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

    [[Page   39]]

    [[Page 41]]

                     1.  INVESTING IN EDUCATION AND TRAINING

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

      At the edge of a new century and an increasingly competitive global economy, we know that our children's
    futures will be determined in large part by the quality of the education they receive ... Our Administration has
    made education a high priority, focusing on standards, accountability and choice in public schools, and on
    making a college education available to every American ... Because of these efforts, more young people have the
    chance to make the most of their God-given abilities, and take their place in the high-tech world of the 21st
    Century.

                                          President Clinton
                                          August 1999

      ----------------------------------------------------------------------
       President Clinton took office committed to providing the education
    and job training that Americans need to succeed in the new global
    economy. Investing in people and improving our Nation's educational
    system was a central element of his 1993 economic program. In the past
    seven years, the President has consistently worked to further the goal
    of a first-rate education for every child, starting with programs to
    expand learning opportunities for pre-schoolers to those that encourage
    students to attend and complete college. The President's education
    strategy is simple and straightforward--we must invest more and demand
    more in return.
       To strengthen elementary and secondary education, the Clinton
    Administration proposed, and worked with Congress, to enact new laws in
    1994 and succeeding years to help students, especially in high-poverty
    schools, meet challenging educational standards put in place by States
    and school districts. Accountability--holding schools, teachers, and
    students alike to these high standards--is essential to turning low-
    performing schools into institutions of quality. To help these
    underperforming schools rise to higher standards, the Administration is
    committed to providing needed support, through programs such as:
       21st Century Community Learning Centers, first funded in 1997
              and expanded dramatically since 1998, the ``after-school''
              program of grants to public schools and community-based
              organizations to establish and expand extended learning time
              opportunities;
       the Reading Excellence Act, enacted in 1998, to provide
              resources to high-poverty schools to help ensure that all
              children can read well and independently by the end of third
              grade;
       the Class Size Reduction program, enacted in 1998, to hire
              qualified teachers and to reduce the number of students per
              classroom in the early grades, which, studies show, can lead
              to improved student achievement; and,
       the Technology Literacy Challenge Fund, first funded in 1997,
              offering grants to provide computers, software, and Internet
              access to schools and technology-related professional
              development.
      The Administration is committed to making a postsecondary education
    both attainable and affordable for every American, from recent high
    school graduates and dropouts to adult learners and displaced workers.
    The President has proposed and supported programs that prepare students
    for postsecondary education and that help make college affordable. For
    example, in response to the President's initiative, Congress enacted and
    funded in 1999 the GEAR-UP program, which helps low-income students in
    middle and high school prepare for college. The Administration has also
    worked to increase the Pell Grant max

    [[Page 42]]

    imum award by 43 percent from 1993 to 2000, and proposes a $200 increase
    in 2001; established new tax credits for college costs; created the
    Direct Student Loan program to increase benefits to borrowers (including
    the option to repay the loan on an income contingent basis); and,
    proposed and saw enacted significantly lower interest rates for
    borrowers on student loans.
       In the past seven years, the Clinton Administration has significantly
    strengthened the Federal Government's commitment to education by
    increasing by nearly $12 billion, or 50 percent, Federal discretionary
    funding for the Department of Education. The 2001 Budget builds upon
    these increases, continuing the President's education agenda with new
    and sustained efforts to close the gap in educational opportunity and
    offer the tools to help all Americans take part in the Nation's
    prosperity (see Table 1-1).
       The President's initiatives in K-12 education, most of which are in
    the Administration's proposal for the reauthorization of the Elementary
    and Secondary Education Act (ESEA), include: increasing accountability
    and fixing failing schools; improving teacher quality; acquiring better
    technology and preparing teachers to use it effectively; constructing
    and repairing schools; and, encouraging innovation and excellence. Other
    initiatives specifically target efforts toward improving the educational
    outcomes of Latino students and students from disadvantaged backgrounds,
    who face disproportionately high dropout rates and low enrollment trends
    in postsecondary schools, as part of the Administration's commitment to
    help all students acquire the education and skills critical to their
    success in the future. These initiatives are coupled with a significant
    expansion of Head Start and the creation of an Early Learning Fund to
    ensure pre-school aged children from low-income families have quality
    early learning experiences to prepare them effectively for school (see
    Chapter 2, ``Supporting Working Families'').
       In postsecondary education, the President's proposals maintain his
    focus on helping low-income students prepare for and pay for college and
    include a new tax program to help middle-income families afford higher
    education. In workforce development, the President proposes initiatives
    to advance opportunity by ensuring that all workers can find and hold
    good jobs with good wages, improve their skills, and work in safe and
    healthy environments.
      ----------------------------------------------------------------------

        TABLE 1-1.   THE BUDGET INCREASES RESOURCES FOR SELECTED EDUCATION AND TRAINING PROGRAMS BY $7.8 BILLION, OR 16 PERCENT OVER 2000, AND BY A TOTAL
                                                                INCREASE OVER 1993 OF 122 PERCENT
                                                                  (Dollar amounts in millions)
    --------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                            Dollar   Percent
                                                                                                                 1993     2000     2001    Change:   Change:
                                                                                                                Actual  Enacted  Proposed  2000 to   1993 to
                                                                                                                                             2001     2001
    --------------------------------------------------------------------------------------------------------------------------------------------------------
    TAX EXPENDITURES:
       Hope Scholarships Credit..............................................................................  .......    4,925     5,125     +200        NA
       Lifetime Learning Credit/College Opportunity Tax Cut..................................................  .......    2,375     2,815     +440        NA
       Student Loan Interest Deduction.......................................................................  .......      265       333      +68        NA
       School Construction...................................................................................  .......  .......        36      +36        NA
                                                                                                              ----------------------------------------------
       Total, Tax Expenditures...............................................................................  .......    7,565     8,309     +744        NA

    MANDATORY OUTLAYS:
       Welfare-to-Work Grants................................................................................  .......      860       920      +60        NA
       Early Learning Fund (see Chapter 4)...................................................................  .......  .......       402     +402        NA

    DISCRETIONARY PROGRAM LEVELS:
       Preschool: Head Start (see Chapter 4).................................................................    2,776    5,267     6,267   +1,000     +126%
       Elementary and Secondary Education:
         School renovation loans and grants..................................................................  .......  .......     1,300   +1,300        NA
         Education Technology................................................................................       23      769       903     +134   +3,826%
         Class Size Reduction................................................................................  .......    1,300     1,750     +450        NA
         Title I--Education for the Disadvantaged/Accountability.............................................    6,709    8,701     9,150     +449      +36%
         21st Century Community Learning Centers.............................................................  .......      453     1,000     +547        NA
         Teacher Recruitment and Training....................................................................      435      793     1,000     +207     +130%
         Bilingual and Immigrant Education...................................................................      237      406       460      +54      +94%
         Safe and Drug-Free Schools and Communities..........................................................      598      600       650      +50       +9%
         Charter Schools.....................................................................................  .......      145       175      +30        NA
         Indian Education....................................................................................       81       77       116      +39      +43%
         Special Education...................................................................................    2,966    6,036     6,369     +333     +115%
         High School Reform/Small Schools....................................................................  .......       45       120      +75        NA
       Postsecondary Education:
         Pell Grants.........................................................................................    6,462    7,640     8,356     +716      +29%
         Pell Grant maximum award (non-add, in dollars)......................................................    2,300    3,300     3,500     +200      +52%
         Federal Work-Study..................................................................................      617      934     1,011      +77      +64%
         Supplemental Educational Opportunity Grants.........................................................      583      631       691      +60      +19%
         GEAR-UP.............................................................................................       NA      200       325     +125        NA
         TRIO................................................................................................      388      645       725      +80      +87%
      Workforce Development:
         Dislocated Worker Assistance........................................................................      517    1,589     1,771     +181     +243%
         Fathers Work/Families Win...........................................................................  .......  .......       255     +255        NA
         Responsible Reintegration for Young Offenders.......................................................  .......  .......        75      +75        NA
         Youth Opportunity Grants............................................................................  .......      250       375     +125        NA
         Job Corps...........................................................................................      966    1,358     1,393      +35      +44%
         Adult Education.....................................................................................      305      470       556      +86      +82%
         Vocational Rehabilitation State Grants..............................................................    1,880    2,339     2,400      +61      +28%
                                                                                                              ----------------------------------------------
       Total, Discretionary Program Levels...................................................................   25,543   40,648    47,192   +6,544      +85%

    TOTAL RESOURCES FOR SELECTED PROGRAMS (tax expenditures, mandatory outlays, and discretionary program       25,543   49,073    56,823   +7,750     +122%
     levels).................................................................................................
    --------------------------------------------------------------------------------------------------------------------------------------------------------
    STUDENT LOANS (face value of loans issued):
      Direct Loans...........................................................................................  .......   10,605    11,211     +606        NA
      Guaranteed Loans.......................................................................................   15,993   20,959    22,157   +1,198     +139%
      Consolidated Loans.....................................................................................    1,487    8,831     9,148     +317     +615%
                                                                                                              ----------------------------------------------
         Total, Student Loans................................................................................   17,480   40,395    42,516   +2,121     +243%
    --------------------------------------------------------------------------------------------------------------------------------------------------------
    DEPARTMENT OF EDUCATION:
      Discretionary Program Level............................................................................   23,851   35,605    40,088   +4,483      +68%

    DEPARTMENT OF LABOR:
       Discretionary Budget Authority........................................................................    9,920   11,224    12,263   +1,039      +24%
    --------------------------------------------------------------------------------------------------------------------------------------------------------
    NA = Not applicable.

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

                       ELEMENTARY AND SECONDARY EDUCATION

    Ensuring Accountability and Fixing Failing Schools

       The cornerstone principle of the Administration's education
    initiatives since 1993 has been to give States and districts increased
    flexibility to coordinate and combine program activities in exchange for
    greater accountability for school and student performance. Today, all 50
    States and many school districts have begun to put in place
    accountability systems that identify schools in which students are not
    meeting challenging State academic standards and establish consequences,
    holding schools accountable for improving their performance.
       These reforms--integrating established academic standards, tests to
    reflect these standards, teacher training, and consequences for failing
    to meet standards--are beginning to show results, as measured by
    improved student test scores and other factors. But while the
    achievement of even the most disadvantaged students is improving, the
    learning gap between the less and the more fortunate is closing at too
    slow a pace. We cannot afford to leave any child behind. Nationwide,
    there are currently about 8,000 schools in dire need of improvement, in
    which a majority of students struggle to achieve to high academic
    standards. The Administration's budget proposes a package of programs
    that will help turn around failing schools and ensure that all students
    have the opportunities to succeed academically.

       Title I Accountability Fund: It is essential that States and
    localities identify and turn around schools that are not helping
    children reach rigorous academic standards. The budget provides $250
    million in the Title I (Education for the Disadvantaged) program to help
    States hold districts and schools accountable for raising student
    achievement. States will use funds

    [[Page 44]]

    to fix their lowest-performing schools through a variety of approaches,
    including bringing in new curriculum, management, or teachers. Funds
    will also be used to provide public school choice options to students in
    failing schools. In total, the budget includes $8.36 billion for Title I
    grants to support the Administration's ESEA reauthorization proposal to
    help students in low-income schools meet high academic standards.
       Small, Safe, and Successful High Schools: Research confirms what many
    parents intuitively believe: that smaller schools are safer and more
    productive because students feel they are in a community more connected
    to caring adults, and teachers feel that they have more opportunity to
    get to know and support their students. Smaller schools also have better
    attendance records, lower dropout rates, and fewer discipline problems.
    The Administration proposes $120 million for a high school reform
    initiative, an expansion of the Small Schools program funded in 2000 at
    $45 million, to create smaller and safer learning environments in which
    all students can achieve to higher academic standards. The program will
    offer competitive grants to school districts to create smaller schools
    or to break up larger schools by funding innovative strategies such as
    autonomous schools-within-schools, career academies, restructured school
    days, and other reforms to ensure that every student receives personal
    attention and academic support.
       Rewards for High Performance and Closing the Achievement Gap: The
    budget includes a $50 million initiative to build on the President's
    Elementary and Secondary Education Act reauthorization proposal and
    reward States that make significant statewide progress in improving
    student performance and closing the achievement gap between different
    demographic groups of students. States would be eligible for high
    performance bonuses based on substantial overall improvements in student
    performance tests and significant narrowing of the achievement gap as
    indicated by the National Assessment of Educational Progress. States
    receiving the bonuses could use the funds for educational purposes
    allowed under the Elementary and Secondary Education Act but not to
    supplant current efforts.
       Class Size Reduction: The budget provides $1.75 billion, $450 million
    over 2000, for the third installment of the President's initiative that
    began in 1999 to reduce class size in the primary grades. Research
    suggests that children, particularly those from disadvantaged
    backgrounds, benefit from the additional attention they receive in small
    classes. The program's goal is to hire 100,000 qualified teachers by
    2005, and reduce class size in the early grades to an average of 18
    students. The budget increase will support an expansion that attains
    almost half of the 100,000 goal. Every State and nearly all school
    districts participate in the program. In schools that received funds
    under this program, primary grades have been reduced by an average of
    five students per classroom. In addition, to improve the conditions and
    students' ability to learn while at school, the budget supports new tax
    incentives and spending to construct, repair, and improve classrooms and
    schools. (For more information, see the discussion under ``Acquiring
    Better Technology and Constructing and Repairing Schools,'' later in
    this chapter.)
      21st Century Community Learning Centers: The budget includes $1
    billion, more than double the 2000 level, for the ``after-school''
    program of grants to public schools and community-based organizations to
    establish or expand after-school and other extended learning time
    opportunities. These centers are part of a comprehensive approach to fix
    failing schools by providing low-achieving students the extra help they
    need to meet challenging academic standards. From a $1 million
    demonstration program in 1997, this program grew to $453 million in
    2000, serving over 850,000 students. The budget expands this program
    dramatically to provide more high quality extended learning
    opportunities for all children and to make after- or summer-school
    programs universally available to help turn around all Title I schools
    identified as low-performing.
      Special Education: The budget includes $6.4 billion for Special
    Education, an increase of $333 million, to expand on the President's
    commitment to improving educational results for children with
    disabilities. Included in this total is an additional $290 million for
    grants to States to help ensure that all students with disabilities
    receive a free appropriate public education, and a $9 million increase
    for grants

    [[Page 45]]

    to infants and families to provide essential intervention services to
    children with disabilities as early as possible. The budget also
    includes $8 million for States to help schools comply with special
    education laws and correct deficiencies found through Federal and State
    monitoring, and $10 million to help schools implement research-based
    practices to serve young children with disabilities who have reading
    problems and/or exhibit behaviors that may lead to discipline problems
    as they get older.

    Enhancing Teacher Quality

       Because trained and skilled classroom teachers are essential to a
    child's success in school, high-quality professional development is
    crucial to improving public schools. In the next decade, 2.2 million new
    teachers will be needed to fill the shortage created by teacher
    retirement and population growth, with high-poverty schools facing the
    greatest shortages. In the budget, the President builds on his
    commitment to teacher recruitment and training programs to ensure
    schools have the highly qualified teachers needed to improve student
    performance.

       Title II: Teacher Quality and Recruitment: The budget requests $1
    billion for the new Title II program, a component of the
    Administration's Elementary and Secondary Education Act (ESEA)
    reauthorization proposal, that consolidates the Goals 2000 and
    Eisenhower Professional Development programs. The State grant program
    will assist States and districts in coordinating and developing
    sustained, content rich teacher professional development with
    challenging standards. The budget also proposes several new initiatives
    under Title II to address the most pressing teacher quality needs.
       Hometown teachers: In order to increase the number of skilled
              teachers serving high-poverty school districts, the budget
              proposes $75 million in competitive grants. These grants would
              fund comprehensive teacher recruitment strategies that
              incorporate both long-term, pipeline-style programs as well as
              short-term strategies. Hometown Teachers would encourage
              districts to create programs to cultivate students' interest
              in teaching beginning as early as middle school.
       Early childhood educator professional development: Research
              has demonstrated that effective early childhood education
              programs can help eliminate reading problems, as well as
              improve cognitive and social competence. The budget provides
              $30 million to offer competitive grants to partnerships,
              including school districts, institutions of higher education,
              Head Start programs, and child care programs. Approximately
              15,000 early childhood educators would receive training in
              literacy development, English language instruction, and
              instructional methods for students with disabilities.
       School leadership: The budget includes $40 million for
              competitive grants to non-profit, public-private partnerships
              to develop State and regional School Leadership Centers for
              principals, superintendents, and other school leaders. These
              training centers will help school leaders develop critical
              skills to improve school performance and will help attract
              qualified candidates into school leadership positions.
       Transition to Teaching: Troops to Teachers: The budget
              proposes $25 million to build on the Troops to Teachers
              program in high need areas to recruit and train retiring
              military personnel and other mid-career professionals to serve
              as new teachers in public schools.
       Teacher quality incentives: This $50 million initiative would
              reward districts for making exceptional progress toward
              teacher quality improvement goals set forth in the
              Administration's Elementary and Secondary Education Act
              reauthorization bill, such as increasing certification rates
              and the percentage of teachers working in-field.
       Higher standards and higher pay for teachers: The budget
              includes a $50 million teacher peer review initiative to
              encourage school districts to pay teachers more and increase
              the quality of their teaching force. Peer review programs, by
              which expert teachers evaluate other

    [[Page 46]]

              teachers and help them improve, have proven to help improve
              teacher quality by rewarding excellence, helping low-
              performing teachers become more effective, and when necessary,
              removing low-quality teachers from the classroom.

       Preparing Tomorrow's Teachers to Use Technology: While many schools
    have access to technology, some teachers are not prepared to use this
    technology effectively. The budget includes $150 million, double the
    2000 level, to provide pre-service teacher training for 400,000 teachers
    in technology so that teachers can help students make the most of tools
    that are critical to their education and their future.
       Teacher Quality Enhancement: The budget provides $98 million for the
    Teacher Quality Enhancement Grants program. Created in 1999, this
    program supports: State grants to improve teacher licensing and
    certification; partnerships of exemplary teaching colleges and
    universities with urban and rural schools; and recruitment grants,
    including scholarships, to help attract teachers to high priority areas.
      Teachers Serving Special Populations: To meet professional development
    needs of teachers serving populations with special needs, the budget
    proposes $100 million for Bilingual Education Professional Development,
    $116 million for Special Education professional development, $10 million
    for the American Indian Teacher Corps, and $5 million to create a new
    American Indian Administrator Corps.

     Acquiring Better Technology and Constructing and Repairing Schools

       Many of the Nation's schools need to be brought into the 21st
    Century, both by equipping them with new and modern technology, and by
    making essential repairs to fix the inevitable problems in aging and
    neglected buildings.
       The Administration's commitment to educational technology has greatly
    increased the percentage of schools connected to the Internet. Since
    1993, the number has almost tripled so that nearly 90 percent of the
    Nation's schools are connected; however, some high-poverty schools still
    lack Internet access.
       At the same time, about one-third of our Nation's schools have
    critical renovation needs, including repairs to roofs, climate control
    systems, and plumbing. School districts also face the cost of upgrading
    schools to accommodate computers and modern technology, and of
    constructing new classrooms and schools to meet expected record
    enrollments over the next decade.
       The budget proposes a set of new initiatives and program increases to
    help States and school districts meet the need for better technology and
    adequate learning facilities. These will complement existing activities
    put in place under this Administration, including the E-rate established
    by the Telecommunications Act of 1996 to provide discounts to schools
    and libraries for high-speed Internet access, internal wiring, and
    telecommunications services, and Qualified Zone Academy Bonds, which
    encourage investors to make school modernization capital available to
    certain communities in need.

       School Construction and Modernization Bonds: The President's budget
    reaffirms his support for creation of a new tax incentive that would
    support $22.4 billion in new bonds for school modernization, and $2.4
    billion in additional Qualified Zone Academy Bonds.
       Urgent School Renovation: To ensure that the school districts with
    great need have access to low-cost financing for essential repairs, the
    budget requests $1.3 billion for a new school renovation program that
    would provide loans and grants to school districts. Within this total,
    $50 million in grants will be directed to schools with high
    concentrations of Native American students.
       Community Technology Centers: As part of a broad initiative to
    address the ``digital divide'' between wealthy communities where access
    to technology is common and poorer communities that lack such access,
    the budget requests $100 million for Community Technology Centers, an
    increase of $68 million over 2000 (see Chapter 7, ``Strengthening the
    American Community''). Grants will help low-income communities establish
    computer centers available to those who cannot afford home computers.
    Begun in 1999, this program supports activities including technology-
    based adult education, after-school activities, literacy

    [[Page 47]]

    training, and ESL instruction in community centers. The budget level
    would provide support to approximately 1,000 centers in low-income
    communities.
      Technology Literacy Challenge Fund: Enacted in 1997, this program
    offers grants to States to fund technology-related professional
    development, provide multimedia computers to schools, and provide
    software and Internet access to students. The budget requests $450
    million, an increase of $25 million over 2000.
       Next Generation Technology Innovation: The budget requests $170
    million for Next Generation Technology Innovation, which consolidates
    the Technology Innovation Challenge Grants and Star Schools programs, to
    support technological innovation for education. Included in this program
    is funding to develop and field-test state-of-the-art education
    technology applications and $10 million for a new initiative to support
    development of challenging courses such as AP courses and ESL courses
    for use online.

    Other Programs Supporting Innovation and Excellence

       Throughout his Administration, President Clinton has aimed to ensure
    that every child is provided with the highest quality education and
    challenged to achieve to his or her full potential. The President
    continues that commitment with several important investments for 2001.

       Public School Choice: The Administration supports expanding public
    school choice through charter schools and other public school options.
    These efforts strengthen the public education system by giving it the
    support it needs to fulfill its mission of providing equal educational
    opportunities for all while providing children a choice of schools to
    best meet their needs.
       When the President first took office, there was but one charter
    school in the Nation, and citizens who wanted to create new charter
    schools faced considerable financial barriers. First funded in 1995, the
    Public Charter Schools program addresses this problem by providing
    startup funding. The budget includes $175 million for this program, an
    increase of $30 million, to support the start-up of 1,700 charter
    schools in 2001. By 2001, this program will have helped nearly 2,400
    charter schools since its inception, supporting the President's goal of
    creating 3,000 charter schools by 2002. The budget also includes $20
    million for Opportunities to Improve Our Nation's Schools (OPTIONS), a
    new ESEA initiative that will spur further innovation by supporting new
    approaches, such as locating public schools at work sites and college
    campuses and interdistrict choice programs.

       Safe and Drug-Free Schools and Communities: In 1999, as part of the
    Government-wide Safe Schools/Healthy Students initiative, 54 communities
    received over $100 million in competitive grants from the Departments of
    Education, Health and Human Services, and Justice to implement
    comprehensive, research-based, drug and violence prevention programs. In
    2001, these agencies will combine resources with the Department of Labor
    and expand Safe Schools/Healthy Students to nearly $250 million, vastly
    increasing funding for community-wide interventions that address
    education, mental health, juvenile justice, and public safety, and
    expanding services to include out-of-school youth. The budget also
    includes $10 million for a new activity, Project SERV (School Emergency
    Response to Violence), to help schools and communities address violent
    deaths or other crises.
       Safe Schools/Healthy Students and Project SERV represent just a
    sampling of the Administration's broad efforts to address youth
    violence. The budget includes roughly $8.9 billion, an increase of more
    than $900 million over the 2000 level, for programs that specifically
    target youth violence or generally support the healthy development of
    young people. Other notable initiatives include: $1 billion in the
    Department of Education for after-school and summer-school programs; $75
    million in the Department of Labor to reintegrate young offenders into
    society; and, $70 million in the Department of the Treasury to expand
    efforts to crack down against those supplying guns to youths. To
    coordinate youth violence prevention programs across the Federal
    Government, President Clinton established a White House Council on Youth
    Violence, which will also seek to make these programs

    [[Page 48]]

    more accessible to American families and examine best practices in
    addressing the problem.

       America Reads/Reading Excellence Act: In response to the President's
    America Reads Challenge, the Reading Excellence Act was enacted in 1998
    to provide resources to high poverty schools to help ensure that all
    children can read well and independently by the end of third grade. The
    budget requests $286 million for this program, an increase of $26
    million, to support literacy services to an estimated 1.1 million
    students.
       Arts in Education: The budget doubles funding for this program to $23
    million, including $11.5 million in new funds to supplement teaching
    resources, integrate arts into the regular curriculum, and provide
    intensive professional development to teachers. The Department of
    Education and the National Endowment for the Arts will continue and
    expand upon the collaboration formed in 2000 to make competitive grants
    to local arts education programs and undertake additional activities to
    address issues of youth at risk.
       Indian Education: The budget includes $116 million for the Indian
    Education program, an increase of $39 million over 2000. This total
    includes $93 million to the Grants to Local Educational Agencies
    program, an increase of $31 million, to address significant growth in
    the Indian student population and ensure that Indian students have the
    resources to succeed academically. The budget also includes $50 million
    for the urgent school renovation program in public schools with high
    concentrations of Native American students, as part of the
    Administration's $1.3 billion urgent school renovation initiative. The
    budget includes $300 million ($167 million over 2000 enacted) for the
    Bureau of Indian Affairs to fund the replacement of at least six
    elementary and secondary schools and for numerous repair, improvement,
    and maintenance projects.

    Improving Educational Outcomes for Hispanic-Americans

       Raising the educational achievement of Latino students continues as a
    high priority. The high school dropout rate for Latinos is very high: in
    1996, 29 percent of Latinos aged 16 to 24 were high school dropouts,
    compared to seven percent of non-Hispanic whites and 13 percent of non-
    Hispanic blacks. About 32 percent, or 3.6 million, of the students
    served by Title I are Latino. Latinos are the fastest growing segment of
    our Nation's population.
       For the third year in a row, the budget targets new funding to
    programs that are part of the Administration's Hispanic Education Action
    Plan. The budget proposes $823 million in funding increases, including:
       $416 million for Title I Grants to Local Educational
              Agencies;
       $85.5 million for Adult Education, of which $75 million is
              for the President's English as a Second Language (ESL)/Civics.
              Civics initiative to help recent immigrants learn English,
              fully navigate public institutions, and be involved in their
              communities;
       $125 million for GEAR-UP;
       $80 million for TRIO;
       $25 million for Title I Migrant Education;
       $48 million for Bilingual Education;
       $20 million for Hispanic Serving Institutions;
       $5 million for the Labor Department's Migrant and Seasonal
              Farmworker Youth Opportunities Program;
       $10 million for research on the education of language
              minority children; and,
       $8 million for the High School Equivalency Program and
              College Assistance Migrant Program.

                             POSTSECONDARY EDUCATION

    Preparing for College

       As our economy depends increasingly on workers with analytical and
    reasoning skills, access to a quality education beyond high school
    becomes even more important to maintaining and increasing income,
    productivity, and the Nation's competitiveness. The opportunity to
    attend college is also crucial in encouraging hardworking families and
    low-income children to aspire to improve their

    [[Page 49]]

    lives through education. This budget provides significant increases to
    student financial assistance programs to help low- and middle-income
    students pay for college; however, not all of the barriers to college
    are financial. Too many young people reach college age without the
    skills, knowledge, and preparation they need to apply for, enroll in,
    and succeed in college. The Administration is committed to making a
    postsecondary education both attainable and affordable for every
    American, from recent high school graduates and dropouts to adult
    learners and displaced workers.

       GEAR-UP: The budget provides $325 million, an increase of $125
    million, for the early intervention program first funded in 1999 that is
    based on an initiative proposed by the President. This program provides
    funds for States and local partnerships to help low-income students
    prepare for college, starting in the 7th grade. In 2001, 1.4 million
    students would receive services, 644,000 more than in 2000.
       TRIO: The budget includes $725 million, an increase of $80 million,
    for TRIO programs, which fund postsecondary education outreach and
    support services to prepare disadvantaged students to enter and complete
    college and doctoral study. Nearly half of the increase would be
    dedicated to strengthening the Student Support Services (SSS) program,
    while another $35 million would establish a new College Completion
    Challenge Grant (CCCG) component within SSS. Under CCCG, competitive
    grants to institutions of higher education would support grant aid and
    summer orientation programs for low-income students in their first years
    of college, with the goal of increasing college completion rates.
       SAT/ACT Preparation: The budget provides $10 million in competitive
    grants to create partnerships to offer test preparation services to low-
    income students preparing for the SAT and ACT college admissions tests.
    Grantees would offer rigorous and sustained preparation based on program
    curriculum.
       Minority-Serving Institutions Dual-Degree Program: The budget
    provides $40 million for a new program to promote dual-degree programs
    between minority-serving institutions--including Historically Black
    Colleges and Universities, Hispanic Serving Institutions, Tribal
    Colleges and Universities, and Alaska Native and Native Hawaiian Serving
    Institutions--and partner institutions such as major research
    universities. The program would allow students at minority-serving
    institutions to earn two degrees in five years: one from their home
    institution, and the other from a partner institution in a subject area
    that is not offered by the home institution and in which minorities are
    traditionally underrepresented. The program will increase academic
    opportunities for students at minority-serving institutions, improve
    their postgraduate access, and promote their workforce participation in
    fields in which minorities are underrepresented.

    Paying for College

       The economic returns to a college education have never been higher.
    But at a time when the dividends of a college education make college
    essential, the cost of education has been rising dramatically. In
    addition to helping every child prepare for college, this budget
    maintains the Administration's commitment to ensuring financial access
    to higher education by requesting significant increases for core student
    aid programs and providing tax incentives to make higher education more
    affordable.

       Tax Incentives: The Taxpayer Relief Act of 1997 included the
    President's Hope Scholarship and Lifetime Learning tax credits, the
    largest investment in higher education since the G.I. Bill, to help make
    college more affordable for about 13 million Americans. Hope
    Scholarships provide tax credits of up to $1,500 for tuition and fees
    during the first two years of postsecondary training. Under the Lifetime
    Learning tax credits, students beyond the first two years of college, or
    those taking classes part-time to improve or upgrade their job skills,
    receive up to a 20 percent tax credit for the first $5,000 of tuition
    and fees each year through 2002, and for the first $10,000 thereafter.
      The budget expands the Lifetime Learning Tax Credit with a 10-year,
    $30 billion College Opportunity tax cut that will, when fully phased in,
    provide up to $2,800 in tax relief for millions of families struggling
    to pay for college. The President's proposal would give families the
    option of taking a tax

    [[Page 50]]

    deduction or claiming a 28 percent credit for tuition and fees to pay
    for college and other higher education. The proposal would cover up to
    $5,000 of educational expenses in 2001 and 2002 and $10,000 of
    educational expenses from 2003 forward.
      In addition, the budget provides tax-free treatment for employer-
    provided graduate education and increases deductibility of student loan
    interest.

       Pell Grants: The President proposes to increase the maximum Pell
    Grant by $200 to $3,500. Nearly four million needy undergraduates will
    receive Pell Grants in 2001. 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. Under President Clinton's
    leadership, the maximum award increased $1,000, or 43 percent, by 2000.
    With the 2001 request, the Pell maximum award will have increased by 52
    percent during this Administration.
       Work-Study: The budget provides $1.011 billion for Work-Study, an
    increase of $77 million over 2000, to maintain the President's promise
    to give one million students the opportunity to work their way through
    college. Funding for Work-Study increased 51 percent from 1993 to 2000;
    this request would bring the increase since 1993 to 64 percent.
       Supplemental Educational Opportunity Grants: The budget requests a
    total of $691 million, $60 million over 2000, for Supplemental
    Educational Opportunity Grants to provide more low-income undergraduate
    students with need-based grant aid.
       Federal Student Loan Programs: An estimated 6.5 million people will
    borrow almost $43 billion through the Federal student loan programs in
    2001. In the Higher Education Amendments of 1998, the President's
    proposal to significantly lower interest rates for borrowers on student
    loans was adopted, easing the burden of repayment for borrowers. The
    budget also proposes net savings of $3.8 billion over five years from
    reforms to the guaranteed loan system.
       D.C. College Access: In response to the President's 2000 proposal,
    Congress approved a $17 million initiative to equalize postsecondary
    education opportunities for residents of the District of Columbia by
    providing tuition benefits to D.C. residents attending public colleges
    in Maryland, Virginia, and other States under certain circumstances, and
    private colleges in the D.C. area. The budget requests $17 million for
    D.C. College Access in 2001.

                              WORKFORCE DEVELOPMENT

      Building on accomplishments made since 1993, the Administration seeks
    to advance opportunity by ensuring that all workers have the opportunity
    to find and hold secure jobs with good wages, improve their skills, and
    work in safe and healthful places.

    Promoting the New Opportunity Agenda for America's Workforce

      Committed to ensuring that America's workforce has the education and
    training necessary to compete in the 21st Century, the Administration
    has been working to reform the Nation's workforce development system and
    increase education, training, and job skills development. Specifically,
    this Administration has accomplished the following:
       In 1998, the President signed the bipartisan Workforce
              Investment Act (WIA)--reforming America's job training system
              to empower individuals, streamline services through One Stop
              Career Centers, enhance accountability, and increase
              flexibility.
       Tripled funding for dislocated workers--more than tripling
              program enrollment as part of a universal program that will
              help every displaced worker who wants and needs training or
              reemployment services.
       Increased the number of Job Corps centers from 109 to 122,
              increasing year-round training opportunities by over 10
              percent.
       Developed and authorized the Youth Opportunity Grants
              program.
       Signed the historic Ticket to Work and Work Incentives
              Improvement Act of 1999 that removes barriers to work for
              people with disabilities.

    [[Page 51]]

      Increasing Opportunities for Youth: The budget provides enhanced
    support to help low-income, at-risk youth prepare for college and
    careers.
      Youth Opportunity Grants: Youth Opportunity Grants address the special
    problems of out-of-school youth, especially in inner cities and other
    areas with high jobless rates. This program is consistent with the
    Administration's New Markets Initiative to provide resources to
    communities with potential. The budget includes $375 million for Youth
    Opportunity Grants to fund the third year of competitive grants to 25 to
    30 high-poverty areas and the first year of competitive grants to 12 to
    15 additional communities. Included in this funding is $20 million for
    Rewarding Achievement in Youth, a program that provides comprehensive
    employment training, counseling and education services to over 9,000
    academically high-achieving, low-income youth. The program encourages
    school completion by providing students who excel academically with
    extended summer employment opportunities.
      Job Corps: The Job Corps provides intensive vocational skills
    training, integrated with academic and social education, and support
    services to severely disadvantaged young people in a structured
    residential setting. The budget proposes $1.4 billion, a $35 million
    increase over the 2000 level.
      Youth Activity Formula Grants: The WIA consolidated the funding
    streams of DOL's year-round and summer jobs programs--providing
    increased flexibility to local Youth Councils and enabling them to
    develop pathways for career opportunities. Funded at $1 billion, $22
    million above the 2000 level, this program will continue to provide
    essential job and learning opportunities to roughly 612,000
    disadvantaged youth.
      Responsible Reintegration for Young Offenders: The budget includes $75
    million for a new DOL initiative to link offenders under age 35 with
    essential services that can help make the difference to their choices in
    the future, such as education, training, job placement, drug counseling,
    and mentoring. Through competitive grants, this program would establish
    partnerships between the criminal justice system and workforce
    investment systems created under the WIA to reintegrate offenders into
    the mainstream economy, complementing a similar program in the
    Department of Justice (DOJ) focused on community supervision of ex-
    offenders. To maximize the impact of these initiatives, the DOL and DOJ
    funds will be targeted to the same communities and populations served,
    while improving public safety. At the same time, DOJ also will earmark
    $5 million of its funds to focus on aftercare programs for juvenile
    offenders to build on existing collaborations between DOL and DOJ.

      Preparing Workers for the 21st Century: The budget provides resources
    to help workers succeed in a changing economy.
      Reemployment Services for All Who Need Them: In 2000, the President
    proposed a major initiative to help working and laid-off Americans get
    the information and training they need to succeed in a rapidly changing
    labor market. The 2001 Budget continues progress toward the goals of:
    providing all dislocated workers who need and want them with the
    resources to train for or find new jobs; expanding and improving the
    employment services available to all job seekers and enhancing them for
    individuals receiving unemployment compensation; and ensuring that One-
    Stop services are universally available, either in person or
    electronically. The budget includes increases totaling $285 million to
    build on last year's achievements toward the goal of a ``universal
    system.''
       Dislocated worker training: The budget proposes $1.8
              billion--an increase of $181 million and over three times the
              amount available when the President took office--to provide
              readjustment services, job search assistance, training, and
              related services to help dislocated workers find new jobs
              quickly. Among the workers assisted by the program, and the
              proposed increase, are those displaced by trade, technology,
              defense downsizing, and other causes.
      Reemployment services: The budget proposes $50 million to
              expand services to ensure that Unemployment Insurance
              beneficiaries receive help finding new jobs. Total funding for
              grants to the State Employment Service, operating within the

    [[Page 52]]

              One-Stop system recently expanded in the WIA, is $856 million.
       One-Stop Career Centers: The budget includes $174 million--an
              increase of $54 million--for new methods of providing
              employment and related information through America's Labor
              Market Information System, including America's Job Bank,
              America's Talent Bank, and America's Learning Exchange under
              the One-Stop system. Efforts to improve access to One-Stop
              information and services include mobile service centers for
              rural areas, a toll-free number for easier access to
              information on services and locations, and enhanced technology
              for serving individuals with disabilities. Included in the
              proposal is $10 million for the new America's Agricultural
              Labor Network, an information system that connects growers
              seeking workers with workers seeking employment. Also included
              is $20 million to help individuals with disabilities return to
              work (discussed later in this chapter).
      Incumbent Workers: To boost the skills and wages of the U.S.
    workforce, the budget includes $30 million for competitive grants to
    States to train and upgrade the skills of incumbent 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 participants' earnings.
      Trade Adjustment Assistance (TAA): The budget proposes to consolidate,
    reform, and extend the TAA and NAFTA-Transitional Adjustment Assistance
    (NAFTA-TAA) programs for workers who lose their jobs due to trade. The
    proposal would expand eligibility for TAA benefits to cover workers who
    lose jobs when plants or production shifts abroad; raise the statutory
    cap on training expenses; and add a contingency provision to ensure that
    the Federal Government has sufficient funds to finance any unexpected
    increase in benefit costs for eligible workers. The budget proposes to
    increase funding for the TAA programs by $31 million in 2001, for a
    total of $459 million over five years.
      Unemployment Insurance: These programs are the major source of
    temporary income support for laid-off workers. An estimated 7.8 million
    people will draw benefits in 2001. The Administration is working with
    the States, employers, and workers' representatives to reform these
    programs to ensure that they continue to meet the needs of a dynamic
    American economy. The Administration is committed to working with
    stakeholders and the Congress to develop a comprehensive legislative
    proposal of system reforms, developed with the overarching goal of
    budget neutrality and based on the following principles: expanding
    coverage and eligibility for benefits, streamlining filing and reducing
    tax burden where possible, emphasizing reemployment, combating fraud and
    abuse, and improving administration.
      Removal of Barriers to Employment: To advance the ability of all
    people to reap the benefits of a growing economy, the budget builds on
    recent successes in providing enhanced work incentives, while proposing
    innovative ways to tap our Nation's human resources.
      Assistance For Individuals to Move From Welfare to Work:  To help
    reach the Temporary Assistance for Needy Families program's employment
    goal for severely disadvantaged welfare recipients, the Administration
    sought, and Congress provided to DOL, a total of $3 billion in 1998 and
    1999 for the Welfare-to-Work program (WTW). The budget provides for a
    two-year extension of the time period WTW grantees have to spend their
    funds to continue their efforts and provide long-term recipients and
    non-custodial parents of children on welfare the work and employment
    services they need to help support their children. (For further
    discussion of the Administration's efforts to help low-income families,
    including the new Fathers Work/Families Win initiative, see Chapter 2,
    ``Supporting Working Families.'')
      Employment of Individuals with Disabilities: Although unemployment is
    at a 29-year low, the unemployment rate among working-age adults with
    disabilities remains unacceptably high. The budget builds on the
    Administration's commitment to ensuring that individuals with
    disabilities have full opportunity to participate in, contribute to, and
    reap the benefits of a growing economy. The budget accomplishes this by
    establishing a new office

    [[Page 53]]

    for disability policy within the Department of Labor; improving
    individuals with disabilities' access to employment and training
    programs; and, enhancing current programs for individuals with
    disabilities.
      Ticket to Work and Work Incentives Improvement Act: In 1999, the
    President signed the Ticket to Work and Work Incentives Improvement Act,
    landmark legislation that begins reducing the institutional barriers
    that have limited the employment opportunities of individuals with
    disabilities.
       Health insurance protections for working people with
              disabilities: People with disabilities who want to return to
              work may face the loss of Medicaid or Medicare coverage or
              incur prohibitive work-related costs, such as personal
              assistance and assistive technology. The Act seeks to remove
              these barriers by creating new options and incentives for
              States to offer a Medicaid buy-in for disabled workers and
              extending Medicare coverage for Disability Insurance
              beneficiaries who return to work.
       Ticket to Work and Self-Sufficiency: The Act establishes a
              new program to enhance employment-related services to help
              Disability Insurance and Supplemental Security Income disabled
              beneficiaries re-enter the workforce, giving individuals more
              choice in their selection of vocational rehabilitation service
              providers.
      Office on Disability Policy, Evaluation, and Technical Assistance: The
    budget reconstitutes the President's Committee on Employment of People
    with Disabilities as the Office on Disability Policy, Evaluation, and
    Technical Assistance (ODPET). Headed by an Assistant Secretary, this new
    office will bring a permanent focus to the significant employment
    obstacles faced by individuals with disabilities and provide a forum for
    addressing those obstacles. The Presidential Task Force on Employment of
    Adults with Disabilities will work with the ODPET to ensure interagency
    policy coordination.
      Assistive Technology: To help individuals with disabilities overcome
    obstacles to employment, the budget also provides $41 million for the
    Department of Education's Assistive Technology program to help make
    assistive technology devices and services available. Within this total
    is $15 million to help States establish low-interest loan programs to
    help individuals with disabilities purchase assistive technology. In
    addition, the budget includes $18 million in the National Institute of
    Disability and Rehabilitation Research and the National Science
    Foundation for research, demonstrations, and technical assistance on how
    to make technology more accessible. Lastly, to increase employment of
    people with disabilities in the Federal Government, the budget also
    includes $3.5 million for the General Services Administration to make
    assistive technology available to Federal employees.
      Work Incentive Grants: The budget continues competitive grants enacted
    in 2000 (totaling $20 million a year) to be awarded by DOL to
    partnerships of organizations in every State, including organizations of
    people with disabilities, to help One-Stop Career Centers and Workforce
    Investment Boards provide a range of high-quality services to people
    with disabilities working or returning to work.
      Limit on Medicare Coverage in the Ticket to Work and Work Incentives
    Improvement Act: In the compromise on the Act, its Medicare benefit was
    limited to an additional four and a half years. Because of this limit,
    the provision postpones rather than eliminates the disincentive to work
    since Medicare provides the necessary coverage that is often unavailable
    or unaffordable on the job. The budget proposes to remove this limit and
    extend Medicare coverage indefinitely.
      Tax Credit for Workers with Disabilities: The budget proposes a $1,000
    tax credit for workers with disabilities or their spouses to defray
    additional work-related costs such as personal assistance services.
      In addition, the budget continues to invest in other programs which
    help disabled individuals prepare for the workforce, including $6.4
    billion for Special Education programs, described earlier in this
    chapter, which serve individuals with disabilities up to age 21; and
    $2.8 billion for Vocational Rehabilitation. The budget also supports
    other important disability programs, including the Committee for
    Purchase From People Who are Blind

    [[Page 54]]

    or Severely Disabled, the National Technical Institute for the Deaf,
    Gallaudet University, and programs to encourage the development of
    technology that is accessible to people with disabilities.

      Improving Labor Standards for All Workers: In addition to expanding
    employment opportunities, the budget affirms the Administration's
    commitment to improving labor standards for all workers. Here at home,
    the Administration's commitment has helped to produce the lowest
    occupational fatality and injury and illness levels in the United States
    on record. Abroad, the Administration's commitment has made the United
    States a world leader in efforts to ensure that globalization helps to
    raise up labor conditions around the world.
      International Child Labor: In his 1999 Budget, the President proposed
    to increase the U.S.'s annual support for the International Labor
    Organization's International Program for the Elimination of Child Labor
    (IPEC) tenfold, resulting in a five-year investment of $150 million
    dollars. However, in order to respond to the need for IPEC's
    comprehensive strategies to eliminate abusive and exploitative child
    labor, this budget increases the U.S. annual contribution another 50
    percent to $45 million per year, enabling IPEC to expand its work to
    more countries and industries. In addition, the budget includes a new
    initiative designed to help eliminate child labor by expanding access to
    basic education. Evidence suggests that poor access to affordable,
    effective, basic education is a major contributor to child labor and
    that effective strategies to combat child labor include increasing
    access, lower costs, and improving the quality of basic education. The
    President's budget includes $55 million a year to help developing
    countries with high levels of abusive child labor to enroll and retain
    these children in basic education as part of a comprehensive strategy to
    eliminate child labor. The President also seeks to double, from $5
    million to $10 million, U.S. Customs resources to enforce the ban on the
    importation of goods made with forced or indentured child labor.
      Domestic Child Labor Activities: The budget continues $13 million for
    DOL, including $8 million to help eliminate violations of domestic child
    labor laws, particularly in the agriculture sector, and $5 million for
    demonstration programs to provide alternatives to field work for migrant
    youth. In addition, the budget includes $5 million for a new program in
    the Department of Agriculture to teach farm safety to children who work
    on farms, including migrant youth. The budget also proposes $2 million
    for DOL to implement targeted enforcement tools, including ``strike
    teams,'' in the agriculture and garment industries to increase
    compliance with labor standards, including child labor.
      International Labor Standards: The budget sustains $20 million for the
    International Labor Organization's (ILO's) multilateral technical
    assistance program to help developing countries implement ILO core labor
    standards and $20 million, an increase of $10 million, for DOL to help
    countries with which the U.S. has important bilateral relationships
    develop and administer labor standards and strengthen social safety net
    programs. The budget includes $10 million for a joint State Department,
    DOL, and Environmental Protection Agency initiative to improve our
    ability to assess the institutional capacity of developing countries to
    administer labor and environmental laws as part of an effort to improve
    the mobilization and targeting of U.S. and international technical
    assistance. In addition, the budget provides $10 million for a new
    Global HIV/AIDS Workplace Initiative targeted at providing multilateral
    assistance through the ILO to support health education and HIV
    prevention in the workplace. The budget also provides $7 million for
    State Department support of innovative partnerships aimed at eliminating
    sweatshops around the world. The budget also includes $1 million for an
    independent evaluation unit to ensure that the array of DOL programs
    aimed at promoting core labor standards, increasing global AIDS
    awareness, and eliminating the worst forms of child labor achieve their
    intended results.

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      Workplace Safety and Health: The budget includes approximately $670
    million to promote safe and healthful conditions for over 100 million
    workers through DOL's Occupational Safety and Health Administration and
    Mine Safety and Health Administration. Through a combination of targeted
    enforcement, compliance assistance, and regulatory approaches, these
    agencies protect workers from illness, injury, and death caused by
    occupational exposure to hazardous substances and conditions.