    [Budget of the United States Government]
    [V. Investing in the Common Good: Program Performance in Federal Functions]
    [20. Education, Training, Employment, and Social Services]
    [From the U.S. Government Publishing Office, www.gpo.gov]

    [[Page 233]]

            20.  EDUCATION, TRAINING, EMPLOYMENT, AND SOCIAL SERVICES

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

            Table 20-1.  Federal Resources in Support of Education, Training, Employment, and Social Services
                                                (In millions of dollars)
    ----------------------------------------------------------------------------------------------------------------
                                                                                   Estimate
                   Function 500                   1999   -----------------------------------------------------------
                                                 Actual     2000      2001      2002      2003      2004      2005
    ----------------------------------------------------------------------------------------------------------------
    Spending:
      Discretionary Budget Authority..........    46,648    44,390    61,543    61,582    62,288    63,447    64,570
      Mandatory Outlays:
        Existing law..........................    11,281    11,294    15,401    13,978    15,536    16,168    17,183
        Proposed legislation..................  ........      -100    -2,764      -246      -158      -195      -230
    Credit Activity:
      Direct loan disbursements...............    18,080    14,662    15,785       N/A       N/A       N/A       N/A
      Guaranteed loans........................    21,914    25,261    26,472       N/A       N/A       N/A       N/A
    Tax Expenditures:
      Existing law............................    34,070    36,030    37,565    38,745    41,240    42,350    44,740
      Proposed legislation....................  ........        66     1,363     3,654     3,821     4,970     5,470
    ----------------------------------------------------------------------------------------------------------------
    N/A = Not available.

      ----------------------------------------------------------------------
       A wide variety of Federal programs assist States and localities in
    providing essential education, training, employment and social services.
    These programs help educate America's youth; offer training and
    employment services to all Americans, especially those who are low-
    skilled and jobless; assist youth and adults overcome financial and
    other barriers to postsecondary education and training; are an essential
    part of the safety net for poor Americans; and work with employers and
    employees to maintain safe and stable workplaces.
      The President proposes to spend over $67.5 billion in 2001 on: grants
    to States, localities and non-profit organizations; grants, loans, and
    scholarships to individuals; direct Federal program administration; and,
    subsidies leveraging over $42 billion in loans to individuals. The
    budget also allocates approximately $41.3 billion in 2001 in tax
    expenditures for programs in this function.

     Department of Education

       Elementary and Secondary Education: Federal spending for elementary
    and secondary education targets important national needs, such as equal
    opportunity and the use of challenging academic standards, to improve
    student achievement. Most low-performing children in high-poverty
    schools receive extra educational assistance through the Title I
    (Education for the Disadvantaged) program. Other programs provide
    related support for children with disabilities and limited English
    proficiency; support teacher and administrator training; help finance
    and encourage State, district, and school reforms; help reduce class
    size; and support research and technical assistance. The
    Administration's long-term goal is to help all children, especially low-
    income and minority children, raise their levels of achievement so that
    they can meet challenging academic standards.

    [[Page 234]]

       The Federal focus began to change in 1994 from supporting individual
    programs to emphasizing school-wide and school system reforms, through
    the President's Goals 2000 Educate America Act and Improving America's
    Schools Act (IASA), including Title I. These laws support State and
    local standards-based reform efforts and promote the use of technology
    in education to improve learning. These new approaches have freed States
    and schools from unnecessary Federal process restrictions, providing
    greater flexibility while requiring more accountability for results.
    Early results show that the new approaches are having a significant
    impact: for example, all but one State has content standards in at least
    reading and math, compared to only 19 States before Goals 2000 and IASA.
    By 1997, over 70 percent of all Title I schools reported using standards
    to guide reading and math curricula, with a goal of 100 percent in 2000.

       Title I: Minority students have made substantial gains in science,
    math, and reading since the 1970s, narrowing the gap between minority
    and non-minority student achievement by about a third. Citing Title I,
    as well as Head Start and child nutrition programs, a 1994 RAND study
    found that ``the most plausible'' way to explain big education gains of
    low-income and minority children in the past 30 years is ``some
    combination of increased public investment in education and social
    programs and changed social policies aimed at equalizing educational
    opportunities.'' More recently, a 1998 RAND study on rapid achievement
    gains in North Carolina and Texas found that the most probable
    explanation for the gains, including those of disadvantaged students,
    stemmed from policies of high standards for all students, aligned
    assessments, accountability with consequences, and targeting high-
    poverty schools. These are all core principles of Title I. The budget
    provides $9.14 billion for Title I, including $8.36 billion for grants
    to local education agencies. In 2001, Title I grants to school districts
    will provide educational services to over 12.2 million students in high-
    poverty communities, 400,000 more children than in 2000.
       The 1994 reauthorization of Title I set in motion a series of new
    requirements on States for improving educational results for
    disadvantaged children, as a condition for receipt of Title I funds.
    Implementation has been uneven. For 2001, the Administration proposes a
    stronger emphasis on accountability for improved education results in
    Title I, financed with an Accountability Fund and reinforced in its
    reauthorization proposal for the Elementary and Secondary Education Act.
    Within Title I, the budget provides $250 million for this Fund to help
    accelerate States' implementation of accountability provisions in the
    Title I program, nearly doubling the amount available in 2000. The
    Accountability Fund will help States identify their lowest performing
    schools, intervene with effective strategies to improve student
    outcomes, and report on their results.
       Title I is helping to improve student achievement. The most recent
    study of Title I schools shows progress in the percentage of students
    that meet State standards for proficiency in math and reading, regaining
    ground lost in the late 1980s and early 1990s. Results from the 1998
    National Assessment of Educational Progress, a series of tests
    considered to be the Nation's ``report card,'' show that among the
    lowest-achieving 4th graders--those most likely to be served by Title
    I--there were fairly substantial improvements in reading between 1994
    and 1998. Those in the lowest 10 percent gained an average of nine
    points and those in the bottom 25 percent gained five points, compared
    with the stable performance of the other groups.
      Title I is also helping schools provide extended learning time, a
    practice that tends to improve student achievement. Over 60 percent of
    Title I schools now have after-school programs to provide extra learning
    time for tutoring rather than taking students out of the regular
    classroom for assistance, compared to less than 10 percent before 1994.

       Teacher Quality and Professional Development: The budget provides $1
    billion to help States and districts provide sustained, content-rich
    professional development, recruit teachers, and support State efforts to
    align curricula and assessments with content standards.

    [[Page 235]]

       21st Century Community Learning Centers/After School Programs: The
    budget proposes to more than double this program to $1 billion, as part
    of a comprehensive approach to fix failing schools by providing children
    in these schools the extra help they need to meet challenging academic
    standards. Grants to public schools and community-based organizations
    support the establishment or expansion of after-school, summer school
    and other extended learning opportunities. The budget provides
    sufficient funds to make after- or summer-school programs universally
    available to help turn around failing schools, defined as schools
    identified under Title I as in need of improvement.
       In 2001, over 10,000 schools will receive 21st Century Community
    Learning Centers grants. Most of these schools are in districts that
    commit to use these funds as part of a comprehensive effort to improve
    learning in low-performing schools. In future years, grantees will
    report their progress and receive continuation grants if they meet
    program terms.

       Reading Excellence: A student's most basic skill to master is
    reading. Although reading problems are particularly severe for
    disadvantaged students, students with reading difficulties represent a
    cross-section of American children. On the 1998 National Assessment of
    Educational Progress, 68 percent of all fourth-grade students in high
    poverty schools scored below the basic reading level. The President
    launched the America Reads Challenge to provide extra help to meet the
    goal that every child will read well and independently by the end of the
    third grade, and obtained enactment of new legislation that began
    funding local programs on July 1, 1999. The budget provides $286 million
    for the Reading Excellence program.
       The Department of Education's objective for the Reading Excellence
    program is to significantly improve students' achievement in
    participating schools and classrooms. By 2001, participating students
    will increase their reading scores significantly compared to non-
    participants. Furthermore, by the end of 2001, at least 15 States will
    have revised their State in-service training and guidelines for reading
    certification of teachers to reflect scientifically-based reading
    research.

       Education Technology: The Administration's education technology
    programs serve to make modern computers and technologies accessible to
    all students; connect classrooms to the Internet; make high-quality
    educational software an integral part of the curriculum; and enable
    teachers to effectively integrate technology into their instruction. The
    budget provides $903 million for education technology.
       The Administration's goal is that by 2001, all schools will
              be connected to the Internet. This compares to an actual level
              of 65 percent in 1996 and 89 percent in 1998.
      In 2001, a higher percentage of teachers than in 1996 will
              integrate high-quality technology-based instruction into their
              curriculum. In Fall 1996, 20 percent of public school teachers
              used advanced telecommunications for teaching. In 1994, 40
              percent of the fourth graders and 17 percent of the eighth
              graders had teachers reporting use of computers to teach
              reading. In 1996, about 75 percent of fourth grade students
              and 46 percent of eighth grade students had teachers reporting
              use of computers for math instruction.

       Special Education: Under the Individuals with Disabilities Education
    Act (IDEA), the Education Department works with States to ensure that
    children with disabilities receive a ``free appropriate public
    education'' that prepares them for employment and independent living,
    and that all schools are held accountable for the educational results of
    special education children. As of July 1, 1998, all States were required
    to have performance goals and strategies in place for students with
    disabilities aged three to 21, and to report their progress toward
    meeting those goals on a biennial basis. Moreover, by July 1, 2000, all
    States will be required to include special education children in State
    and district-wide regular assessments or provide alternate assessments
    to measure educational performance. The budget provides $6.4 billion for
    IDEA, a $333 million increase.
       One measure of success is the increase in the percentage of students
    with disabilities who are graduating from high school with

    [[Page 236]]

    a regular diploma and the reduction in the number who are dropping out.
      In the 1995-96 school year, 53 percent of students with
              disabilities left school by graduating with a regular diploma
              and 34 percent dropped out of school. The Administration's
              goal for school year 2000-01 is that 58 percent of students
              with disabilities will graduate with regular diplomas and that
              no more than 29 percent will drop out.

      Bilingual Education: The budget provides $296 million for this program
    in 2001, an increase of $48 million over 2000. The population of limited
    English proficient (LEP) students has grown dramatically over the last
    two decades. Between school years 1992-93 and 1996-97, the LEP
    population in 10 states (Alabama, Alaska, Florida, Idaho, Nebraska,
    Nevada, North Carolina, Oregon, South Carolina, Tennessee) grew by more
    than 50 percent. The Bilingual Education program provides funds to
    school districts to teach English to LEP students and helping them meet
    the same challenging state standards required of all other students.
    Likewise, through the Professional Development authority, the program
    provides funding to address the critical shortage of highly trained
    Bilingual Education and English as a second language (ESL) instructors.
      In 2000, Federal funds will support the training of nearly
              5,700 teachers. In 2001, funds will support training of about
              8,000 teachers to specialize in teaching LEP children.

       Class Size Reduction: The budget proposes $1.75 billion, an increase
    of $450 million over 2000, as the third installment of the President's
    plan to help schools recruit, hire, and train 100,000 new teachers by
    2005 and reduce class size in the early grades.
       States will annually reduce the average class size in grades one
    through three so that by 2005, the average class size nationally in the
    targeted grades is 18 students per classroom. In 1993-1994, the average
    number of students in a grade one to three classroom was 22. In 1999-
    2000, the first year of the program, school districts met their goals
    and hired 29,000 teachers. As a result, class sizes in grades in which
    teachers were hired decreased from an average of about 23 to 18.

       Public School Choice: The budget includes several initiatives to
    expand the availability of choice in public schools, such as
    Opportunities to Improve our Nation's Schools (OPTIONS), a proposed new
    program that would fund innovative approaches to public school choice
    like public schools located at work sites or on college campuses.
    Funding is also provided to continue the inter-district magnet school
    program initiated in 2000. The largest public school choice program is
    Charter Schools.
       Charter schools introduce innovation and choice into public schools.
    In 1992, there was one charter school in operation, funded locally.
    Thanks in part to startup funding provided through the Public Charter
    Schools program, that number has grown to over 1,700 schools in 2000.
    The budget provides $175 million for charter schools. At this level, by
    2001, the program will have helped nearly 2,400 charter schools since
    its inception, supporting the President's goal of 3,000 charter schools
    by 2002.

       Safe and Drug-Free Schools and Communities: Since 1993, this program
    has provided a total of $4.3 billion to help 97 percent of all school
    districts implement anti-drug and anti-violence programs. The budget
    proposes $650 million for this program, including $122 million in
    competitive grants under the interagency Safe Schools/Healthy Students
    initiative in conjunction with contributions from the Departments of
    Health and Human Services, Justice, and Labor; $50 million for the newly
    established Coordinator Initiative to ensure that over 1,300 middle
    schools have a director of drug and violence prevention programs to
    monitor local programs and link school-based programs to community-based
    programs; and, $10 million for Project SERV, a resource for responding
    to school violence incidents.
       In 1997, the rate of alcohol use in schools was five percent for
    eighth graders and eight percent for 10th and 12th graders; the 1997
    rate of marijuana and other drug use in schools was five percent and 11
    percent for eighth and 10th graders, respec

    [[Page 237]]

    tively, and the rate of marijuana use was 10 percent for 12th graders.
      The Administration's performance goal is that by 2001, rates
              of annual alcohol use in schools will decline to four percent
              for eighth graders and seven percent for 10th and 12th
              graders; rates of annual marijuana and other drug use in
              school for the same time period will decline to three percent
              and 10 percent for eighth and 10th graders respectively, and
              the rate of annual marijuana use will decline to nine percent
              for 12th graders.

       Postsecondary Education: The economic returns to a college education
    are dramatic. Males working full time who are over 25 years old and have
    a bachelor's degree earned 56 percent more in 1997 than workers with
    just a high school degree. Moreover, the benefits of college extend
    beyond the college graduates themselves. The resulting higher
    socioeconomic status of parents with college degrees leads to greater
    educational achievement by their children.
       Since the GI Bill was enacted following World War II, the Federal
    Government has played a growing role in helping Americans go to college.
    Since 1964, Federal postsecondary programs have helped nearly triple
    college enrollment, increasing by a third the share of high school
    graduates who attend college.
      In 2001, the Education Department will provide financial aid
              to approximately nine million students.

       Hope Scholarships and Lifetime Learning Tax Credits: These tax
    benefits for postsecondary education were proposed by President Clinton
    in 1996 and enacted in 1997. They have helped make college more
    affordable for many American families.
       In the 2000 tax year, 5.6 million students will be eligible for over
    $5 billion in Hope tax credits, and 7.2 million students will be
    eligible for almost $2.4 billion in Lifetime Learning tax credits.

       Pell Grants: When President Clinton took office in 1993, the Pell
    Grant maximum award was $2,300--the same as it was when President Bush
    took office in 1989. Over the next six years, from 1994 to 2000, the
    maximum award increased 43 percent to $3,300. In fiscal year 1998, an
    estimated 76 percent of Pell Grant funds were awarded to students below
    150 percent of the poverty level. The budget provides for a program
    level of $8.5 billion for Pell Grants.
      An estimated 3.9 million needy students will receive Pell
              Grants in 2001, for which the budget proposes a maximum award
              of $3,500, an increase of $200 over 2000.

       Work-Study: The Work-Study program helps needy undergraduate and
    graduate students finance postsecondary education through part-time
    employment. In 1996, the President set a goal of supporting one million
    work-study students each year by 2000. This goal was achieved. The
    budget includes $1.011 billion, an increase of $77 million over 2000, to
    maintain this commitment.
       GEAR-UP: The budget proposes increasing funding for GEAR-UP, the
    early intervention program based on the President's High Hopes proposal,
    to $325 million in 2001. GEAR-UP provides funds for States and local
    partnerships to help students in high-poverty schools prepare for and
    attend college. The Department of Education aims to have GEAR-UP program
    participants successfully complete high school and enroll in
    postsecondary education programs at higher rates than comparable non-
    participants.
      Student Aid Delivery System Modernization: The Education Department
    manages the delivery of student aid benefits to nearly nine million
    students in approximately 5,300 postsecondary schools, and oversees the
    direct and guaranteed loan systems affecting 37 million individuals,
    4,100 lenders, and 36 guarantee agencies. The Department has made
    modernization of student financial aid management one of its highest
    priorities. Through the Higher Education Amendments of 1998, the
    Administration and Congress authorized the Department to establish the
    Government's first ever Performance-Based Organization (PBO). This new
    organization has unprecedented flexibility in procurement, operations
    and management of Federal student financial assistance programs. Major
    parts of the effort include improving customer service at lower cost
    through better contracting practices and

    [[Page 238]]

    use of new information technology. For example, students can now apply
    for student financial aid electronically and access their direct student
    loan information over the Internet. The PBO is one of the
    Administration's High Impact Agencies. The three primary goals of the
    PBO are:
      Improving customer satisfaction: The PBO has established the
              goal of increasing the satisfaction of ``customers'' of the
              student financial assistance programs to a level commensurate
              with private sector financial service firms. Under the
              national survey conducted by the University of Michigan in
              1999, the PBO scored 63 in satisfaction. The goal is to
              increase this rating to 74 out of 100 by 2002.
              In 2000, the PBO has committed to improving customer
              satisfaction in at least six of 10 core functions, as measured
              through detailed surveys.
      Reducing cost: The PBO has set a target to reduce the 2004
              projected unit cost of delivering each student aid dollar by
              19 percent.
              In 2000, the PBO has committed to reduce unit costs by $18
              million and re-invest this amount in further information
              systems modernization. These investments will produce even
              greater future unit cost reductions.
      Improving employee satisfaction: Recognizing that employee
              satisfaction is essential to modernizing the delivery of
              student financial assistance and achieving the aforementioned
              goals, the PBO has committed to raising employee satisfaction,
              as measured by the Office of Personnel Management (OPM), to
              the top five of all Government agencies by 2002. In 1999, the
              PBO ranked 33rd out of 50 in the OPM survey.
              As a down-payment in 2000 on the long-range commitment, the
              PBO's management has committed to making demonstrable progress
              on five issues identified by the Labor-Management Partnership
              Council.

       Student Aid Income Verification: In 2000, in accordance with the
    Higher Education Amendments of 1998, the Departments of Education and
    Treasury will conduct a test match of income data provided on the
    student aid application against IRS data. This test match will provide
    important information for the development of a full scale match, which
    would enable the Department of Education to reduce fraud and improve
    eligibility determinations.
       Adult Education: For many disadvantaged adults, Federal adult
    education programs provide the only opportunity to gain literacy skills
    and obtain the knowledge and skills necessary to attain employment and
    self-sufficiency, to learn English, and to complete their secondary
    education. The new Adult Education and Family Literacy Act places a
    strong emphasis on performance and accountability, and States must now
    establish annual performance targets for the educational achievement of
    participating adults. States that meet or exceed their targets in adult
    education and other Federal workforce development programs are eligible
    to receive special incentive grants. The budget proposes $555.5 million
    for adult education, an increase of $85.5 million over 2000.
      The Administration's goal is that by 2001, 40 percent of the
              adults in beginning level adult basic education, adult
              secondary education, and English as a second language (ESL)
              programs will achieve basic skill proficiency, earn a diploma
              or General Educational Development (GED) credential, or
              achieve basic English proficiency. In 1999, 31 percent of the
              adults in basic education, 33 percent of those in secondary
              education, and 28 percent of those in ESL programs achieved
              basic skill proficiency, earned a diploma or GED, or achieved
              basic English proficiency.

       Vocational Rehabilitation Services: The Vocational Rehabilitation
    (VR) program provides funds to States to help individuals with
    disabilities prepare for and obtain gainful employment to the extent of
    their capabilities. In 1998, the program helped 223,668 individuals with
    disabilities secure employment, and 88 percent of these individuals
    obtained competitive employment. The budget includes $2.8 billion for
    Vocational Rehabilitation. In 1999, all States started to develop
    challenging State-specific goals based on a comprehensive assessment of
    the vocational rehabilitation needs of

    [[Page 239]]

    individuals with disabilities and to describe the strategies that will
    be used to address those needs. State agencies will begin reporting
    progress made toward meeting the goals in 2000.
      In 2001, 63 percent of all individuals with disabilities
              served in the VR program will obtain employment, up from 61
              percent in 1999. Of those achieving competitive employment, 85
              percent will maintain employment and earnings 12 months after
              their case is closed.

     Labor Department

       Elementary, secondary, and postsecondary investments enable Americans
    to acquire the skills to get good jobs in an increasingly competitive
    global economy. In addition, most workers acquire more skills on the job
    or through billions of dollars that employers spend each year to enhance
    worker skills and productivity. However, some workers also need special,
    targeted assistance. In addition to Pell Grants, student loans, and tax
    credits, the Federal Government spends some $7 billion a year on
    Department of Labor (DOL) programs that finance job training and related
    services. Workers who want to learn about job openings can use the State
    Employment Service and One-Stop Career Center System and DOL's popular
    America's Job Bank (AJB) website, which currently lists 1.5 million job
    vacancies daily and has over eight million job searches each month, an
    increase over the 900,000 job vacancies and six million job searches
    reported last year.

       The Workforce Investment Act (WIA) of 1998: The WIA takes full effect
    on July 1, 2000, as the Job Training Partnership Act is repealed and all
    States fully implement the WIA requirements. The WIA reflects the
    principles the President sought in his GI Bill for America's Workers
    proposal including: streamlining services through One-Stop Career
    Centers; empowering individuals with the information and resources they
    need to choose the training that is right for them; providing universal
    access to a core set of employment services such as job search
    assistance; increasing accountability; ensuring a strong role for the
    private sector and the local boards who develop and oversee programs;
    facilitating State and local flexibility; and improving the quality of
    youth job training services.
       DOL has launched several longitudinal evaluations of its job training
    programs over the past two decades, including a major impact evaluation
    of the Job Corps program. Past studies have found generally positive
    results.
       While impact evaluations are the best measure of program
    effectiveness, DOL also sets annual performance goals for its major job
    training programs. Beginning in July 2000, each State will implement an
    accountability system to measure performance. The goal of this system is
    to optimize the return on investment of Federal funds directed to State
    and local workforce activities. This accountability system will assess
    the effectiveness of States and local areas in achieving positive
    outcomes and ensuring continuous improvement of their workforce
    investment systems. The WIA establishes core performance indicators for
    all adult, dislocated worker, and youth programs that help people find
    and retain unsubsidized jobs, increase earnings, or lead to further
    education and attainment of credentials or employable skills. DOL is
    working with each State to establish appropriate baselines and
    challenging performance goals. The goals and measures indicated here and
    in DOL's performance plan were established using programmatic data from
    the predecessor job training program as a baseline.
      The WIA establishes strong ties between performance and funding. If a
    State fails to meet its expected levels of performance in any year, it
    can request technical assistance from DOL. If a State continues to fail
    to meet its agreed-upon performance levels for a second year, or if a
    State fails to report its performance information in any year, its
    funding may be reduced by up to five percent.

       Reemployment services: In the 2000 Budget, the President proposed a
    major initiative to help working and laid-off workers to get the
    information and training they need to succeed in a dynamic labor market.
    This budget includes increased funding for new initiatives to ensure
    that: (1) all displaced workers would receive the training they want and
    need; (2)

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    individuals who lose their job due to no fault of their own could get
    improved re-employment services; and, (3) every American would have
    access to One-Stop Career Center services.
      WIA's Dislocated Worker Employment and Training Activities: This
    program will provide training and employment services to about 984,000
    displaced workers in 2001. The budget proposes $1.8 billion for
    dislocated workers, an increase of $181 million over 2000, when the
    program will serve 836,000 participants. While new performance measures
    will be developed for the WIA beginning in 2001, in 2000, 80 percent of
    participants are expected to be employed six months after leaving the
    program in jobs that replace, on average, 98 percent of their pre-
    dislocation earnings. The budget also includes a legislative proposal to
    consolidate and reform the Trade Adjustment Assistance and NAFTA
    Transitional Adjustment Assistance programs.
      One-Stop Career Centers/Employment Service: The Employment Service
    provides a free labor exchange for all job seekers and employers, and is
    growing more effective through implementation of a One-Stop delivery
    system. The budget proposes $1.010 billion for a range of information
    and services, including self-service access to job and labor market
    information, either through the Internet or in local offices, as well as
    staff-assisted services for those needing more help.
      In 2001, DOL and the States will work to increase the number
              of employers listing jobs with the AJB website by 10 percent
              over the 2000 level while expanding information on local labor
              markets to help workers make informed career decisions.
      Continued efforts in 2001 to improve access to the information and
    services of the One-Stop system will include a toll-free number, mobile
    One-Stops, and on-line job information made available at community-based
    organizations. In addition, DOL will have the lead in a new
    Administration initiative called Access America for Workers. This
    initiative envisions a consolidated website that will serve as a single
    point of contact for American workers and their families to access a
    wide range of Internet-based services, information, and transactions.

       Work Incentive Grants: To enhance the employment prospects of
    individuals with disabilities, the budget includes $20 million for
    competitive grants to partnerships or consortia in each State to provide
    new services and information for individuals with disabilities who want
    to return to work. These partnerships would work with the One-Stop
    system to augment its capabilities to provide timely and accurate
    information that people with disabilities need to get jobs and learn
    about the benefits available to them when they return to work. In
    addition, the partnerships would improve local service delivery by
    coordinating the State and local agencies and disability organizations
    that help individuals with disabilities prepare to enter or reenter the
    workforce. In 2001, DOL's goal for grantees is a three-percent increase
    in the number of individuals with disabilities served and a three-
    percent increase in unsubsidized employment outcomes over the 2000
    level.
      Incumbent Workers: To boost the skills, productivity, and wages of the
    U.S. work force, the budget includes $30 million for competitive grants
    to States for training and upgrading the skills of currently employed
    workers. Applicants would be required to provide non-Federal matching
    resources, and employers that received grant assistance would be
    expected to demonstrate that training increased participant earnings.
      Responsible Reintegration for Young Offenders (RRYO): The budget
    includes $75 million for this new initiative to establish partnerships
    between the criminal justice system and local one-stop delivery systems
    created under the WIA. Young offenders up to age 35 would be able to
    access a comprehensive array of services--including education, training,
    drug treatment and support services--that would help them successfully
    reenter the community.
      In 2001, the RRYO will provide competitive grants to serve
              almost 19,000 young ex-offenders.

       Youth Opportunity Grants (YOG): The YOG initiative addresses the
    special problems of out-of-school youth, especially in inner-cities and
    other areas where unemployment rates are high. The budget provides $375
    million for the third year of five-year competitive grants to 25-30
    communities and the first year of

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    five-year competitive grants to an additional 12-15 communities.
      By 2001, 75 percent of YOG participants placed in employment,
              the military, advanced training, postsecondary education, or
              apprenticeships will be retained at six months.

       Job Corps: The Corps provides skill training, academic and social
    education, and support services in a structured, residential setting to
    approximately 73,000 very disadvantaged youth per year at 122 centers.
      Performance data indicate that, in program year 1998, 82 percent of
    Job Corps graduates enrolled in education or entered employment after
    leaving the program.
      By 2001, 85 percent of Job Corps graduates will be enrolled in
              education or get jobs with an average starting wage of $7.25
              per hour. In addition, 70 percent will still be enrolled in
              education or employed six months after their initial
              placement.

       Workplace Protections: DOL regulates compliance with various laws
    that protect individuals in the workplace--a minimum wage for virtually
    all workers, prevailing wages and equal employment opportunity for
    workers on government contracts, overtime pay, restrictions on child
    labor, and time off for family illness or childbirth. (For discussion of
    workplace safety programs, see Chapter 21, ``Health.'') In these areas,
    the Federal Government is working to increase industry's compliance with
    labor protections through voluntary compliance initiatives coupled with
    continued strong enforcement, outreach to new and small business, and
    targeted enforcement in specific industries. DOL measures the success of
    these efforts against specific measurable goals:
       In 2001, DOL will increase compliance by five percent among
              employers who were previously violators and the subject of
              repeat investigations in targeted health care, garment, and
              identified agricultural commodities industries.

      Bureau of International Labor Affairs (ILAB): The budget provides $167
    million for ILAB to continue the Administration's commitment to help
    developing countries establish core labor standards and reduce
    exploitative child labor internationally. The budget includes $55
    million for the School Works programs to help developing countries with
    high levels of abusive child labor to enroll and retain these children
    in basic education as a primary strategy in the elimination of child
    labor.
       In 2001, ILAB will increase by 50 percent the number of
              countries signing memoranda of understanding with the
              International Labor Organization's Program on the Elimination
              of Child Labor, adding 20 new countries to the IPEC membership
              list. In addition, in 2001 ILAB will focus its efforts to
              support projects on the worst forms of child labor and
              continue to raise public awareness and international support
              for the progressive elimination of child labor.

       Welfare-to-Work: Moving people from welfare to work is a primary goal
    of Federal welfare policy. In addition to the $16.5 billion per year
    provided through the Temporary Assistance for Needy Children Program,
    the President obtained $1.5 billion to help achieve this goal through
    Welfare-to-Work (WtW) grants in 1998 and 1999. These grants provide
    welfare recipients with the job placement services, transitional
    employment, and job retention and support services they need to achieve
    economic self-sufficiency. Working closely with Congress, the
    Administration secured critically needed changes to WtW's eligibility
    and reporting requirements. These streamlined criteria will allow WtW,
    within existing resources, to better serve the eligible population and
    report program results with minimal burden. The budget includes a
    proposal to extend by two years the time period in which grantees may
    spend their existing WtW funds.
      Fathers Work/Families Win: The budget includes $255 million to put
    non-custodial parents who own child support to work so they can support
    their children; and help low-income custodial parents stay in their
    jobs, move up the career ladder, and remain off cash assistance. DOL
    will develop with each successful applicant a goal to increase the
    employment, earnings, and retention of program participants.

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     Department of Health and Human Services

       Head Start: Head Start gives low-income children a comprehensive
    approach to child development, stressing language and cognitive
    development, health, nutrition, and social competency. Head Start is
    administered by the Administration for Children and Families (ACF), one
    of the Vice President's High Impact Agencies. The budget provides $6.3
    billion for Head Start, a $1 billion increase over the 2000 level.
      In 2001, Head Start will serve approximately 70,000 additional
              children, for a total of 950,000 children. The Head Start
              program goal established by the President is to serve one
              million children annually by 2002.
      Within the overall total of children served, in 2001
              approximately 10,000 more children under age three will
              participate in the Early Head Start component, for a total of
              nearly 54,000. The President established the goal of doubling
              the number of children below age three served in Head Start by
              2002, within the goal of one million total children.
       National evaluation studies of both the regular Head Start program
    and the Early Head Start component are under way to improve outcomes for
    Head Start families, including child growth and development.
      In 2001, the Head Start program will increase the average
              improvement in literacy skills of Head Start children from 66
              to 77 percent. Head Start will also increase the percentage of
              participating children whose parents read to them at least
              three times per week.

       Foster Care and Adoption Assistance: The Administration for Children
    and Families (ACF) administers a number of programs that focus on
    preventing maltreatment of children, protecting children from abuse and
    neglect, and finding permanent placements for children who cannot safely
    return to their homes. The budget proposes a $5 million pilot initiative
    to support Indian Tribes' management of their own child welfare systems.
    Currently, tribal child welfare agencies must operate within state
    systems to be eligible for Federal support of foster care and adoption
    assistance activities. Under the pilot initiative, participating tribes
    would receive direct Federal funding, improving their ability to meet
    the needs of eligible Native American children.
       Decrease the number of children with substantiated reports of
              abuse with a repeat report of maltreatment within 12 months
              from 12 percent in 1997 to 10 percent in 2001.
       Provide children permanency and stability in their living
              situations by reducing the median length of time between
              placement and adoption for all children from 38 months in 1997
              to 37 months in 2001.

       Aging Services Programs: The Administration on Aging (AoA)
    administers information and assistance, home and community-based support
    services for older people, and programs that protect the rights of
    vulnerable, at-risk older people. In 2001, the budget proposes $1.1
    billion for AoA programs, including $125 million to assist families who
    are caring for frail elderly relatives. The goal of care-giver services
    is to help sustain the efforts of family care givers by providing
    information, education and counseling, and respite services. AoA will
    develop performance measures for these activities. The budget also
    includes $325 million, an increase of $15 million, for the core
    Supportive Services program.
      In 2001, AoA will increase the number of meals served under
              the Home-Delivered Meals Program to 166 million, compared to
              119 million meals in 1996.

     National Service

       The Corporation for National and Community Service supports programs
    providing service opportunities Nation-wide for Americans of all ages
    and backgrounds. Through Corporation-supported projects, over 1.5
    million participants work to address the Nation's unmet, critical needs.
    The Corporation organizes its programs into three streams of service,
    with various annual performance goals.

      AmeriCorps: Building upon the Administration's commitment to shape and
    strengthen the role of national service, AmeriCorps' goal is to expand
    service opportunities to 100,000 participants by 2004.

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      In 2001, AmeriCorps will engage 62,000 Americans in community
              service, and provide education awards in return for such
              service.

       Learn and Serve America: This program provides young people with
    opportunities to serve by connecting community service with academic
    learning, personal growth and civic responsibility.
      In 2001, 15,000 high school students who have provided
              outstanding community service will receive Presidential
              Service Scholarships--compared with 10,000 students in 2000.

       National Senior Service Corps: The Corps, which includes over 500,000
    people age 55 and older, encourages seniors to use their experience,
    skills and talents while serving as Foster Grandparents, Senior
    Companions, and the Retired and Senior Volunteers.
      In 2001, Foster Grandparents and Senior Companions will serve
              160,000 special-needs youth and frail elderly, while retired
              senior volunteers and volunteer leaders will work to further
              the goals of America's Promise and the America Reads
              Challenge.

     Cultural Agencies

      The Smithsonian Institution and Other Cultural Agencies: The
    Smithsonian Institution, the National Gallery of Art, the U.S. Holocaust
    Memorial Museum, and the John F. Kennedy Center for the Performing Arts
    all have as part of their missions the advancement of knowledge and
    sharing that knowledge with the American public. To accomplish its
    mission, each institution must maintain its physical infrastructure and
    provide access to its unique assets.
      In 2001, each agency will provide new and updated exhibits and
    performances, including, for example, major traveling exhibitions from
    the Smithsonian's National Museum of American Art and National Portrait
    Gallery to cities nationwide. In 2001, each agency will protect its
    unique assets by implementing its comprehensive plans for repair and
    renovation, including completion of repairs of the National Gallery of
    Art's Mall steps and initiating repairs on the Gallery's West Building
    facade and connecting link expansion joints.
      In 1999, the National Gallery of Art had 6.7 million visitors, the
    highest total since 1988, due primarily to the success of the special
    exhibitions program that included the critically and publicly acclaimed
    Van Gogh exhibition. The U.S. Holocaust Memorial Museum hosted two
    million visitors and had 1.3 million visitors to its website while
    attendance at traveling exhibitions increased by 29 percent over 1998.
    In 1999, the Kennedy Center completed a comprehensive upgrade of its
    building automation system and began work on an energy conservation
    plan.

       The National Endowment for the Arts and the National Endowment for
    the Humanities: The budget proposes $150 million each for the National
    Endowment for the Arts and the National Endowment for the Humanities to
    provide support for important cultural, educational and artistic
    programs for communities across America. The budget also proposes $206
    million for the Institute of Museum and Library Services (IMLS) to
    support museums and libraries. In 2001, the Endowments and IMLS will
    fund education and life-long learning as well as projects to increase
    public access to performances, exhibitions, and our Nation's cultural
    treasures held by museums, libraries, archives, and historical
    organizations. Special attention will be given to underserved areas and
    to the use of the arts and humanities to strengthen community and family
    life.
       In 2001 the NEA's proposed Challenge America program will
              award more than 1,100 grants, directly or in partnership with
              States, to communities across America for Arts Education,
              Access to the Arts, Youth-at-Risk, Cultural Heritage and
              Preservation, and Community Arts Partnerships.
       In 2001, the NEH will help improve the quality of humanities
              education offered to hundreds of thousands of American school
              children and college students; provide opportunities for
              citizens from all walks of life to engage in a lifetime of
              learning about the Nation's history and culture; preserve and
              democratize access to millions of brittle books and other
              important

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              cultural and intellectual resources; and dramatically expand
              access to humanities programming for millions of citizens in
              rural areas and cities nationwide.
       In 2001, IMLS will promote access to learning and information
              resources held by museums and libraries through electronic
              linkages, helping all 55 State library agencies expand
              electronic access to materials and increase Internet access.
              IMLS will help museums develop and support regional electronic
              networks, providing technical support to thousands of museums
              in putting collection information on-line and supporting
              after-school programs located in museums.

     Tax Incentives

       The Federal Government helps individuals, families, and employers (on
    behalf of their employees) plan for and buy education and training
    through numerous tax benefits, which under current law will cost an
    estimated $59 billion in 2001, and $307 billion from 2001 to 2005. Along
    with the Hope Scholarship and Lifetime Learning tax credits for college
    costs, the tax code provides other ways to pay for education and
    training. State and local governments, for instance, can issue tax-
    exempt debt to finance student loans or to build the facilities of non-
    profit educational institutions. Interest from certain U.S. Savings
    Bonds is tax-free if the bonds go solely to pay for education. Many
    employers provide education benefits that do not count as income. Since
    1998, many taxpayers have been able to deduct the interest on student
    loans. Finally, the tax code gives employers a Work Opportunity Tax
    Credit and a Welfare-to-Work Tax Credit, letting them claim a tax credit
    for part of the wages they pay to certain hard-to-employ people who work
    for them for a minimum period.
      In 2000, the Administration secured an extension through December 2001
    of the current exclusion from employee income of employer-provided
    educational assistance, known as section 127 of the Internal Revenue
    Code. New education tax provisions in the budget include proposals to
    provide tax credits to support public school construction and
    rehabilitation; expand the Lifetime Learning tax credit by giving
    families the option of taking a tax deduction or claiming a 28 percent
    tax credit for postsecondary tuition and fees; eliminate the 60-month
    limit on the student loan interest deduction to provide longer-term
    relief to low-and middle-income taxpayers with large educational debt;
    eliminate the tax owed when certain student loans are forgiven after 25
    years of repayment; and, provide a tax credit for employer-provided
    workplace literacy and basic education programs. In addition, the budget
    proposes exclusion from income for repayment or cancellation of a
    student loan under the AmeriCorps Education Award Program.