[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]


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        20.  EDUCATION, TRAINING, EMPLOYMENT, AND SOCIAL SERVICES

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        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.


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   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.


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   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

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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

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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

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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

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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.
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