f)(1)(B)(ii) of the Act. (Department of Education Appropriations
    Act, 2000, as enacted by section 1000(a)(4) of the Consolidated
    Appropriations Act, 2000 (P.L. 106-113).)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0300-0-1-501      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
        Direct program:
          Obligations by program activity:

            State grants:
    00.01     Grants to States..............       4,315       1,273       5,280
    00.02     Preschool grants..............         374         390         390
    00.03     Grants for infants and
                families....................         373         441         384
                                               ---------   ---------  ----------
    00.91       Subtotal, State grants......       5,062       2,104       6,054
            National activities:
    01.01     State improvement.............          31          61          45
    01.02     Research and innovation.......          64          64          74
    01.03     Technical assistance and
                dissemination...............          45          45          53
    01.04     Personnel preparation.........          81          83          82
    01.05     Parent information centers....          19          19          26
    01.06     Technology and media services.          35          36          35
                                               ---------   ---------  ----------
    01.91       Subtotal, National
                  activities................         275         308         315
                                               ---------   ---------  ----------
    02.00 Total Direct Program..............       5,337       2,412       6,369
    09.01 Reimbursable program..............           1
                                               ---------   ---------  ----------
    10.00 Total new obligations.............       5,338       2,412       6,369
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year...................         118         119           1
    22.00 New budget authority (gross)......       5,335       2,294       6,369
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           4
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       5,457       2,413       6,370
    23.95 Total new obligations.............      -5,338      -2,412      -6,369
    23.98 Unobligated balance expiring or
            withdrawn.......................          -1          -1
    24.40 Unobligated balance available, end
            of year.........................         119           1           1
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................       5,124       2,294       2,627
    42.00   Transferred from other accounts.         210
                                               ---------   ---------  ----------

    [[Page 357]]

    43.00     Appropriation (total
                discretionary)..............       5,334       2,294       2,627
    55.00   Advance appropriation...........                               3,742
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............           1
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       5,335       2,294       6,369
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance, start of year       5,990       6,855       3,835
    73.10 Total new obligations.............       5,338       2,412       6,369
    73.20 Total outlays (gross).............      -4,445      -5,432      -5,816
    73.40 Adjustments in expired accounts
            (net)...........................         -23
    73.45 Adjustments in unexpired accounts.          -4
    74.40 Unpaid obligations, end of year:
            Obligated balance, end of year..       6,855       3,835       4,388
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         115         302       2,937
    86.93 Outlays from discretionary
            balances........................       4,330       5,130       2,878
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       4,445       5,432       5,816
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

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

        Net budget authority and outlays:
    89.00 Budget authority..................       5,334       2,294       6,369
    90.00 Outlays...........................       4,444       5,432       5,816
    ---------------------------------------------------------------------------

                            SUMMARY OF PROGRAM LEVEL

                            [In millions of dollars]

                                         1999-2000
                                          academic
                                            year      2000-2001
                                                    academic year 2001-2002
                                                                academic year
    Current Budget Authority............       5,334       2,294       2,627
    Advance appropriation...............           0       3,742       3,742
                                        ------------------------------------
        Total program level.............       5,334       6,036       6,369
                                        ====================================
    Increase in advance appropriation
    over previous year..................          +0      +3,742          +0

        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 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.

        Performance data related to these goals include:

                                             1999 actual   2000 est.   2001 est.
    Number of children served in first
        quarter of fiscal year:
      Ages 3 through 21.....................   6,133,000   6,262,000   6,368,000
      Ages 3 through 5......................     574,713     577,600     580,500
      Birth through 2.......................     186,819     191,489     196,276

                                        1994-1995 ac1995-1996 actual  1996-1997
                                                                          actual
        Educational Environment
    Percent of children ages 6 through 21
        provided special education in:
      Regular classrooms....................        44.5        45.3        45.7
      Resource rooms........................        28.8        28.7        28.5
      Separate classes......................        22.4        21.7        21.4
      Separate schools......................         3.0         3.1         3.1
      Residential facilities................          .7          .7          .7
      Home or hospital......................          .6          .6          .5
        Status of Exiting Students
    Percent of students with disabilities
        aged 14-21 leaving school:
      Graduated with a diploma..............        52.3        52.6        53.5
      Graduated through certification.......        11.1        10.9        11.4
      Reached maximum age and other.........         2.5         2.4         2.4
      Dropped out of school.................        34.2        34.1        32.7

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0300-0-1-501      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
    25.2  Other services....................           8           8           8
    41.0  Grants, subsidies, and
            contributions...................       5,330       2,404       6,361
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       5,338       2,412       6,369
    ---------------------------------------------------------------------------

                 Rehabilitation Services and Disability Research

        For carrying out, to the extent not otherwise provided, the
    Rehabilitation Act of 1973, the Assistive Technology Act of 1998, and
    the Helen Keller National Center Act, [$2,707,522,000] $2,798,651,000:
    Provided, [That notwithstanding section 105(b)(1) of the Assistive
    Technology Act of 1998 (``the AT Act''), each State shall be provided
    $50,000 for activities under section 102 of the AT Act: Provided
    further, That of the funds available for section 303 of the
    Rehabilitation Act of 1973 and notwithstanding any other provision of
    law, $750,000 shall be awarded to the Krasnow Institute at George Mason
    University for a Receptive Language Disorders research center,
    $1,000,000 shall be awarded to the University of Central Florida for a
    virtual reality-based education and training program for the deaf,
    $2,000,000 shall be awarded to the Seattle Lighthouse for the Blind for
    interpreter, orientation, mobility, and education services for deaf,
    blind and other visually impaired adults, $1,000,000 shall be awarded to
    the Professional Development and Research Institute on Blindness in
    Louisiana for the training of professionals in the field of education
    and rehabilitation of blind adults and children, $600,000 shall be
    awarded to the Alaska Center for Independent Living in Anchorage, Alaska
    to develop capacity to implement a self-directed model for personal
    assistance services, including training of self-employed personal
    assistants and their clients, and $250,000 shall be awarded to the
    Center for Discovery International Family Institute in Sullivan County,
    New York to provide educational opportunities and support to individuals
    with severe mental and physical disabilities: Provided further, That of
    the funds available for section 305 of the Rehabilitation Act of 1973
    and notwithstanding any other provision of law, $1,000,000 shall be
    awarded to the California State University at Northridge for a Western
    Center for Adaptive Therapy: Provided further, That of the funds
    available for title II of the Rehabilitation Act of 1973 and
    notwithstanding any other provision of law, $500,000 shall be awarded to
    the Albert Einstein Medical Center healthcare network in Philadelphia
    for research on post polio syndrome] That the funds for Title I of the
    Assistive Technology Act of 1998 (``the AT Act'') shall be allocated
    notwithstanding section 105(b)(1) of the AT Act: Provided further, That
    $15,000,000 shall be used to support grants for up to three years to
    States under title III of the AT 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 the AT Act shall not apply to such grants. (Department of
    Education Appropriations Act, 2000, as enacted by section 1000(a)(4) of
    the Consolidated Appropriations Act, 2000 (P.L. 106-113).)

    [[Page 358]]

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0301-0-1-506      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct program:

    00.01   Vocational rehabilitation State
              grants........................       2,304       2,339       2,400
    00.02   Client assistance State grants..          11          11          11
    00.03   Training........................          40          40          40
    00.04   Demonstration and training
              programs......................          15          22          22
    00.05   Migrant and seasonal farmworkers           2           2           3
    00.06   Recreational programs...........           2           3           2
    00.07   Protection and advocacy of
              individual rights.............          11          12          12
    00.08   Projects with industry..........          22          22          22
    00.09   Supported employment State
              grants........................          38          38          38
    00.10   Independent living..............          79          85          95
    00.11   Program improvement.............           2           2           2
    00.12   Evaluation......................           2           2           2
    00.13   Helen Keller National Center....           9           9           9
    00.14   National Institute on Disability
              and Rehabilitation Research...          81          86         100
    00.15   Assistive technology............          34          34          41
                                               ---------   ---------  ----------
    01.00   Total direct program............       2,652       2,707       2,799
    09.01 Reimbursable program..............           3           3           3
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       2,655       2,710       2,802
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......       2,655       2,710       2,802
    23.95 Total new obligations.............      -2,655      -2,710      -2,802
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         348         369         399
    40.76   Reduction pursuant to P.L. 106-
              113...........................                      -1
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         348         368         399
          Mandatory:

    60.00   Appropriation...................       2,304       2,339       2,400
          Discretionary:

    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).           3           3           3
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       2,655       2,710       2,802
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance, start of year       1,100       1,028         893
    73.10 Total new obligations.............       2,655       2,710       2,802
    73.20 Total outlays (gross).............      -2,715      -2,845      -2,772
    73.40 Adjustments in expired accounts
            (net)...........................         -12
    74.40 Unpaid obligations, end of year:
            Obligated balance, end of year..       1,028         893         923
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          61         260         281
    86.93 Outlays from discretionary
            balances........................         119         308         110
    86.97 Outlays from new mandatory
            authority.......................       1,728       1,637       1,680
    86.98 Outlays from mandatory balances...         808         641         701
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       2,715       2,845       2,772
    ----------------------------------------------------------------------------

        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..................       2,652       2,707       2,799
    90.00 Outlays...........................       2,713       2,842       2,769
    ---------------------------------------------------------------------------

        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 2001.

        The table below presents national data on selected performance
    measures for the VR State grants program. The data are based on the
    number of individuals whose service records were closed in fiscal years
    1997 (347,601) and 1998 (359,877). The 2001 target is to increase the
    number of individuals with disabilities achieving an employment outcome
    by one percent over the previous year and to increase the employment
    outcome rate to 63 percent.

                       CONSUMER OUTCOMES (CASES CLOSED)

                                              1997 actual     1998 actual
    Individuals achieving employment
     outcomes...............................       211,503         223,668
     Percent with significant disabilities..         79.6%           82.6%
    Employment outcomes as a percent all of
     individuals receiving services.........         60.8%           62.1%

        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. Data for 1998 indicate that more than 9,200 migrant
    and seasonal farmworkers were served.

        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 1998, PWI projects
    placed in competitive employment approximately 49 percent (6,792) of the
    13,811 individuals with disabilities served by the 104 projects. The
    2001 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 1998, 74 percent
    of individuals with a supported employment goal achieved a competitive
    employment outcome. The 2001 target for this program is for 76 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. Grants are also
    awarded to provide support services to older blind individuals to
    increase their ability to care for their own needs. Performance
    indicators focus on customer satisfaction, achievement of individual
    goals, and broader systemic reforms in the community.

    [[Page 359]]

        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, dissemination, and performance
    measurement activities.

        Evaluation.--Studies are conducted to evaluate the impact and
    effectiveness of various programs authorized under the Rehabilitation
    Act. The multi-year national longitudinal study of the Vocational
    Rehabilitation State grants program is scheduled for completion in 2000.
    Expanded study findings on employment retention will be available in
    2002.

        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 dissemination of research aimed
    at improving the lives of individuals with disabilities.

        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      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    25.1    Advisory and assistance services           5           5           5
    25.2    Other services..................           1           1           1
    25.3    Purchases of goods and services
              from Government accounts......           1           1           1
    25.5    Research and development
              contracts.....................           1           2           2
    41.0    Grants, subsidies, and
              contributions.................       2,644       2,698       2,790
                                               ---------   ---------  ----------
    99.0      Subtotal, direct obligations..       2,652       2,707       2,799
    99.0  Reimbursable obligations..........           3           3           3
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       2,655       2,710       2,802
    ---------------------------------------------------------------------------

               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.), [$10,100,000] $10,265,000. (Department of Education
    Appropriations Act, 2000, as enacted by section 1000(a)(4) of the
    Consolidated Appropriations Act, 2000 (P.L. 106-113).)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0600-0-1-501      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total new obligations (object
            class 41.0).....................           9          10          10
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......           9          10          10
    23.95 Total new obligations.............          -9         -10         -10
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................           9          10          10
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance, start of year           2           3           1
    73.10 Total new obligations.............           9          10          10
    73.20 Total outlays (gross).............          -8         -13         -10
    74.40 Unpaid obligations, end of year:
            Obligated balance, end of year..           3           1           1
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           6           9           9
    86.93 Outlays from discretionary
            balances........................           2           3           1
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........           8          13          10
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................           9          10          10
    90.00 Outlays...........................           8          13          10
    ---------------------------------------------------------------------------

        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 1999, the portion of the Federal appropriation
    allocated to educational materials represented approximately 49.3
    percent of the Printing House's total sales. The full appropriation
    represented approximately 36.1 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.),
    [$48,151,000] $51,786,000, of which [$2,651,000] $5,376,000 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, 2000, as enacted by section
    1000(a)(4) of the Consolidated Appropriations Act, 2000 (P.L. 106-113).)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0601-0-1-502      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Operations........................          46          45          46
    00.02 Construction......................                       3           5
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................          46          48          51
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          46          48          51
    23.95 Total new obligations.............         -46         -48         -51
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          46          48          51
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance, start of year           1           1           5
    73.10 Total new obligations.............          46          48          51
    73.20 Total outlays (gross).............         -45         -44         -48
    74.40 Unpaid obligations, end of year:
            Obligated balance, end of year..           1           5           9
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          46          43          44
    86.93 Outlays from discretionary
            balances........................                       1           4
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          45          44          48
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          46          48          51
    90.00 Outlays...........................          45          44          48
    ---------------------------------------------------------------------------

        This residential program 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 1999, Federal appropriations
    represented 81 percent of the Institute's operating budget. The
    Institute may use appro

    [[Page 360]]

    priated funds for the Endowment Grant program. The request also includes
    funds for the second 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.), [$85,980,000, of which $2,500,000 shall be for
    construction and shall remain available until expended] $87,650,000:
    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, 2000, as
    enacted by section 1000(a)(4) of the Consolidated Appropriations Act,
    2000 (P.L. 106-113).)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0602-0-1-502      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Operations........................          83          83          88
    00.02 Construction......................                       3
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................          83          86          88
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          83          86          88
    23.95 Total new obligations.............         -83         -86         -88
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          83          86          88
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance, start of year           2           3           7
    73.10 Total new obligations.............          83          86          88
    73.20 Total outlays (gross).............         -82         -82         -88
    74.40 Unpaid obligations, end of year:
            Obligated balance, end of year..           3           7           7
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          83          78          83
    86.93 Outlays from discretionary
            balances........................          -2           3           6
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          82          82          88
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          83          86          88
    90.00 Outlays...........................          82          82          88
    ---------------------------------------------------------------------------

        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 1999, the Federal appropriation represented 63 percent of the
    University's operating budget, excluding Federal financial aid,
    vocational rehabilitation, and competitive grants, and 97.9 percent of
    the operating budgets of the related elementary and secondary schools.
    The University may also use appropriated funds for the Endowment Grant
    program.

                    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 Technical Education Act, the Adult Education and
    Family Literacy Act, and title VIII-D of the Higher Education Act of
    1965, as amended, and Public Law 102-73, [$1,681,750,000]
    $1,751,250,000, of which [$3,500,000] $1,000,000 shall remain available
    until expended, and of which [$858,150,000] $942,650,000 shall become
    available on July 1, [2000] 2001 and shall remain available through
    September 30, [2001] 2002 and of which $791,000,000 shall become
    available on October 1, [2000] 2001 and shall remain available through
    September 30, [2001] 2002: Provided, That of the amounts made available
    for the Carl D. Perkins Vocational and Technical Education Act,
    $4,600,000 shall be for tribally controlled vocational institutions
    under section 117: [Provided further, That of the $450,000,000 for Adult
    Education State Grants, 30 percent of the amount exceeding the amount
    appropriated in fiscal year 1999 shall be made available for integrated
    English literacy and civics education services to immigrants and other
    limited English proficient populations: Provided further, That of the
    amount reserved for integrated English literacy and civics education,
    half shall be allocated to the States with the largest absolute need for
    such services and half shall be allocated to the States with the largest
    recent growth in need for such services, based on the best available
    data, notwithstanding section 211 of the Adult Education and Family
    Literacy Act: Provided further, That $9,000,000 shall be for carrying
    out section 118 of such act for all activities conducted by and through
    the National Occupational Information Coordinating Committee:]: Provided
    further, That of the funds made available to carry out section 204 of
    the Perkins Act, all funds that a State receives in excess of its prior-
    year allocation shall be competitively awarded: Provided further, That
    in making these awards, each State shall give priority to consortia
    whose applications most effectively integrate all components under
    section 204(c): Provided further, That of the amounts made available for
    the Adult Education and Family Literacy Act, [$14,000,000] $89,000,000
    shall be for national leadership activities under section 243 and
    [$6,000,000] $6,500,000 shall be for the National Institute for Literacy
    under section 242: [Provided further, That $19,000,000 shall be for
    Youth Offender Grants, of which $5,000,000, which shall become available
    on July 1, 2000, and remain available through September 30, 2001, shall
    be used in accordance with section 601 of Public Law 102-73 as that
    section was in effect prior to the enactment of Public Law 105-220]
    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 0.54 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, 2000, as enacted by section
    1000(a)(4) of the Consolidated Appropriations Act, 2000 (P.L. 106-113).)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0400-0-1-501      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Vocational education:

            Annual appropriations:
              Vocational education:
    00.01       Basic grants................       1,023         284       1,056
    00.02       National programs...........          13          13          17
    00.03       Occupational and employment
                  information...............                       9
    00.04       Tribally controlled
                  postsecondary vocational
                  institutions..............           4           5           5
    00.05       Tech-prep education.........         105         107         106
                                               ---------   ---------  ----------

    [[Page 361]]

    00.91       Total, Vocational education.       1,145         418       1,184
              Adult education:
    01.01       State grants................         364         451         460
    01.02       National Institute for
                  Literacy..................           5           6           6
    01.03       National leadership
                  activities................           5          14          14
                                               ---------   ---------  ----------
    01.91       Total, adult education......         374         471         480
    02.01     State grants for incarcerated
                youth offenders.............                      14          12
    03.01     Literacy programs for
                prisoners...................           5                       5
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       1,524         903       1,681
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year...................          45          60          48
    22.00 New budget authority (gross)......       1,539         891       1,751
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       1,584         951       1,799
    23.95 Total new obligations.............      -1,524        -903      -1,681
    24.40 Unobligated balance available, end
            of year.........................          60          48         119
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................       1,539         891         960
    55.00   Advance appropriation...........                                 791
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       1,539         891       1,751
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance, start of year       1,781       1,939       1,295
    73.10 Total new obligations.............       1,524         903       1,681
    73.20 Total outlays (gross).............      -1,364      -1,547      -1,641
    73.40 Adjustments in expired accounts
            (net)...........................          -3
    74.40 Unpaid obligations, end of year:
            Obligated balance, end of year..       1,939       1,295       1,334
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          64          85         642
    86.93 Outlays from discretionary
            balances........................       1,298       1,462       1,000
    86.98 Outlays from mandatory balances...           2
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       1,364       1,547       1,641
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       1,539         891       1,751
    90.00 Outlays...........................       1,364       1,547       1,641
    ---------------------------------------------------------------------------

        Program levels for activities in this account are as follows:

                            (in millions of dollars)

                                         1999-2000
                                          academic
                                            year      2000-2001
                                                    academic year 2001-2002
                                                                academic year
    1. Vocational education:
      a. Basic grants:
        Annual appropriation................       1,031         265         265
        Advance appropriation...............                     791         591
                                               ---------   ---------  ----------
          Subtotal, basic grants............       1,031       1,056         856
      b. National programs..................          13          17          17
      c. Occupational & employment
        information.........................                       9
      d. Tribally controlled postsecondary
        vocational institutions.............           4           5           5
      e. Tech-prep education:
        Annual appropriation................         106         106         106
        Advance appropriation...............                                 200
                                               ---------   ---------  ----------
          Subtotal, tech-prep...............         106         106         306
          Total, vocational education.......       1,154       1,193       1,184
    2. Adult education:
      a. State grants.......................         365         450         460
      b. National Institute for Literacy....           6           6           6
      c. National leadership activities.....          14          14          89
                                               ---------   ---------  ----------
          Total, adult education............         385         470         555
      3. State grants for incarcerated youth
        offenders...........................                      14          12
      4. Literacy programs for prisoners....                       5
                                               ---------   ---------  ----------
          Total.............................       1,539       1,682       1,751
                                               ---------   ---------  ----------

                            SUMMARY OF PROGRAM LEVEL

                            (in millions of dollars)

                                         1999-2000
                                          academic
                                            year      2000-2001
                                                    academic year 2001-2002
                                                                academic year
    Current Budget Authority............       1,539         891         960
    Advance appropriation...............           0         791         791
                                        ------------------------------------
        Total program level.............       1,539       1,682       1,751
                                        ====================================
    Increase in advance appropriation
    over previous year..................                     791

        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 two national
        centers for research and dissemination in vocational education and a
        program of discretionary research and development projects,
        including a national assessment of vocational education.
            Tribally controlled postsecondary vocational and technical
        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. Activities will include development of
        model programs for providing English language and citizenship
        education to recent immigrants.
            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      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

          Personnel compensation:

    11.1    Full-time permanent.............                                   1
    11.3    Other than full-time permanent..           1           1           1
                                               ---------   ---------  ----------
    11.9      Total personnel compensation..           1           1           2
    25.1  Advisory and assistance services..           6           5           4
    25.2  Other services....................           1                       1
    25.5  Research and development contracts           7           9           9
    41.0  Grants, subsidies, and
            contributions...................       1,509         887       1,664
                                               ---------   ---------  ----------
    99.0      Subtotal, direct obligations..       1,524         902       1,680
    99.5  Below reporting threshold.........                       1           1
                                               ---------   ---------  ----------

    [[Page 362]]

    99.9    Total new obligations...........       1,524         903       1,681
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 91-0400-0-1-501      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
    1001  Total compensable workyears: Full-
            time equivalent employment......          13          14          16
    ---------------------------------------------------------------------------

                        OFFICE OF POSTSECONDARY EDUCATION

                                  Federal Funds

    General and special funds:

                                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; [$1,533,659,000] $1,755,973,000, of which [$12,000,000]
    $10,000,000 for interest subsidies authorized by section 121 of the
    Higher Education Act of 1965, shall remain available until expended:
    Provided, That [of the funds available for part A, subpart 2 of title
    VII of the Higher Education Act of 1965, $10,000,000 shall be available
    to fund awards for academic year 2000-2001, and] $10,000,000, to remain
    available through September 30, [2001] 2002, shall be available to fund
    [awards] fellowships for academic year [2001-2002] 2002-2003[, 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
    section 852(b)(1) of the Higher Education Amendments of 1998 is
    amended--
            (1) in the matter preceding subparagraph (A), by striking ``14''
        and inserting ``16'';
            (2) in subparagraph (E), by striking ``and'' after the
        semicolon;
            (3) in subparagraph (F), by striking the period and inserting a
        semicolon; and
            (4) by adding at the end the following:
                    ``(G) one member shall be appointed by the Chairperson
                of the Committee on Health, Education, Labor, and Pensions
                of the Senate from among members of the Senate; and
                    ``(H) one member shall be appointed by the Chairperson
                of the Committee on Education and the Workforce of the House
                of Representatives from among members of the House of
                Representatives.'':
        Provided further, That the matter preceding paragraph (1) of section
    853(b) of the Higher Education Amendments of 1998 is amended by striking
    ``6 months'' and inserting ``12 months'': Provided further, That the
    amounts provided under this heading in division A, section 101(f ) of
    Public Law 105-277 for the Web-Based Education Commission, authorized by
    part J of title VIII of the Higher Education Amendments of 1998, shall
    remain available through September 30, 2000:] Provided further, That
    $3,000,000 is 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:
    Provided further, That [of the funds available for title IV, part A,
    subpart 8 of the Higher Education Act of 1965 and notwithstanding any
    other provision of law, $3,000,000 shall be awarded to the University of
    South Florida for a distance learning program, $190,000 shall be awarded
    to the New York Global Communication Center in West Islip, New York for
    a distance learning program, $2,000,000 shall be awarded to the Alliance
    for Technology, Learning and Society (ATLAS) at the University of
    Colorado for technology-enhanced learning, $2,500,000 shall be awarded
    to the Illinois Community College Board to develop a systemwide, on-line
    virtual degree program for the community college system in Illinois, and
    $1,250,000 shall be made available to the University of Idaho
    Interactive Learning Environments to develop and improve Internet-based
    delivery of education programs] section 404F(a) of the Higher Education
    Amendments of 1998 is amended by striking out ``using funds appropriated
    under section 404H that do not exceed $200,000'' and inserting in lieu
    thereof ``using not more than 0.2 percent of the funds appropriated
    under section 404H''. (Department of Education Appropriations Act, 2000,
    as enacted by section 1000(a)(4) of the Consolidated Appropriations Act,
    2000 (P.L. 106-113).)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0201-0-1-502      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Aid for institutional development:

    00.01   Strengthening institutions......          60          60          63
    00.02   Strengthening tribally
              controlled colleges and
              universities..................           3           6           9
    00.03   Strengthening Alaska Native and
              Native Hawaiian-serving
              institutions..................           3           5           5
    00.04   Strengthening historically black
              colleges and universities.....         136         149         169
    00.05   Strengthening historically black
              graduate institutions.........          30          31          40
    00.06   Minority science and engineering
              improvement...................           8           8           9
                                               ---------   ---------  ----------
    00.91     Subtotal, aid for
                institutional development...         240         259         295
          Other aid for institutions:

    01.01   Developing Hispanic-serving
              institutions..................          28          42          63
    01.02   International education and
              foreign language studies......          67          70          72
    01.03   Fund for the Improvement of
              Postsecondary Education.......          50          74          31
    01.04   Urban community service.........           5
    01.05   Demonstration projects to ensure
              quality higher education for
              students with disabilities....           5           5           5
    01.06   Interest subsidy grants.........          11          12          10
                                               ---------   ---------  ----------
    01.91     Subtotal, other aid for
                institutions................         166         203         181
          Assistance for students:

    02.01   Federal TRIO programs...........         600         645         725
    02.02   Gaining early awareness and
              readiness for undergraduate
              programs (GEAR UP)............         120         200         325
    02.03   Byrd honors scholarships........          39          40          41
    02.04   Javits fellowships..............           7          20          10
    02.05   Graduate assistance in areas of
              national need.................          24          31          31
    02.06   Child care access means parents
              in school.....................           5           5          15
    02.07   Learning anytime anywhere
              partnerships..................          10          23          30
    02.08   State grants for incarcerated
              youth offenders...............          12           5
                                               ---------   ---------  ----------
    02.91     Subtotal, assistance for
                students....................         817         969       1,177
          Other Aid:

    03.01   Teacher quality enhancement.....          77          98          98
    03.02   Underground railroad program....           2           2           2
    03.03   GPRA data/program evaluation....                       3           3
    03.04   Endowment Grants................           1
    03.05   Community scholarship
              mobilization..................                       1
                                               ---------   ---------  ----------
    03.91     Subtotal, Other Aid...........          80         104         103
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       1,303       1,535       1,756
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year...................           5          11           6
    22.00 New budget authority (gross)......       1,310       1,529       1,756
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       1,315       1,540       1,762
    23.95 Total new obligations.............      -1,303      -1,535      -1,756
    23.98 Unobligated balance expiring or
            withdrawn.......................          -1
    24.40 Unobligated balance available, end
            of year.........................          11           6           6
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................       1,308       1,533       1,756
    40.76   Reduction pursuant to P.L. 106-
              113...........................                      -4
    42.00   Transferred from other accounts.           2
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............       1,310       1,529       1,756
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance, start of year       1,095       1,533       1,599
    73.10 Total new obligations.............       1,303       1,535       1,756
    73.20 Total outlays (gross).............        -855      -1,469      -1,504
    73.40 Adjustments in expired accounts
            (net)...........................         -10
    74.40 Unpaid obligations, end of year:
            Obligated balance, end of year..       1,533       1,599       1,851
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          61         192         218

    [[Page 363]]

    86.93 Outlays from discretionary
            balances........................         794       1,276       1,285
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         855       1,469       1,504
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       1,310       1,529       1,756
    90.00 Outlays...........................         855       1,469       1,504
    ---------------------------------------------------------------------------

        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 Alaska Native and Native Hawaiian 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 quality higher education for
    students with disabilities.--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 postsecondary education
    outreach and student support services through 5 major programs designed
    to help individuals from disadvantaged backgrounds enter and complete
    college and graduate studies.

        Gaining early awareness and readiness for undergraduate programs.--
    Funds will support early college preparation and awareness activities at
    the State and local levels to ensure that low-income elementary and
    secondary school students are prepared for and pursue postsecondary
    education.

        Byrd honors scholarships.--Funds will support merit-based
    scholarships to students who have demonstrated outstanding academic
    achievement and who show promise of continued academic excellence for
    study at an institution of higher education.

        Javits fellowships.--Funds will support fellowships to students of
    superior ability who are pursuing doctoral degrees in the arts,
    humanities, and social sciences.

        Graduate assistance in areas of national need.--Funds will support
    fellowships to graduate students of superior ability who have financial
    need and who are from traditionally under-Prepresented backgrounds for
    study in areas of national need.

        Child care access means parents in school.--Funds will support a
    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 projects
    using distance learning technology and other innovations to promote and
    enhance the delivery of postsecondary education and lifelong learning
    opportunities.

        Other aid.--

        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 will support 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.

                     Summary of Budget Authority and Outlays

                            (in millions of dollars)

                                         1999 actual  2000 est.   2001 est.
    Enacted/requested:
      Budget Authority..................       1,310       1,529       1,756
      Outlays...........................         855       1,468       1,503
    Legislative proposal, not subject to
        PAYGO:
      Budget Authority..................                                  40
      Outlays...........................                                   5
                                        ------------------------------------
    Total:
      Budget Authority..................       1,310       1,529       1,796
      Outlays...........................         855       1,468       1,508
                                        ====================================

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0201-0-1-502      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
    25.1  Advisory and assistance services..           3           6           7
    25.2  Other services....................           4           5           6
    25.3  Purchases of goods and services
            from Government accounts........           1           1           2
    25.7  Operation and maintenance of
            equipment.......................           1           1           1
    41.0  Grants, subsidies, and
            contributions...................       1,293       1,522       1,740
                                               ---------   ---------  ----------
    99.0      Subtotal, direct obligations..       1,302       1,535       1,756
    99.5  Below reporting threshold.........           1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       1,303       1,535       1,756
    ---------------------------------------------------------------------------

                                Higher Education

                  (Legislative proposal, not subject to PAYGO)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0201-2-1-502      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Other aid for institutions:

    00.01   Dual Degree.....................                                  40
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................                                  40
    ----------------------------------------------------------------------------

    [[Page 364]]

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year...................
    22.00 New budget authority (gross)......                                  40
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......                                  40
    23.95 Total new obligations.............                                 -40
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................                                  40
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance, start of year
    73.10 Total new obligations.............                                  40
    73.20 Total outlays (gross).............                                  -5
    74.40 Unpaid obligations, end of year:
            Obligated balance, end of year..                                  35
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................                                   5
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                                  40
    90.00 Outlays...........................                                   5
    ---------------------------------------------------------------------------

        The Administration will propose legislation that will authorize the
    use of funds for the following purpose:

        Dual degree programs for minority-serving institutions.--Funds will
    support a new program to enable students at Hispanic-serving
    institutions, historically black colleges and universities, and tribally
    controlled colleges and universities to earn dual degrees in five years:
    one degree from the minority-serving institution, and one from a partner
    institution in a field in which the minority-serving institution does
    not offer a program and in which minorities are underrepresented.

                                Howard University

        For partial support of Howard University (20 U.S.C. 121 et seq.),
    [$219,444,000] $224,000,000, 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 shall remain available until
    expended. (Department of Education Appropriations Act, 2000, as enacted
    by section 1000(a)(4) of the Consolidated Appropriations Act, 2000 (P.L.
    106-113).)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0603-0-1-502      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 General support...................         182         193         194
    00.02 Howard University Hospital........          29          30          30
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................         211         223         224
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year...................                       4
    22.00 New budget authority (gross)......         214         219         224
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         214         223         224
    23.95 Total new obligations.............        -211        -223        -224
    24.40 Unobligated balance available, end
            of year.........................           4
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         214         219         224
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance, start of year          10           1          13
    73.10 Total new obligations.............         211         223         224
    73.20 Total outlays (gross).............        -220        -210        -224
    74.40 Unpaid obligations, end of year:
            Obligated balance, end of year..           1          13          13
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         211         206         211
    86.93 Outlays from discretionary
            balances........................           9           4          13
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         220         210         224
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         214         219         224
    90.00 Outlays...........................         220         210         224
    ---------------------------------------------------------------------------

        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 1999, direct Federal appropriations for general
    support represented approximately 54 percent of the university's
    educational and general expenditures.

                                    \

           deg.

              College Housing and Academic Facilities Loans Program

        For Federal administrative expenses authorized under section 121 of
    the Higher Education Act of 1965, $737,000 to carry out activities
    related to existing facility loans entered into under the Higher
    Education Act of 1965. (Department of Education Appropriations Act,
    2000, as enacted by section 1000(a)(4) of the Consolidated
    Appropriations Act, 2000 (P.L. 106-113).)

      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 of 1965 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 of 1965, as amended,
    [$207,000] $208,000. (Department of Education Appropriations Act, 2000,
    as enacted by section 1000(a)(4) of the Consolidated Appropriations Act,
    2000 (P.L. 106-113).)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0241-0-1-502      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

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

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......           1           1           1
    23.95 Total new obligations.............          -1          -1          -1
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation (Federal
              administration)...............           1           1           1
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.95 Unpaid obligations, start of year:
            From Federal sources:
            Receivables and unpaid, unfilled
            orders..........................           1           1
    73.10 Total new obligations.............           1           1           1
    73.20 Total outlays (gross).............          -1          -1          -1
    74.95 Unpaid obligations, end of year:
            From Federal sources:
            Receivables and unpaid, unfilled
            orders..........................           1
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................                       1           1
    86.93 Outlays from discretionary
            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
    ---------------------------------------------------------------------------

    [[Page 365]]

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

    ----------------------------------------------------------------------------
    Identification code 91-0241-0-1-502      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
        Direct loan subsidy outlays:
    1340  Subsidy outlays...................
    ----------------------------------------------------------------------------

        Administrative expense data:
    3510  Budget authority..................           1           1           1
    3580  Outlays from balances.............           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 2001 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 access to capital financing for
    the repair, renovation, and construction of classrooms, libraries,
    laboratories, dormitories, instructional equipment, and research
    instrumentation. The Higher Education Amendments of 1992 granted the
    Department authority to enter into insurance agreements with a private
    for-profit Designated Bonding Authority to guarantee no more than
    $375,000,000 in outstanding principal and unpaid accrued interest
    combined. 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.

        Since the first loan was issued in 1996, a total of 7 loans for $46
    million have been made. Additional loans are expected in 2000 and 2001.
    No subsidy appropriations are required. The 2001 budget provides funds
    for continuing Federal administrative activities only.

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 91-0241-0-1-502      1999 actual   2000 est.   2001 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.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-4252-0-3-502      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.02 Interest paid to Treasury.........           2           2           2
                                               ---------   ---------  ----------
    10.00   Total new obligations...........           2           2           2
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New financing authority (gross)...           2           2           2
    22.70 Balance of authority to borrow
            withdrawn.......................          -1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......           1           2           2
    23.95 Total new obligations.............          -2          -2          -2
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Discretionary:

    68.00   Spending authority from
              offsetting collections
              (gross): Offsetting
              collections (cash)............           2           2           2
    ----------------------------------------------------------------------------

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

            Obligated balance, start of
                year:
    72.40     Obligated balance: Borrowing
                Authority...................           8           5           4
    72.40     Obligated balance, Treasury
                Interest....................           2           1
    72.95   Receivables from program account           1           1           1
                                               ---------   ---------  ----------
    72.99     Total unpaid obligations,
                start of year...............          11           7           5
    73.10 Total new obligations.............           2           2           2
    73.20 Total financing disbursements
            (gross).........................          -6          -4          -7
          Unpaid obligations, end of year:

            Obligated balance, end of year:
    74.40     Obligated balance: Borrowing
                Authority...................           5           4
    74.40     Obligated balance: Treasury
                Interest....................           1
    74.95   Receivables from program account           1           1
                                               ---------   ---------  ----------
    74.99     Total unpaid obligations, end
                of year.....................           7           5
    87.00 Total financing disbursements
            (gross).........................           6           4           7
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.25     Interest on uninvested funds..          -1          -1          -1
    88.40     Interest repayments...........          -1          -1          -1
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........          -2          -2          -2
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............
    90.00 Financing disbursements...........           4           2           5
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-4252-0-3-502      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
        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........          21          25          26
    1231  Disbursements: Direct loan
            disbursements...................           4           1           4
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........          25          26          30
    ---------------------------------------------------------------------------

        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, 2001.

    [[Page 366]]

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   91-4252-0-3-502    1998 actual    1999 actual     2000 est.      2001 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Investments in US securities:

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

    1401    Direct loans receivable, gross..          21             22            25             26
    1402    Interest receivable.............           1              1             1              1
    1405    Allowance for subsidy cost (-)..
                                            ------------ --------------  ------------  -------------
    1499      Net present value of assets
                related to direct loans.....          22             23            26             27
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................          24             26            29             30
        LIABILITIES:
          Federal liabilities:

    2102    Interest payable................           1              2             2              2
    2103    Debt............................          27             22            26             27
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............          28             24            28             29
        NET POSITION:
    3100  Appropriated capital..............          -2
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............          -2
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position          26             24            28             29
    -----------------------------------------------------------------------------------------------

        College Housing and Academic Facilities Loans Liquidating Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0242-0-1-502      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total new obligations (object
            class 43.0).....................          16          20          17
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year...................          15          33
    22.00 New budget authority (gross)......          66          60          58
    22.40 Capital transfer to general fund..         -32         -73         -41
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          49          20          17
    23.95 Total new obligations.............         -16         -20         -17
    24.40 Unobligated balance available, end
            of year.........................          33
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    69.00   Offsetting collections (cash)...          66          60          58
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance, start of year          29          23          20
    73.10 Total new obligations.............          16          20          17
    73.20 Total outlays (gross).............         -22         -23         -23
    74.40 Unpaid obligations, end of year:
            Obligated balance, end of year..          23          20          14
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................          22          23          23
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
              Non-Federal sources:
    88.40       Repayments of principal.....         -47         -43         -42
    88.40       Interest received on loans..         -19         -17         -16
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........         -66         -60         -58
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................         -44         -37         -35
    ---------------------------------------------------------------------------

        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      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
              CHAFL LIQUIDATING
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........         151         142         134
    1231  Disbursements: Direct loan
            disbursements...................
    1251  Repayments: Repayments and
            prepayments.....................          -9          -8          -7
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........         142         134         127
    ----------------------------------------------------------------------------

              HIGHER EDUCATION FACILITIES
                  LOANS
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........          35          30          25
    1251  Repayments: Repayments and
            prepayments.....................          -5          -5          -5
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........          30          25          20
    ----------------------------------------------------------------------------

              COLLEGE HOUSING LOANS
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........         380         347         317
    1251  Repayments: Repayments and
            prepayments.....................         -33         -30         -31
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........         347         317         286
    ---------------------------------------------------------------------------

    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      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct Loan Disbursements.........           6          25          25
                                               ---------   ---------  ----------
    10.00   Total new obligations...........           6          25          25
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New financing authority (gross)...           6          25          25
    23.95 Total new obligations.............          -6         -25         -25
    24.40 Unobligated balance available, end
            of year.........................
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Mandatory:

    67.15   Authority to borrow (indefinite)           6          25          25
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    73.10 Total new obligations.............           6          25          25
    73.20 Total financing disbursements
            (gross).........................          -6         -25         -25
    87.00 Total financing disbursements
            (gross).........................           6          25          25
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............           6          25          25
    90.00 Financing disbursements...........           6          25          25
    ---------------------------------------------------------------------------

        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. However, the Department anticipates that all HBCU loans will
    be financed by the FFB.

    [[Page 367]]

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-4255-0-3-502      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........         375         364         339
    1112  Unobligated direct loan limitation        -364        -339        -314
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...          11          25          25
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........           5          11          36
    1231  Disbursements: Direct loan
            disbursements...................           6          25          25
    1251  Repayments: Repayments and
            prepayments.....................
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........          11          36          61
    ---------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   91-4255-0-3-502    1998 actual    1999 actual     2000 est.      2001 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Net value of assets related to
              post-1991 direct loans
              receivable:

    1401    Direct loans receivable, gross..                         11            36             61
                                            ------------ --------------  ------------  -------------
    1499      Net present value of assets
                related to direct loans.....                         11            36             61
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................                         11            36             61
        LIABILITIES:
    2103  Federal liabilities: Debt.........                         11            36             61
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............                         11            36             61
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position                         11            36             61
    -----------------------------------------------------------------------------------------------

                     OFFICE OF STUDENT FINANCIAL ASSISTANCE

                                  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,
    [$9,435,000,000] $10,258,000,000, which shall remain available through
    September 30, [2001] 2002.
        The maximum Pell Grant for which a student shall be eligible during
    award year [2000-2001] 2001-2002 shall be [$3,300] $3,500: 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
    [1999] 2000 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.
        [For an additional amount for ``student financial assistance'' for
    payment of allocations to institutions of higher education for Federal
    Supplemental Educational Opportunity Grants for award years 1999-2000
    and 2000-2001, made under title IV, part A, subpart 3, of the Higher
    Education Act of 1965, as amended, $10,000,000: Provided, That
    notwithstanding any other provision of law, the Secretary of Education
    may waive or modify any statutory or regulatory provision applicable to
    the Federal Supplemental Educational Opportunity Grant program and the
    determination of need for such grants, that the Secretary deems
    necessary to assist individuals who suffered financial harm resulting
    from the hurricanes, and the flooding associated with the hurricanes,
    that struck the eastern United States in August and September 1999, and
    who, at the time of the disaster were residing, attending an institution
    of higher education, or employed within an area affected by such a
    disaster on the date which the President declared the existence of a
    major disaster (or, in the case of an individual who is a dependent
    student, whose parent or stepparent suffered financial harm from such
    disaster, and who resided, or was employed in such an area at that
    time): Provided further, That notwithstanding section 437 of the General
    Education Provisions Act (20 U.S.C. 1232) and section 553 of title 5,
    United States Code, the Secretary shall, by notice in the Federal
    Register, exercise this authority, through publication of waivers or
    modifications of statutory and regulatory provisions, as the Secretary
    deems necessary to assist such individuals: Provided further, That
    notwithstanding section 413D of the Higher Education Act of 1965,
    allocations from such additional amount shall not be taken into account
    in determining institutional allocations under such section in future
    years: Provided further, That the entire amount made available under
    this paragraph is designated by the Congress as an emergency requirement
    pursuant to section 251(b)(2)(A) of the Balanced Budget and Emergency
    Deficit Control Act of 1985, and that the entire amount shall be
    available only to the extent an official budget request for the entire
    amount, that includes designation of the entire amount as an emergency
    requirement pursuant to the Balanced Budget and Emergency Deficit
    Control Act of 1985, is transmitted by the President to the Congress.]
    (Department of Education Appropriations Act, 2000, as enacted by section
    1000(a)(4) of the Consolidated Appropriations Act, 2000 (P.L. 106-113).)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0200-0-1-502      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Federal Pell grants:

    01.01   Federal Pell grants.............       6,044       9,285       8,084
          Campus-based aid:

    02.01   Federal supplemental educational
              opportunity grants (SEOG).....         619         633         691
    02.02   Federal work-study..............         876         937       1,011
    02.03   Federal Perkins loans: Federal
              capital contributions.........         102         100         100
    02.05   Federal Perkins loans: Loan
              cancellations.................          30          30          60
                                               ---------   ---------  ----------
    02.91     Subtotal, Campus-based
                activities..................       1,627       1,700       1,862
    03.01 Leveraging educational assistance
            partnership.....................          25          40          40
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................       7,696      11,025       9,986
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year...................       2,891       4,554       2,903
    22.00 New budget authority (gross)......       9,348       9,375      10,258
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          10
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......      12,249      13,929      13,161
    23.95 Total new obligations.............      -7,696     -11,025      -9,986
    24.40 Unobligated balance available, end
            of year.........................       4,554       2,903       3,175
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................       9,348       9,435      10,258
    40.15   Appropriation (emergency).......                      10
    40.76   Reduction pursuant to P.L. 106-
              113...........................                     -70
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............       9,348       9,375      10,258
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance, start of year       4,704       3,176       4,838
    73.10 Total new obligations.............       7,696      11,025       9,986
    73.20 Total outlays (gross).............      -9,125      -9,363      -9,829
    73.40 Adjustments in expired accounts
            (net)...........................         -88
    73.45 Adjustments in unexpired accounts.         -10
    74.40 Unpaid obligations, end of year:
            Obligated balance, end of year..       3,176       4,838       4,995
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................       1,936       1,828       2,297
    86.93 Outlays from discretionary
            balances........................       7,189       7,535       7,532
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       9,125       9,363       9,829
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       9,348       9,375      10,258
    90.00 Outlays...........................       9,125       9,363       9,829
    ---------------------------------------------------------------------------

    [[Page 368]]

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0200-0-1-502      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........         137          64          58
    1251  Repayments: Repayments and
            prepayments.....................         -66         -25         -26
          Write-offs for default:

    1263    Direct loans....................         -15          -9         -10
    1264    Other adjustments, net..........           8          28          34
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........          64          58          56
    ---------------------------------------------------------------------------
        \1\ Includes in all years institutional matching share of defaulted
    notes assigned from institutions to the Education Department.

        The Administration's 2001 budget for the SFA account is $10.258
    billion, an increase of $883 million, or 9.4 percent, over the 2000
    appropriation, which together with matching funds (less allowable
    administrative costs) would provide more than $11.7 billion in aid
    available to an estimated 8.6 million students.

        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 proposes $8.356 billion, an increase of $716
    million or 9.4 percent over the 2000 appropriation level, for the Pell
    Grant program in 2001, to raise the maximum award for the 2001-2002
    award year to $3,500--the highest ever and an increase of $200 from the
    2000-2001 level of $3,300. Approximately 3.9 million students would
    receive grants under the program in the 2001-2002 award year.

        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.

        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. The Administration proposes $691 million for the SEOG program in
    2001, an increase of $60 million or 9.5 percent over the 2000 level.
    This level of funding would provide approximately $875 million in
    available aid to an estimated 1.2 million needy students.

        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. An institution must use at least 7 percent of its Federal
    allocation to compensate students employed in community service
    activities. An institution's community service activities must include
    at least one tutoring or family literacy project. 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. To continue to provide 1 million students the
    opportunity to work their way through college, the Administration
    proposes $1.011 billion, an increase of $77 million over the 2000
    appropriation, for the Work-Study program.

        Perkins Loan Program.--Institutions award low-interest loans from
    institutional revolving funds, which are comprised of Federal Capital
    Contributions, institutional matching funds, and student repayments on
    outstanding loans. The Administration proposes $100 million in new
    budget authority for the Perkins loan program, the same as the 2000
    level. This level of funding would provide nearly $1.1 billion in
    available aid to some 676,000 needy undergraduate and graduate students
    in the 2001-2002 award year.

        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.
    Amendments to the Higher Education Act in 1992 and 1998 greatly expanded
    the number of borrowers with loans eligible for cancellation. The
    resulting increase in demand for these benefits has created a
    significant funding shortfall. The Administration's budget proposal for
    Perkins Loan cancellations is $60 million, double the 2000 level.

        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 the 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 the authorized activities may not exceed
    33\1/3\ percent. The Administration proposes $40 million for LEAP in
    2001, the same as the 2000 appropriation.

        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)

                                         1999 actual  2000 est.   2001 est.
    Pell grants.........................       7,326       7,940       8,469
    Student loans:
      Guaranteed student loans:
        Stafford loans..................      10,427      10,529      10,901
        Unsubsidized Stafford loans.....       7,771       8,223       8,813
        PLUS............................       1,908       2,207       2,442
      Direct student loans:
        Stafford loans..................       5,318       5,568       5,770
        Unsubsidized Stafford loans.....       3,437       3,798       4,068
        PLUS............................       1,198       1,239       1,372
      Consolidation:
        FFEL............................       4,720       4,581       4,745
        Direct Loans....................       8,006       4,250       4,403
                                        ------------------------------------
            Student loans, subtotal.....      42,786      40,395      42,516
    Work-study..........................       1,044       1,123       1,216
    Supplemental educational opportunity
    grants..............................         784         799         875

    [[Page 369]]

    Perkins loans.......................       1,058       1,058       1,058
    Leveraging Educational Assistance
    Partnership.........................          50          90          90
                                        ------------------------------------
            Total aid available.........      53,048      51,405      54,224
                                        ====================================
        Note: Detail may not add to totals due to rounding.

                              NUMBER OF AID AWARDS

                                 [In thousands]

                                         1999 actual  2000 est.   2001 est.
    Pell grants.........................       3,810       3,849       3,885
    Student loans:
      Guaranteed student loans:
        Stafford loans..................       3,091       3,198       3,291
        Unsubsidized Stafford loans.....       1,970       2,124       2,237
        PLUS............................         293         345         371
      Direct student loans:
        Stafford loans..................       1,659       1,652       1,701
        Unsubsidized Stafford loans.....       1,027       1,029       1,085
        PLUS............................         205         191         205
      Consolidation:
        FFEL............................         266         261         268
        Direct Loans....................         412         207         213
                                        ------------------------------------
            Student loans, subtotal.....       8,922       9,007       9,371
      Work-study........................         930       1,000       1,000
      Supplemental educational
        opportunity grants..............       1,118       1,139       1,203
      Perkins loans.....................         698         698         676
      Leveraging Educational Assistance
        Partnership.....................          83         120         120
                                        ------------------------------------
            Total awards................      15,562      15,813      16,254
                                        ====================================
        Note: Detail may not add to totals due to rounding.

                               AVERAGE AID AWARDS

                               [In whole dollars]

                                         1999 actual  2000 est.   2001 est.
    Pell grants.........................       1,923       2,063       2,180
    Student loans:
      Guaranteed student loans:
        Stafford loans..................       3,373       3,292       3,312
        Unsubsidized Stafford loans.....       3,945       3,872       3,939
        PLUS............................       6,522       6,401       6,590
      Direct student loans:
        Stafford loans..................       3,206       3,370       3,393
        Unsubsidized Stafford loans.....       3,346       3,690       3,751
        PLUS............................       5,837       6,497       6,690
      Consolidation:
        FFEL............................      17,754      17,582      17,696
        Direct Loans....................      19,449      20,520      20,653
    Work-study..........................       1,123       1,215       1,215
    Supplemental educational opportunity
    grants..............................         701         727         727
    Perkins loans.......................       1,516       1,564       1,564
    Leveraging Educational Assistance
    Partnership.........................         600         750         750

                            NUMBER OF STUDENTS AIDED

                                 [In thousands]

                                         1999 actual  2000 est.   2001 est.
    Unduplicated student count..........       8,162       8,406       8,623

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

                     ADMINISTRATIVE PAYMENTS TO INSTITUTIONS

                            [In millions of dollars]

                                         1999 actual  2000 est.   2001 est.
    Pell grants.........................          20          20          20
    Work-study..........................          65          70          76
    Supplemental educational opportunity
    grants..............................          31          32          32
    Perkins loans.......................          42          42          42

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

                             DEFAULTED PERKINS LOANS

                            [In millions of dollars]

                                         1999 actual  2000 est.   2001 est.
    Outstanding defaulted loans,
        beginning of year:
      Assigned defaulted loans \1\......         137          64          58
      Unassigned defaulted loans \2\....         948         987       1,029
    New defaulted loans.................         147         168         176
    Collections on assigned loans.......         -66         -25         -26
    Collections on unassigned loans.....         -93         -94         -96
    Write-offs for assigned loans.......         -15          -9         -10
    Write-offs for unassigned loans.....          -7          -4          -3
                                        ------------------------------------
    Outstanding defaulted loans, end of
    year................................       1,051       1,087       1,128
                                        ====================================
        \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 1999, $94 thousand in
    2000, and $94 thousand in 2001. These amounts are recorded as
    outstanding loans in the ``Status of Direct Loans'' schedule.
        \2\ Unassigned loans at institutions.

                           Perkins Loan Revolving Fund

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-4248-0-1-502      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year...................          53
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           1
    22.40 Capital transfer to general fund..         -54
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance, start of year           3
    73.10 Total new obligations.............
    73.20 Total outlays (gross).............          -1
    73.45 Adjustments in unexpired accounts.          -1
    74.40 Unpaid obligations, end of year:
            Obligated balance, end of year..
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.98 Outlays from mandatory balances...           1
    ----------------------------------------------------------------------------

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

        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 have been 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      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year...................          47
    22.40 Capital transfer to general fund..         -47
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......
    ----------------------------------------------------------------------------

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

        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 and prevention, guaranty agency oversight, and
    related expenses.

    Credit accounts:

              Federal Direct Student Loan Program, Program Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0243-0-1-502      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    07.09 Student loan administrative
            expenses........................         610         735         770
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         610         735         770
    ----------------------------------------------------------------------------

    [[Page 370]]

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year...................           4          12          12
    22.00 New budget authority (gross)......         619         735         770
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           5
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         628         747         782
    23.95 Total new obligations.............        -610        -735        -770
    23.98 Unobligated balance expiring or
            withdrawn.......................          -5
    24.40 Unobligated balance available, end
            of year.........................          12          12          12
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    42.00   Transferred from other accounts.           1
          Mandatory:

    60.00   Appropriation...................         618         735         770
    60.05   Appropriation (indefinite)......
                                               ---------   ---------  ----------
    62.50     Appropriation (total
                mandatory)..................         618         735         770
    69.00 Offsetting collections (cash).....         720       3,432         607
    69.10 From Federal sources: Change in
            receivables and unpaid, unfilled
            orders..........................
    69.27 Capital transfer to general fund..        -720      -3,432        -607
                                               ---------   ---------  ----------
    69.90   Spending authority from
              offsetting collections (total
              mandatory)....................
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         619         735         770
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance, start of year         303         281         335
    73.10 Total new obligations.............         610         735         770
    73.20 Total outlays (gross).............        -627        -681        -722
    73.45 Adjustments in unexpired accounts.          -5
    74.40 Unpaid obligations, end of year:
            Obligated balance, end of year..         281         335         383
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................         392         468         481
    86.98 Outlays from mandatory balances...         235         213         241
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         627         681         722
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........        -720      -3,432        -607
          Against gross budget authority only:

    88.95   From Federal sources: Change in
              receivables and unpaid,
              unfilled orders...............
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................        -101      -2,697         163
    90.00 Outlays...........................         -93      -2,751         115
    ---------------------------------------------------------------------------

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

    ----------------------------------------------------------------------------
    Identification code 91-0243-0-1-502      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
        Direct loan levels supportable by subsidy
                    budget authority:
    1150  Stafford..........................       5,318       6,129       6,354
    1150  Unsubsidized Stafford.............       3,437       4,235       4,537
    1150  PLUS..............................       1,198       1,459       1,615
    1150  Consolidated......................       8,006       4,312       4,466
                                               ---------   ---------  ----------
    1159    Total direct loan levels........      17,959      16,135      16,972
        Direct loan subsidy (in percent):
    1320  Stafford..........................        8.17        3.39        8.03
    1320  Unsubsidized Stafford.............      -11.74      -20.49      -14.36
    1320  PLUS..............................      -10.40      -16.39      -12.36
    1320  Consolidated......................       -3.95       -9.59       -3.92
                                               ---------   ---------  ----------
    1329    Weighted average subsidy rate...       -2.15       -8.14       -3.04
        Direct loan subsidy budget authority:
    1330  Stafford..........................         169        -918         510
    1330  Unsubsidized Stafford.............        -685      -1,623        -652
    1330  PLUS..............................        -104        -387        -200
    1330  Consolidated......................        -119        -827        -175
                                               ---------   ---------  ----------
    1339    Total subsidy budget authority..        -739      -3,755        -517
        Direct loan subsidy outlays:
    1340  Stafford..........................         236        -863         385
    1340  Unsubsidized Stafford.............        -657      -1,428        -639
    1340  PLUS..............................         -94        -320        -180
    1340  Consolidated......................        -123        -822        -173
                                               ---------   ---------  ----------
    1349    Total subsidy outlays...........        -638      -3,433        -607
    ----------------------------------------------------------------------------

        Student loan administrative expense data:
    3510  Budget authority..................         618         735         770
    3590  Outlays...........................         544         681         721
    ---------------------------------------------------------------------------

        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 2001
    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 1999, the FFEL program has
    provided over $300 billion in loans to postsecondary students and their
    parents. Since July 1, 1994, the Direct Loan program has provided almost
    $57 billion in new and consolidation loans to students and parents.
    Taken together, the FFEL and Direct Loan programs will make almost $32
    billion in new loans available in 2000. Because funding for these two
    programs 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 Administration is
    proposing to bring forward $359 million in reserve recalls included in
    the HEA. In addition, the Administration is proposing $950 million in
    new recalls for 2001. (Amounts recalled in 2001 will be used to offset
    discretionary spending.) To provide guaranty agencies the maximum
    flexibility under this new structure, the Administration 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

    [[Page 371]]

    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 1999-2000. 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.

        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 3-month commercial paper rate for a given
    quarter plus 2.34 percent--or 1.74 percent during in-school, grace, or
    deferment periods--is higher than the current interest rate charged
    borrowers.

        The basis for interest subsidies to FFEL lenders was changed to 3-
    month commercial paper rates from the 91-day Treasury bill--the
    instrument upon which student interest rates are based--as part of the
    Ticket to Work and Work Incentives Improvement Act 1999. This change was
    not intended to increase lender returns. In fact, however, the change
    has increased lender yields in two ways. Under current economic
    forecasts, Federal interest subsidies to lenders are 11 basis points
    higher than would have been the case under the previous formula. In
    addition, the move to commercial paper also reduces lender costs by 20
    basis points by eliminating the need for hedging--insurance against
    future interest rate changes. In order to reestablish the cost-
    neutrality of the change to commercial paper, the Administration is
    therefore proposing to reduce lender subsidies by a total of 31 basis
    points, setting the special allowance formula at the 3-month commercial
    paper rate plus 2.03 percent during repayment and plus 1.43 percent
    during in-school, grace, or deferment periods.

        The Administration is also proposing to eliminate interest subsidy
    payments on FFEL loans funded through tax-exempt securities that are
    currently subject to a 9.5 percent interest rate floor. Lenders with
    access to tax-exempt financing have a lower cost of funding than their
    private competitors; the proposed elimination of Federal interest
    subsidies on loans subject to this unnecessary floor provision will
    bring the return on tax-exempt-funded loans roughly 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.
    The interest rate for new FFEL and Direct 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. Interest rates for all new FFEL and Direct Consolidation
    Loans are capped at 8.25 percent.

        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 and FFEL lenders have the option
    of paying some or all of a borrower's origination fee for Stafford Loan
    borrowers. Direct Loan borrowers are charged an origination fee equal to
    3 percent of principal, which partially offsets Federal program
    operation costs.

        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 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 Administration 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
    2003, and to 23 percent thereafter.) Second, the rate guaranty agencies
    may retain on collections stemming from the consolidation of a defaulted
    loan will be further reduced to 12 percent to reflect the lower costs
    associated with this type of collection.

        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,

    [[Page 372]]

    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)

    ----------------------------------------------------------------------------
                                            1999 actual    2000 est.   2001 est.
    ----------------------------------------------------------------------------
    Program Cost:
    FFEL:
      Liquidating \1\.......................   -550,000     -691,237    -599,901
      Program \2\...........................  3,421,720    3,643,377   3,277,052
      Reestimate of Prior Year Costs........   -687,572    1,105,545
      Non-Contractual Modifications \3\.....                            -502,297
                                            -----------  -----------  ----------
        Subtotal, FFEL \2\..................  2,184,148    4,057,685   2,124,854
    Direct Loans:
      Program \2\...........................    -67,846     -899,266    -341,106
      Reestimate of Prior Year Costs........   -552,730   -2,028,650
                                            -----------  -----------  ----------
        Subtotal, Direct Loans \2\..........   -620,576   -2,927,916    -341,106
    Consolidation Loans:
      FFEL:.................................     63,666       87,839     123,249
      Reestimate of Prior Year Costs........    534,438     -329,544
      Non-Contractual Modifications \3\.....                             -87,703
      Direct Loans..........................   -310,366     -413,490    -175,085
      Reestimate of Prior Year Costs........    191,850     -413,636
                                            -----------  -----------  ----------
        Subtotal, Consolidation Loans.......    479,589   -1,068,829    -139,539
    Administration:
      FFEL \4\..............................     47,276       48,000      48,000
      Student Aid \5\.......................    617,591      735,000     770,000
                                            -----------  -----------  ----------
        Subtotal, Administration............    664,867      783,000     818,000
        Total, FFEL and Direct Loans........  2,708,028      843,939   2,462,210
    Program Cost Outlays:
    FFEL:
      Liquidating \1\....................... -1,163,000     -706,100    -615,772
      Program \2\...........................  2,812,329    3,120,968   2,994,621
      Reestimate of Prior Year Costs \2\....   -687,572    1,105,545
      Non-Contractual Modifications \3\.....                            -502,297
                                            -----------  -----------  ----------
        Subtotal, FFEL \2\..................    961,757    3,520,412   1,876,553
    Direct Loans:
      Program \2\...........................     38,566     -581,786    -434,554
      Reestimate of Prior Year Costs \2\....   -552,730   -2,028,650
                                            -----------  -----------  ----------
        Subtotal, Direct Loans \2\..........   -514,164   -2,610,437    -434,554
    Consolidation Loans:
      FFEL..................................     94,044       86,582     121,485
      Reestimate of Prior Year Costs........    534,438     -329,544
      Non-Contractual Modifications \3\.....                             -87,703
      Direct Loans..........................   -314,479     -407,586    -172,586
      Reestimate of Prior Year Costs........    191,850     -413,636
                                            -----------  -----------  ----------
        Subtotal, Consolidation Loans.......    505,854   -1,064,184    -138,804
    Administration:
      FFEL \4\..............................     52,248       47,198      49,921
      Student Aid \5\.......................    543,409      681,353     721,944
                                            -----------  -----------  ----------
        Subtotal, Administration............    595,657      728,551     771,865
        Total, FFEL and Direct Loans........  1,549,104      574,342   2,075,060
    ----------------------------------------------------------------------------
        \1\ Liquidating account reflects loans made prior to 1992.
        \2\ Because these figures do not include consolidation loans, they do not
    correspond with those shown in account-specific schedules.
        \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 1999 reflects transfer from Treasury of $591,000 for Year 2000-related
    activities.

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

    ----------------------------------------------------------------------------
                                             1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
    FFEL:
      Stafford..............................      10,427      10,529      10,901
      Unsubsidized Stafford.................       7,771       8,223       8,813
      PLUS..................................       1,908       2,207       2,442
                                               ---------   ---------  ----------
        Total, FFEL.........................      20,106      20,959      22,156
    Direct Loans:
      Stafford..............................       5,318       5,568       5,770
      Unsubsidized Stafford.................       3,437       3,798       4,068
      PLUS..................................       1,198       1,239       1,372
                                               ---------   ---------  ----------
        Total, Direct Loans.................       9,953      10,605      11,210
    Consolidation Loans:
      FFEL..................................       4,720       4,581       4,745
      Direct Loans..........................       8,006       4,250       4,403
                                               ---------   ---------  ----------
        Subtotal, Consolidation Loans.......      12,726       8,831       9,148
        Total, All Loans....................      42,786      40,395      42,516
    ---------------------------------------------------------------------------
        \1\ Net commitments equal gross commitments minus loan cancellations.

                           Number of Loans (In thousands)

    ----------------------------------------------------------------------------
                                             1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
    FFEL:
      Stafford..............................       3,091       3,198       3,291
      Unsubsidized Stafford.................       1,970       2,124       2,237
      PLUS..................................         293         345         371
                                               ---------   ---------  ----------
        Total, FFEL.........................       5,354       5,667       5,899
    Direct Loans:
      Stafford..............................       1,659       1,652       1,701
      Unsubsidized Stafford.................       1,027       1,029       1,085
      PLUS..................................         205         191         205
                                               ---------   ---------  ----------
        Total, Direct Loans.................       2,891       2,872       2,991
    Consolidation Loans:
      FFEL..................................         266         261         268
      Direct Loans..........................         412         207         213
                                               ---------   ---------  ----------
        Subtotal, Consolidation Loans.......         677         468         481
        Total, All Loans....................       8,922       9,007       9,371
    ---------------------------------------------------------------------------

                        Average Loan Size (in whole dollars)

    ----------------------------------------------------------------------------
                                             1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
    FFEL:
      Stafford..............................       3,373       3,292       3,312
      Unsubsidized Stafford.................       3,945       3,872       3,939
      PLUS..................................       6,522       6,401       6,590
                                               ---------   ---------  ----------
        Weighted Average, FFEL..............       3,756       3,699       3,756
    Direct Loans:
      Stafford..............................       3,206       3,370       3,393
      Unsubsidized Stafford.................       3,346       3,690       3,751
      PLUS..................................       5,837       6,497       6,690
                                               ---------   ---------  ----------
        Weighted Average, Direct Loans......       3,443       3,692       3,749
    Consolidation Loans:
      FFEL..................................      17,754      17,582      17,696
      Direct Loans..........................      19,449      20,520      20,653
                                               ---------   ---------  ----------
        Subtotal, Consolidation Loans.......      18,784      18,883      19,006
        Weighted Average, All Loans.........       4,795       4,485       4,537
    ---------------------------------------------------------------------------

                         Composition of Consolidation Loans

    ----------------------------------------------------------------------------
                                             1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
    Net commitments (in millions of
        dollars):
    FFEL:
      Standard consolidations...............       4,160       3,965       4,108
      Consolidations from Default...........         560         616         638
                                               ---------   ---------  ----------
        Subtotal, FFEL......................       4,720       4,581       4,745
    Direct Loans:
      Standard consolidations...............       6,637       2,473       2,561
      Consolidations from Default...........       1,369       1,778       1,841
                                               ---------   ---------  ----------
        Subtotal, Direct Loans..............       8,006       4,250       4,403
    Total:
      Standard consolidations...............       6,637       2,473       2,561

    [[Page 373]]

      Consolidations from Default...........       1,369       1,778       1,841
                                               ---------   ---------  ----------
        Total, Consolidated Loans...........      12,726       8,831       9,148
    ---------------------------------------------------------------------------

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

    ----------------------------------------------------------------------------
                                             1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
    Subsidy Rates (in percent) \1\
    FFEL:
      Stafford..............................       22.16       23.21       20.84
      Unsubsidized Stafford.................        7.63        8.20        5.36
      PLUS..................................        5.47        5.49        5.17
                                               ---------   ---------  ----------
        Weighted Average, FFEL \2\..........       14.89       15.39       12.89
    Direct Loans:
      Stafford..............................        3.73        3.39        8.03
      Unsubsidized Stafford.................      -19.35      -20.49      -14.36
      PLUS..................................      -15.61      -16.39      -12.36
                                               ---------   ---------  ----------
        Weighted Average, Direct Loans \2\..       -6.70       -7.61       -2.73
    Consolidation Loans:
      FFEL..................................        2.79        1.89        2.56
      Direct Loans..........................       -6.84       -9.59       -3.92
                                               ---------   ---------  ----------
        Weighted Average, Consolidation
          Loans.............................       -3.26       -3.63       -0.56
    Default Rates (in percent) \3\
    FFEL:
      Stafford..............................       16.79       16.94       16.97
      Unsubsidized Stafford.................       15.76       15.80       15.80
      PLUS..................................       10.09       10.05       10.05
                                               ---------   ---------  ----------
        Weighted Average, FFEL \2\..........       15.76       15.77       15.74
    Direct Loans:
      Stafford..............................       16.33       16.30       16.32
      Unsubsidized Stafford.................       15.88       15.91       15.78
      PLUS..................................        9.36        9.44        9.42
                                               ---------   ---------  ----------
        Weighted Average, Direct Loans \2\..       15.34       15.31       15.28
    Consolidation Loans:
      FFEL..................................       22.02       21.96       21.96
      Direct Loans..........................       22.02       21.96       21.96
                                               ---------   ---------  ----------
        Weighted Average, Consolidation
          Loans.............................       22.02       21.96       21.96
    Borrower Interest Rates (in percent)
    FFEL:
      Stafford \4\..........................        7.46        6.92        7.78
      Unsubsidized Stafford \4\.............        7.46        6.92        7.78
      PLUS \4\..............................        8.26        7.72        8.58
    Direct Loans:
      Stafford \4\..........................        7.46        6.92        7.78
      Unsubsidized Stafford \4\.............        7.46        6.92        7.78
      PLUS \4\..............................        8.26        7.72        8.58
    Federal Borrowing Rate for Direct Loans
        (in percent)........................        5.67        5.01        6.25
    ---------------------------------------------------------------------------
        \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.
        \2\ Because these figures do not include totals for consolidation loans,
    they do not correspond with totals shown in account-specific schedules.
        \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\ Consolidation Loan interest rates are set at the weighted average of
    the rates of the loans consolidated, rounded up to the nearest eighth of a
    percent.

              Composition of Loan Collections (In thousands of dollars)

    ----------------------------------------------------------------------------
                                             1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
    FFEL:
      Collections by Guaranty Agencies \1\..   2,438,858   1,398,596   1,454,052
      Collections by Department of Education     892,109     428,392     439,804
      Internal Revenue Service Tax Refund
        Offsets.............................   1,347,153     565,011     577,016
                                               ---------   ---------  ----------
          Total, FFEL.......................   4,678,120   2,391,999   2,470,872
    Direct Loans:
      Collections by Department of Education      49,022     153,086     255,385
      Internal Revenue Service Tax Refund
        Offsets.............................      15,265      26,768      49,880
                                               ---------   ---------  ----------
        Total, Direct Loans.................      64,286     179,854     305,265
        Total, FFEL and Direct Loan.........   4,742,406   2,571,852   2,776,136
    ---------------------------------------------------------------------------
        \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)

    ----------------------------------------------------------------------------
                                             1999 cohort 2000 cohort 2001 cohort
    ----------------------------------------------------------------------------
    FFEL: \1\
      Standard:
        Percent of Loan Volume: \2\
          Stafford..........................      100.00      100.00      100.00
          Unsubsidized Stafford.............      100.00      100.00      100.00
          PLUS..............................      100.00      100.00      100.00
          Consolidation.....................      100.00      100.00      100.00
      Subsidy Rate (in percent):
          Stafford..........................       22.16       23.21       20.84
          Unsubsidized Stafford.............        7.63        8.20        5.36
          PLUS..............................        5.47        5.49        5.17
          Consolidation.....................        2.79        1.89        2.56
    Direct Loans \1\
      Standard
        Percent of Loan Volume \2\
          Stafford..........................       78.60       74.36       70.35
          Unsubsidized Stafford.............       74.99       70.97       67.16
          PLUS..............................       78.56       78.56       78.56
          Consolidation.....................       33.09       33.09       33.09
        Subsidy Rate (in percent):
          Stafford..........................        9.25        5.84        9.67
          Unsubsidized Stafford.............      -10.50      -17.36      -12.45
          PLUS..............................       -8.08      -12.82       -9.95
          Consolidation.....................        1.14       -2.50        0.29
      Graduated: \3\
        Percent of Loan Volume: \2\
          Stafford..........................       15.67       18.98       22.10
          Unsubsidized Stafford.............       17.76       20.79       23.67
          PLUS..............................       15.51       15.51       15.51
          Consolidation.....................       21.80       21.80       21.80
        Subsidy Rate (in percent):
          Stafford..........................        4.37       -4.13        3.92
          Unsubsidized Stafford.............      -16.45      -29.87      -19.57
          PLUS..............................      -17.97      -29.73      -21.36
          Consolidation.....................       -6.74      -15.42       -8.23
      Extended: \3\
        Percent of Loan Volume: \2\
          Stafford..........................        4.44        5.38        6.26
          Unsubsidized Stafford.............        5.79        6.78        7.72
          PLUS..............................        5.94        5.94        5.94
          Consolidation.....................       20.98       20.98       20.98
        Subsidy Rate (in percent):
          Stafford..........................        4.44       -3.50        4.37
          Unsubsidized Stafford.............      -16.35      -29.11      -19.05
          PLUS..............................      -18.08      -29.15      -20.82
          Consolidation.....................       -6.62      -14.56       -7.59
      Income-Contingent:
        Percent of Loan Volume \2\
          Stafford..........................        1.29        1.29        1.29
          Unsubsidized Stafford.............        1.46        1.46        1.46
          Consolidation.....................       24.13       24.13       24.13
        Subsidy Rate (in percent):
          Stafford..........................        2.72        0.24        6.86
          Unsubsidized Stafford.............        2.70        0.14        6.79
          Consolidation.....................       -4.09      -12.50       -4.05
    ---------------------------------------------------------------------------
        \1\ No data is included for the Alternative repayment plan under either
    FFEL or Direct Loans. Borrowers are not expected to participate in this plan
    due to the flexibility available under the other options. For FFEL, no data
    is included for income-sensitive repayment. This option, which has been
    available for a number of years, has never made up more than a tiny portion
    of overall loan volume. For Direct Loans, 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.

    [[Page 374]]

    ------------------------------------------------------------------------
                                                                  Percent of
                                                                    Volume
                                                                    Within
                                                                    Direct
                                                        Maximum    Extended
                        Debt Level                      Term (in      and
                                                         years)    Graduated
                                                                     Plans
                                                                  (Stafford)
                                                                     FY 00
    ------------------------------------------------------------------------
    Below $10,000....................................         12        5.65
    $10,000-$20,000..................................         15       15.79
    $20,000-$40,000..................................         20       31.39
    $40,000-$60,000..................................         25       20.02
    Above $60,000....................................         30       27.15
    ------------------------------------------------------------------------

        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 2001 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)

                                         1999 actual  2000 est.   2001 est.
    Risk Categories:
      Category 1: 4 year college, 1st
        and 2nd year students...........       26.04       28.04       25.64
      Category 2: 4 year college, 3rd
        and 4th year students...........       18.25       19.79       17.75
      Category 3: 2 year college, all
        students........................       21.96       22.85       21.24
      Category 4: Proprietary school,
        all students....................       23.83       23.88       22.92
      Category 5: Graduate students.....       20.28       22.33       19.98

                        Gross Default Rates (in percent)

                                         1999 actual  2000 est.   2001 est.
    Risk Categories:
      Category 1: 4 year college, 1st
        and 2nd year students...........       19.67       19.68       19.66
      Category 2: 4 year college, 3rd
        and 4th year students...........       13.17       13.18       13.17
      Category 3: 2 year college, all
        students........................       32.69       32.68       32.67
      Category 4: Proprietary school,
        all students....................       49.25       49.25       49.26
      Category 5: Graduate students.....        8.86        8.87        8.87

                           UNSUBSIDIZED STAFFORD LOANS

               Subsidy Rate (as a percentage of loan commitments)

                                         1999 actual  2000 est.   2001 est.
    Risk Categories:
      Category 1: 4 year college, 1st
        and 2nd year students...........        8.76        8.97        6.25
      Category 2: 4 year college, 3rd
        and 4th year students...........        5.86        6.20        3.81
      Category 3: 2 year college, all
        students........................       11.94       11.66        9.69
      Category 4: Proprietary school,
        all students....................       16.99       16.42       15.26
      Category 5: Graduate students.....        5.92        6.51        3.84

                        Gross Default Rates (in percent)

                                         1999 actual  2000 est.   2001 est.
    Risk Categories:
      Category 1: 4 year college, 1st
        and 2nd year students...........       20.01       20.04       20.02
      Category 2: 4 year college, 3rd
        and 4th year students...........       13.08       13.09       13.09
      Category 3: 2 year college, all
        students........................       32.07       32.07       32.06
      Category 4: Proprietary school,
        all students....................       48.16       48.21       48.21
      Category 5: Graduate students.....        8.74        8.75        8.75

                                   PLUS LOANS

               Subsidy Rate (as a percentage of loan commitments)

                                         1999 actual  2000 est.   2001 est.
      All PLUS Loans....................        5.47        5.49        5.17

                        Gross Default Rates (in percent)

                                         1999 actual  2000 est.   2001 est.
      All PLUS Loans....................       10.09       10.05       10.05

                   DIRECT LOAN RISK CATEGORIES: STAFFORD LOANS

               Subsidy Rate (as a percentage of loan commitments)

                                         1999 actual  2000 est.   2001 est.
    Risk Categories:
      Category 1: 4 year college, 1st
        and 2nd year students...........       12.51        7.69       12.68
      Category 2: 4 year college, 3rd
        and 4th year students...........        5.30        0.45        4.92
      Category 3: 2 year college, all
        students........................       10.69        4.94        9.96
      Category 4: Proprietary school,
        all students....................       15.83       10.67       15.03
      Category 5: Graduate students.....        7.13        2.65        7.00

                        Gross Default Rates (in percent)

                                         1999 actual  2000 est.   2001 est.
    Risk Categories:
      Category 1: 4 year college, 1st
        and 2nd year students...........       20.02       20.03       20.00
      Category 2: 4 year college, 3rd
        and 4th year students...........       13.16       13.15       13.14
      Category 3: 2 year college, all
        students........................       33.25       33.24       33.23
      Category 4: Proprietary school,
        all students....................       49.49       49.42       49.42
      Category 5: Graduate students.....        8.84        8.83        8.82

                           UNSUBSIDIZED STAFFORD LOANS

               Subsidy Rate (as a percentage of loan commitments)

                                         1999 actual  2000 est.   2001 est.
    Risk Categories:
      Category 1: 4 year college, 1st
        and 2nd year students...........      -10.96      -20.63      -13.59
      Category 2: 4 year college, 3rd
        and 4th year students...........      -13.47      -21.98      -16.14
      Category 3: 2 year college, all
        students........................       -6.72      -15.97       -9.79
      Category 4: Proprietary school,
        all students....................        1.09       -7.38       -1.87
      Category 5: Graduate students.....      -13.44      -21.50      -15.77

                        Gross Default Rates (in percent)

                                         1999 actual  2000 est.   2001 est.
    Risk Categories:
      Category 1: 4 year college, 1st
        and 2nd year students...........       20.02       20.04       20.02
      Category 2: 4 year college, 3rd
        and 4th year students...........       13.04       13.03       13.03
      Category 3: 2 year college, all
        students........................       32.45       32.45       32.44
      Category 4: Proprietary school,
        all students....................       48.35       48.30       48.30
      Category 5: Graduate students.....        8.73        8.72        8.72

                                   PLUS LOANS

               Subsidy Rate (as a percentage of loan commitments)

                                         1999 actual  2000 est.   2001 est.
      All PLUS Loans....................      -15.61      -16.39      -12.36

                        Gross Default Rates (in percent)

                                         1999 actual  2000 est.   2001 est.
      All PLUS Loans....................        9.36        9.44        9.42

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

    ----------------------------------------------------------------------------
                                            1999 actual    2000 est.   2001 est.
    ----------------------------------------------------------------------------
    Interest costs:
    Interest benefits:
      FFEL Liquidating......................     29,205        2,014
      FFEL Program..........................  3,629,000    1,845,606   1,968,452
      Direct Loans \1\......................    884,326      881,577     980,630
                                            -----------  -----------  ----------
                                              4,542,531    2,729,197   2,949,082
    Special allowance:
      FFEL Liquidating......................     20,499       65,889      32,033
      FFEL Program..........................    837,528      822,719     573,388
                                            -----------  -----------  ----------
                                                858,027      888,608     605,421

    [[Page 375]]

    Default costs and offsets:
    Default costs \2\:
      FFEL Liquidating......................    413,325      167,886      94,348
      FFEL Program..........................  3,225,804    3,306,394   3,585,518
      Direct Loans..........................    642,037    1,365,850   1,679,715
                                            -----------  -----------  ----------
                                              4,281,166    4,840,130   5,359,582
    Gross default collections:
      FFEL Liquidating......................  2,803,024    1,095,176     876,097
      FFEL Program..........................  1,875,096    1,296,823   1,594,775
      Direct Loans..........................     64,286      179,854     305,265
                                            -----------  -----------  ----------
                                              4,742,406    2,571,852   2,776,136
    Default collection costs:
      FFEL Liquidating:
        Contract collection costs...........     20,254       46,163      40,669
        Guaranty agency retention...........    121,024       99,446      53,526
                                            -----------  -----------  ----------
                                                141,278      145,609      94,194
      FFEL Program:
        Contract collection costs...........     73,000       19,846      31,781
        Guaranty agency retention...........    136,096      190,765     159,412
                                            -----------  -----------  ----------
                                                209,096      210.612     191,192
      Direct Loans:
        Collection costs \3\................        246          885       2,325

    Net default costs:\4\
          FFEL Liquidating.................. -2,248,421     -781,681    -687,554
          FFEL Program......................  1,559,804    2,220,183   2,181,935
          Direct Loans......................    577,996    1,186,882   1,376,775
                                            -----------  -----------  ----------
                                               -110,621    2,265,384   2,871,156
      Death, disability, and bankruptcy
          costs:
        FFEL Liquidating....................     80,768       26,910      18,821
        FFEL Program........................    424,453      251,536     279,518
        Direct Loans........................     39,284       80,725     108,464
                                            -----------  -----------  ----------
                                                544,505      359,172     406,803
    Administrative Costs:
    Federal administration:
      FFEL\5\...............................     47,276       48,000      48,000
      Student Aid Management \6\............    617,591      735,000     770,000
    Guaranty agency administrative payments:
      Account Maintenance Fee...............    177,000      180,000     170,000
      Loan Issuance and Processing Fee......    253,000      153,910     162,749
      Supplemental preclaims assistance.....      6,607
      Lender-paid default prevention fee....
    Fees:
      Borrower origination fees:
        FFEL................................    636,857      620,412     651,824
        Direct Loans........................    386,626      348,292     344,129
      Lender origination fee \7\............    106,143      126,307     132,365
      Sallie Mae offset fee \7\.............     26,000       53,600      51,100
      Consolidation loan holder fees \7\....    196,000      220,695     253,119
    ----------------------------------------------------------------------------
        \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 outstanding balances at time of
    default.
        \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\ Amount for 1999 reflects transfer from Treasury of $794,000 for Year
    2000-related activities.
        \6\ 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 1999 includes transfer from Treasury of
    $591,000 for Year 2000-related activities.
        \7\ Applies to FFEL Program only.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0243-0-1-502      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

          Personnel compensation:

    11.1    Full-time permanent.............          31          37          38
    11.3    Other than full-time permanent..           1
    11.5    Other personnel compensation....           1           1           1
                                               ---------   ---------  ----------
    11.9      Total personnel compensation..          33          38          39
    12.1  Civilian personnel benefits.......           7           8           9
    21.0  Travel and transportation of
            persons.........................           3           4           3
    23.1  Rental payments to GSA............           5           5           5
    23.3  Communications, utilities, and
            miscellaneous charges...........          36          43          45
    24.0  Printing and reproduction.........           7           6           7
    25.1  Advisory and assistance services..           6           1           1
    25.2  Other services....................          21          12          17
    25.3  Purchases of goods and services
            from Government accounts........           4           1           2
    25.7  Operation and maintenance of
            equipment.......................         307         417         455
    31.0  Equipment.........................           4           1           2
    32.0  Land and structures...............                      19          15
    41.0  Grants, subsidies, and
            contributions...................         177         180         170
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         610         735         770
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 91-0243-0-1-502      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
    1001  Total compensable workyears: Full-
            time equivalent employment......         551         571         571
    ---------------------------------------------------------------------------

             Federal Direct Student Loan Program, Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-4253-0-3-502      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct loans:

    01.01   Stafford........................       6,072       6,129       6,354
    01.02   Unsubsidized Stafford...........       3,925       4,235       4,537
    01.03   PLUS............................       1,296       1,459       1,615
    01.04   Consolidated....................       7,950       4,312       4,466
                                               ---------   ---------  ----------
    01.91     Subtotal, direct loans
                obligations.................      19,243      16,135      16,972
          Payment for consolidations:

    02.04   Consolidated....................          29          15          15
    03.01 Payment of contract collections...                       1           2
    04.01 Interest payment to Treasury......       3,483       3,364       4,093
          Other obligations:

    08.01   Payment of negative subsidy to
              program account...............         378       1,200         607
    08.02   Payment of downward reestimate
              to program account............         361       2,442
                                               ---------   ---------  ----------
    08.91   Subtotal, other obligations.....         739       3,642         607
                                               ---------   ---------  ----------
    10.00   Total new obligations...........      23,494      23,157      21,689
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year...................           5
    22.00 New financing authority (gross)...      23,489      23,157      21,689
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......      23,494      23,157      21,689
    23.95 Total new obligations.............     -23,494     -23,157     -21,689
    24.40 Unobligated balance available, end
            of year.........................
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Mandatory:

    67.15   Authority to borrow (indefinite)      19,977      19,778      17,579
    69.00 Offsetting collections (cash).....       8,199       5,863       8,044
    69.10 From Federal sources: Change in
            receivables and unpaid, unfilled
            orders..........................         -88
    69.47 Portion applied to repay debt.....      -4,599      -2,484      -3,934
                                               ---------   ---------  ----------
    69.90   Spending authority from
              offsetting collections (total
              mandatory)....................       3,512       3,379       4,110
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................      23,489      23,157      21,689
    ----------------------------------------------------------------------------

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

    72.40   Obligated balance, start of year       5,396       6,718       3,415
    72.95   Receivables from program account          88
                                               ---------   ---------  ----------
    72.99     Total unpaid obligations,
                start of year...............       5,484       6,718       3,415
    73.10 Total new obligations.............      23,494      23,157      21,689
    73.20 Total financing disbursements
            (gross).........................     -22,256     -26,460     -21,489
    73.40 Adjustments in expired accounts
            (net)...........................          -5
          Unpaid obligations, end of year:

    74.40   Obligated balance, end of year..       6,718       3,415       3,614
    74.95   Receivables from program account
                                               ---------   ---------  ----------
    74.99     Total unpaid obligations, end
                of year.....................       6,718       3,415       3,614
    87.00 Total financing disbursements
            (gross).........................      22,256      26,460      21,489
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

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

    88.00         Stafford..................        -196
    88.00         Unsubsidized Stafford.....          85

    [[Page 376]]

    88.00         PLUS......................          24
    88.00         Consolidated..............           4
    88.00         Downward reestimate.......
    88.25     Interest on uninvested funds..      -1,088
              Non-Federal sources:
                Stafford loans:

    88.40         Repayment of principal,
                    Stafford................      -2,229      -1,012      -1,445
    88.40         Interest received on
                    loans, Stafford.........        -284        -961      -1,348
    88.40         Fees, Stafford............        -221        -179        -171
    88.40         Repayment of principal,
                    Unsubsidized Stafford...      -1,527        -612        -909
    88.40         Interest received on
                    loans, Unsubsidized
                    Stafford................        -237        -608        -895
    88.40         Fees, Unsubsidized
                    Stafford................        -131        -120        -120
    88.40         Repayment of principal,
                    PLUS....................        -519        -267        -348
    88.40         Interest received on
                    loans, PLUS.............        -193        -322        -432
    88.40         Fees, PLUS................         -36         -50         -53
    88.40         Payment of principal,
                    Consolidated............      -1,283        -680        -959
    88.40         Interest received on
                    loans, Consolidated.....        -368      -1,052      -1,364
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........      -8,199      -5,863      -8,044
          Against gross financing authority only:

    88.95   Change in receivables from
              program accounts..............          88
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............      15,378      17,294      13,645
    90.00 Financing disbursements...........      14,056      20,597      13,445
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-4253-0-3-502      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
              STAFFORD
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........
    1131  Direct loan obligations exempt
            from limitation.................       6,072       6,129       6,353
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...       6,072       6,129       6,353
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........      16,844      19,699      24,153
    1231  Disbursements: Direct loan
            disbursements...................       5,502       5,469       5,705
    1251  Repayments: Repayments and
            prepayments.....................      -2,228        -981      -1,382
    1261  Adjustments: Capitalized interest.          88
          Write-offs for default:

    1263    Direct loans....................         -14         -34         -44
    1264    Other adjustments, net..........        -493
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........      19,699      24,153      28,432
    ----------------------------------------------------------------------------

              UNSUBSIDIZED STAFFORD
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........
    1131  Direct loan obligations exempt
            from limitation.................       3,925       4,235       4,537
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...       3,925       4,235       4,537
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........       9,239      11,216      14,857
    1231  Disbursements: Direct loan
            disbursements...................       3,432       3,676       3,992
    1251  Repayments: Repayments and
            prepayments.....................      -1,526        -593        -870
    1261  Adjustments: Capitalized interest.         360         576         721
          Write-offs for default:

    1263    Direct loans....................          -8         -18         -25
    1264    Other adjustments, net..........        -281
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........      11,216      14,857      18,675
    ----------------------------------------------------------------------------

              PLUS
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........
    1131  Direct loan obligations exempt
            from limitation.................       1,296       1,459       1,615
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...       1,296       1,459       1,615
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........       2,296       2,848       3,792
    1231  Disbursements: Direct loan
            disbursements...................       1,039       1,241       1,330
    1251  Repayments: Repayments and
            prepayments.....................        -519        -276        -358
    1261  Adjustments: Capitalized interest.         111
          Write-offs for default:

    1263    Direct loans....................          -8         -21         -26
    1264    Other adjustments, net..........         -71
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........       2,848       3,792       4,738
    ----------------------------------------------------------------------------

              CONSOLIDATED
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........
    1131  Direct loan obligations exempt
            from limitation.................       7,950       4,312       4,466
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...       7,950       4,312       4,466
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........       4,986      12,067      15,674
    1231  Disbursements: Direct loan
            disbursements...................       8,097       4,250       4,402
    1251  Repayments: Repayments and
            prepayments.....................      -1,282        -666        -929
    1261  Adjustments: Capitalized interest.         579          36          42
          Write-offs for default:

    1263    Direct loans....................         -11         -13         -23
    1264    Other adjustments, net..........        -302
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........      12,067      15,674      19,166
    ---------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   91-4253-0-3-502    1998 actual    1999 actual     2000 est.      2001 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101  Federal assets: Fund balances with
            Treasury........................       5,396         -6,718         3,415          3,614
          Net value of assets related to
              post-1991 direct loans
              receivable:

            Direct loans receivable, gross:
    1401      Stafford......................      15,988         19,698        24,152         28,432
    1401      Unsubsidized Stafford.........       8,769         11,216        14,857         18,675
    1401      PLUS..........................       2,180          2,848         3,792          4,738
    1401      Consolidated..................       4,733         12,067        15,638         19,165
            Interest receivable:
    1402      Interest receivable, Stafford.          80            333           408            480
    1402      Interest receivable, Unsub
                Stafford....................         462            405           516            649
    1402      Interest receivable, PLUS.....           3          1,965         2,616          3,268
    1402      Interest receivable,
                Consolidated................          77            427           554            678
    1405    Allowance for subsidy cost (-)..      -1,575         -1,558        -1,306         -1,374
                                            ------------ --------------  ------------  -------------
    1499      Net present value of assets
                related to direct loans.....      30,717         47,401        61,227         74,711
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................      36,113         40,683        64,642         78,325
        LIABILITIES:
    2103  Federal liabilities: Debt.........      35,097         52,070        69,364         83,009
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............      35,097         52,070        69,364         83,009
        NET POSITION:
    3100  Appropriated capital..............       1,016        -11,386        -4,721         -4,682
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............       1,016        -11,386        -4,721         -4,682
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position      36,113         40,684        64,643         78,327
    -----------------------------------------------------------------------------------------------

        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 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 of
    1965, as amended, $48,000,000. (Department of Education Appropriations
    Act, 2000, as enacted by section 1000(a)(4) of the Consolidated
    Appropriations Act, 2000 (P.L. 106-113).)

        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      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.02 Guaranteed Loan Net Subsidy.......       3,485       3,731       4,004

    [[Page 377]]

    00.07 Upward Reestimate.................          21         627
    00.08 Interest on Reestimate............        -174         187
          Administrative expenses:

    00.09   Administrative expenses due to
              limitations...................          47          48          48
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       3,379       4,593       4,052
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......       3,379       4,592       4,052
    23.95 Total new obligations.............      -3,379      -4,593      -4,052
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

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

    60.05   Appropriation (indefinite)......       3,332       4,507       4,004
    69.00 Offsetting collections (cash).....                      37
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       3,379       4,592       4,052
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance, start of year         859       1,433       1,959
    73.10 Total new obligations.............       3,379       4,593       4,052
    73.20 Total outlays (gross).............      -2,805      -4,067      -3,549
    74.40 Unpaid obligations, end of year:
            Obligated balance, end of year..       1,433       1,959       2,464
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          33          35          23
    86.93 Outlays from discretionary
            balances........................          19          11          22
    86.97 Outlays from new mandatory
            authority.......................       1,926       3,015       2,378
    86.98 Outlays from mandatory balances...         827       1,006       1,125
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       2,805       4,067       3,549
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........                     -37
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       3,379       4,555       4,052
    90.00 Outlays...........................       2,805       4,030       3,549
    ---------------------------------------------------------------------------

                     Summary of Budget Authority and Outlays

                            (in millions of dollars)

                                         1999 actual  2000 est.   2001 est.
    Enacted/requested:
      Budget Authority..................       3,379       4,555       4,052
      Outlays...........................       2,805       4,030       3,548
    Legislative proposal, subject to
        PAYGO:
      Budget Authority..................
      Outlays...........................
    Legislative proposal, discretionary
        offset:
      Budget Authority..................                              -1,244
      Outlays...........................                                -977
                                        ------------------------------------
    Total:
      Budget Authority..................       3,379       4,555       2,808
      Outlays...........................       2,805       4,030       2,571
                                        ====================================

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

    ----------------------------------------------------------------------------
    Identification code 91-0231-0-1-502      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
        Guaranteed loan levels supportable by subsidy
                    budget authority:
    2150  Stafford..........................      11,671      11,791      12,210
    2150  Unsubsidized Stafford.............       8,836       9,351      10,023
    2150  PLUS..............................       2,195       2,536       2,806
    2150  Consolidated......................       4,795       4,648       4,814
                                               ---------   ---------  ----------
    2159    Total loan guarantee levels.....      27,497      28,326      29,853
        Guaranteed loan subsidy (in percent):
    2320  Stafford..........................       21.55       23.21       23.53
    2320  Unsubsidized Stafford.............        7.84        8.20        8.38
    2320  PLUS..............................        5.94        5.49        5.38
    2320  Consolidated......................        1.35        1.89        2.91
                                               ---------   ---------  ----------
    2329    Weighted average subsidy rate...       12.51       13.17       13.41
        Guaranteed loan subsidy budget authority:
    2330  Stafford..........................       2,199       3,578       2,873
    2330  Unsubsidized Stafford.............         175       1,062         840
    2330  PLUS..............................         158          83         151
    2330  Consolidated......................         598        -242         140
    2330  SLS...............................         203          26
                                               ---------   ---------  ----------
    2339    Total subsidy budget authority..       3,333       4,507       4,004
        Guaranteed loan subsidy outlays:
    2340  Stafford..........................       1,821       3,204       2,520
    2340  Unsubsidized Stafford.............         -15         932         717
    2340  PLUS..............................         116          64         128
    2340  Consolidated......................         628        -243         138
    2340  SLS...............................         203          26
                                               ---------   ---------  ----------
    2349    Total subsidy outlays...........       2,753       3,983       3,503
    ----------------------------------------------------------------------------

        Administrative expense data:
    3510  Budget authority..................          46          48          48
    3590  Outlays...........................          52          47          45
    ---------------------------------------------------------------------------

        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 the 1993 cohort, mandatory
    administrative costs, specifically contract collection costs, are
    included in the FFEL subsidy estimates of each year's cohort. Another
    mandatory administrative cost, supplemental pre-claims assistance, was
    repealed by the Higher Education Amendments of 1998. 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      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
    11.1  Personnel compensation: Full-time
            permanent.......................          20          23          22
    12.1  Civilian personnel benefits.......           5           5           6
    21.0  Travel and transportation of
            persons.........................                       1           1
    23.1  Rental payments to GSA............           2           5           5
    23.3  Communications, utilities, and
            miscellaneous charges...........           1           2           1
    25.2  Other services....................           1           1           2
    25.3  Purchases of goods and services
            from Government accounts........           1           1           2
    25.7  Operation and maintenance of
            equipment.......................          15           9           6
    31.0  Equipment.........................           1           1           1
    32.0  Land and structures...............           1
    41.0  Grants, subsidies, and
            contributions...................       3,332       4,545       4,006
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       3,379       4,593       4,052
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 91-0231-0-1-502      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
    1001  Total compensable workyears: Full-
            time equivalent employment......         356         356         356
    ---------------------------------------------------------------------------

                  Federal Family Education Loan Program Account

                  (Legislative proposal, discretionary offset)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0231-6-1-502      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Guaranteed loan subsidy:

    02.01   Stafford........................                                -328
    02.02   Unsubsidized Stafford...........                                -303
    02.03   PLUS............................                                  -6
    02.05   Consolidated....................                                 -17
    02.07   Upward reestimate...............
    02.08   Interest on reestimate..........
                                               ---------   ---------  ----------
    02.91     Subtotal, subsidy cost........                                -654
          Administrative expenses:

    07.01   Administrative expenses due to
              limitations...................
                                               ---------   ---------  ----------

    [[Page 378]]

    10.00   Total new obligations (object
              class 41.0)...................                                -654
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                                -654
    23.95 Total new obligations.............                                 654
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.05   Appropriation (indefinite)......                                -654
    69.00 Offsetting collections (cash).....                                 590
    69.27 Capital transfer to general fund..                                -590
                                               ---------   ---------  ----------
    69.90   Spending authority from
              offsetting collections (total
              mandatory)....................
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................                                -654
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    73.10 Total new obligations.............                                -654
    73.20 Total outlays (gross).............                                 387
    74.40 Unpaid obligations, end of year:
            Obligated balance, end of year..                                -267
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................                                -387
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........                                -590
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                              -1,244
    90.00 Outlays...........................                                -977
    ---------------------------------------------------------------------------

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

    ----------------------------------------------------------------------------
    Identification code 91-0231-6-1-502      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
        Guaranteed loan subsidy (in percent):
    2320  Stafford..........................                               -0.03
    2320  Unsubsidized Stafford.............                               -0.03
    2320  PLUS..............................                                0.00
    2320  Consolidated......................                                0.00
                                               ---------   ---------  ----------
    2329    Weighted average subsidy rate...                               -0.02
        Guaranteed loan subsidy budget authority:
    2330  Stafford..........................                                -328
    2330  Unsubsidized Stafford.............                                -303
    2330  PLUS..............................                                  -6
    2330  Consolidated......................                                 -17
                                               ---------   ---------  ----------
    2339    Total subsidy budget authority..                                -654
        Guaranteed loan subsidy outlays:
    2340  Stafford..........................                                -191
    2340  Unsubsidized Stafford.............                                -176
    2340  PLUS..............................                                  -3
    2340  Consolidated......................                                 -17
    2340  SLS...............................
    2340  Contractual Modification..........                                -590
                                               ---------   ---------  ----------
    2349    Total subsidy outlays...........                                -977
    ----------------------------------------------------------------------------

        Administrative expense data:
    3510  Budget authority..................
    3590  Outlays...........................
    ---------------------------------------------------------------------------

            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      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Stafford loans:

    01.01   Interest benefits...............       3,629       1,845       1,969
    01.02   Special allowance...............         524         481         311
    01.03   Default claims..................       1,477       1,588       1,649
    01.04   Death, disability, and
              bankruptcy claims.............         103         112         120
    01.06   Supplemental preclaims
              assistance....................           2
    01.07   Contract collection costs.......          44          13          18
    01.08   Loan Processing Fee.............         131          77          79
                                               ---------   ---------  ----------
    01.91     Subtotal, Stafford loans......       5,910       4,116       4,146
          Unsubsidized Stafford loans:

    02.02   Special allowance...............         165         260         211
    02.03   Default claims..................         591         864       1,013
    02.04   Death, disability, and
              bankruptcy claims.............          44          50          60
    02.06   Supplemental preclaims
              assistance....................           1
    02.07   Contract collection costs.......           6           2           3
    02.08   Loan Processing Fee.............          98          61          65
                                               ---------   ---------  ----------
    02.91     Subtotal, Unsubsidized
                Stafford loans..............         905       1,237       1,352
          PLUS loans:

    03.02   Special allowance...............          42          21          19
    03.03   Default claims..................          41         147         166
    03.04   Death, disability, and
              bankruptcy claims.............          39          50          56
    03.07   Loan Processing Fee.............          24          16          18
                                               ---------   ---------  ----------
    03.91     Subtotal, PLUS loans..........         146         234         259
          SLS loans:

    04.02   Special allowance...............          15           2           1
    04.03   Default claims..................         130         105          79
    04.04   Death, disability and bankruptcy
              claims........................          50           9           7
    04.06   Supplemental preclaims
              assistance....................           2
    04.07   Contract collection costs.......          17           4           5
                                               ---------   ---------  ----------
    04.91     Subtotal, SLS loans...........         214         120          92
          Consolidation loans:

    05.02   Special allowance...............          92          59          61
    05.03   Default claims..................         987         602         678
    05.04   Death, disability, and
              bankruptcy claims.............         187          30          37
    05.06   Supplemental preclaims
              assistance....................           1
    05.07   Contract collection costs.......           6           2           3
                                               ---------   ---------  ----------
    05.91     Subtotal, Consolidations loans       1,273         693         779
    07.01 Interest paid to Treasury.........           9
    08.02 Downward reestimate...............         -21          19
    08.04 Interest on downward reestimate...         174         120
                                               ---------   ---------  ----------
    08.91   Direct Program by Activities--
              Subtotal (1 level)............         153         139
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       8,610       6,539       6,628
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year...................       8,657       5,338       5,528
    22.00 New financing authority (gross)...       5,290       6,730       6,471
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......      13,947      12,068      11,999
    23.95 Total new obligations.............      -8,610      -6,539      -6,628
    24.40 Unobligated balance available, end
            of year.........................       5,338       5,528       5,371
    ----------------------------------------------------------------------------

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

            Discretionary:
    68.00     Offsetting collections (cash).       6,234       6,551       6,352
    68.10     From Federal sources: Change
                in receivables and unpaid,
                unfilled orders.............        -827         179         119
    68.47     Portion applied to repay debt.        -117
                                               ---------   ---------  ----------
    68.90       Spending authority from
                  offsetting collections
                  (total discretionary).....       5,290       6,730       6,471
    ----------------------------------------------------------------------------

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

    72.40   Obligated balance, start of year        -557       3,539        -687
    72.95   Receivables from program account         827                     179
                                               ---------   ---------  ----------
    72.99     Total unpaid obligations,
                start of year...............         270       3,539        -508
    73.10 Total new obligations.............       8,610       6,539       6,628
    73.20 Total financing disbursements
            (gross).........................      -5,341     -10,587      -6,618

    [[Page 379]]

    73.40 Adjustments in expired accounts
            (net)...........................
          Unpaid obligations, end of year:

    74.40   Obligated balance, end of year..       3,539        -687        -796
    74.95   Receivables from program account                     179         298
                                               ---------   ---------  ----------
    74.99     Total unpaid obligations, end
                of year.....................       3,539        -508        -498
    87.00 Total financing disbursements
            (gross).........................       5,341      10,587       6,618
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

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

    88.00         Stafford loans............      -2,204      -2,364      -2,520
    88.00         Unsubsidized Stafford.....        -459        -637        -717
    88.00         PLUS loans................         -98        -120        -128
    88.00         SLS loans.................         -37
    88.00         Consolidated loans........        -108         -87        -138
    88.00         Scheduled payments from
                    Liquidating account for
                    noncontractual
                    modifications...........        -125
    88.00         Upward reestimate.........                    -828
    88.25     Interest on uninvested funds:
                Stafford loans..............        -441        -387        -392
              Non-Federal sources:
                Student Loans: Stafford,
                  Unsubsidized Stafford,
                  PLUS, SLS & Consolidation:

    88.40         Stafford recoveries on
                    defaults................      -1,088        -636        -758
    88.40         Stafford origination fees.        -392        -368        -377
    88.40         Stafford Sallie Mae offset
                    fees....................         -15         -30         -28
    88.40         Stafford other fees.......         -54
    88.40         Unsubsidized Stafford
                    recoveries on defaults..        -173        -178        -252
    88.40         Unsubsidized Stafford
                    origination fees........        -282        -283        -301
    88.40         Unsubsidized Stafford
                    Sallie Mae offset fees..          -7         -16         -17
    88.40         PLUS recoveries on
                    defaults................        -100         -48         -58
    88.40         PLUS origination fees.....         -69         -73         -82
    88.40         PLUS Sallie Mae offset
                    fees....................          -3          -6          -6
    88.40         PLUS other fees...........          -1
    88.40         SLS recoveries on defaults        -137        -102        -105
    88.40         SLS Sallie Mae offset fees          -1          -1          -1
    88.40         SLS other fees............          -2
    88.40         Consolidation recoveries
                    on defaults.............        -241        -143        -196
    88.40         Consolidation other fees..          -1
    88.40         Consolidation origination
                    fees....................                     -23         -24
    88.40         Consolidated loan holders
                    fee.....................        -196        -221        -252
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........      -6,234      -6,551      -6,352
          Against gross financing authority only:

    88.95   Change in receivables from
              program accounts..............         827        -179        -119
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............        -117
    90.00 Financing disbursements...........        -893       4,036         266
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-4251-0-3-502      1999 actual   2000 est.   2001 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.................      11,671      11,791      12,210
                                               ---------   ---------  ----------
    2150    Total guaranteed loan
              commitments...................      11,671      11,791      12,210
    ----------------------------------------------------------------------------

        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........      50,168      55,035      57,428
    2231  Disbursements of new guaranteed
            loans...........................       9,919      10,508      10,759
    2251  Repayments and prepayments........      -4,092      -6,404      -7,636
          Adjustments:

    2261    Terminations for default that
              result in loans receivable....      -1,056      -1,599      -1,668
    2263    Terminations for default that
              result in claim payments......         -61        -112        -120
    2264    Other adjustments, net..........         157
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........      55,035      57,428      58,763
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..      55,035      57,428      58,763
    ----------------------------------------------------------------------------

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

    2310    Outstanding, start of year......       4,701       4,596       5,481
    2331    Disbursements for guaranteed
              loan claims...................       1,056       1,599       1,668
    2351    Repayments of loans receivable..      -1,045        -638        -758
    2361    Write-offs of loans receivable..        -116         -76         -91
                                               ---------   ---------  ----------
    2390      Outstanding, end of year......       4,596       5,481       6,300
    ----------------------------------------------------------------------------

              UNSUBSIDIZED STAFFORD
        Position with respect to appropriations act
                    limitation on commitments:
    2131  Guaranteed loan commitments exempt
            from limitation.................       8,836       9,351      10,023
                                               ---------   ---------  ----------
    2150    Total guaranteed loan
              commitments...................       8,836       9,351      10,023
    ----------------------------------------------------------------------------

        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........      23,397      28,565      33,256
    2231  Disbursements of new guaranteed
            loans...........................       7,120       8,090       8,614
    2251  Repayments and prepayments........      -1,809      -2,511      -3,361
          Adjustments:

    2261    Terminations for default that
              result in loans receivable....        -392        -838      -1,007
    2263    Terminations for default that
              result in claim payments......         -20         -50         -60
    2264    Other adjustments, net..........         269
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........      28,565      33,256      37,442
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..      28,565      33,256      37,442
    ----------------------------------------------------------------------------

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

    2310    Outstanding, start of year......         924       1,115       1,754
    2331    Disbursements for guaranteed
              loan claims...................         392         838       1,007
    2351    Repayments of loans receivable..        -178        -178        -252
    2361    Write-offs of loans receivable..         -23         -21         -30
                                               ---------   ---------  ----------
    2390      Outstanding, end of year......       1,115       1,754       2,479
    ----------------------------------------------------------------------------

              PLUS
        Position with respect to appropriations act
                    limitation on commitments:
    2131  Guaranteed loan commitments exempt
            from limitation.................       2,195       2,536       2,806
                                               ---------   ---------  ----------
    2150    Total guaranteed loan
              commitments...................       2,195       2,536       2,806
    ----------------------------------------------------------------------------

        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........       5,745       6,693       7,554
    2231  Disbursements of new guaranteed
            loans...........................       1,816       2,082       2,354
    2251  Repayments and prepayments........        -947      -1,039      -1,230
          Adjustments:

    2261    Terminations for default that
              result in loans receivable....         -70        -132        -165
    2263    Terminations for default that
              result in claim payments......         -20         -50         -56
    2264    Other adjustments, net..........         169
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........       6,693       7,554       8,457
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..       6,693       7,554       8,457
    ----------------------------------------------------------------------------

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

    2310    Outstanding, start of year......         327         315         393
    2331    Disbursements for guaranteed
              loan claims...................          70         132         165
    2351    Repayments of loans receivable..         -74         -48         -58
    2361    Write-offs of loans receivable..          -8          -6          -7
                                               ---------   ---------  ----------
    2390      Outstanding, end of year......         315         393         493
    ----------------------------------------------------------------------------

              SLS
        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........       3,034       2,467       1,522
    2251  Repayments and prepayments........        -400        -825        -711
          Adjustments:

    2261    Terminations for default that
              result in loans receivable....        -104        -111         -85
    2263    Terminations for default that
              result in claim payments......          -8          -9          -7

    [[Page 380]]

    2264    Other adjustments, net..........         -55
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........       2,467       1,522         719
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..       2,467       1,522         719
    ----------------------------------------------------------------------------

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

    2310    Outstanding, start of year......         987         907         904
    2331    Disbursements for guaranteed
              loan claims...................         104         111          85
    2351    Repayments of loans receivable..        -160        -102        -105
    2361    Write-offs of loans receivable..         -24         -12         -13
                                               ---------   ---------  ----------
    2390      Outstanding, end of year......         907         904         871
    ----------------------------------------------------------------------------

              CONSOLIDATED
        Position with respect to appropriations act
                    limitation on commitments:
    2131  Guaranteed loan commitments exempt
            from limitation.................       4,795       4,648       4,814
                                               ---------   ---------  ----------
    2150    Total guaranteed loan
              commitments...................       4,795       4,648       4,814
    ----------------------------------------------------------------------------

        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........      17,164      20,008      22,532
    2231  Disbursements of new guaranteed
            loans...........................       3,059       4,581       4,745
    2251  Repayments and prepayments........         270      -1,355      -1,692
          Adjustments:

    2261    Terminations for default that
              result in loans receivable....        -423        -672        -679
    2263    Terminations for default that
              result in claim payments......         -49         -30         -37
    2264    Other adjustments, net..........         -13
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........      20,008      22,532      24,869
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..      20,008      22,532      24,869
    ----------------------------------------------------------------------------

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

    2310    Outstanding, start of year......       1,507       1,768       2,280
    2331    Disbursements for guaranteed
              loan claims...................         423         672         679
    2351    Repayments of loans receivable..        -125        -143        -196
    2361    Write-offs of loans receivable..         -37         -17         -23
                                               ---------   ---------  ----------
    2390      Outstanding, end of year......       1,768       2,280       2,740
    ---------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   91-4251-0-3-502    1998 actual    1999 actual     2000 est.      2001 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101  Federal assets: Fund balances with
            Treasury........................       7,830          6,384         6,867          6,871
          Net value of assets related to
              post-1991 acquired defaulted
              guaranteed loans receivable:

    1501    Defaulted guaranteed loans
              receivable, gross.............       6,083          8,701        10,812         12,883
                                            ------------ --------------  ------------  -------------
    1599      Net present value of assets
                related to defaulted
                guaranteed loans............       6,083          8,701        10,812         12,883
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................      13,913         15,085        17,679         19,754
        LIABILITIES:
    2103  Federal liabilities: Debt.........         354            117
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............         354            117
        NET POSITION:
    3100  Appropriated capital..............      13,559         14,968        17,679         19,754
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............      13,559         14,968        17,679         19,754
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position      13,913         15,085        17,679         19,754
    -----------------------------------------------------------------------------------------------

        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, discretionary offset)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-4251-6-3-502      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Stafford loans:

    01.02   Special allowance...............                                 -16
    01.07   Contract collection costs.......                                   1
                                               ---------   ---------  ----------
    01.91     Subtotal, Stafford loans......                                 -15
          Unsubsidized Stafford loans:

    02.02   Special allowance...............                                 -13
    08.03 Contractural modification to
            program account.................                                 550
                                               ---------   ---------  ----------
    10.00   Total new obligations...........                                 522
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year...................
    22.00 New financing authority (gross)...                                -562
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......                                -562
    23.95 Total new obligations.............                                -522
    24.40 Unobligated balance available, end
            of year.........................                              -1,086
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Discretionary:

    68.00   Spending authority from
              offsetting collections
              (gross): Offsetting
              collections (cash)............                                -562
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    73.10 Total new obligations.............                                 522
    73.20 Total financing disbursements
            (gross).........................                                -497
    74.40 Unpaid obligations, end of year:
            Obligated balance, end of year..                                  26
    87.00 Total financing disbursements
            (gross).........................                                 497
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

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

    88.00         Stafford loans............                                 293
    88.00         Unsubsidized Stafford.....                                 266
    88.00         PLUS loans................                                   5
    88.00         Consolidated loans........                                  17
    88.25     Interest on uninvested funds:
                Stafford loans..............                                  47
              Non-Federal sources:
                Stafford loans:

    88.40         Recoveries on defaults....                                 -36
    88.40         Recoveries on defaults....                                 -13
    88.40         Recoveries on defaults....                                  -3
    88.40         Recoveries on defaults....                                  -4
    88.40         Recoveries on defaults....                                 -10
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........                                 562
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............
    90.00 Financing disbursements...........                               1,059
    ---------------------------------------------------------------------------

    [[Page 381]]

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-4251-6-3-502      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
              STAFFORD
        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..                                 -36
    2361    Write-offs of loans receivable..                                  -4
                                               ---------   ---------  ----------
    2390      Outstanding, end of year......                                 -40
    ----------------------------------------------------------------------------

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

    2310    Outstanding, start of year......
    2351    Repayments of loans receivable..                                 -13
    2361    Write-offs of loans receivable..                                  -2
                                               ---------   ---------  ----------
    2390      Outstanding, end of year......                                 -15
    ----------------------------------------------------------------------------

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

    2310    Outstanding, start of year......
    2351    Repayments of loans receivable..                                  -3
                                               ---------   ---------  ----------
    2390      Outstanding, end of year......                                  -3
    ----------------------------------------------------------------------------

              SLS
        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
    ----------------------------------------------------------------------------

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

    2310    Outstanding, start of year......
    2351    Repayments of loans receivable..                                 -10
    2361    Write-offs of loans receivable..                                  -1
                                               ---------   ---------  ----------
    2390      Outstanding, end of year......                                 -11
    ---------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   91-4251-6-3-502    1998 actual    1999 actual     2000 est.      2001 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101  Federal assets: Fund balances with
            Treasury........................                                                  -1,086
        Net value of assets related to post-
            1991 acquired defaulted
            guaranteed loans receivable:
    1501    Defaulted guaranteed loans
              receivable, gross.............                                                     -74
                                            ------------ --------------  ------------  -------------
    1599      Net present value of assets
                related to defaulted
                guaranteed loans............                                                     -74
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................                                                  -1,160
        LIABILITIES:
    2103  Federal liabilities: Debt.........
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............
        NET POSITION:
    3100  Appropriated capital..............                                                  -1,160
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............                                                  -1,160
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position                                                  -1,160
    -----------------------------------------------------------------------------------------------

                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      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Stafford loans:

    01.01   Interest benefits, net of
              origination fees..............          29           2
    01.02   Special allowance net of
              origination fees..............          18          63          29
    01.03   Default claims..................         336         141          88
    01.04   Death, disability, and
              bankruptcy claims.............          65          23          17
    01.07   Contract collection costs.......          17          37          30
                                               ---------   ---------  ----------
    01.91     Subtotal, Stafford loans......         465         266         164
          PLUS/SLS loans:

    02.01   Default claims..................          77          26           7
    02.02   Death, disability, and
              bankruptcy claims.............          16           4           2
    02.05   Contract collection costs.......           3           9           8
    02.06   Special allowance net of
              origination fees..............           3           3           3
                                               ---------   ---------  ----------
    02.91     Subtotal, PLUS/SLS loans......          99          42          20
          Miscellaneous costs:

    03.01   Scheduled payments to finance
              account for non-contractual
              modifications.................         125
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         689         308         184
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year...................         149         209
    22.00 New budget authority (gross)......       2,147         308         184
    22.10 Resources available from
            recoveries of prior year
            obligations.....................      -1,400
    22.40 Capital transfer to general fund..                    -209
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         896         308         184
    23.95 Total new obligations.............        -689        -308        -184
    24.40 Unobligated balance available, end
            of year.........................         209
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    69.00   Offsetting collections (cash)...       2,697       1,001         803
    69.27   Capital transfer to general fund        -548        -693        -619
    69.75   Reduction pursuant to P.L. 106-
              51............................          -2
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........       2,147         308         184
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance, start of year         741       1,296       1,310
    73.10 Total new obligations.............         689         308         184
    73.20 Total outlays (gross).............      -1,534        -294        -174
    73.45 Adjustments in unexpired accounts.       1,400
    74.40 Unpaid obligations, end of year:
            Obligated balance, end of year..       1,296       1,310       1,320
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................         793          85         -49
    86.98 Outlays from mandatory balances...         741         209         223
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       1,534         294         174
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

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

    88.40         Federal collections on
                    defaulted loans.........        -625        -232        -185
    88.40         Federal collections on
                    bankruptcies............         -13          -5          -3
    88.40         Offsets against Federal
                    tax refunds.............        -768        -285        -240
    88.40         Reimbursements from
                    guaranty agencies.......        -881        -327        -250

    [[Page 382]]

    88.40         Federal collections on
                    defaulted loans, PLUS/
                    SLS.....................        -168         -62         -55
    88.40         Federal collections on
                    bankruptcies, PLUS/SLS..          -2          -1
    88.40         Offsets against Federal
                    tax refunds, PLUS/SLS...         -97         -36         -30
    88.40         Reimbursements from
                    guaranty agencies, PLUS/
                    SLS.....................        -143         -53         -40
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........      -2,697      -1,001        -803
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................        -550        -693        -619
    90.00 Outlays...........................      -1,163        -707        -629
    ---------------------------------------------------------------------------

                     Summary of Budget Authority and Outlays

                            (in millions of dollars)

                                         1999 actual  2000 est.   2001 est.
    Enacted/requested:
      Budget Authority..................        -550        -693        -619
      Outlays...........................      -1,163        -707        -629
    Legislative proposal, not subject to
        PAYGO:
      Budget Authority..................                                  21
      Outlays...........................                                  14
                                        ------------------------------------
    Total:
      Budget Authority..................        -550        -693        -598
      Outlays...........................      -1,163        -707        -615
                                        ====================================

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0230-0-1-502      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
              STAFFORD LOANS
        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........      14,127      10,364       6,749
    2251  Repayments and prepayments........      -3,519      -3,430      -2,404
          Adjustments:

    2261    Terminations for default that
              result in loans receivable....        -218        -158         -99
    2263    Terminations for default that
              result in claim payments......         -26         -27         -19
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........      10,364       6,749       4,227
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..      10,408       5,938       3,416
    ----------------------------------------------------------------------------

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

    2310    Outstanding, start of year......      12,237      10,394       9,743
    2331    Disbursements for guaranteed
              loan claims...................         218         158          99
    2351    Repayments of loans receivable..      -1,661        -482        -374
    2361    Write-offs of loans receivable..        -303        -250        -230
    2364    Other adjustments, net..........         -97         -77         -59
                                               ---------   ---------  ----------
    2390      Outstanding, end of year......      10,394       9,743       9,179
    ----------------------------------------------------------------------------

              PLUS/SLS LOANS
        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........       4,170       3,546       3,077
    2251  Repayments and prepayments........        -516        -433        -247
          Adjustments:

    2261    Terminations for default that
              result in loans receivable....         -96         -32         -10
    2263    Terminations for default that
              result in claim payments......         -12          -4          -2
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........       3,546       3,077       2,818
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..       3,546         705         446
    ----------------------------------------------------------------------------

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

    2310    Outstanding, start of year......       3,072       2,793       2,649
    2331    Disbursements for guaranteed
              loan claims...................          96          32          10
    2351    Repayments of loans receivable..        -283         -86         -69
    2361    Write-offs of loans receivable..         -76         -77         -72
    2364    Other adjustments, net..........         -16         -13          -9
                                               ---------   ---------  ----------
    2390      Outstanding, end of year......       2,793       2,649       2,509
    ---------------------------------------------------------------------------

                            Statement of Operations (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   91-0230-0-1-502    1998 actual    1999 actual     2000 est.      2001 est.
    -----------------------------------------------------------------------------------------------
        Stafford:
    0111  Revenue...........................         699          1,019           842            842
    0112  Expense...........................        -889           -585          -410           -410
                                            ------------ --------------  ------------  -------------
    0115  Net income or loss (-)............        -190            434           432            432
        PLUS/SLS:
    0121  Revenue...........................          91            169           147            147
    0122  Expense...........................         -67            -66           -40            -40
                                            ------------ --------------  ------------  -------------
    0125  Net income or loss (-)............          24            103           107            107
                                            ------------ --------------  ------------  -------------
    0191  Total revenues....................         790          1,188           989            989
                                            ------------ --------------  ------------  -------------
    0192  Total expenses....................        -956           -651          -450           -450
                                            ------------ --------------  ------------  -------------
    0195  Total income or loss (-)..........        -166            537           539            539
                                            ------------ --------------  ------------  -------------
    0199  Total comprehensive income........        -166            537           539            539
    -----------------------------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   91-0230-0-1-502    1998 actual    1999 actual     2000 est.      2001 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101  Federal assets: Fund balances with
            Treasury........................         741            116            68             68
          Net value of assets related to
              pre-1992 direct loans
              receivable and acquired
              defaulted guaranteed loans
              receivable:

    1701    Defaulted guaranteed loans,
              gross.........................      11,458         10,591         9,807          9,807
                                            ------------ --------------  ------------  -------------
    1704      Defaulted guaranteed loans and
                interest receivable, net....      11,458         10,591         9,807          9,807
                                            ------------ --------------  ------------  -------------
    1799      Value of assets related to
                loan guarantees.............      11,458         10,591         9,807          9,807
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................      12,199         10,707         9,875          9,875
        NET POSITION:
    3100  Appropriated capital..............      12,199         10,707         9,875          9,875
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............      12,199         10,707         9,875          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      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
    25.2  Other services....................          20          46          38
    33.0  Investments and loans.............         413         167          95
    41.0  Grants, subsidies, and
            contributions...................         175          68          32
    42.0  Insurance claims and indemnities..          81          27          19
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         689         308         184
    ---------------------------------------------------------------------------

    [[Page 383]]

                Federal Family Education Loan Liquidating Account

                  (Legislative proposal, not subject to PAYGO)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0230-2-1-502      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Stafford loans:

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

    02.05   Contract collection costs.......                                   1
          Miscellaneous costs:

    03.01   Scheduled payments to finance
              account for non-contractual
              modifications.................                                  40
                                               ---------   ---------  ----------
    10.00   Total new obligations...........                                  43
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year...................
    22.00 New budget authority (gross)......                                  43
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......                                  43
    23.95 Total new obligations.............                                 -43
    24.40 Unobligated balance available, end
            of year.........................
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    69.00   Offsetting collections (cash)...                                  22
    69.27   Capital transfer to general fund                                  21
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........                                  43
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance, start of year
    73.10 Total new obligations.............                                  43
    73.20 Total outlays (gross).............                                 -36
    74.40 Unpaid obligations, end of year:
            Obligated balance, end of year..                                   7
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................                                  36
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

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

    88.40         Reimbursements from
                    guaranty agencies.......                                 -19
    88.40         Reimbursements from
                    guaranty agencies, PLUS/
                    SLS.....................                                  -3
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........                                 -22
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                                  21
    90.00 Outlays...........................                                  14
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0230-2-1-502      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
              STAFFORD LOANS
        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..                                 -12
    2361    Write-offs of loans receivable..
    2364    Other adjustments, net..........                                  -5
                                               ---------   ---------  ----------
    2390      Outstanding, end of year......                                 -17
    ----------------------------------------------------------------------------

              PLUS/SLS LOANS
        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
    2364    Other adjustments, net..........                                  -1
                                               ---------   ---------  ----------
    2390      Outstanding, end of year......                                  -3
    ---------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0230-2-1-502      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
    25.2  Other services....................                                   3
    41.0  Grants, subsidies, and
            contributions...................                                  40
                                               ---------   ---------  ----------
    99.9    Total new obligations...........                                  43
    ---------------------------------------------------------------------------

                                    \

           deg.

                 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, and K and section
    10102, section 10105, and 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, $596,892,000: Provided, That $50,000,000
    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 Public
    Law 105-277: Provided further, That the funds made available for
    comprehensive school reform shall become available on July 1, 2000, and
    remain available through September 30, 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 $30,000,000 of the funds provided for the
    national education research institutes shall be allocated
    notwithstanding section 912(m)(1)(B-F) and subparagraphs (B) and (C) of
    section 931(c)(2) of Public Law 103-227: Provided further, That of the
    funds appropriated under section 10601 of title X of the Elementary and
    Secondary Education Act of 1965, as amended, $1,500,000 shall be used to
    conduct a violence prevention demonstration program: Provided further,
    That $45,000,000 shall be available to support activities under section
    10105 of part A of title X of the Elementary and Secondary Education Act
    of 1965, of which up to $2,250,000 may be available for evaluation,
    technical assistance, and school networking activities: Provided
    further, That funds made available to local educational agencies under
    this section shall be used only for activities related to establishing
    smaller learning communities in high schools: Provided further, That
    funds made available for section 10105 of part A of title X of the
    Elementary and Secondary Education Act of 1965 shall become available on
    July 1, 2000, and remain available through September 30, 2001: Provided
    further, That of the funds available for part A of title X of the
    Elementary and Secondary Education Act of 1965, $10,000,000 shall be
    awarded to the National Constitution Center, established by Public Law
    100-433, for exhibition design, program planning and operation of the
    center, $10,000,000 shall be provided to continue a demonstration of
    public school facilities to the Iowa Department of Education, $1,000,000
    shall be made available to the New Mexico Department of Education for
    school performance improvement and drop-out prevention, $300,000 shall
    be made available to Semos Unlimited, Inc., in New Mexico to support
    bilingual education and literacy programs, $700,000 shall be awarded to
    Loyola University Chicago for recruitment and preparation of new teacher
    candidates for employment in rural and inner-city schools, $500,000
    shall be awarded to Shedd Aquarium/Brookfield Zoo for science education/
    exposure programs for local elementary school students, $3,000,000 shall
    be awarded to Big Brothers/Big Sisters of America to expand school-based
    mentoring, $2,500,000 shall be awarded to the Chicago Public School
    System to support a substance abuse pilot program in conjunction with
    Elgin and East Aurora School Systems, $1,000,000 shall be awarded to

    [[Page 384]]

    the University of Virginia Center for Governmental Studies for the Youth
    Leadership Initiative, $800,000 shall be awarded to the Institute for
    Student Achievement at Holmes Middle School and Annandale High School in
    Virginia for academic enrichment programs, $100,000 shall be awarded to
    the Mountain Arts Center for educational programming, $1,500,000 shall
    be awarded to the University of Louisville for research in the area of
    academic readiness, $500,000 shall be awarded to the West Ed Regional
    Educational Laboratory for the 24 Challenge and Jumping Levels Math
    Demonstration Project, $1,000,000 shall be awarded to Central Michigan
    University for a charter schools development and performance institute,
    $950,000 shall be awarded to the Living Science Interactive Learning
    Model partnership in Indian River, Florida for a science education
    program, $825,000 shall be awarded to the North Babylon Community Youth
    Services for an educational program, $1,000,000 shall be awarded to the
    Los Angeles County Office of Education/Educational Telecommunications
    and Technology for a pilot program for teachers, $650,000 shall be
    awarded to the University of Northern Iowa for an institute of
    technology for inclusive education, $500,000 shall be awarded to Youth
    Crime Watch of America to expand a program to prevent crime, drugs and
    violence in schools, $892,000 shall be awarded to Muhlenberg College in
    Pennsylvania for an environmental science program, $560,000 shall be
    awarded to the Western Suffolk St. Johns-LaSalle Academy Science and
    Technology Mentoring Program, $4,000,000 shall be awarded to the
    National Teaching Academy of Chicago for a model teacher recruitment,
    preparation and professional development program, $2,000,000 shall be
    awarded to the University of West Florida for a teacher enhancement
    program, $1,000,000 shall be awarded to Delta State University in
    Mississippi for innovative teacher training, $1,000,000 shall be awarded
    to the Alaska Humanities Forum, Inc., in Anchorage, Alaska, $250,000
    shall be awarded to An Achievable Dream in Newport News, Virginia to
    improve academic performance of at-risk youths, $250,000 shall be
    awarded to the Rock School of Ballet in Philadelphia, Pennsylvania, to
    expand its community-outreach programs for inner-city children and
    underprivileged youth in Camden, New Jersey and southern New Jersey,
    $1,000,000 shall be awarded to the University of Maryland Center for
    Quality and Productivity to provide a link for the Blue Ribbon Schools,
    $1,000,000 shall be awarded to the Continuing Education Center and
    Teachers' Institute in South Boston, Virginia to promote participation
    among youth in the United States democratic process, $1,000,000 shall be
    for the National Museum of Women in the Arts to expand its ``Discovering
    Art'' program to elementary and secondary schools and other educational
    organizations, $400,000 shall be awarded to the Alaska Department of
    Education's summer reading program, $400,000 shall be awarded to the
    Partners in Education, Inc., to foster successful business-school
    partnerships, $250,000 shall be for the Kodiak Island Borough School
    District for development of an environmental education program,
    $2,000,000 shall be for the Reach Out and Read Program to expand
    literacy and health awareness for at-risk families, $1,000,000 shall be
    for the Virginia Living Museum in Newport News, Virginia for an
    educational program, $450,000 shall be for the Challenger Learning
    Center in Hardin County, Kentucky for technology assistance and teacher
    training, $250,000 shall be for the Crawford County School System in
    Georgia for technology and curriculum support, $500,000 shall be for the
    Berrien County School System in Georgia for technology development,
    $35,000 shall be for the Louisville Salvation Army Boys and Girls Club
    Diversion Enhancement Program, $100,000 shall be awarded to the
    Philadelphia Orchestra's Philly Pops to operate the Jazz in the Schools
    program in the Philadelphia school district, $500,000 for the
    Mississippi Delta Education for a teacher incentive program initiative,
    $500,000 shall be for A Community of Agile Partners in Education and the
    Pennsylvania Telecommunications Exchange Network for a technology
    resource sharing initiative, $500,000 shall be for enhanced teacher
    training in reading in the District of Columbia, $100,000 shall be
    awarded to the Project 2000 D.C. mentoring project, and $1,250,000 shall
    be awarded to Helen Keller World Wide to expand the ChildSight vision
    screening program and provide eyeglasses to additional children whose
    educational performance may be hindered by poor vision, $750,000 shall
    be awarded to the Explornet Technology Learning Project in North
    Carolina, $1,750,000 shall be awarded to the Connecticut Early Reading
    Success Institute to broaden the training of professionals in best
    practices in reading instruction, $400,000 shall be awarded to the
    National Academy of Recording Artists and Sciences Foundation for the
    GRAMMY in the Schools program to provide music education to high school
    students, $1,000,000 shall be awarded to the Rosa and Raymond Parks
    Institute for Self-Development for the Pathways to Freedom program for
    civil rights education for young people and for community learning
    centers, $500,000 shall be awarded to the Milton S. Eisenhower
    Foundation to replicate and scientifically evaluate full-service
    community schools, $500,000 shall be awarded to the Henry Abbott
    Technical High School in Danbury, Connecticut for workforce education
    and training activities, $1,000,000 shall be awarded to the Educational
    Performance Foundation, CPI music education program called ``From the
    Top'', $250,000 shall be awarded to the Mount Vernon School District in
    Mount Vernon, New York for the Institute of Student Achievement program,
    $2,000,000 shall be awarded to the National Council of La Raza for a
    project to improve educational outcomes and opportunities for Hispanic
    children, $250,000 shall be awarded to the Oakland Unified School
    District in California for an African American Literacy and Culture
    Project, $300,000 shall be awarded to the Vasona Center Youth Science
    Institute, $750,000 shall be awarded to the Life Learning Academy
    Charter School in San Francisco, California, $250,000 shall be awarded
    to the National Urban Coalition Say YES To A Youngster's Future Program
    to provide math and science education, $750,000 shall be awarded to the
    Wisconsin Academy Staff Development Initiative in Chippewa Falls,
    Wisconsin to provide math, science, and technology teacher training,
    $500,000 shall be awarded to the University of Missouri-St. Louis to
    develop a plan to improve the education system in the City of St. Louis,
    Missouri, $313,000 shall be awarded to the City of Houston for the
    ASPIRE after-school program, $900,000 shall be awarded to the Boston
    Music Education Collaborative comprehensive interdisciplinary music
    program and teacher resource center in Boston, Massachusetts, $250,000
    shall be awarded to the Baltimore Reads after-school tutoring program in
    Baltimore, Maryland, $300,000 shall be awarded to the School of
    International Training in Brattleboro, Vermont to develop an education
    curriculum addressing child labor issues in collaboration with the
    Brattleboro Union High School, $750,000 shall be awarded to the
    University of Puerto Rico for the continuation and expansion of the
    Hispanic Educational Linkages Program in New York City, including the
    South Bronx, New York, $250,000 shall be awarded to the Community
    Service Society of New York for mentoring, tutoring and technology
    activities in New York City public schools, including schools in the
    South Bronx, $250,000 shall be awarded to the Smithsonian Institution
    for a jazz music education program in Washington, D.C., $500,000 shall
    be awarded to Johnson Elementary School in Cedar Rapids, Iowa, to
    develop an innovative arts education model which could be replicated in
    other schools, $2,000,000 shall be awarded to the Boys and Girls Clubs
    of America for after-school programs, $500,000 shall be for the
    University of New Orleans for a teacher preparation and educational
    technology initiative, and $250,000 shall be for the Florida Department
    of Education for an Internet-based teacher recruitment model, $250,000
    shall be awarded to the Kennedy Center for the Performing Arts for the
    ``Make a Ballet'' arts education program in the New York City area:
    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
    funds 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.] (Department of Education
    Appropriations Act, 2000, as enacted by section 1000(a)(4) of the
    Consolidated Appropriations Act, 2000 (P.L. 106-113).)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-1100-0-1-503      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
        Direct program:
          Obligations by program activity:

            Research, development and
                dissemination:
    00.01     National education research
                institutes..................          64          85

    [[Page 385]]

    00.02     Regional educational
                laboratories................          61          65
    00.03     National dissemination
                activities..................          19          19
    00.04   Statistics......................          68          68
    00.05   Assessment......................          40          40
    00.06   Eisenhower professional
              development federal activities          23          23
    00.07   Fund for the improvement of
              education.....................         150         244
    00.08   Javits gifted and talented
              education.....................           6           6
    00.09   Eisenhower regional mathematics
              and science education
              consortia.....................          15          15
    00.10   21st Century community learning
              centers.......................         200
    00.11   National writing project........           7           9
    00.12   Civic education.................           8          10
    00.13   International education exchange           7           7
                                               ---------   ---------  ----------
    01.00 Total direct program..............         668         591
    09.01 Reimbursable program..............           7           7
                                               ---------   ---------  ----------
    10.00 Total new obligations.............         675         598
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year...................          12
    22.00 New budget authority (gross)......         664         598
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         676         598
    23.95 Total new obligations.............        -675        -598
    23.98 Unobligated balance expiring or
            withdrawn.......................          -1
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         659         597
    40.76   Reduction pursuant to P.L. 106-
              113...........................                      -6
    41.00   Transferred to other accounts...          -2
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         657         591
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............           7           7
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         664         598
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance, start of year         496         682         582
    73.10 Total new obligations.............         675         598
    73.20 Total outlays (gross).............        -485        -698        -455
    73.40 Adjustments in expired accounts
            (net)...........................          -2
    74.40 Unpaid obligations, end of year:
            Obligated balance, end of year..         682         582         127
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         103         152
    86.93 Outlays from discretionary
            balances........................         383         545         455
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         485         698         455
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........          -7          -7
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         657         591
    90.00 Outlays...........................         479         691         455
    ---------------------------------------------------------------------------
        Note.--Excludes $15 million in budget authority in 2001 that the
    Eisenhower regional mathematics and science education consortia transferred
    to the School Improvement Programs account. Comparable amounts for 1999 ($15
    million) and 2000 ($15 million) are included above.

        The Administration has proposed legislation to revise and
    reauthorize programs currently authorized under the Education Research,
    Development, Dissemination, and Improvement Act, the National Education
    Statistics Act, the Elementary and Secondary Education Act, and the
    Goals 2000: Educate America Act. When new authorizing legislation is
    enacted, resources will be requested for the Education Research,
    Statistics and Improvement account. See the ``Legislative proposal, not
    subject to PAYGO'' schedule for additional details.

                     Summary of Budget Authority and Outlays

                            (in millions of dollars)

                                         1999 actual  2000 est.   2001 est.
    Enacted/requested:
      Budget Authority..................         657         591
      Outlays...........................         479         690         455
    Legislative proposal, not subject to
        PAYGO:
      Budget Authority..................                                 503
      Outlays...........................                                 149
                                        ------------------------------------
    Total:
      Budget Authority..................         657         591         503
      Outlays...........................         479         690         604
                                        ====================================

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-1100-0-1-503      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    11.3    Personnel compensation: Other
              than full-time permanent......           1           1
    24.0    Printing and reproduction.......           3           3
    25.1    Advisory and assistance services           4           4
    25.2    Other services..................         119         121
    25.3    Purchases of goods and services
              from Government accounts......          16          16
    25.5    Research and development
              contracts.....................          29          31
    25.7    Operation and maintenance of
              equipment.....................           4           4
    41.0    Grants, subsidies, and
              contributions.................         492         411
                                               ---------   ---------  ----------
    99.0      Subtotal, direct obligations..         668         591
    99.0  Reimbursable obligations..........           7           7
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         675         598
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 91-1100-0-1-503      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
    1001  Total compensable workyears: Full-
            time equivalent employment......          14          15
    ---------------------------------------------------------------------------

                Educational Research, Statistics and Improvement

                  (Legislative proposal, not subject to PAYGO)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-1100-2-1-503      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
        Direct program:
          Obligations by program activity:

    00.01   Research, development, and
              dissemination.................                                 199
    00.02   Statistics......................                                  84
    00.03   Assessment......................                                  42
    00.04   America's tests.................                                   5
    00.05   Fund for the Improvement of
              Education.....................                                 137
    00.06   Javits gifted and talented
              education.....................                                   8
    00.07   National writing project........                                  10
    00.08   Civic education.................                                  10
    00.09   International education exchange                                   8
                                               ---------   ---------  ----------
    01.00 Total direct program..............                                 503
    09.01 Reimbursable program..............                                   7
                                               ---------   ---------  ----------
    10.00 Total new obligations.............                                 510
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year...................
    22.00 New budget authority (gross)......                                 510
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......                                 510
    23.95 Total new obligations.............                                -510
    23.98 Unobligated balance expiring or
            withdrawn.......................
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................                                 503
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............                                   7
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................                                 510
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance, start of year
    73.10 Total new obligations.............                                 510
    73.20 Total outlays (gross).............                                -156
    74.40 Unpaid obligations, end of year:
            Obligated balance, end of year..                                 354
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................                                 156
    ----------------------------------------------------------------------------

    [[Page 386]]

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........                                  -7
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                                 503
    90.00 Outlays...........................                                 149
    ---------------------------------------------------------------------------

        Research, development, and dissemination.--The proposal would
    establish a national institute of education research to improve
    education in the United States by supporting education research,
    development, and dissemination activities designed to improve teaching
    and learning; improve the ability of schools, school districts, and
    States to implement reforms; and use new knowledge from research to
    design and implement effective improvement strategies. Funds would
    support national research and development centers, field-initiated
    studies, directed studies, interagency initiatives, expert study panels,
    regional educational laboratories, information clearinghouses, and a
    national library of education.

        Statistics.--Funds would support the collection of statistics on
    educational institutions and on individuals to monitor trends in
    education. Funds also would 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 would support the National Assessment of
    Educational Progress, which surveys young Americans to provide reliable
    information about educational attainments in important skill areas. Both
    national- and State-representative data are collected.

        America's Tests.--Funds would support the development and field
    testing of voluntary national tests in reading for fourth grade students
    and in mathematics for eighth grade students. The tests will provide
    parents, teachers, and policymakers with information needed to assess
    student achievement and improve instruction.

        Fund for the improvement of education (FIE).--Funds would support
    nationally significant projects to improve the quality of education,
    help all students meet challenging standards, and contribute to the
    achievement of the National Education Goals.

        Javits gifted and talented education.--Funds would 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.

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

        Civic education.--Funds would support a program to educate students
    about the history and principles of the Constitution of the United
    States, including the Bill of Rights, and to foster civic competence and
    responsibility.

        International education exchange.--Funds would support 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 would also be used to
    conduct civic education programs with Northern Ireland, the Republic of
    Ireland, and democracies in other developing countries.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-1100-2-1-503      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    11.3    Personnel compensation: Other
              than full-time permanent......                                   1
    24.0    Printing and reproduction.......                                   3
    25.1    Advisory and assistance services                                   4
    25.2    Other services..................                                 139
    25.3    Purchases of goods and services
              from Government accounts......                                  16
    25.5    Research and development
              contracts.....................                                  30
    25.7    Operation and maintenance of
              equipment.....................                                   4
    41.0    Grants, subsidies, and
              contributions.................                                 306
                                               ---------   ---------  ----------
    99.0      Subtotal, direct obligations..                                 503
    99.0  Reimbursable obligations..........                                   7
                                               ---------   ---------  ----------
    99.9    Total new obligations...........                                 510
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 91-1100-2-1-503      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
    1001  Total compensable workyears: Full-
            time equivalent employment......                                  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, [$383,184,000] $413,184,000. (Department of Education
    Appropriations Act, 2000, as enacted by section 1000(a)(4) of the
    Consolidated Appropriations Act, 2000 (P.L. 106-113).)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0800-0-1-503      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Program Administration............         357         383         413
    00.02 Y2K Activities....................           7           1
    09.01 Reimbursable program..............           1           1           1
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         365         385         414
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year...................                       2
    22.00 New budget authority (gross)......         368         384         414
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         368         386         414
    23.95 Total new obligations.............        -365        -385        -414
    23.98 Unobligated balance expiring or
            withdrawn.......................          -1
    24.40 Unobligated balance available, end
            of year.........................           2
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         363         383         413
    42.00   Transferred from other accounts.           4
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         367         383         413
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............           1           1           1
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         368         384         414
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance, start of year         128         138         120
    73.10 Total new obligations.............         365         385         414
    73.20 Total outlays (gross).............        -346        -403        -401
    73.40 Adjustments in expired accounts
            (net)...........................          -9
    74.40 Unpaid obligations, end of year:
            Obligated balance, end of year..         138         120         134
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         280         292         314

    [[Page 387]]

    86.93 Outlays from discretionary
            balances........................          67         111          87
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         346         403         401
    ----------------------------------------------------------------------------

        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..................         367         383         413
    90.00 Outlays...........................         345         402         400
    ---------------------------------------------------------------------------

        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, and the Gifts
    and Bequests Miscellaneous Fund.

        Reimbursable program.--Reimbursements to this account are for
    providing administrative services to other agencies, recycling
    activities, and other non-Federal sources for in-kind travel.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0800-0-1-503      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........         140         170         182
    11.3      Other than full-time permanent          24          11          10
    11.5      Other personnel compensation..           3           3           3
                                               ---------   ---------  ----------
    11.9        Total personnel compensation         167         184         195
    12.1    Civilian personnel benefits.....          35          40          44
    21.0    Travel and transportation of
              persons.......................           6           8           8
    23.1    Rental payments to GSA..........          30          29          31
    23.3    Communications, utilities, and
              miscellaneous charges.........          12          12          12
    24.0    Printing and reproduction.......           4           6           6
    25.1    Advisory and assistance services           3           5           5
    25.2    Other services..................          27          19          21
    25.3    Purchases of goods and services
              from Government accounts......           9           7           6
    25.7    Operation and maintenance of
              equipment.....................          52          61          67
    26.0    Supplies and materials..........           3           3           3
    31.0    Equipment.......................          15           8          13
    32.0    Land and structures.............           1           2           2
                                               ---------   ---------  ----------
    99.0      Subtotal, direct obligations..         364         384         413
    99.0  Reimbursable obligations..........           1           1           1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         365         385         414
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 91-0800-0-1-503      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
    1001  Total compensable workyears: Full-
            time equivalent employment......       2,600       2,733       2,763
    ---------------------------------------------------------------------------

                             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, [$71,200,000] $76,000,000. (Department of Education Appropriations
    Act, 2000, as enacted by section 1000(a)(4) of the Consolidated
    Appropriations Act, 2000 (P.L. 106-113).)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0700-0-1-751      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Civil rights......................          66          71          76
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          66          71          76
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          66          71          76
    23.95 Total new obligations.............         -66         -71         -76
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          66          71          76
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance, start of year          18          20          15
    73.10 Total new obligations.............          66          71          76
    73.20 Total outlays (gross).............         -63         -76         -74
    74.40 Unpaid obligations, end of year:
            Obligated balance, end of year..          20          15          17
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          52          60          63
    86.93 Outlays from discretionary
            balances........................          11          16          11
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          63          76          74
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          66          71          76
    90.00 Outlays...........................          63          76          74
    ---------------------------------------------------------------------------

        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      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

          Personnel compensation:

    11.1    Full-time permanent.............          40          42          44
    11.3    Other than full-time permanent..           2           2           2
                                               ---------   ---------  ----------
    11.9      Total personnel compensation..          42          44          46
    12.1  Civilian personnel benefits.......           9          10          10
    21.0  Travel and transportation of
            persons.........................           1           1           1
    23.1  Rental payments to GSA............           5           5           5
    23.3  Communications, utilities, and
            miscellaneous charges...........           1           2           2
    25.2  Other services....................           1           1           1
    25.3  Purchases of goods and services
            from Government accounts........           1           1           2
    25.7  Operation and maintenance of
            equipment.......................           3           4           5
    31.0  Equipment.........................           1           2           3
    32.0  Land and structures...............           1
                                               ---------   ---------  ----------
    99.0      Subtotal, direct obligations..          65          70          75
    99.5  Below reporting threshold.........           1           1           1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          66          71          76
    ---------------------------------------------------------------------------

    [[Page 388]]

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 91-0700-0-1-751      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
    1001  Total compensable workyears: Full-
            time equivalent employment......         727         724         724
    ---------------------------------------------------------------------------

                         Office of the Inspector General

        For expenses necessary for the Office of Inspector General, as
    authorized by section 212 of the Department of Education Organization
    Act, [$34,000,000] $36,500,000. (Department of Education Appropriations
    Act, 2000, as enacted by section 1000(a)(4) of the Consolidated
    Appropriations Act, 2000 (P.L. 106-113).)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-1400-0-1-751      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Inspector General.................          31          34          37
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          31          34          37
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          31          34          37
    23.95 Total new obligations.............         -31         -34         -37
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          31          34          37
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance, start of year          11           9           7
    73.10 Total new obligations.............          31          34          37
    73.20 Total outlays (gross).............         -33         -36         -35
    74.40 Unpaid obligations, end of year:
            Obligated balance, end of year..           9           7           9
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          27          28          30
    86.93 Outlays from discretionary
            balances........................           6           8           5
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          33          36          35
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          31          34          37
    90.00 Outlays...........................          33          36          35
    ---------------------------------------------------------------------------

        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)

    ----------------------------------------------------------------------------
    Identification code 91-1400-0-1-751      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

          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           5           5
    21.0  Travel and transportation of
            persons.........................           1           2           2
    23.1  Rental payments to GSA............           2           2           2
    23.3  Communications, utilities, and
            miscellaneous charges...........           1           1           1
    25.1  Advisory and assistance services..           1           1           2
    25.3  Purchases of goods and services
            from Government accounts........           1           1           1
    25.7  Operation and maintenance of
            equipment.......................           1           1           2
    31.0  Equipment.........................           1           1           1
                                               ---------   ---------  ----------
    99.0      Subtotal, direct obligations..          30          33          36
    99.5  Below reporting threshold.........           1           1           1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          31          34          37
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 91-1400-0-1-751      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
    1001  Total compensable workyears: Full-
            time equivalent employment......         281         285         285
    ---------------------------------------------------------------------------

                             Headquarters Renovation

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-1500-0-1-503      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

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

        Outlays (gross), detail:
    86.93 Outlays from discretionary
            balances........................                       3
    ----------------------------------------------------------------------------

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

        This account provided 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 was completed in 1998, were provided by the General
    Services Administration.

                          GENERAL FUND RECEIPT ACCOUNTS

                               (in millions of dollars)

    ----------------------------------------------------------------------------
                                             1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
    Offsetting receipts from the public:
      91-022100  FFEL Guarantee agency
        reserve recoveries..................
        Legislative proposal, subject to
          PAYGO.............................
      91-291500  Repayment of loans, capital
        contributions, higher education
        activities, Education...............          66          50          50
      91-310900  HEAF reserve recoveries....                      27
                                               ---------   ---------  ----------
    General Fund Offsetting receipts from
     the public.............................          66          77          50
    ---------------------------------------------------------------------------

                               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

    [[Page 389]]

    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 of
    1985, 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 15 days in advance of any transfer.
        [Sec. 305. (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 2000, the
    Secretary of Education shall distribute supplemental payments for
    certain local educational agencies, as follows:
            (1) First, from the amount of $74,000,000, the Secretary shall
        make supplemental payments to the following agencies under section
        8003(f ) of ESEA:
                    (A) Local educational agencies that received assistance
                under section 8003(f ) for fiscal year 1999--
                    (i) in fiscal year 1997 had at least 40 percent
                federally connected children described in section 8003(a)(1)
                in average daily attendance; and in fiscal year 1997 had a
                tax rate for general fund purposes which was at least 95
                percent of the State average tax rate for general fund
                purposes; or
                    (ii) whose boundary is coterminous with the boundary of
                a Federal military installation.
                    (B) Local educational agencies that received assistance
                under section 8003(f ) for fiscal year 1999; and in fiscal
                year 1997 had at least 30 percent federally connected
                children described in section 8003(a)(1) in average daily
                attendance; and in fiscal year 1997 had a tax rate for
                general fund purposes which was at least 125 percent of the
                State average tax rate for general fund purposes.
                    (C) Any eligible local educational agency that in fiscal
                year 1997, which had at least 25,000 children in average
                daily attendance, at least 50 percent federally connected
                children described in section 8003(a)(1) in average daily
                attendance, and at least 6,000 children described in
                subparagraphs (A) and (B) of section 8003(a)(1) 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 ESEA
        for fiscal year 2000.
            (3) After making payments to all eligible local educational
        agencies described in paragraph (2) of subsection (a), the Secretary
        shall use any remaining funds from paragraph (2) for making payments
        to the eligible local educational agencies described in paragraph
        (1) of subsection (a) if the amount available under paragraph (1) is
        insufficient to fully fund all eligible local educational agencies.
            (4) After making payments to all eligible local educational
        agencies as described in paragraphs 1 through 3, the Secretary shall
        use any remaining funds to increase basic support payments under
        section 8003(b) for fiscal year 2000 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 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) in fiscal year 1997,
        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 in fiscal year 1997, 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 1.75; and
            (6) for an eligible local educational agency whose total number
        of children in average daily attendance in fiscal year 1997 was 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 ESEA, except that the weighted student unit total from
    its regular basic support payment shall be recomputed by using a factor
    of 1.35 for children described in subparagraphs (A) and (B) of section
    8003(a)(1) and its learning opportunity threshold percentage shall be
    deemed to be 100.
        (d) For each eligible local educational agency, the calculated
    supplemental section 8003(f ) payment shall be reduced by subtracting
    the agency's fiscal year 2000 section 8003(b) basic support payment.
        (e) If the sums described in subsections (a)(1) and (2) above are
    insufficient to pay in full the calculated supplemental payments for the
    local educational agencies identified in those subsections, the
    Secretary shall ratably reduce the supplemental section 8003(f ) payment
    to each local educational agency.]
        [Sec. 306. (a) Section 1204(b)(1)(A) of the Elementary and
    PSecondary Education Act of 1965 (20 U.S.C. 6364(b)(1)(a)) is amended--
            (1) in clause (iv), by striking ``and'' after the semicolon;
            (2) by striking clause (v) and adding the following:
            ``(v) 50 percent in the fifth, sixth, seventh, and eighth such
        years; and
            ``(vi) 35 percent in any subsequent such year.''.
        (b) Section 1208(b) of the Elementary and Secondary Education Act of
    1965 is amended--
            (1) by striking paragraph (3) and inserting the following:
            ``(3) Continuing eligibility.--In awarding subgrant funds to
        continue a program under this part after the first year, the State
        educational agency shall review the progress of each eligible entity
        in meeting the goals of the program referred to in section
        1207(c)(1)(A) and shall evaluate the program based on the indicators
        of program quality developed by the State under section 1210.''; and
            (2) in paragraph (5)(A), by striking the last sentence.]
        [Sec. 307. (a) Notwithstanding sections 401( j) and 435(a)(2) of the
    Higher Education Act of 1965 (20 U.S.C. 1070a( j) and 1085(a)(2)) and
    subject to the requirements of subsection (b), the Secretary of
    Education shall--
            (1) recalculate the official fiscal year 1996 cohort default
        rate for Jacksonville College of Jacksonville, Texas, on the basis
        of data corrections confirmed by the Texas Guaranteed Student Loan
        Corporation; and
            (2) restore the eligibility of Jacksonville College to
        participate in the Federal Pell Grant Program for the 1999-2000
        award year and succeeding award years.
        (b) Jacksonville College shall implement a default management plan
    that is satisfactory to the Secretary of Education.
        (c) For purposes of determining its Federal Pell Grant Program
    eligibility, Jacksonville College shall be deemed to have withdrawn from
    the Federal Family Education Loan program as of October 6, 1998.]
        [Sec. 308. An amount of $14,500,000 from the balances of returned
    reserve funds, formerly held by the Higher Education Assistance
    Foundation, that are currently held in Higher Education Assistance
    Foundation Claims Reserves, Treasury account number 91X6192, and
    $12,000,000 from funds formerly held by the Higher Education Assistance
    Foundation, that are currently held in trust, shall be deposited in the
    general fund of the Treasury.]
        [Sec. 309. Of the funds provided in title III of this Act, under the
    heading ``Higher Education'', for title VII, part B of the Higher
    Education Act of 1965, $250,000 shall be awarded to the Snelling Center
    for Government at the University of Vermont for a model school program,
    $750,000 shall be awarded to Texas A&M University,

    [[Page 390]]

    Corpus Christi, for operation of the Early Childhood Development Center,
    $1,000,000 shall be awarded to Southeast Missouri State University for
    equipment and curriculum development associated with the University's
    Polytechnic Institute, $800,000 shall be awarded to the Washington
    Virtual Classroom Consortium to develop, equip and implement an
    ecosystem curriculum, $500,000 shall be provided to the Puget Sound
    Center for Technology for faculty development activities for the use of
    technology in the classroom, $500,000 shall be awarded to the Center for
    the Advancement of Distance Education in Rural America, $3,000,000, to
    be available until expended, shall be awarded to the University Center
    of Lake County, Illinois and $1,000,000, to be available until expended,
    shall be awarded to the Oregon University System for activities
    authorized under title III, part A, section 311(c)(2), of the Higher
    Education Act of 1965, as amended, $500,000 shall be awarded to Columbia
    College Illinois for a freshman retention program, $1,500,000 shall be
    awarded to the University of Hawaii at Manoa for a Globalization
    Research Center, $2,000,000 shall be awarded to the University of
    Arkansas at Pine Bluff for technology infrastructure, $1,000,000 shall
    be awarded to the I Have a Dream Foundation, $1,000,000 shall be awarded
    to a demonstration program for activities authorized under part G of
    title VIII of the Higher Education Act of 1965, as amended, $3,000,000
    shall be awarded to the Daniel J. Evans School of Public Policy at the
    University of Washington, $200,000 shall be awarded to North Dakota
    State University for the Career Program for Dislocated Farmers and
    Ranchers, $350,000 shall be awarded to North Dakota State University for
    the Tech-based Industry Traineeship Program, $3,000,000 shall be awarded
    to Washington State University for the Thomas S. Foley Institute to
    support programs in congressional studies, public policy, voter
    education, and to ensure community access and outreach, $200,000 shall
    be awarded to Minot State University for the Rural Communications
    Disabilities Program, $300,000 shall be awarded to Bryant College for
    the Linking International Trade Education Program (LITE), $1,000,000
    shall be awarded to Concord College, West Virginia for a technology
    center to further enhance the technical skills of West Virginia teachers
    and students, $200,000 shall be awarded to Peirce College in
    Philadelphia, Pennsylvania for education and training programs, $250,000
    shall be awarded to the Philadelphia Zoo for educational programs,
    $800,000 shall be awarded to Spelman College in Georgia for educational
    operations, $1,000,000 shall be awarded to the Philadelphia University
    Education Center for technology education, $725,000 shall be awarded to
    Lock Haven University for technology innovations, $250,000 for Middle
    Georgia College for an advanced distributed learning center
    demonstration program, $1,000,000 for the University of the Incarnate
    Word in San Antonio, Texas, to improve teacher capabilities in
    technology, $1,000,000 for Elmira College in New York for a technology
    enhancement initiative, $1,000,000 shall be awarded to the Southeastern
    Pennsylvania Consortium on Higher Education for education programs,
    $400,000 shall be awarded to Lehigh University Iacocca Institute for
    educational training, $250,000 shall be awarded to Lafayette College for
    arts education, $1,000,000 shall be awarded to Lewis and Clark College
    for the Crime Victims Law Institute, $1,650,000 for Rust College in
    Mississippi for technology infrastructure, $500,000 for the University
    of Notre Dame for a teacher quality initiative, $2,400,000 shall be
    awarded to the Western Governors University for a distance learning
    initiative, $1,000,000 shall be awarded to the Alabama A&M University
    for the development of a research institute, $1,000,000 shall be awarded
    to Tarleton State University in Stephenville, Texas for the Center for
    Astronomy Education and Research summer science programs for students
    and teachers, $1,500,000 shall be awarded to the Great Plains Network at
    Kansas University, $350,000 shall be awarded to the Science Education
    and Literacy Center at Rider University in New Jersey, $1,500,000 shall
    be awarded to the Indiana State University DegreeLink Partnership for a
    distance learning program, $1,000,000 shall be awarded to the Ivy
    Technical State College in Indiana for a machine tool training program,
    $1,250,000 shall be awarded to the Connecticut State University System
    Center for Education Technology Assessment, $400,000 shall be awarded to
    Monmouth University in New Jersey for the 21st Century Science Teachers
    Skills Project, $58,000 shall be awarded to the Black Hawk College
    International Business Education Center in Moline, Illinois for training
    in international economics, $325,000 shall be awarded to the World
    Learning School of International Training in Brattleboro, Vermont for
    the expansion of a language study program, $500,000 shall be awarded to
    the Diablo Valley Community College at Contra-Costa Community College
    District for a model teacher program to foster interest in teaching
    careers among high school and community college students, $1,000,000
    shall be awarded to the Urban College of Boston, Massachusetts, for
    tutoring and mentoring services for educationally disadvantaged
    students, $1,000,000 shall be awarded to the University of Rhode Island
    Center for Environmental Design, Planning, and Policy in Kingston, Rhode
    Island to foster environmental education, $800,000 shall be awarded to
    the Wisconsin Indianhead Technical College at Ashland and Superior to
    provide high technology education and training, $400,000 shall be for an
    award to the University of Wisconsin at Superior for Project SPARKS to
    link faculty with schools in the Superior School District in Wisconsin,
    and $100,000 shall be awarded to the University of Nevada at Las Vegas
    for the Nevada Institute for Children Children's literacy program.]
        [Sec. 310. (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 same percentage of that remainder as it received of the funds
    allocated to States under section 307(a)(2) of the Department of
    Education Appropriations Act, 1999.
        (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 are 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 fully qualified teacher in that agency who is certified within
    the State (which may include certification through State or local
    alternative routes), has a baccalaureate degree, and demonstrates the
    general knowledge, teaching skills, and subject matter knowledge
    required to teach in his or her content areas, that agency may use funds
    under this section to (A) help pay the salary of a full- or part-time
    teacher hired to reduce class size, which may be in combination with
    other Federal, State, or local funds; or (B) pay for activities
    described in subsection (c)(2)(A)(iii) which may be related to teaching
    in smaller classes.
        (c)(1) The basic purpose and intent of this section is to reduce
    class size with fully qualified teachers. Each local educational agency
    that receives funds under this section shall use such funds to carry out
    effective approaches to reducing class size with fully qualified
    teachers who are certified within the State, including teachers
    certified through State or local alternative routes, and who demonstrate
    competency in the areas in which they teach, 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 use funds under this
    section for
            (i) recruiting (including through the use of signing bonuses,
        and other financial incentives), hiring, and training fully
        qualified regular and special education teachers (which may include
        hiring special education teachers to team-teach with regular
        teachers in classrooms that contain both children with disabilities
        and non-disabled children) and teachers of special-needs children,
        who are certified within the State, including teachers certified
        through State or local alternative routes, have a baccalaureate
        degree and demonstrate the general knowledge, teaching skills, and
        subject matter knowledge required to teach in their content areas;

    [[Page 391]]

            (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 (which may include such
        activities as promoting retention and mentoring) to teachers,
        including special education teachers and teachers of special-needs
        children, in order to meet the goal of ensuring that all
        instructional staff have the subject matter knowledge, teaching
        knowledge, and teaching skills necessary to teach effectively in the
        content area or areas in which they provide instruction, consistent
        with title II of the Higher Education Act of 1965.
        (B)(i) Except as provided under clause (ii) a local educational
    agency may use not more than a total of 25 percent of the award received
    under this section for activities described in clauses (ii) and (iii) of
    subparagraph (A).
        (ii) A local educational agency in an Ed-Flex Partnership State
    under Public Law 106-25, the Education Flexibility Partnership Act, and
    in which 10 percent or more of teachers in elementary schools as defined
    by section 14101(14) of the Elementary and Secondary Education Act of
    1965 have not met applicable State and local certification requirements
    (including certification through State or local alternative routes), or
    if such requirements have been waived, may apply to the State
    educational agency for a waiver that would permit it to use more than 25
    percent of the funds it receives under this section for activities
    described in subparagraph (A)(iii) for the purpose of helping teachers
    who have not met the certification requirements become certified.
        (iii) If the State educational agency approves the local educational
    agency's application for a waiver under clause (ii), the local
    educational agency may use the funds subject to the waiver for
    activities described in subparagraph (A)(iii) that are needed to ensure
    that at least 90 percent of the teachers in elementary schools are
    certified within the State.
        (C) A local educational agency that has already reduced class size
    in the early grades to 18 or less children (or has already reduced class
    size to a State or local class size reduction goal that was in effect on
    the day before the enactment of the Department of Education
    Appropriations Act, 2000, if that State or local educational agency goal
    is 20 or fewer children) may use funds received under this section--
            (i) to make further class size reductions in grades kindergarten
        through 3;
            (ii) to reduce class size in other grades; or
            (iii) to carry out activities to improve teacher quality,
        including professional development.
        (D) If a local educational agency has already reduced class size in
    the early grades to 18 or fewer children and intends to use funds
    provided under this section to carry out professional development
    activities, including activities to improve teacher quality, then the
    State shall make the award under subsection (b) to the local educational
    agency.
        (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
    not hired under this section. Funds under this section may be used to
    pay the salary of teachers hired under section 307 of the Department of
    Education Appropriations Act, 1999.
        (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 State and local educational agency receiving funds under
    this section shall publicly report to parents on its progress in
    reducing class size, increasing the percentage of classes in core
    academic areas taught by fully qualified teachers who are certified
    within the State and demonstrate competency in the content areas in
    which they teach, and on the impact that hiring additional highly
    qualified teachers and reducing class size, has had, if any, on
    increasing student academic achievement.
        (3) Each school receiving funds under this section shall provide to
    parents upon request, the professional qualifications of their child's
    teacher.
        (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.
        (h) No funds under this section may be used to pay the salary of any
    teacher hired with funds under section 307 of the Department of
    Education Appropriations Act, 1999, unless, by the start of the 2000-
    2001 school year, the teacher is certified within the State (which may
    include certification through State or local alternative routes) and
    demonstrates competency in the subject areas in which he or she teaches.
        (i) Titles III and IV of the Goals 2000: Educate America Act are
    repealed on September 30, 2000.]

     [limitation on punitive damages awarded against institutions of higher
                                   education]

        [Sec. 311. Section 5 of the Y2K Act (15 U.S.C. 6604) is amended by
    adding at the end the following:
        ``(d) Institutions of Higher Education.--
            ``(1) In general.--Subject to paragraph (2), punitive damages in
        a Y2K action may not be awarded against an instituion of higher
        education as defined in section 101(a) of the Higher Education Act
        of 1965 (20 U.S.C. 1001(a)).
            ``(2) Exception.--Paragraph (1) shall not apply to an
        institution of higher education if the Y2K failure in the Y2K action
        occurred in a computer-based student financial aid system of that
        institution of higher education, and the institution--
                    ``(A) has not passed Y2K data exchange testing with the
                Department of Education; or
                    ``(B) is not or was not in the process of performing
                data exchange testing with the Department of Education at
                the time the Department terminates such testing.''.]
        [Sec. 312. Section 4 of P.L. 106-71 is amended by striking
    subsection (c).]

    [SEC. 313. HOLD HARMLESS.

        (a) Local Contribution Rate.--For purposes of calculating a payment
    under section 8003(b) of the Elementary and Secondary Education Act of
    1965 for fiscal year 1999 or 2000 with respect to any local educational
    agency described in subsection (b), the Secretary of Education shall not
    use a local contribution rate for the fiscal year that is less than the
    local contribution rate used for the local educational agency for fiscal
    year 1998.
        (b) Local Educational Agencies.--A local educational agency referred
    to in subsection (a) is any local educational agency that--
            (1) is eligible to receive a payment under section 8003(b) of
        the Elementary and Secondary Education Act of 1965 for fiscal year
        1999 or 2000, as the case may be; and
            (2) received a payment under such section for fiscal year 1998
        that was calculated on the basis of a local contribution rate based
        on generally comparable school districts using the special
        additional factors method.
        (c) Effective Date.--This section shall be effective for fiscal
    years 1999 and 2000.]

    [SEC. 314. VOTER REGISTRATION OF COLLEGE STUDENTS.

        Subparagraph (C) of section 487(a)(23) of the Higher Education Act
    of 1965 (20 U.S.C. 1094(a)(23)) is amended to read as follows:
                    ``(C) This paragraph shall apply to general and special
                elections for Federal office, as defined in section 301(3)
                of the Federal Election Campaign Act of 1971 (2 U.S.C.
                431(3)), and to the elections for Governor or other chief
                executive within such State).''.] (Department of Education
                Appropriations Act, 2000, as enacted by section 1000(a)(4)
                of the Consolidated Appropriations Act, 2000 (P.L. 106-
                113).)