[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
                                           ---------   ---------  ----------

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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).)
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