Appendix - Department of Education

[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

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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)

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)

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)

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)

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)

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)

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)

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)

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

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)

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)

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)

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)

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)

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)

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)

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)

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
---------------------------------------------------------------------------

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

[[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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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

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)

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

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)

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)

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)

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)

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)

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)

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).)