[Appendix]
[Other Materials]
[Supplemental Proposals]
[From the U.S. Government Printing Office, www.gpo.gov]



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                             OTHER MATERIALS

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                     THE BUDGET FOR FISCAL YEAR 2003

 
                          SUPPLEMENTAL PROPOSALS


[[Page 1195]]



                   PROPOSED CHANGES TO 2002 ESTIMATES

    This Budget contains proposals that would increase 2002 spending by 
$1.3 billion, which would be completely offset by reductions.


                                SUMMARY OF SUPPLEMENTAL PROPOSALS
                                    [In millions of dollars]               Outlays
                                                2002 Budget 
                                                  Authority     2002        2003        2004
  Supplemental Proposals:
  Department of Education.......................       1,276       1,276
  General provision.............................      -1,276      -1,276
                                                ------------------------------------------------
      Total, Supplemental Proposals.............
                                                ================================================
[[Page 1197]]

                         SUPPLEMENTAL PROPOSALS

    The following information concerns supplemental appropriations 
requests for 2002 proposed for congressional consideration.

                         Department of Education

                 OFFICE OF STUDENT FINANCIAL ASSISTANCE

                      Student financial assistance

           (Supplemental now requested, existing legislation)

    For an additional amount for ``Student financial assistance,'' 
$1,276,000,000, to remain available through September 30, 2003.

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0200-1-1-502      2001 actual   2002 est.   2003 est.
----------------------------------------------------------------------------

    Obligations by program activity:
01.01 Federal Pell grants...............                   1,276
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 41.0)...................                   1,276
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......                   1,276
23.95 Total new obligations.............                  -1,276
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................                   1,276
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..                               1,276
73.10 Total new obligations.............                   1,276
73.20 Total outlays (gross).............                              -1,276
74.40 Obligated balance, end of year....                   1,276
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.93 Outlays from discretionary 
        balances........................                               1,276
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................                   1,276
90.00 Outlays...........................                               1,276
---------------------------------------------------------------------------

    This supplemental request would provide supplemental funding for 
Pell grants to support a $4,000 maximum award in 2002. The 2002 
appropriations act created a serious fiscal problem by under-funding the 
Pell grant program. While the act mandated a Pell grant maximum award of 
$4,000, it failed to provide resources for the Pell grant program 
commensurate with the maximum award. The act provided only enough 
funding to pay for a maximum award of $3,600, creating a shortfall of 
nearly $1.3 billion. This supplemental request would fully fund the 
mandated maximum award for 2002.

                                

                            GENERAL PROVISION

           (Supplemental now requested, existing legislation)

    Of the amounts made available in the Departments of Labor, Health 
and Human Services, and Education, and Related Agencies Appropriations 
Act, 2002, $1,276,000,000 is hereby canceled: Provided, That such 
amounts shall be derived from amounts appropriated for projects or 
activities that were not included in the President's Budget transmitted 
to Congress on April 9, 2001.

    This provision would cancel funding for amounts appropriated for 
unrequested earmarks and low-priority programs in the 2002 
appropriations for the Departments of Labor, Health and Human Services, 
and Education. The 2002 appropriations act provided over $2 billion for 
programs and projects that were not requested by the Administration in 
the President's Budget, while under-funding the Pell grant program. The 
Administration will provide Congress with a listing of such programs and 
projects and expects that Congress will select from this list in 
enacting a cancellation of $1,276 million to offset the Pell grant 
shortfall.
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