[Economic Outlook, Highlights from FY 1994 to FY 2001, FY 2002 Baseline Projections]
[III. Major Functions of the Federal Government]
[11.  Education, Training, Employment, and Social Services]
[From the U.S. Government Printing Office, www.gpo.gov]


[[Page 133]]

 
        11.  EDUCATION, TRAINING, EMPLOYMENT, AND SOCIAL SERVICES

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

        Table 11-1.  Federal Resources in Support of Education, Training, Employment, and Social Services
                                          (Dollar amounts in millions)
----------------------------------------------------------------------------------------------------------------
                                                                                                        Percent
                                Function 500                                     1993        2001       Change:
                                                                                Actual     Estimate    1993-2001
----------------------------------------------------------------------------------------------------------------
Spending:
  Discretionary budget authority............................................     38,192      61,121         60%
  Mandatory outlays.........................................................     13,548      10,737        -21%
Credit Activity:
   Direct loan disbursements................................................      2,701      19,060          NA
   Guaranteed loans.........................................................     14,751      28,238         91%
Tax expenditures............................................................     21,855      59,450        172%
----------------------------------------------------------------------------------------------------------------
NA = Not applicable.

  ----------------------------------------------------------------------
  President Clinton has made increased support for elementary and 
secondary education and expanded access to postsecondary training the 
hallmark of his Administration. The President's education strategy is 
simple and straightforward--we must invest more in our schools and 
demand more in return. Over the past eight years, Federal spending for 
all levels of education and training has increased dramatically, tax-
advantaged support for education has been expanded to reach more people, 
and access to student aid has been broadened while the cost of repaying 
loans has been reduced and made more flexible. Taken together, the 
improvements and expansions in the range of support for education and 
training is unprecedented, and has put postsecondary training within 
reach of almost anyone who wants it. In 2001, discretionary spending for 
education, training, and social services programs is $61 billion, 60 
percent above the level when the Clinton-Gore Administration took 
office, while direct loans have increased sevenfold, guaranteed loans 
have nearly doubled, and tax expenditures have more than doubled. (See 
Table 11-2.)
  ----------------------------------------------------------------------

     Table 11-2.  Selected Education, Training, and Related Programs
                        (In millions of dollars)
------------------------------------------------------------------------
                                         1993        2001       Change:
                                        Actual      Enacted    1993-2001
------------------------------------------------------------------------
TAX EXPENDITURES:
   Hope Scholarships Credit.........  ..........      4,480       4,480
   Lifetime Learning Credit.........  ..........      2,570       2,570
   Student Loan Interest Deduction..  ..........        370         370

DISCRETIONARY BUDGET AUTHORITY:
  Department of Education:..........
     Title I--Education for the           6,709       9,533       2,824
     Disadvantaged/Accountability...
    Eisenhower Teacher Quality and          275         567         292
     Professional Development.......
     Class Size Reduction...........  ..........      1,623       1,623
     21st Century Community Learning  ..........        846         846
     Centers........................
     School Renovation..............  ..........      1,200       1,200
     Special Education..............      2,966       7,440       4,474
     Education Technology...........         23         872         849
     Bilingual and Immigrant                237         460         223
     Education......................
     Charter Schools................  ..........        190         190
     Safe and Drug-Free Schools and         582         644          62
     Communities....................
     Adult Education................        305         561         256
     Pell Grants....................      6,372       8,756       2,384
     Pell Grant maximum award (in         2,300       3,750       1,450
     dollars).......................
     Federal Work-Study.............        617       1,011         394
     GEAR UP........................         NA         295         295
     TRIO...........................        388         730         342

Department of Labor:
   Youth Opportunity Grants.........  ..........        275         275
   Responsible Reintegration for      ..........         55          55
   Young Offenders..................
   Job Corps........................        966       1,400         434
   Dislocated Worker Assistance.....        651       1,590         939

Department of Health and Human
 Services:
   Head Start.......................      2,776       6,200       3,424
   Administration on Aging..........        839       1,103         264

National Service:
   Corporation for National and             284         767         483
   Community Service................

Cultural Agencies:
   Smithsonian Institution..........        344         455         111
  National Endowment for the Arts...        174         105         -69
  National Endowment for the                177         120         -57
   Humanities.......................

STUDENT LOANS (face value of loans
 issued):
  Direct Loans......................         NA      10,860      10,860
  Guaranteed Loans..................     15,993      23,903       7,910
  Consolidated Loans................      1,487      14,238      12,751
------------------------------------------------------------------------
NA = Not applicable.

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

                         DEPARTMENT OF EDUCATION

Elementary and Secondary Education

  Federal spending for elementary and secondary education addresses 
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; fund teacher 
and administrator training; help finance and encourage State, district, 
and school reforms; help reduce class sizes; and, support research and 
technical assistance. The Administration's long-term goal has been to 
help all children, especially low-income and minority children, raise 
their levels of achievement so that they can meet challenging academic 
standards.
  Through the Goals 2000: Educate America Act and Improving America's 
Schools Act (IASA), the Federal focus in K-12 education began to change 
in 1994 from supporting individual programs to emphasizing school-wide 
and school system reforms based on challenging academic standards for 
all

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students. These laws support State and local standards-based reform 
efforts, promote the use of technology in education to improve learning, 
and help upgrade the quality of teaching. This new approach to education 
helped free States and schools from unnecessary Federal process 
restrictions, providing greater flexibility while requiring more 
accountability for results. Early results show that the standards-based 
reform coupled with strong accountability is having a significant 
impact. For example, all but one State has content standards in at least 
reading and math, compared to only 14 States before Goals 2000 and IASA. 
And, in States that have fully implemented these types of reforms, 
student achievement is on the rise, particularly among poor and minority 
children.
  In addition to creating a new framework for reform through standards 
and accountability, this Administration launched several initiatives to 
ensure that all students have the opportunity to achieve to high 
standards.

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The Class Size Reduction, 21st Century Community Learning Centers, 
Reading Excellence, and technology initiatives all invested Federal 
dollars in effective approaches to improving achievement through 
smaller, more individualized classes, extra learning time, early 
literacy efforts, and educational technology so that students master the 
skills and material they need to succeed in school. In addition, the 
Administration initiated a School Renovation program to help local 
school districts make urgently-needed repairs to their classrooms and 
ensure that students have a safe place to learn.

  Title I Grants to Local Educational Agencies (Education for the 
Disadvantaged): Title I helps over 12 million disadvantaged students in 
46,000 high-poverty schools master the basics and achieve to the same 
high standards as other students. As a result of revisions that this 
Administration proposed for the program in 1994, Title I now holds 
disadvantaged students to high academic standards, requires that testing 
and teaching reflect those standards, and holds schools accountable for 
improvements. These are precisely the reforms that a 1998 RAND study of 
North Carolina and Texas credits with producing rapid achievement gains 
in those States and reversing decades of low expectations for 
disadvantaged students. Funded at $6.1 billion in 1993, Title I received 
a total of $8.6 billion in 2001, a 41-percent increase. In 2000, the 
Administration initiated the Title I Accountability Fund to help 
districts identify failing schools, intervene with proven strategies, 
and report on their results. The Fund provides $225 million in grants in 
2001.
  The reforms launched in 1994, coupled with the increased funding, have 
helped schools implement more effective programs. For example, 54 
percent of all Title I elementary schools now have after-school programs 
to extend learning time rather than taking students out of the regular 
classroom for assistance. In 1994, only nine percent of Title I 
elementary schools had before- or after-school programs. The most recent 
data available suggest progress among students most likely to be served 
by the Administration's Title I reforms, including:
   Reading and math scores for nine-year olds in our highest 
          poverty schools (75 percent or higher poverty) rose by nearly 
          a grade level between 1992 and 1996.
   Between 1994 and 1998, the lowest-achieving fourth-graders 
          showed substantial gains in reading, largely accounting for 
          the rise in the average reading score among all fourth-graders 
          nationally.

  Teacher Quality and Professional Development: Funding for the 
Eisenhower Professional Development State Grants, the largest Federal 
program dedicated to providing teacher training, has nearly doubled from 
$246 million when President Clinton took office to $485 million in 2001. 
This Administration has paired this investment in teacher quality with 
its leadership in promoting high-quality professional development that 
prepares teachers to meet the high academic standards adopted by nearly 
all States and districts. In addition, this Administration has supported 
innovative teacher recruitment and recognition strategies to improve 
public school education. In 1994, it created the Troops to Teachers 
program, which has proved successful in helping skilled and experienced 
military service members become teachers in high-poverty schools. This 
Administration also has strongly supported the National Board for 
Professional Teaching Standards, thus helping to raise the number of 
teachers meeting standards of national excellence from 282 in 1995 to 
9,498 in 2000.
  In addition, this Administration has taken the lead on extending 
teacher preparation to pre-school professionals by securing funding in 
2001 for the Early Childhood Educator Professional Development program. 
The 2001 enacted level also provides new funding for recruitment efforts 
to improve teacher quality by attracting recent college graduates with 
outstanding academic records to become fully qualified teachers through 
nontraditional routes.

  Class Size Reduction: In 1999, President Clinton launched an 
initiative to reduce class sizes in the early grades to an average of 18 
students by 2005. First funded at $1.2 billion, this initiative will 
help communities recruit, hire, and train 100,000 qualified teachers to 
provide more individualized attention in the grades when students are 
building their

[[Page 136]]

foundation for learning. Already, an estimated 29,000 teachers have been 
hired, and at the 2001 level of $1.6 billion, approximately 8,000 more 
teachers are being added. Research shows that students in smaller 
classes outperform their peers in larger classes, and that this is 
particularly true for minorities and students in inner-city schools. 
Initial reports for the Federal program are positive, including:
  In the grades and schools in which Class Size Reduction 
          teachers have been hired, districts report that class sizes 
          have dropped from an average of 23 to 18.
  Hiring 29,000 teachers has reduced class sizes for some 61,000 
          additional teachers and a total of 1.7 million students in 
          23,000 schools.
  Anecdotal reports from districts show improvements in student 
          achievement. For example, in Washington, D.C., participating 
          schools have increased the percentage of students reading 
          above the basic level.

  21st Century Community Learning Centers/After School Programs: 
Initiated as a $1 million demonstration program in 1995, 21st Century 
Community Learning Centers was expanded to be an $846 million initiative 
by this Administration in 2001 to help students have a safe, supervised 
place to continue learning before and after school and during the 
summer. The program provides grants to public schools, which generally 
partner with community-based organizations, to provide tutoring, 
homework assistance, enrichment opportunities, and recreational 
activities for children and adults in urban and rural communities. Many 
school districts make the program part of a comprehensive approach to 
turning around troubled schools by providing children the extra help 
they need to meet challenging academic standards. Extended learning time 
has not only been shown to increase achievement in reading and math, but 
to decrease youth violence and drug use. The 2001 level will support 
about 6,700 centers serving approximately 1.3 million children.
  Reading Excellence: A student's most basic skill to master is reading. 
Although reading problems can be particularly severe for disadvantaged 
students, students with reading difficulties represent a cross-section 
of American children. On the 1994 National Assessment of Educational 
Progress, 40 percent of fourth-graders failed to reach the ``basic'' 
reading level and only 30 percent attained the ``proficient'' level. In 
1997, this Administration 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--the Reading Excellence Act (REA)--that began funding 
State and local programs on July 1, 1999.
  REA supports competitive grants to high-poverty schools to improve the 
teaching and learning of reading. Seventeen States received three-year 
REA grants with 1999 funds, and 10 more received grants from 2000 funds. 
With the $286 million available for 2001, all the remaining States and 
territories are expected to receive grants, bringing the number of 
children served to 1.1 million.
  In response to the America Reads Challenge, more than 1,400 colleges 
have committed nearly 27,000 Federal Work-Study students to tutor 
children in reading. In addition, each college or university that 
participates in the Federal Work-Study program must include at least one 
tutoring or family literacy project as part of its community service 
activities, giving priority to the employment of work-study students as 
reading tutors in schools participating in reading reform efforts.

  School Renovation: About one-quarter of the Nation's school districts 
report that at least one building is in less than adequate condition, 
and one-fifth rate the condition of their life-safety features (e.g., 
fire alarms and sprinkler systems) as less than adequate. Based on 
President Clinton's proposal to provide funds to help local school 
districts make critical facilities repairs, the 2001 appropriation 
included authorization and funding for a new $1.2 billion program 
including funds for emergency repairs to schools. Projects may include 
fire and safety code repairs and repairs to roofs, plumbing, and 
electrical systems. The program includes a $25 million demonstration 
that will support innovative financing methods to help charter schools 
meet their facilities needs. Federal support for school construction

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is also provided through Qualified Zone Academy Bonds, which are 
discussed in the Tax Incentives paragraph of this section.
  Special Education: Under the Individuals with Disabilities Education 
Act (IDEA), the Education Department works with States to ensure that 
more than six million children with disabilities receive a ``free 
appropriate public education.'' During this Administration, Federal 
support for special education programs authorized under the IDEA 
increased by more than 150 percent, from nearly $3.0 billion in 1993 to 
$7.4 billion in 2001, and the Federal share of special education costs 
increased from eight percent to 15 percent.
  In 1997, the IDEA reauthorization focused attention not only on 
guaranteeing access to public schools, but also on ensuring that 
students with disabilities receive a high-quality education based on the 
same challenging standards as their nondisabled peers. 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. By July 
1, 2000, all States were required to include special education children 
in State and district-wide regular assessments or provide alternate 
assessments to measure educational performance. Based on the latest data 
available, during this Administration:
  The number and percentage of students with disabilities who 
          leave high school with a regular diploma has increased from 
          114,000, or 52 percent, of all students with disabilities in 
          1994, the earliest year comparable data are available, to 
          149,000, or 57 percent, in 1999.
  The percentage of students with disabilities who dropped out 
          of school decreased from 35 percent in 1994 to 29 percent in 
          1999.

  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 integrate technology effectively into their instruction. 
This Administration's investment in educational technology has grown 
from $23 million in 1993 to $872 million in 2001.
  The Administration was instrumental in creating the education rate (E-
rate) in the Telecommunications Act of 1996 to provide discounts for 
schools and libraries to purchase high-speed Internet access, internal 
wiring, and telecommunications services. Since the beginning of the 
program in 1998, E-rate commitments of $5.6 billion have helped 
dramatically increase the number of schools and individual classrooms 
connected to the Internet. In 1994, only 35 percent of all public 
schools and three percent of classrooms had a connection to the 
Internet, but by 1999, 95 percent of all public schools and 63 percent 
of public school classrooms were connected to the Internet.
  Not only did nearly all schools connect to the Internet during this 
Administration, but teachers were better prepared to take advantage of 
new technological tools in the classroom. In 1994, 51 percent of 
teachers had recently participated in professional development on the 
use of technology, as compared to 78 percent of teachers in 1998. 
Programs created during this Administration, like the Technology 
Literacy Challenge Fund and Preparing Tomorrow's Teachers to Use 
Technology, have expanded technology training opportunities for teachers 
to better prepare students for the new opportunities in the 21st 
Century.

  Hispanic Education Action Plan: To address the disproportionately low 
educational achievement and high dropout rates of Latino and limited 
English proficient (LEP) students, the Administration created the 
Hispanic Education Action Plan (HEAP). Since its inception in 1998, the 
HEAP initiative has aimed to increase funding levels for select programs 
that help Latino and LEP students improve their levels of academic 
achievement, high school graduation, postsecondary participation, and 
opportunities for lifelong learning. HEAP programs include Title I, 
Adult Education, Bilingual Education, and TRIO. The 2001 appropriation 
includes $1 billion in increases over the 2000 level for all HEAP 
programs. Overall funding for programs included in this initiative

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has increased by 25 percent since 1998. (See Table 11-3.)
  ----------------------------------------------------------------------

                               Table 11-3.  Hispanic Education Action Plan (HEAP)
                                   (Budget authority, in millions of dollars)
----------------------------------------------------------------------------------------------------------------
                                                                                      Enacted
                                   Program                                   ------------------------   Change:
                                                                                 1998        2001      1998-2001
----------------------------------------------------------------------------------------------------------------
State Agency Migrant Program................................................        305         380          75
High School Equivalency Program.............................................          8          20          12
College Assistance Migrant Program..........................................          2          10           8
Bilingual Education.........................................................        199         296          97
Adult Education.............................................................        361         561         200
Hispanic-serving Institutions...............................................         12          69          57
Federal TRIO Programs.......................................................        530         730         200
Migrant Youth Job Training Program (Labor)..................................         NA           5           5
Migrant and Seasonal Youth Opportunity (Labor)..............................         NA          12          12
GEAR UP.....................................................................         NA         295         295
Title I, Grants to local educational agencies...............................      7,375       8,602       1,226
                                                                             -----------------------------------
  Total, HEAP...............................................................      8,792      10,979      2,187
----------------------------------------------------------------------------------------------------------------
NA = Not applicable.

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

  Bilingual Education: The population of LEP students has grown 
dramatically over the last two decades. Between school years 1992-1993 
and 1996-1997, the LEP population in 10 States (Alabama, Alaska, 
Florida, Idaho, Nebraska, Nevada, North Carolina, Oregon, South 
Carolina, and Tennessee) grew by more than 50 percent. The Bilingual 
Education program provides funds to school districts to teach English to 
LEP students and help them meet the same challenging State standards 
required of all other students. The program also funds professional 
development programs to address the growing need for certified bilingual 
education and English as a second language (ESL) instructors. The 
Administration proposed and won over $100 million in increases for 
Bilingual Education between 1993 and 2001, a 51-percent increase. The 
funding level of $296 million in 2001 will produce nearly 18,000 
teachers who specialize in teaching LEP children.
  Public School Choice: Public School Choice programs offer enhanced 
parent and student choice within the public school system and provide 
participating schools with the freedom to pursue innovative education 
strategies in return for stronger academic accountability. This 
Administration has made public school choice a priority through support 
of the Magnet Schools program and the Charter Schools program. When 
President Clinton took office, only a handful of Charter Schools 
existed. This Administration launched the Federal Charter Schools 
Program in 1994; it was first funded in 1995 at $6 million. Due in part 
to support from the Charter School program, there are currently over 
2,000 charter schools in operation nationwide, and 36 States have 
charter school legislation. At the current rate of growth, the 
President's goal of having 3,000 charter schools in operation by 2002 
will be met. In 2001, the Charter School program is receiving $190 
million, a $45 million increase from the previous year. The Magnet 
School program is receiving $110 million in 2001.
  Safe and Drug Free Schools and Communities: Since 1993, this program 
has provided almost $5 billion to help 97 percent of all school 
districts implement drug and violence prevention efforts. In 2001, the 
program is receiving $644 million, including $117 million for the Safe 
Schools/Healthy Students initiative, $50 million for the Middle School 
Coordinator Initiative, and $10 million for Project SERV (School 
Emergency Response to Violence). The Coordinator Initiative will help 
1,300 middle schools hire a director of violence and drug prevention 
programs in order to link school programs with community resources. 
Project SERV will provide emergency assistance to schools that suffer 
violent acts or other traumatic crises.

[[Page 139]]

  Adult Education: For many disadvantaged adults, Adult Education 
programs provide the only opportunity to gain literacy skills and obtain 
the knowledge and skills necessary to attain employment and self-
sufficiency and to complete their secondary education. To meet the 
rapidly growing need for these services across the Nation, the 
Administration has proposed and won several funding increases for Adult 
Education since 1993. This Administration also has created the English 
Literacy/Civics initiative (EL/Civics) which assists recent immigrants 
and other LEP adults in learning English while obtaining skills to 
navigate effectively key institutions of American life. In 2001, the 
Adult Education program is funded at $561 million, an increase of 84 
percent since 1993. The 2001 level includes $70 million for the EL/
Civics initiative, up from only $7 million in 1999.

Postsecondary Education

  The economic power of higher education is growing steadily as 
technology and knowledge increasingly drive our Nation's economy. 
Whereas young men and women in 1980 who completed at least a bachelor's 
degree earned 19 percent and 52 percent more, respectively, than their 
peers with no more than a high school diploma, by 1998 the earnings 
differential had grown to 56 percent among men and 100 percent among 
women. Jobs that require a college degree are growing twice as fast as 
others.
  The most recent data reveal that under this Administration, more 
students than ever before are attending college and earning degrees. In 
1993, 62 percent of all high school graduates went on to college. By 
1998, this figure had risen to 66 percent. Only 44 percent of low-income 
high school graduates enrolled in higher education immediately in 1993, 
compared to 51 percent in 1997. And black high school graduates, who 
attended college at a rate of 51 percent in 1993, had increased that 
rate to 59 percent by 1997. Over 32 percent of 25- to 29-year-olds had 
earned at least a bachelor's degree in 1999, up from 27 percent in 1993.
  This Administration's initiatives included a new early intervention 
program for disadvantaged students, lower fees and interest rates on 
student loans, and the largest investment in student aid since the GI 
Bill, including new tax credits to make college more affordable. Since 
1993, the new college tax credits and the greater availability of 
Federal assistance for low-income families have opened the door to 
higher education for millions of students who otherwise could not afford 
it. The Federal Government is providing over $60 billion in student aid 
in 2001, including the Hope Scholarship and Lifetime Learning tax 
credits, compared to only about $25 billion in 1993.

  Hope Scholarships and Lifetime Learning Tax Credits: These tax 
benefits to help families pay for postsecondary education were proposed 
by President Clinton in 1996 and enacted in 1997. The Hope Scholarship 
helps make the first two years of college universally available by 
providing a tax credit of up to $1,500 for tuition and fees for the 
first two years of college (indexed for inflation after 2001). The 
Lifetime Learning tax credit provides a 20-percent tax credit on the 
first $5,000 of tuition and fees for students beyond the first two years 
of college, or taking classes part-time (in 2003, this increases to 
$10,000 of tuition and fees). In 1999, these tax credits were claimed by 
an estimated 10 million families struggling to pay for college. For the 
2000 tax year, 5.6 million families are eligible for about $5 billion in 
Hope tax credits, and 7.2 million families are eligible for almost $2.4 
billion in Lifetime Learning tax credits. Both credits are phased out 
for joint filers between $80,000 and $100,000 of modified adjusted gross 
income, and for single filers between $40,000 and $50,000 (also indexed 
for inflation after 2001).
  Student Loans: In 2000, the Federal student loan programs provided 
more than $41 billion to nearly 5.8 million borrowers to help finance 
the cost of higher education. Recognizing that the cost of borrowing is 
a large burden for many students, this Administration has fought to 
reduce the cost of loans through lower fees and interests rates, as well 
as increased competition. Additionally, the Administration has worked 
diligently to improve management of the programs. Since 1993, the 
Administration has:

[[Page 140]]

  reduced federally-required loan origination fees from as high 
          as seven percent to three percent of loan principal--saving 
          students $4 billion;
  changed the interest rate formula for student loans from a 
          fixed to a variable interest rate and subsequently reduced the 
          new rate by nearly one percent--saving students $5 billion;
  enhanced competition through the creation of the Federal 
          Direct Student Loan Program which provided a catalyst to 
          improving loan benefits and services for students--saving 
          taxpayers $4 billion;
  increased loan repayment options through the creation of the 
          Income Contingent Repayment plan, which allows students to 
          repay their loans as a share of their income;
  reduced from 22.4 percent to 6.9 percent the cohort default 
          rate (defaults within their first two years of repayment on a 
          loan)--saving taxpayers $7 billion; and,
  quadrupled collections on defaulted loans from $1 billion in 
          1993 to nearly $4 billion in 2001 through better portfolio 
          management--saving taxpayers $7 billion over the past eight 
          years.
  As a result of these reforms, students have saved more than $9 billion 
in loan costs while taxpayers have saved $18 billion through better 
management of the programs.

  Pell Grants: Pell Grants provide need-based scholarships for about 
four million college students each year. 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. During this Administration, 
the maximum award has increased 63 percent to $3,750 in 2001. Total 
funding for Pell Grants increased 35 percent, from $6.5 billion in 1993 
to $8.8 billion in 2001.
  Work-Study: The Work-Study program helps needy undergraduate and 
graduate students finance postsecondary education through part-time 
employment. Work-Study jobs both expand opportunity and teach 
responsibility and employment skills. In 1996, President Clinton set a 
goal of supporting one million Work-Study students each year by 2000, 
over 250,000 more students than in 1993. This goal was achieved in 2000 
and maintained in 2001. Federal Work-Study funds have increased 64 
percent since 1993, from $617 million to $1.0 billion.
  President Clinton also created the America Reads and America Counts 
initiatives within the Work-Study program, enabling college students to 
earn aid by serving as reading and math tutors in their communities. In 
1998-1999, nearly 27,000 Work-Study students served as reading tutors.

  GEAR UP: In his 1998 State of the Union address, President Clinton 
proposed a new initiative to help make a difference for students in 
high-poverty schools. GEAR UP (Gaining Early Awareness and Readiness for 
Undergraduate Programs) is based on the President's proposal to provide 
early, sustained intervention and extra financial assistance to help 
low-income middle- and high-school children prepare for college. GEAR UP 
supports partnerships of schools, colleges, and community organizations 
to help raise expectations for whole grade levels of students in high-
poverty schools. In 2001, funding for GEAR UP increases to $295 million, 
providing services to 1.2 million disadvantaged students.
  TRIO: This Administration also has expanded the TRIO programs to 
promote college success for disadvantaged young people. TRIO programs 
help low-income, first-generation college, and disabled individuals 
achieve academic success beginning in middle school, throughout college, 
and into graduate school. Since 1993, funding for the programs has 
nearly doubled, from $388 million to $730 million. Up to 765,000 
students will receive services in 2001.
  Within the TRIO programs, President Clinton proposed College 
Completion Challenge Grants (CCCG) to help reduce the college dropout 
rate. Although college enrollment rates have risen, 37 percent of 
students who go on to postsecondary school drop out before they get a 
certificate or degree. The problem is especially acute for minorities: 
29 percent of African Americans and 31 percent of Hispanics drop out of 
college after less than one year, compared to 18 percent of whites. CCCG 
is designed to

[[Page 141]]

address this problem with a comprehensive approach including pre-
freshmen summer programs, support services, and increased grant aid to 
students. In 2001, key components of the CCCG proposal were enacted that 
will help improve the chances of success for nearly 18,000 low-income 
college students.

  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. This Administration has made 
modernization of student financial aid management one of its highest 
priorities. In the Higher Education Amendments of 1998, the 
Administration succeeded in converting the Office of Student Financial 
Assistance (OSFA) into 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. OSFA's mission includes improving customer service 
at lower cost through better contracting practices and use of new 
information technology. In its first 18 months of operation, the new 
OSFA has made significant progress in: (i) modernizing its 13 legacy, 
stove-pipe computer systems into an integrated, customer-oriented 
system; (ii) implementing web-based technologies that allow students to 
conduct student aid functions online; and, (iii) reducing projected 
operating costs by reforming contracting to share risks and rewards with 
private sector firms.
  Student Aid Income Verification: In 2000, as part of this 
Administration's Priority Management Objective to ensure that the right 
person gets the right benefit, the Departments of Education and Treasury 
performed test matches of income data reported by students on their aid 
applications against IRS data. The agencies began work on a pilot 
program that will help the Department of Education prevent improper or 
erroneous student aid payments before they are made and maximize the aid 
available to needy students.
  Vocational Rehabilitation Services: The Vocational Rehabilitation (VR) 
program helps individuals with disabilities prepare for and obtain 
gainful employment to the extent of their capabilities. Since 1993, 
funding for the VR program has increased 28 percent, from $1.9 billion 
to $2.4 billion. The 1998 reauthorization of the VR program required all 
States to develop challenging, State-specific goals based on a 
comprehensive assessment of the vocational rehabilitation needs of 
individuals with disabilities, and to describe the strategies that will 
be used to address those needs. In 2000, States first reported their 
progress toward meeting these goals. To further expand employment 
opportunities for individuals with disabilities, State VR agencies are 
also required One-Stop partners under the Workforce Investment Act of 
1998, and participate as Employment Networks under the Ticket to Work 
and Workforce Incentives Improvement Act of 1999.
  The number of individuals with disabilities who secured 
          employment under the VR program increased from approximately 
          194,000 in 1993 to 232,000 in 1999. The percentage of these 
          individuals who obtained competitive employment increased from 
          82 percent in 1993 to 84 percent in 1999.
  The performance of VR agencies improved even while they served 
          more individuals with significant disabilities. Of those 
          individuals achieving an employment outcome through the VR 
          program, in 1999 nearly 85 percent had a significant 
          disability, up from 73 percent in 1993.

Education Tax Incentives

   The President proposed the Hope Scholarship and Lifetime Learning tax 
credits to make college more affordable for lower- and middle-class 
families in 1996; the Taxpayer Relief Act of 1997 (TRA) enacted these 
credits. The TRA also created education IRAs for higher education 
savings and allowed student loan interest to be deductible; both 
benefits have income limits. The TRA provided a tax credit to holders of 
Qualified Zone Academy Bonds (QZABs). Proceeds of QZABs may be used for 
renovation of and purchase of equipment for schools that are high-
poverty or in enterprise communities or empowerment zones. During this 
Administration, a tax

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provision allowing employees to exclude employer-provided educational 
assistance for undergraduate training from their gross income has been 
extended several times.

                           DEPARTMENT OF LABOR

  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 skills on the job or 
through employer-provided assistance to enhance worker skills and 
productivity. However, some workers need additional assistance. In 
addition to Pell Grants, student loans, and tax credits, the Federal 
Government will spend some $7.1 billion in 2001 on Department of Labor 
(DOL) programs that finance job training and related services, a $1.2 
billion, or 21 percent, increase from the 1993 level. In addition to 
these increases, the Administration has made a number of systems changes 
that have moved the employment and training system from a fragmented 
group of categorical programs to a consolidated and integrated system 
with a focus on the needs of its customers--workers looking for new and 
better jobs, and employers looking for skilled workers.

  The Workforce Investment Act (WIA) of 1998: The culmination of many 
years of work by this Administration and the Congress, the WIA took full 
effect on July 1, 2000, as the Job Training Partnership Act was repealed 
and all States began to fully implement the WIA requirements. The Act 
calls for a streamlined, customer-focused job training system overseen 
by local business-led Workforce Investment Boards that provide a single 
point of entry to services in each community. The WIA reflects the basic 
principles set out by President Clinton for this transformation, 
including: streamlining services through One-Stop Career Centers; 
empowering individuals with the information and resources they need to 
choose the appropriate training; providing universal access to a core 
set of employment services such as job search assistance; increasing 
accountability, including core performance indicators; ensuring a strong 
role for the private sector and the local boards that develop and 
oversee programs; facilitating State and local flexibility; and, 
improving the quality of youth job training services.
  Youth Activities: The WIA consolidated the funding streams for DOL's 
summer jobs and year-round youth training programs into one formula 
grant that provides a variety of services to economically disadvantaged 
youth. These WIA reforms were intended to provide more intensive and 
comprehensive services to youth and achieve better programmatic outcomes 
in terms of future education and employment. By consolidating the 
funding streams of the two youth programs, the WIA provides local 
governments the flexibility to design the education and training program 
that best meets the needs of youth in their areas. Funding for the 
consolidated program is $1.1 billion in 2001, serving roughly 660,000 
participants. This program is part of the Department's efforts to reach 
the nearly 11 million young people between 16 and 24 who are not in 
school.
  Youth Opportunity Grants: The Youth Opportunities initiative, first 
piloted in 1993, addresses the special problems of out-of-school youth, 
especially in inner-cities and other areas where unemployment and 
poverty rates are high. This model uses a saturation service-delivery 
approach, concentrating resources in high-poverty communities in order 
to bring about fundamental change in neighborhoods served. It combines 
Federal, State and local resources with private-sector involvement to 
create a comprehensive approach to job training, education, and career 
counseling. The 2001 appropriation provides $275 million for the third 
year of five-year competitive grants to 36 communities and expands to an 
additional two to three communities--serving 5,000 more disadvantaged 
youth than the 58,000 served in 2000.
  Responsible Reintegration for Young Offenders (RRYO): Building on 
lessons learned through the Youth Offender demonstration, the 2001 
appropriation provides $55 million to establish partnerships between the 
criminal justice system and local One-Stop delivery systems created 
under the WIA. Young offenders up to age 35 will have access to 
comprehensive services--including education, training, drug treatment, 
and support services--that can help them successfully reenter the 
community and

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the economic mainstream. This initiative is being administered through 
collaboration among the Departments of Justice, Labor, and Health and 
Human Services. The three Departments are working with State and local 
agencies and communities to develop programs that address every element 
of the re-entry challenge. In 2001, the RRYO program will support 
services for almost 14,000 young ex-offenders.
  Job Corps: Founded in 1964, Job Corps serves severely disadvantaged 
youth ages 16 through 24 by providing skill training, education, and 
support services. It is primarily a residential program with 
approximately 88 percent of students living at Job Corps centers. This 
successful program has expanded during this Administration. In 2001 with 
funding of $1.4 billion, Job Corps will have 121 centers across the 
country serving nearly 74,000 students--16 percent more than in 1993.
  Dislocated Worker Employment and Training Activities: The 2001 funding 
of almost $1.6 billion for this program will provide training and 
employment services to about 883,000 displaced workers. The amount more 
than doubles the 1993 funding level of $651 million, and nearly triples 
the participant level to 883,400. 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.
  One-Stop Career Centers/Employment Service: The Employment Service 
provides a free labor exchange for all job seekers and employers and 
operates in the One-Stop delivery system established by the WIA. Funds 
for 2001, a total of roughly $1 billion, support 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. This level is a 12-
percent increase over the 1993 funding of $895 million for the 
Employment Service.
  In 1994, President Clinton initiated a program of planning and 
implementation grants for States to establish networks of One-Stop 
Career Centers in their States. These Centers were designed to 
streamline access to multiple employment and training programs, with a 
total of $977 million provided for this purpose since 1994. As a result 
of the Administration's efforts, the WIA institutionalized One-Stops as 
the primary mode of training and employment service delivery.
  During this Administration, the growth of the Internet transformed the 
way labor exchange services are delivered. Job-seekers and employers 
could be linked electronically without the need to visit the local 
Employment Service office. Information on local jobs could expand to 
cover regional and national labor markets. In this new environment, 
workers who want to learn about job openings can use DOL's popular 
America's Job Bank (AJB) web site, which lists an average of 1.5 million 
job vacancies each day and has over 10 million job searches each month. 
Employers can search through resumes posted on the AJB web site, with 
over 500,000 listed daily.

  Work Incentive Grants: In 2000, President Clinton initiated a $20 
million program of competitive grants to partnerships or consortia in 
each State to provide services and information for individuals with 
disabilities who want to return to work. These partnerships 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.
  Welfare-to-Work Grants: Moving people from welfare to work has been 
the primary goal of Federal welfare policy. In addition to the $16.5 
billion per year provided through the Temporary Assistance for Needy 
Families Program, President Clinton obtained a total of $3 billion to 
help achieve this goal through Welfare-to-Work grants over 1998 and 
1999. These competitive and formula 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 the Congress, the Administration later 
secured critically needed changes to the program's eligibility and 
reporting requirements. These streamlined criteria allow the Welfare-to-
Work grants program, within existing resources, to better serve the 
eligible population and report program results with minimal burden. In 
light of this, in 2001, States' authority to obligate

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these funds was extended for two years. This program also is discussed 
in Chapter 14, ``Income Security.''
  Skills Shortage Grants: A new program of high-tech skills shortage 
grants, funded by employer-paid visa application fees for foreign 
workers, was initiated in 1999. To date, this program has provided about 
$96 million to help workers keep pace with the rapidly changing economy 
and to provide employers with the skilled workers they need. In 2001, an 
estimated $167 million is available for these purposes.
  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 12, ``Health.'') Given dramatic changes in 
the type of jobs in and composition of the U.S. work force in recent 
years, DOL has tailored its compliance efforts to continue ensuring 
effective worker protection.
  For example, DOL has focused many of its compliance activities on low-
wage industries like garment, agriculture, and health care industries 
that have the lowest compliance rate and in which the most egregious 
violations occur. In 2001, DOL's goal is to increase compliance by five 
percent among employers who were previous violators and the subject of 
repeat investigations in these targeted industries. DOL also has worked 
to increase industry's compliance with labor protections through 
voluntary compliance initiatives and outreach to new and small 
businesses.

  Worker Benefits: The Administration has led successful efforts to 
provide better benefits to workers. Among the President's first acts in 
1993 was to propose, and then sign, the Family and Medical Leave Act. 
The Act allows workers to take up to 12 weeks of job-protected, unpaid 
leave to care for a newborn or newly adopted child, attend to their own 
serious health needs, or care for a seriously ill parent, child, or 
spouse. These protections make it less likely that employees will have 
to choose between work and family. To date, over 35 million workers have 
taken advantage of this benefit.
  In 1996, President Clinton successfully sought a $1 increase in the 
minimum wage over two years bringing it to $5.15 an hour providing an 
additional $1,800 a year to a full-time, full-year minimum wage earner. 
This increase helped approximately 10 million workers. The 
Administration also made equal pay a prominent issue. Intended in part 
to address the gap in pay between men and women, in 2001 DOL is planning 
to dedicate $17 million to equal pay efforts such as training women in 
nontraditional jobs and providing employers with assistance to assess 
and improve their pay policies.
  In 2000, the Congress failed to complete work on a $1 increase in the 
minimum wage, which remains essential and which will, over time, still 
be inadequate for the minimum wage to keep pace with our Nation's 
prosperity.

  International Child Labor/Bureau of International Labor Affairs 
(ILAB):  As a result of the Administration's efforts, the United States 
now is a world leader in ensuring that globalization helps raise labor 
conditions around the world. The 2001 appropriation provides $148 
million for this purpose, nineteen times greater than in 1993. A focal 
point of the Administration's priorities has been the elimination of 
abusive and exploitative child labor. In 2001, President Clinton 
successfully secured a 50-percent increase, for a five-year total of 
$195 million, to support the International Labor Organization's (ILO) 
International Program for the Elimination of Child Labor (IPEC). Over 
the last five years, these projects have provided educational 
opportunities to some 120,000 children in several developing countries 
and have provided their families with viable economic alternatives to 
having their children work. The 2001 appropriation includes $37 million 
for a new bilateral assistance child labor initiative aimed at improving 
and expanding access to basic education as part of a comprehensive 
strategy to eliminate child labor. Lastly, the Administration secured 
$45 million to help developing countries implement core labor standard 
initiatives and strengthen social

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safety net programs for workers in developing economies.

Labor Tax Incentives

  The Targeted Jobs Tax Credit, which provided employers with a tax 
credit on wages paid to disadvantaged workers, was extended 
retroactively in 1993 to cover workers hired from 1992 to 1994. This 
credit was replaced by the more tightly targeted Work Opportunity Tax 
Credit in 1996. In 1997, the Taxpayer Relief Act created the Welfare-to-
Work Tax Credit to encourage employers to hire recipients of long-term 
family assistance. This tax credit also is discussed in Chapter 14, 
``Income Security.''

                 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. Between 1993 and 
2001, funding for Head Start increased 123 percent to $6.2 billion. 
Enrollment, which stood at 714,000 children in 1993, is expected to 
reach 936,000 children in 2001, well on the way to achieving the 
President's goal of serving one million children annually by 2002. The 
1994 reauthorization of Head Start established Early Head Start, a new 
program targeted at pregnant women and low-income families with children 
under age three. Within the 936,000 children expected to be served in 
2001, more than 50,000 infants and toddlers will be enrolled in Early 
Head Start.
  Foster Care and Adoption Assistance: The Administration for Children 
and Families 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 First Lady has played a prominent role in promoting 
the adoption of children living in foster care and in working for 
passage of the Adoption and Safe Families Act of 1997 (ASFA), landmark 
legislation which reformed our Nation's child welfare system by putting 
considerations of children's health and safety first. The Adoption 
Incentives program, enacted into law as part of ASFA in 1997, was one of 
the innovative recommendations advanced in the President's Adoption 2002 
Initiative to focus attention on the needs of children awaiting 
permanent adoptive families. The program has resulted in unprecedented 
increases in the number of children adopted. In 1999, 46,000 foster care 
children were adopted, up from 23,000 in 1994, the first year for which 
reliable figures are available, and well within reach of meeting the 
President's goal of 56,000 adoptions by 2002, double the number in 1996. 
This is the first significant increase in adoption since the national 
foster care program was established nearly 20 years ago.
  The Administration also worked with the Congress to enact the Foster 
Care Independence Act. Nearly 20,000 young people leave foster care each 
year when they reach age 18 without an adoptive family or other 
guardian. The Foster Care Independence Act doubled the amount of funding 
available to $140 million annually to ensure that those young people get 
the tools they need to make the most of their lives by providing them 
better educational opportunities, access to health care, training, 
housing assistance, counseling, and other services.

  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. Since 1993, funding for AoA programs has increased 
32 percent, from $839 million in 1993 to $1.1 billion in 2001. As a 
result, AoA and its partners have been able to expand delivery of such 
important services as home-delivered meals from 103 million meals served 
in 1993 to an anticipated 176 million meals in 2001, a 71-percent 
increase. In addition, in 2000, the President signed into law 
legislation to reauthorize the Older Americans Act, which included the 
Administration's proposal to support families caring for loved ones who 
are ill or disabled. In 2001, $125 million is available for this new 
long-term care program.

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Health and Human Services Tax Incentives

  The Taxpayer Relief Act of 1997 made taxpayers eligible for a child 
tax credit for each dependent child under the age of 17 to help make it 
easier for parents to participate in the labor force. The credit amount 
per child was $400 in 1998 and rose to $500 in 1999 and subsequent 
years. The credit is gradually phased out for taxpayers with adjusted 
gross income in excess of the following thresholds: $110,000 for married 
taxpayers filing a joint return, $75,000 for a single tax-payer or head 
of household, and $55,000 for married taxpayers filing a separate 
return. This tax credit will provide over $19 billion in benefits in 
2001.
  The Small Business Job Protection Act of 1996 included two tax 
provisions to assist families who adopt children: a nonrefundable tax 
credit for the first $5,000 in adoption expenses per child, and an 
exclusion of up to $5,000 per adoption for certain employer-paid or 
employer-reimbursed adoption expenses. Both the credit and the exclusion 
are phased out gradually for taxpayers with incomes between $75,000 and 
$115,000.

                            NATIONAL SERVICE

  The President set as one of his first legislative objectives the 
establishment of a national service program. As a result, one of this 
Administration's earliest successful legislative initiatives was the 
establishment of the Corporation for National and Community Service 
(CNCS) in 1993. CNCS consolidated several existing volunteer programs 
and created the AmeriCorps program to engage Americans of all ages and 
backgrounds in community-based service. Through Corporation-supported 
projects, over 1.7 million participants serve each year in community 
organizations to address the Nation's unmet, critical needs. The 2001 
appropriation includes $767 million for the Corporation, a $483 million, 
170 percent increase over 1993. The major programs the Corporation 
oversees are AmeriCorps, the National Senior Service Corps, and Learn 
and Serve America.

  AmeriCorps: Since the launch of AmeriCorps in September 1994, more 
than 200,000 participants have served in communities across the country 
tutoring hundreds of thousands of children, responding to natural 
disasters in more than 30 States, establishing or expanding more than 
40,000 neighborhood safety patrols, and building or rehabilitating more 
than 25,000 homes for the homeless. For their service, AmeriCorps 
members are eligible to receive educational awards that help pay for 
college or job training, or repay student loans. To date, AmeriCorps 
members have qualified for almost $450 million in education awards. In 
2001, nearly 50,000 members will have the opportunity to help 
communities meet their pressing needs.
  National Senior Service Corps (NSSC): The NSSC uses the talents, 
skills, and experience of more than 500,000 older Americans to help 
solve local problems as Foster Grandparents, Senior Companions, or as 
Retired and Senior Volunteers (RSVP). The 2001 appropriation includes 
$189 million for the NSSC, a $61 million, 48-percent increase over 1993. 
Members help meet a wide range of community needs, serve one-on-one with 
young people with special needs and help other seniors live 
independently in their homes. In 2000, the RSVP program tutored more 
than 30,000 students in grades K-6 and helped meet the needs of more 
than 10,000 terminally ill patients in homes, hospitals, and hospices 
across the country.
  Service Opportunities for Youth: Learn and Serve America supports 
service-learning programs in schools and community organizations that 
engage youth in addressing education, public safety, environmental, and 
other human needs. In 2000, more than one million students participated 
in these programs, which range from designing neighborhood playgrounds 
to preparing food for the homeless. The 2001 appropriation provides $43 
million for Learn and Serve.

                            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 play a significant role in the cultural life of Washington D.C., and 
the Nation. During this

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Administration, these agencies have continued their record of sharing 
their knowledge and collections with the American public, as well as 
maintaining and expanding their physical facilities to house their 
unique assets.
  Highlights of the past eight years include:
  The dedication of the U.S. Holocaust Memorial Museum in April, 
          1993, by President Clinton. Since then, the Museum has 
          welcomed over 15 million visitors, including 63 heads of 
          state.
  The opening of the National Gallery of Art Sculpture Garden in 
          May 1999, and unprecedented exhibitions organized by and 
          presented at the Gallery, including those of paintings of the 
          Dutch artist Vermeer in 1995-1996 and Van Gogh in 1998-1999. 
          Federal appropriations for the National Gallery increased 38 
          percent during this Administration, from $55 million in 1993 
          to $76 million in 2001.
  The celebration of the Smithsonian's 150th birthday party on 
          the Mall in August 1996, and the national tour of ``America's 
          Smithsonian'' to commemorate the Institution's 150th year. In 
          addition, the Smithsonian created its web site in 1995, which 
          has allowed universal public access to Smithsonian exhibitions 
          and artifacts. Federal appropriations for the Smithsonian 
          increased 32 percent during this Administration, from $344 
          million in 1993 to $455 million in 2001.
  The Kennedy Center unveiled its state-of-the-art renovation of 
          its concert hall in 1997. Federal appropriations for the 
          Kennedy Center more than doubled during this Administration, 
          from $14 million in 1993 to $34 million in 2001.
  The groundbreaking for two new Smithsonian museums--the 
          National Museum of the American Indian on the Mall and the 
          extension of the National Air and Space Museum at Dulles 
          Airport--and the opening of the Woodrow Wilson Center's new 
          quarters on Pennsylvania Avenue.
  The Commission of Fine Arts and the National Capital Planning 
Commission have responsibilities for the arts and architecture of the 
Nation's capital city. The National Capital Planning Commission 
completed its long-range plan that will guide development in the D.C. 
central area for the next 50 to 100 years, including creating 
opportunities for new museums and memorials and preserving the open 
space of the National Mall. The Commission of Fine Arts approved designs 
for numerous monuments and buildings, including the Franklin D. 
Roosevelt Memorial, which opened in 1997.

  The National Foundation on the Arts and the Humanities: The National 
Endowment for the Arts (NEA) , the National Endowment for the Humanities 
(NEH), and the Institute of Museum and Library Services (IMLS) provide 
support for important cultural, educational and artistic programs for 
communities across America. These agencies fund education and lifelong 
learning programs 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. The agencies 
were able to maintain their roles over the last eight years because the 
Administration won bipartisan support in the face of severe critics in 
the Congress.
  NEA has moved forward in several dramatic ways over the past 
          several years, placing an emphasis on outreach and focusing on 
          grants to more people and places for education, services for 
          young people, and preservation of cultural heritage. More 
          grants are going to smaller organizations in small and medium-
          sized communities. NEA has also taken administrative steps to 
          reform aspects of its grant review process thus increasing its 
          accountability. In 2001, NEA is receiving $105 million in 
          funding, with $7 million for its new Challenge America 
          program. Through Challenge America, NEA will award grants, 
          directly or in partnership with States, to communities across 
          America that focus on arts education and enrichment, after-
          school programs, access to the arts for underserved 
          communities, and community arts development initiatives.
  In keeping with Administration priorities, NEH has focused its 
          programmatic efforts on developing new audiences for 
          humanities programming, on innovative uses of

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          technology, and on the education of our Nation's students. In 
          1996, NEH launched a major Teaching with Technology initiative 
          that encouraged schools across the country to make use of new 
          technologies to bring the humanities to their students in 
          creative and challenging ways. In 1998, NEH joined with MCI 
          Communications Corporation and the Council of Great City 
          Schools to develop EDSITEment, a humanities-rich meta-web site 
          designed for teachers and students alike. More recently, NEH 
          has embarked on an ambitious, agency-wide effort, Extending 
          the Reach, that seeks to make all NEH programs more accessible 
          to underserved regions and audiences. In 2001, NEH received a 
          $5 million increase over 2000 for a total of $120 million, 
          allowing the agency to continue its emphasis on extending the 
          reach of NEH's programs to underserved areas.
  IMLS has inaugurated several programs over the past eight 
          years which encourage educational endeavors ranging from after 
          school programs to mentorships to helping museums and 
          libraries maximize the potential of digital media in their 
          activities. In 1994, museums that made outstanding 
          contributions in community service were honored with the first 
          National Award for Museum Service, followed by the 
          establishment of the National Award for Library Service in 
          2000. In 2000, a new, comprehensive funding program called 
          National Leadership Grants was established, supporting 
          innovation and collaboration in library and museum services. 
          Through this program, IMLS is aggressively working to help 
          museums and libraries build electronic networks and use 
          technology to make their resources more accessible. In 2001, 
          IMLS' Office of Museum Services was funded at $25 million and 
          the Office of Library Services received $207 million in the 
          2001 appropriation. 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, and providing technical support to museums in putting 
          collections information on-line.
