[Appendix]
[Detailed Budget Estimates by Agency]
[Department of Education]
[From the U.S. Government Printing Office, www.gpo.gov]
THE BUDGET FOR FISCAL YEAR 2004
[[Page 323]]
DEPARTMENT OF EDUCATION
OFFICE OF ELEMENTARY AND SECONDARY EDUCATION
Federal Funds
General and special funds:
Education for the Disadvantaged
For carrying out title I of the Elementary and Secondary Education
Act of 1965 (``ESEA'') and section 418A of the Higher Education Act of
1965, $14,184,000,000, of which $6,632,199,000 shall become available on
July 1, 2004, and shall remain available through September 30, 2005, and
of which $7,383,301,000 shall become available on October 1, 2004, and
shall remain available through September 30, 2005, for academic year
2004-2005: Provided, That $7,172,971,000 shall be for basic grants under
section 1124, of which up to $3,500,000 shall be available to the
Secretary of Education on October 1, 2003, to obtain updated
educational-agency-level census poverty data from the Bureau of the
Census: Provided further, That $1,365,031,000 shall be for concentration
grants under section 1124A: Provided further, That $3,018,499,000 shall
be for targeted grants under section 1125: Provided further, That
$793,499,000 shall be for education finance incentive grants under
section 1125A: Provided further, That $9,500,000 shall be to carry out
part E of Title I, of which up to $1,000,000 shall be available to the
Secretary of Education to provide technical assistance to State and
local educational agencies concerning part A of Title I.
Note.--A regular 2003 appropriation for this account had not been
enacted at the time the budget was prepared; therefore, this account is
operating under a continuing resolution (P.L. 107-229, as amended). The
amounts included for 2003 in this budget reflect the Administration's
2003 policy proposals.
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0900-0-1-501 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
Obligations by program activity:
Direct program:
Grants to local educational
agencies:
Local educational agency
formulas:
00.01 Basic grants................ 8,655 7,211 7,173
00.02 Concentration grants........ 1,350 1,365 1,365
00.03 Targeted grants............. 2,018 3,018
00.04 Education finance incentive
grants formula.............. 794 794
Reading first:
00.05 Reading first State grants.... 366 1,340 1,050
00.06 Early reading first........... 1 149 100
00.07 Even start...................... 249 220 175
00.08 Literacy through school
libraries..................... 13 12 28
00.09 State agency programs........... 444 452 444
00.10 Comprehensive school reform..... 226 245
00.11 Evaluation...................... 9 9 9
00.12 Close up fellowships............ 2
00.13 Advanced placement.............. 22 22
00.14 Dropout prevention programs..... 10
00.16 Migrant education projects...... 38 38 28
--------- --------- ----------
10.00 Total new obligations........... 11,385 13,875 14,184
----------------------------------------------------------------------------
Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 163 490
22.00 New budget authority (gross)...... 11,722 13,385 14,184
22.10 Resources available from
recoveries of prior year
obligations..................... 2
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 11,887 13,875 14,184
23.95 Total new obligations............. -11,385 -13,875 -14,184
23.98 Unobligated balance expiring or
withdrawn....................... -12
24.40 Unobligated balance carried
forward, end of year............ 490
----------------------------------------------------------------------------
New budget authority (gross), detail:
Discretionary:
40.00 Appropriation................... 4,964 6,002 6,801
55.00 Advance appropriation........... 6,758 7,383 7,383
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 11,722 13,385 14,184
----------------------------------------------------------------------------
Change in obligated balances:
72.40 Obligated balance, start of year.. 3,972 6,082 8,051
73.10 Total new obligations............. 11,385 13,875 14,184
73.20 Total outlays (gross)............. -9,247 -11,906 -13,201
73.40 Adjustments in expired accounts
(net)........................... -25
73.45 Recoveries of prior year
obligations..................... -2
74.40 Obligated balance, end of year.... 6,082 8,051 9,034
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 5,890 6,576 6,616
86.93 Outlays from discretionary
balances........................ 3,357 5,330 6,585
--------- --------- ----------
87.00 Total outlays (gross)........... 9,247 11,906 13,201
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 11,722 13,385 14,184
90.00 Outlays........................... 9,248 11,906 13,201
----------------------------------------------------------------------------
Additional net budget authority and outlays to cover cost of fully accruing
retirement:
99.00 Budget authority.................. 3 3 3
99.01 Outlays........................... 3 3 3
---------------------------------------------------------------------------
Note.--Excludes $22 million in budget authority in 2004 for
activities transferred to Department of Education:
2004 est.
Office of Innovation and Improvement, Innovation
and Improvement................................. 22
Comparable amounts for 2002 ($22 million) and 2003 ($22 million) are
included above.
SUMMARY OF PROGRAM LEVEL
(in millions of dollars)
2002-2003
academic
year 2003-2004
academic year 2004-2005
academic year
New Budget Authority................ 4,964 6,002 6,801
Advance appropriation............... 7,383 7,383 7,383
------------------------------------
Total program level........... 12,347 13,385 14,184
====================================
Change in advance appropriation from
the previous year................... +625
Grants to local educational agencies.--Funds are allocated through
four formulas--Basic Grants, Concentration Grants, Targeted Grants and
Education Finance Incentive Grants--for local programs that provide
extra academic support to help raise the achievement of eligible
students in high-poverty communities, or, in the case of schoolwide
programs, help all students in high-poverty schools to meet challenging
State academic standards. States must annually assess participating
students in at least reading and mathematics, and school districts must
identify for improvement, and provide assistance to, schools that for
two consecutive years fail to make adequate yearly progress toward
helping all groups of students reach the proficient level on the State
assessments. Districts must provide students attending such schools the
choice of attending another public school that is not identified for
improvement. After three years of failure, students who remain in the
school would be permitted to use Title I funds to obtain supplemental
educational services from a public- or private-sector provider. Schools
that continue to fail to meet State standards would be subject to
progressively stonger corrective actions and, after six years of
failure, reconstitution under a restructing plan.
Reading first State grants.--Funds provide assistance to State and
local educational agencies in establishing reading programs for students
in grades K-3 that are grounded in scientifically based reading
research, in order to ensure that every student can read at grade level
or above by the end of third grade.
Early reading first.--Funds provide assistance to support local
efforts, through competitive grants, to enhance the school readiness of
young children, particularly those from
[[Page 324]]
low-income families, through scientific, research-based strategies and
professional development that are designed to enhance the verbal skills,
phonological awareness, letter knowledge, pre-reading skills, and early
language development of children ages three through five.
Even start.--Funds support formula grants to States, which award
grants for local projects to partnerships of local educational agencies
and other organizations to operate projects integrating early childhood
education, adult literacy, parenting education, and interactive literacy
activities between parents and their children into ``family literacy''
programs for low-income families with children under age eight.
Literacy through school libraries.--Funds support competitive grants
to local educational agencies to provide students with increased access
to up-to-date school library materials and professional certified
library media specialists.
State agency migrant program.--Funds support formula grants to
States for educational services to children of migratory farmworkers and
fishers, with resources and services focused on children who have moved
within the past 36 months.
State agency neglected and delinquent program.--Funds support
formula grants to States for educational services to children and youth
under age 21 in State neglected, delinquent, or adult correction
facilities.
Evaluation.--Funds support national activities to evaluate Title I
programs and a national assessment of Title I's effectiveness in helping
States, school districts, and schools raise the overall achievement of
disadvantaged students and narrow the achievement gap. A portion of
funds would support technical assistance to help States and local
educational agencies carry out Part A of Title I.
Migrant education projects.--Funds support grants to institutions of
higher education and other nonprofit agencies that assist migrant
students to earn a high school equivalency certificate or to complete
their first year of college.
Object Classification (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0900-0-1-501 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
24.0 Printing and reproduction......... 1 1 1
25.1 Advisory and assistance services.. 8 40 40
25.2 Other services.................... 20 25 25
25.3 Other purchases of goods and
services from Government
accounts........................ 3 3 3
41.0 Grants, subsidies, and
contributions................... 11,353 13,806 14,115
--------- --------- ----------
99.9 Total new obligations........... 11,385 13,875 14,184
---------------------------------------------------------------------------
Impact Aid
For carrying out programs of financial assistance to federally
affected schools authorized by title VIII of the Elementary and
Secondary Education Act of 1965, $1,015,500,000, of which $867,500,000
shall be for basic support payments under section 8003(b), $40,000,000
shall be for payments for children with disabilities under section
8003(d), $45,000,000 shall be for construction under section 8007 and
shall remain available through September 30, 2005, $55,000,000 shall be
for Federal property payments under section 8002, and $8,000,000, to
remain available until expended, shall be for facilities maintenance
under section 8008: Provided, That children described in section
8003(a)(1)(D)-(G) shall not be considered in determining the eligibility
of a local educational agency for a payment, or the amount of such a
payment, under section 8003(b) or (d).
Note.--A regular 2003 appropriation for this account had not been
enacted at the time the budget was prepared; therefore, this account is
operating under a continuing resolution (P.L. 107-229, as amended). The
amounts included for 2003 in this budget reflect the Administration's
2003 policy proposals.
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0102-0-1-501 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
Obligations by program activity:
Payments for federally connected children:
00.01 Basic support payments.......... 983 983 868
00.02 Supplemental payments for
children with disabilities.... 50 50 40
00.03 Payments for heavily impacted
districts..................... 4
--------- --------- ----------
00.91 Subtotal, payments for federally
connected children............ 1,037 1,033 908
01.01 Facilities maintenance............ 12 12 8
02.01 Construction...................... 15 52 45
03.01 Payments for Federal property..... 55 55 55
--------- --------- ----------
10.00 Total new obligations........... 1,119 1,152 1,016
----------------------------------------------------------------------------
Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 14 38 27
22.00 New budget authority (gross)...... 1,144 1,141 1,016
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 1,158 1,179 1,043
23.95 Total new obligations............. -1,119 -1,152 -1,016
24.40 Unobligated balance carried
forward, end of year............ 38 27 27
----------------------------------------------------------------------------
New budget authority (gross), detail:
Discretionary:
40.00 Appropriation................... 1,144 1,141 1,016
----------------------------------------------------------------------------
Change in obligated balances:
72.40 Obligated balance, start of year.. 215 202 162
73.10 Total new obligations............. 1,119 1,152 1,016
73.20 Total outlays (gross)............. -1,125 -1,191 -1,036
73.40 Adjustments in expired accounts
(net)........................... -7
74.40 Obligated balance, end of year.... 202 162 142
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 981 999 886
86.93 Outlays from discretionary
balances........................ 144 192 150
--------- --------- ----------
87.00 Total outlays (gross)........... 1,125 1,191 1,036
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 1,144 1,141 1,016
90.00 Outlays........................... 1,125 1,191 1,036
---------------------------------------------------------------------------
Impact Aid helps to replace the lost local revenue that would
otherwise be available to educate federally connected children. The
presence of certain students living on Federal property, such as
students who are military dependents or who reside on Indian lands, can
place a financial burden on local educational agencies that educate
them. The property on which the children live and their parents work is
exempt from local property taxes, denying local educational agencies
access to the primary source of revenue used by most communities to
finance education.
Basic support payments.--Payments will be made on behalf of
approximately 270,000 federally connected students enrolled in about 750
local educational agencies to assist them in meeting their operation and
maintenance costs. Average per-student payments will be approximately
$3,200.
Payments for Children with Disabilities.--Payments in addition to
those provided under the Individuals with Disabilities Education Act
will be provided on behalf of approximately 35,000 federally connected
students with disabilities in about 740 local educational agencies.
Average per-student payments will be approximately $1,140.
Facilities maintenance.--Funds are used to provide emergency repairs
for school facilities that serve military dependents and are owned by
the Department of Education. Funds are also used to transfer the
facilities to local educational agencies.
Construction.--Formula payments will be provided to approximately
170 local educational agencies with large proportions of federally
connected students. Payments will be made on behalf of about 140,000
students who are military dependents or who reside on Indian lands. In
addition, approxi
[[Page 325]]
mately 25 construction grants will be awarded competitively to local
educational agencies.
Payments for Federal Property.--Payments are made to approximately
250 local educational agencies in which real property owned by the
Federal Government represents 10 percent or more of the assessed value
of real property in the local educational agency.
Object Classification (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0102-0-1-501 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
21.0 Travel and transportation of
persons......................... 1 1 1
25.3 Other purchases of goods and
services from Government
accounts........................ 1 1 1
41.0 Grants, subsidies, and
contributions................... 1,117 1,150 1,014
--------- --------- ----------
99.9 Total new obligations........... 1,119 1,152 1,016
---------------------------------------------------------------------------
School Improvement Programs
For carrying out school improvement activities authorized by titles
II, part B of title IV, part A of title V, subpart 1 of part A of title
VI, and parts B and C of title VII of the Elementary and Secondary
Education Act of 1965 (``ESEA''); the McKinney-Vento Homeless Assistance
Act; and the Civil Rights Act of 1964, $5,042,834,000, of which
$3,540,500,000 shall become available on July 1, 2004, and remain
available through September 30, 2005, and of which $1,435,000,000 shall
become available on October 1, 2004, and shall remain available through
September 30, 2005, for academic year 2004-2005: Provided, That
$390,000,000 shall be for subpart 1 of part A of title VI of the ESEA.
Note.--A regular 2003 appropriation for this account had not been
enacted at the time the budget was prepared; therefore, this acocunt is
operating under a continuing resolution (P.L. 107-229, as amended). The
amounts included for 2003 in this budget reflect the Administration's
2003 policy proposals.
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-1000-0-1-501 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
Direct program:
Obligations by program activity:
Improving teacher quality:
00.01 Improving teacher quality
State grants................ 1,672 2,878 2,850
00.02 National activities........... 35 15 15
00.03 Mathematics and science
partnerships................ 13 13 13
00.04 Troops-to-teachers............ 18 20
00.05 Transition to teaching........ 35 39
00.06 National writing project...... 14
00.07 Civic education............... 27
00.08 Teaching of traditional
American history............ 100 50
Educational technology:
00.09 Educational technology State
grants...................... 682 716 701
00.10 Ready-to-learn television..... 22 22
00.11 Preparing tomorrow's teachers
to use technology........... 63
00.12 21st Century community learning
centers....................... 984 1,016 600
School choice and innovation:
00.13 State grants for innovative
programs.................... 384 388 385
00.14 Charter schools grants........ 200 200
00.15 Credit enhancement for charter
school facilities........... 100
00.16 Voluntary public school choice 25 25
00.17 Magnet schools assistance..... 110 110
00.18 Choice demonstration fund..... 50
00.19 Fund for the Improvement of
Education..................... 618 224
Safe and drug-free schools and
communities:
00.20 State grants.................. 470 478 330
00.21 National programs............. 255 192
00.22 State assessments............... 368 406 390
00.23 Education for homeless children
and youth..................... 50 51 50
00.24 Education for Native Hawaiians.. 31 18 18
00.26 Alaska Native education equity.. 24 14 14
00.27 Training and advisory services.. 7 7 7
00.28 Rural education................. 162
00.29 Class size reduction............ 1,154
00.30 School renovation grants........ 375
00.31 Eisenhower professional
development State grants...... 1
00.32 Charter schools financing
demonstrations................ 25
00.33 Consolidated technical
assistance centers............ 9
00.34 Comprehensive school reform..... 74 1
--------- --------- ----------
01.00 Total direct program.............. 8,007 7,033 5,373
09.01 Reimbursable program.............. 61
--------- --------- ----------
10.00 Total new obligations............. 8,068 7,033 5,373
----------------------------------------------------------------------------
Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 414 249
22.00 New budget authority (gross)...... 7,907 6,784 5,373
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 8,321 7,033 5,373
23.95 Total new obligations............. -8,068 -7,033 -5,373
23.98 Unobligated balance expiring or
withdrawn....................... -4
24.40 Unobligated balance carried
forward, end of year............ 249
----------------------------------------------------------------------------
New budget authority (gross), detail:
Discretionary:
40.00 Appropriation................... 6,072 5,019 3,608
42.00 Transferred from other accounts. 9
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 6,081 5,019 3,608
55.00 Advance appropriation........... 1,765 1,765 1,765
68.10 Spending authority from offsetting
collections: Change in
uncollected customer payments
from Federal sources (unexpired) 61
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 7,907 6,784 5,373
----------------------------------------------------------------------------
Change in obligated balances:
72.40 Obligated balance, start of year.. 3,771 8,142 7,422
73.10 Total new obligations............. 8,068 7,033 5,373
73.20 Total outlays (gross)............. -3,609 -7,753 -7,070
73.40 Adjustments in expired accounts
(net)........................... -27
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... -61
74.40 Obligated balance, end of year.... 8,142 7,422 5,725
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 1,261 1,575 1,488
86.93 Outlays from discretionary
balances........................ 2,348 6,178 5,582
--------- --------- ----------
87.00 Total outlays (gross)........... 3,609 7,753 7,070
----------------------------------------------------------------------------
Offsets:
Against gross budget authority only:
88.95 Change in uncollected customer
payments from Federal sources
(unexpired)................... -61
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 7,846 6,784 5,373
90.00 Outlays........................... 3,609 7,753 7,070
---------------------------------------------------------------------------
Note.--Excludes $1,201 million in budget authority in 2004 for
activities transferred to Department of Education:
(in millions of
dollars)
2004 est
Office of Innovation and Improvement, Innovation
and Improvement.................................. 785
Office of Safe and Drug-Free Schools, Safe Schools
and Citizenship Education........................ 416
Comparable amounts for 2002 ($1,642 million) and 2003 ($1,345
million) are included above.
SUMMARY OF PROGRAM LEVEL
(in millions of dollars)
2002-2003
Academic
Year 2003-2004
Academic Year 2004-2005
Academic Year
New Budget Authority................ 6,072 5,019 3,608
Advance Appropriation............... 1,765 1,765 1,435
------------------------------------
Total program level........... 7,837 6,784 5,043
====================================
Change in advance appropriation over
previous year....................... -330
Improving teacher quality.--
Improving teacher quality State grants.--Funds support State
and school district activities to prepare, train, and recruit
high-quality teachers to improve student achievement.
National activities.--Funds support competitive grants to
improve the knowledge and skills of early childhood educators
who work in communities that have high concentrations of
children living in poverty.
Mathematics and science partnerships.--Funds support State
and local efforts to improve students' academic achievement in
mathematics and science by promoting strong teaching skills for
elementary and secondary
[[Page 326]]
school teachers, including integrating teaching methods based on
scientifically-based research and technology into the
curriculum.
Educational technology State grants.--Funds support formula grants
to States, which target funds to high-poverty school districts, to
acquire computers, connections, software, and teacher training to enable
schools to integrate technology effectively into curricula.
21st Century community learning centers.--Funds support formula
grants to States, which award subgrants to communities to provide
academic enrichment opportunities and related services to students,
primarily students who attend high-poverty schools, and their families
during before-school, after-school, weekend, and summer hours.
State grants for innovative programs.--Funds support formula grants
to States and local educational agencies to help implement innovative
strategies for improving student achievement.
State assessments.--Funds support formula grants to States to
develop and implement the new assessments, and related accountability
efforts, that States would use to test all children annually in grades
3-8 in reading and mathematics.
Education for homeless children and youth.--Funds support formula
grants to States to provide educational and support services that enable
homeless children and youth to attend and achieve success in school.
Education for Native Hawaiians.--Funds provide supplemental
education services to Native Hawaiians in areas such as family-based
education, special education, gifted and talented education, higher
education, curriculum development, teacher training and recruitment, and
community-based learning.
Alaska Native education equity.--Funds provide supplemental
education services to Alaska Natives in areas such as educational
planning, curriculum development, teacher training, teacher recruitment,
student enrichment, and home-based instruction for pre-school children.
Grants also go to organizations specified in the law.
Training and advisory services.--Funds support grants to regional
equity assistance centers that provide technical assistance to school
districts in addressing equity in education related to issues of race,
gender, and national origin.
Object Classification (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-1000-0-1-501 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
Direct obligations:
24.0 Printing and reproduction....... 1 1 1
25.1 Advisory and assistance services 9 49 20
25.2 Other services.................. 50 75 21
25.3 Other purchases of goods and
services from Government
accounts...................... 4
41.0 Grants, subsidies, and
contributions................. 7,943 6,908 5,331
--------- --------- ----------
99.0 Direct obligations............ 8,007 7,033 5,373
99.0 Reimbursable obligations.......... 61
--------- --------- ----------
99.9 Total new obligations........... 8,068 7,033 5,373
---------------------------------------------------------------------------
Indian Education
For expenses necessary to carry out, to the extent not otherwise
provided, title VII, part A of the Elementary and Secondary Education
Act of 1965, $122,368,000.
Note.--A regular 2003 appropriation for this account had not been
enacted at the time the budget was prepared; therefore, this account is
operating under a continuing resolution (P.L. 107-229, as amended). The
amounts included for 2003 in this budget reflect the Administration's
2003 policy proposals.
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0101-0-1-501 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Grants to local educational
agencies........................ 97 97 97
00.02 Special programs for Indian
children........................ 20 20 20
00.03 National activities............... 3 5 5
--------- --------- ----------
10.00 Total new obligations........... 120 122 122
----------------------------------------------------------------------------
Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 120 122 122
23.95 Total new obligations............. -120 -122 -122
----------------------------------------------------------------------------
New budget authority (gross), detail:
Discretionary:
40.00 Appropriation................... 120 122 122
----------------------------------------------------------------------------
Change in obligated balances:
72.40 Obligated balance, start of year.. 132 145 143
73.10 Total new obligations............. 120 122 122
73.20 Total outlays (gross)............. -104 -124 -122
73.40 Adjustments in expired accounts
(net)........................... -3
74.40 Obligated balance, end of year.... 145 143 143
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 6 6
86.93 Outlays from discretionary
balances........................ 104 118 116
--------- --------- ----------
87.00 Total outlays (gross)........... 104 124 122
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 120 122 122
90.00 Outlays........................... 104 124 122
---------------------------------------------------------------------------
The Indian Education program supports the efforts of local
educational agencies and tribal schools to improve teaching and learning
for the Nation's American Indian and Alaska Native Children.
Grants to local educational agencies.--Formula grants support local
educational agencies in their efforts to reform elementary and secondary
school programs that serve Indian students, with the goal of ensuring
that such programs assist participating students in meeting the same
academic standards as all other students. In 2002, the Department made
1,189 formula grants to local educational agencies and tribal schools
serving more than 465,000 students.
Special programs for Indian Children.--The Department makes
competitive awards for demonstration projects in early childhood
education, professional development grants, American Indian Teacher
Corps grants, and grants for the American Indian Administrator Corps.
The professional development awards in this activity are designed to
improve the quality of teachers and administrators in school districts
with concentrations of Indian students.
National activities.--Funds support research, evaluation, data
collection, and related activities.
Object Classification (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0101-0-1-501 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
25.2 Other services.................... 2 4 5
41.0 Grants, subsidies, and
contributions................... 118 118 117
--------- --------- ----------
99.9 Total new obligations........... 120 122 122
---------------------------------------------------------------------------
Reading Excellence
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0011-0-1-501 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Reading Excellence................ 201
--------- --------- ----------
10.00 Total new obligations........... 201
----------------------------------------------------------------------------
Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 6
[[Page 327]]
22.00 New budget authority (gross)...... 195
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 201
23.95 Total new obligations............. -201
----------------------------------------------------------------------------
New budget authority (gross), detail:
Discretionary:
55.00 Advance appropriation........... 195
----------------------------------------------------------------------------
Change in obligated balances:
72.40 Obligated balance, start of year.. 449 447 137
73.10 Total new obligations............. 201
73.20 Total outlays (gross)............. -200 -310 -105
73.40 Adjustments in expired accounts
(net)........................... -4
74.40 Obligated balance, end of year.... 447 137 31
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 1
86.93 Outlays from discretionary
balances........................ 199 310 105
--------- --------- ----------
87.00 Total outlays (gross)........... 200 310 105
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 195
90.00 Outlays........................... 200 310 105
---------------------------------------------------------------------------
Reading Excellence.--This program has been replaced by the Reading
First program in the Education for the Disadvantaged account. Amounts in
these schedules reflect balances that are spending out from prior-year
appropriations.
Object Classification (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0011-0-1-501 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
24.0 Printing and reproduction......... 2
25.2 Other services.................... 6
25.3 Other purchases of goods and
services from Government
accounts........................ 1
41.0 Grants, subsidies, and
contributions................... 192
--------- --------- ----------
99.9 Total new obligations........... 201
---------------------------------------------------------------------------
Education Reform
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0500-0-1-501 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
Obligations by program activity:
01.01 Small learning communities........ 103
--------- --------- ----------
10.00 Total new obligations........... 103
----------------------------------------------------------------------------
Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 103
23.95 Total new obligations............. -103
----------------------------------------------------------------------------
Change in obligated balances:
72.40 Obligated balance, start of year.. 2,464 781 80
73.10 Total new obligations............. 103
73.20 Total outlays (gross)............. -1,768 -701 -80
73.40 Adjustments in expired accounts
(net)........................... -18
74.40 Obligated balance, end of year.... 781 80
----------------------------------------------------------------------------
Outlays (gross), detail:
86.93 Outlays from discretionary
balances........................ 1,768 701 80
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays........................... 1,768 701 80
---------------------------------------------------------------------------
Programs in this account have been transferred to the School
Improvement account or discontinued. Amounts in these schedules reflect
balances that are spending out from prior-year appropriations.
Object Classification (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0500-0-1-501 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
25.1 Advisory and assistance services.. 2
25.2 Other services.................... 5
41.0 Grants, subsidies, and
contributions................... 96
--------- --------- ----------
99.9 Total new obligations........... 103
---------------------------------------------------------------------------
Chicago Litigation Settlement
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0220-0-1-501 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Direct program activity........... 1
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 1
----------------------------------------------------------------------------
Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 1 1
23.95 Total new obligations............. -1
24.40 Unobligated balance carried
forward, end of year............ 1
----------------------------------------------------------------------------
Change in obligated balances:
72.40 Obligated balance, start of year.. 2 1
73.10 Total new obligations............. 1
73.20 Total outlays (gross)............. -1 -2
74.40 Obligated balance, end of year.... 1
----------------------------------------------------------------------------
Outlays (gross), detail:
86.93 Outlays from discretionary
balances........................ 1 2
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays........................... 1 2
---------------------------------------------------------------------------
Funds made available under this account were reappropriated by the
Supplemental Appropriations Act, 1987 (Public Law 100-71) from funds
enjoined in United States of America v. Board of Education of the City
of Chicago. The funds were reappropriated for the specific purpose of
settling this case. The funds are used by the Chicago Board of Education
to implement Project CANAL (Creating A New Approach to Learning), the
project approved by the court to support the Board's desegregation
efforts.
OFFICE OF INNOVATION AND IMPROVEMENT
Federal Funds
General and special funds:
Innovation and Improvement
For carrying out activities authorized by part G of title I, parts C
and D of title II, and parts B, C, and D of title V of the Elementary
and Secondary Education Act of 1965, $807,400,000.
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0204-0-1-501 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
Obligations by program activity:
Innovation for teacher quality:
00.01 Troops-to-teachers.............. 25
00.02 Transition to teaching.......... 49
00.03 Teaching of traditional American
history....................... 100
School choice and flexibility:
00.04 Charter schools grants.......... 220
00.05 Credit enhancement for charter
school facilities............. 100
00.06 Voluntary public school choice.. 25
00.07 Magnet schools assistance....... 110
00.08 Choice incentive fund........... 75
00.09 FIE programs of national
significance.................... 35
00.10 Reading is fundamental/inexpensive
book distribution............... 24
00.11 Ready-to-learn television......... 22
00.12 Advanced placement................ 22
--------- --------- ----------
10.00 Total new obligations........... 807
----------------------------------------------------------------------------
Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 807
[[Page 328]]
23.95 Total new obligations............. -807
----------------------------------------------------------------------------
New budget authority (gross), detail:
Discretionary:
40.00 Appropriation................... 807
----------------------------------------------------------------------------
Change in obligated balances:
73.10 Total new obligations............. 807
73.20 Total outlays (gross)............. -40
74.40 Obligated balance, end of year.... 767
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 40
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 807
90.00 Outlays........................... 40
---------------------------------------------------------------------------
Improving teacher quality.--
Troops-to-teacher.--Funds assist eligible members of the armed
forces to obtain certification as teachers and to become highly
qualified teachers.
Transition to teaching.--Funds support competitive grants to
establish programs to recruit and retain highly qualified mid-career
professionals and recent college graduates as teachers in high-need
schools.
Teaching of traditional American history.--Funds support
competitive grants to school districts for activities to improve
history instruction and provide professional development for
teachers in American history.
School choice and flexibility.--
Charter school grants.--Funds support competitive grants to
State educational agencies and charter schools to support the
planning, design, initial implementation, and dissemination of
information regarding charter schools. These schools are created by
teachers, parents, and members of the community, and are exempt from
certain local, State, and Federal regulations.
Credit enhancement for charter school facilities.--Funds support
competitive grants to State and local governments, nonprofit
entities, and public and nonprofit consortia, to assist charter
schools in acquiring, leasing, and renovating school facilities.
Voluntary public school choice.--Funds support competitive
grants to State educational agencies and local educational agencies
to implement programs that provide students, particularly students
who attend low-performing schools, with expanded school choice
options.
Magnet schools assistance.--Funds support competitive grants to
local educational agencies to establish and operate magnet school
programs that are part of an approved desegregation plan.
Choice incentive fund.--Funds will support grants to States,
local educational agencies, and community-based nonprofit
organizations with a proven record for securing educational
opportunities for children. These grants will support efforts to
increase the capacity of high-quality public and private schools to
serve additional students through activities such as creating
partnerships to fund private school choice programs; and designing
incentives to provide tax benefits to individuals and organizations
that donate funds to help low-income parents meet the costs of
private school tuition.
FIE programs of national significance.--Funds support nationally
significant projects to improve the quality of elementary and secondary
education in order to help all children meet challenging State content
and student achievement standards.
Reading is fundamental/inexpensive book distribution.--Funds support
reading motivation activities, including the distribution of free books
to children.
Ready-to-learn television.--Funds support the development,
distribution, and production of educational video and accompanying
materials and services for preschool children, elementary school
children, and their parents to facilitate student academic achievement.
Advanced placement.--Funds support grants to States to pay test fees
for low-income students if they are enrolled in an Advanced Placement
course and competitive grants to State educational agencies, local
educational agencies, and national nonprofit educational entities to
expand access for low-income individuals to Advanced Placement classes.
Note.--Includes $807 million in budget authority in 2004 for
activities previously financed from Department of Education:
(in millions of dollars)
2002 actual 2003 est.
Office of Elementary and Secondary
Education, School improvement programs. 918 675
Office of Elementary and Secondary
Education, Education for the
disadvantaged.......................... 22 22
Object Classification (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0204-0-1-501 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
25.1 Advisory and assistance services.. 2
25.2 Other services.................... 25
25.3 Other purchases of goods and
services from Government
accounts........................ 1
41.0 Grants, subsidies, and
contributions................... 779
--------- --------- ----------
99.9 Total new obligations........... 807
---------------------------------------------------------------------------
OFFICE OF SAFE AND DRUG-FREE SCHOOLS
Federal Funds
General and special funds:
Safe Schools and Citizenship Education
For carrying out civic and physical education activities, safe and
drug-free schools and communities programs, and partnerships in
character education programs authorized by subpart 3 of part C of title
II, part A of title IV, and subparts 1 and 3 of part D of title V of the
Elementary and Secondary Education Act of 1965, $756,250,000, of which
$92,017,000 shall become available on July 1, 2004 and remain available
through September 30, 2005, and of which $330,000,000 shall become
available on October 1, 2004 and shall remain available through
September 20, 2005 for academic year 2004-2005: Provided, That of the
funds available to carry out subpart 3 of part C of title II, up to
$11,500,000 may be used to carry out section 2345: Provided further,
That $422,017,000 shall be available for subpart 1 of part A of title IV
and $272,233,000 shall be available for subpart 2 of part A of title IV,
of which $10,000,000, to remain available until expended, shall be for
the Project School Emergency Response to Violence program to provide
education-related services to local educational agencies in which the
learning environment has been disrupted due to a violent or traumatic
crisis.
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0203-0-1-501 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
Obligations by program activity:
Safe and drug-free schools and communities:
00.01 State grants.................... 92
National programs:
00.02 Mentoring program............. 100
00.03 Other national programs....... 172
--------- --------- ----------
00.91 Subtotal, Safe and drug-free
schools and communities....... 364
01.01 Character education............... 25
02.01 Civic education................... 27
03.01 Physical education initiative..... 10
--------- --------- ----------
[[Page 329]]
10.00 Total new obligations........... 426
----------------------------------------------------------------------------
Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 426
23.95 Total new obligations............. -426
----------------------------------------------------------------------------
New budget authority (gross), detail:
Discretionary:
40.00 Appropriation................... 426
----------------------------------------------------------------------------
Change in obligated balances:
73.10 Total new obligations............. 426
73.20 Total outlays (gross)............. -38
74.40 Obligated balance, end of year.... 388
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 38
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 426
90.00 Outlays........................... 38
---------------------------------------------------------------------------
Note.--Includes $416 million in budget authority in 2004 for
activities previously financed from Department of Education:
(in millions of dollars)
2002 actual 2003 est.
Office of Elementary and Secondary
Education, School Improvement Programs. 724 669
SUMMARY OF PROGRAM LEVEL
(in millions of dollars)
2002-2003
Academic
Year 2003-2004
Academic Year 2004-2005
Academic Year
New budget authority................ 0 426
Advance appropriation............... 0 330
------------------------------------
Total program level........... 0 0 756
====================================
Change in advance appropriation over
previous year....................... 0 0 +330
Safe and drug-free schools and communities.--
State Grants.--Funds provide formula grants to States to support
research-based drug and violence-prevention programs and to
implement strategies to improve school safety.
National Programs.--Funds support national activities to prevent
violence and the illegal use of drugs among, and to promote safety and
discipline for, students.
Mentoring program.--Funds provide grants to local education
agencies and community-based organizations for mentoring programs
serving at-risk youth in conjunction with the efforts of the USA
Freedom Corps.
Character Education.--Funds provide grants to support the design and
implementation of character education programs in the Nation's
elementary and secondary schools.
Civic Education.--Funds support a grant to the nonprofit Center for
Civic Education to promote civic competence and responsibility and
improve the quality of civics and government education through
coursework and curricula on the history and principles of the
Constitution of the United States; and grants to eligible organizations
for cooperative education exchange programs to improve the quality of
civic and economic education in emerging democracies through exemplary
curriculum and teacher training programs for educators. These activities
complement civics programs coordinated by the USA Freedom Corps.
Physical Education Initiative.--Funds will support activities to
promote increased physical fitness among youth.
Object Classification (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0203-0-1-501 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
24.0 Printing and reproduction......... 1
25.1 Advisory and assistance services.. 3
25.2 Other services.................... 12
41.0 Grants, subsidies, and
contributions................... 410
--------- --------- ----------
99.9 Total new obligations........... 426
---------------------------------------------------------------------------
OFFICE OF ENGLISH LANGUAGE ACQUISITION
Federal Funds
General and special funds:
English Language Acquisition
For carrying out title III, part A of the Elementary and Secondary
Education Act of 1965, $665,000,000, of which $541,000,000 shall become
available on July 1, 2004, and shall remain available through September
30, 2005.
Note.--A regular 2003 appropriation for this account had not been
enacted at the time the budget was prepared; therefore, this account is
operating under a continuing resolution (P.L. 107-229, as amended). The
amounts included for 2003 in this budget reflect the Administration's
2003 policy proposals.
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-1300-0-1-501 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Language acquisition State grants. 403 482 541
00.02 Bilingual education instructional
services........................ 120 91 54
00.04 Bilingual education professional
development..................... 129 104 70
--------- --------- ----------
10.00 Total new obligations........... 652 677 665
----------------------------------------------------------------------------
Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 12
22.00 New budget authority (gross)...... 664 665 665
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 664 677 665
23.95 Total new obligations............. -652 -677 -665
24.40 Unobligated balance carried
forward, end of year............ 12
----------------------------------------------------------------------------
New budget authority (gross), detail:
Discretionary:
40.00 Appropriation................... 665 665 665
41.00 Transferred to other accounts... -1
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 664 665 665
----------------------------------------------------------------------------
Change in obligated balances:
72.40 Obligated balance, start of year.. 603 833 1,003
73.10 Total new obligations............. 652 677 665
73.20 Total outlays (gross)............. -414 -507 -803
73.40 Adjustments in expired accounts
(net)........................... -9
74.40 Obligated balance, end of year.... 833 1,003 865
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 4 33 33
86.93 Outlays from discretionary
balances........................ 410 474 770
--------- --------- ----------
87.00 Total outlays (gross)........... 414 507 803
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 664 665 665
90.00 Outlays........................... 414 507 803
---------------------------------------------------------------------------
Language acquisition State grants.--This program provides formula
grants to States and discretionary professional development grants to
improve services for limited English proficient and immigrant students.
States are accountable for demonstrating that limited English proficient
students are learning English and meeting the same high State standards
as all other students. The statute also authorizes evaluation, and
requires funding for a national information clearinghouse on English
language acquisition. The statute also continues discretionary grants
for bilingual instructional services and bilingual professional
development grants made under the antecedent statute.
Object Classification (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-1300-0-1-501 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
25.2 Other services.................... 2 5 5
41.0 Grants, subsidies, and
contributions................... 650 672 660
--------- --------- ----------
99.9 Total new obligations........... 652 677 665
---------------------------------------------------------------------------
[[Page 330]]
OFFICE OF SPECIAL EDUCATION AND REHABILITATIVE SERVICES
Federal Funds
General and special funds:
Special Education
For carrying out parts B, C, and D of the Individuals with
Disabilities Education Act, $10,690,104,000, of which $5,337,533,000
shall become available for obligation on July 1, 2004, and shall remain
available through September 30, 2005, and of which $5,072,000,000 shall
become available on October 1, 2004, and shall remain available through
September 30, 2005, for academic year 2004-2005: Provided, That the
amount for section 611(c) of the Act shall be equal to the amount
available for that section during fiscal year 2003, increased by the
amount of inflation as specified in section 611(f)(1)(B)(ii) of the Act.
Note.--A regular 2003 appropriation for this account had not been
enacted at the time the budget was prepared; therefore, this account is
operating under a continuing resolution (P.L. 107-229, as amended). The
amounts included for 2003 in this budget reflect the Administration's
2003 policy proposals.
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0300-0-1-501 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
Direct program:
Obligations by program activity:
State grants:
00.01 Grants to States.............. 7,530 8,546 9,529
00.02 Preschool grants.............. 390 390 390
00.03 Grants for infants and
families.................... 435 474 447
--------- --------- ----------
00.91 Subtotal, State grants...... 8,355 9,410 10,366
National activities:
01.01 State improvement............. 52 97 44
01.02 Research and innovation....... 78 78 78
01.03 Technical assistance and
dissemination............... 53 53 53
01.04 Personnel preparation......... 90 90 90
01.05 Parent information centers.... 26 26 26
01.06 Technology and media services. 37 33 33
--------- --------- ----------
01.91 Subtotal, National
activities................ 336 377 324
--------- --------- ----------
02.00 Total Direct Program.............. 8,691 9,787 10,690
--------- --------- ----------
10.00 Total new obligations............. 8,691 9,787 10,690
----------------------------------------------------------------------------
Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 116 99
22.00 New budget authority (gross)...... 8,673 9,688 10,690
22.10 Resources available from
recoveries of prior year
obligations..................... 3
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 8,792 9,787 10,690
23.95 Total new obligations............. -8,691 -9,787 -10,690
23.98 Unobligated balance expiring or
withdrawn....................... -1
24.40 Unobligated balance carried
forward, end of year............ 99
----------------------------------------------------------------------------
New budget authority (gross), detail:
Discretionary:
40.00 Appropriation................... 3,601 4,616 5,618
55.00 Advance appropriation........... 5,072 5,072 5,072
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 8,673 9,688 10,690
----------------------------------------------------------------------------
Change in obligated balances:
72.40 Obligated balance, start of year.. 4,469 6,137 8,194
73.10 Total new obligations............. 8,691 9,787 10,690
73.20 Total outlays (gross)............. -7,000 -7,730 -9,657
73.40 Adjustments in expired accounts
(net)........................... -20
73.45 Recoveries of prior year
obligations..................... -3
74.40 Obligated balance, end of year.... 6,137 8,194 9,227
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 3,269 3,491 3,511
86.93 Outlays from discretionary
balances........................ 3,731 4,239 6,146
--------- --------- ----------
87.00 Total outlays (gross)........... 7,000 7,730 9,657
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 8,673 9,688 10,690
90.00 Outlays........................... 7,000 7,730 9,657
---------------------------------------------------------------------------
SUMMARY OF PROGRAM LEVEL
[In millions of dollars]
2002-2003
academic
year 2003-2004
academic year 2004-2005
academic year
Current Budget Authority............ 3,601 4,616 5,618
Advance appropriation............... 5,072 5,072 5,072
------------------------------------
Total program level............. 8,673 9,688 10,690
====================================
Change in advance appropriation from
the previous year...................
State Grants:
Grants to States.--Formula grants are provided to States to
assist them in providing special education and related services to
children with disabilities ages 3 through 21.
Preschool grants.--Formula grants provide additional funds to
States to further assist them in providing special education and
related services to children with disabilities ages 3 through 5
served under the Grants to States program.
The goal of both of these programs is to improve results for
children with disabilities by assisting State and local educational
agencies to provide children with disabilities with access to high
quality education that will help them meet challenging standards and
prepare them for employment and independent living.
Grants for infants and families.--Formula grants are provided to
assist States to implement statewide systems of coordinated,
comprehensive, multi-disciplinary interagency programs to provide
early intervention services to children with disabilities, birth
through age 2, and their families.
The goal of this program is to help States provide a
comprehensive system of early intervention services that will
enhance child and family outcomes.
National activities:
These activities include research, demonstration, personnel
preparation, technical assistance, grants to States to promote
systems change, and other activities to support State efforts to
improve results for children with disabilities under the State
Grants programs.
The goal of National Activities is to link States, school
systems, and families to best practices to improve results for
infants, toddlers, and children with disabilities.
The General Education Provisions Act extension for Grants for
Infants and Families and National Activities programs applies
through September 30, 2003; authorizing legislation is required.
Performance data related to program goals include:
2002 actual 2003 est. 2004 est.
Number of children served in first
quarter of fiscal year (in
thousands):
Ages 3 through 21..................... 6,483 6,580 6,672
Ages 3 through 5...................... 617 633 648
Birth through 2....................... 247 260 273
1998-1999 ac1999-2000 actual 2000-2001
actual
Educational Environment
Percent of children ages 6 through 21
provided special education in:
Regular classrooms.................... 47.4 47.3 46.5
Resource rooms........................ 28.4 28.3 29.8
Separate classes...................... 20.1 20.3 19.5
Separate schools...................... 2.9 2.9 3.0
Residential facilities................ .7 .7 .7
Home or hospital...................... .5 .5 .5
Status of Exiting Students
Percent of students with disabilities
aged 14-21 leaving school:
Graduated with a diploma.............. 57.4 56.2 57.0
Graduated through certification....... 11.2 11.4 11.0
Dropped out of school................. 28.9 29.4 29.4
Reached maximum age and other......... 2.5 3.0 2.5
Object Classification (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0300-0-1-501 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
Direct obligations:
25.2 Other services.................. 23 21 21
[[Page 331]]
25.3 Other purchases of goods and
services from Government
accounts...................... 1
41.0 Grants, subsidies, and
contributions................. 8,666 9,766 10,669
--------- --------- ----------
99.0 Direct obligations............ 8,690 9,787 10,690
99.5 Below reporting threshold......... 1
--------- --------- ----------
99.9 Total new obligations........... 8,691 9,787 10,690
---------------------------------------------------------------------------
Rehabilitation Services and Disability Research
For carrying out, to the extent not otherwise provided, the
Rehabilitation Act of 1973 and the Helen Keller National Center Act,
$3,002,913,000: Provided, That funds available under the Vocational
Rehabilitation State Grants program may be used by State Vocational
Rehabilitation agencies to pay for the fiscal year 2004 continuation
costs of projects funded in fiscal year 2002 under title VI, Part A of
the Rehabilitation Act.
Note.--A regular 2003 appropriation for this account had not been
enacted at the time the budget was prepared; therefore, this account is
operating under a continuing resolution (P.L. 107-229, as amended). The
amounts included for 2003 in this budget reflect the Administration's
2003 policy proposals.
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0301-0-1-506 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
Obligations by program activity:
Direct program:
00.01 Vocational rehabilitation State
grants........................ 2,481 2,616 2,669
00.02 Vocational rehabilitation
incentive grants.............. 30
00.03 Client assistance State grants.. 12 12 12
00.04 Training........................ 40 42 43
00.05 Demonstration and training
programs...................... 21 17 24
00.06 Migrant and seasonal farmworkers 2
00.07 Recreational programs........... 3
00.08 Protection and advocacy of
individual rights............. 15 15 18
00.09 Projects with industry.......... 22
00.10 Supported employment State
grants........................ 38
00.11 Independent living.............. 110 117 117
00.12 Program improvement............. 1 1 1
00.13 Evaluation...................... 1 1 1
00.14 Helen Keller National Center.... 9 9 9
00.15 National Institute on Disability
and Rehabilitation Research... 110 110 110
00.16 Assistive technology............ 24 52 15
00.17 Access to Telework Fund......... 20
--------- --------- ----------
01.00 Total direct program............ 2,889 3,042 3,019
09.01 Reimbursable program.............. 2 2 2
--------- --------- ----------
10.00 Total new obligations........... 2,891 3,044 3,021
----------------------------------------------------------------------------
Budgetary resources available for obligation:
Unobligated balance carried forward, start of
year:
21.40 Unobligated balance carried
forward, start of year........ 56 16
21.40 Unobligated balance carried
forward, start of year........
22.00 New budget authority (gross)...... 2,948 3,004 3,005
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 2,948 3,060 3,021
23.95 Total new obligations............. -2,891 -3,044 -3,021
24.40 Unobligated balance carried
forward, end of year............ 56 16
----------------------------------------------------------------------------
New budget authority (gross), detail:
Discretionary:
40.00 Appropriation................... 464 386 334
Mandatory:
60.00 Appropriation................... 2,482 2,616 2,669
Discretionary:
68.00 Spending authority from
offsetting collections:
Offsetting collections (cash). 2 2 2
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 2,948 3,004 3,005
----------------------------------------------------------------------------
Change in obligated balances:
72.40 Obligated balance, start of year.. 1,043 1,070 971
73.10 Total new obligations............. 2,891 3,044 3,021
73.20 Total outlays (gross)............. -2,853 -3,143 -3,003
73.40 Adjustments in expired accounts
(net)........................... -11
74.40 Obligated balance, end of year.... 1,070 971 989
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 77 271 235
86.93 Outlays from discretionary
balances........................ 324 499 119
86.97 Outlays from new mandatory
authority....................... 1,927 1,831 1,868
86.98 Outlays from mandatory balances... 525 542 781
--------- --------- ----------
87.00 Total outlays (gross)........... 2,853 3,143 3,003
----------------------------------------------------------------------------
Offsets:
Against gross budget authority and outlays:
88.00 Offsetting collections (cash)
from: Federal sources......... -2 -2 -2
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 2,946 3,002 3,003
90.00 Outlays........................... 2,852 3,141 3,001
---------------------------------------------------------------------------
Vocational rehabilitation State grants.--The basic State grants
program provides Federal matching funds to State vocational
rehabilitation (VR) agencies to assist individuals with physical or
mental impairments to become gainfully employed. Services are tailored
to the specific needs of the individual. Priority is given to serving
those with the most significant disabilities. Current law requires that
between 1.0 percent and 1.5 percent of the funds appropriated for the VR
State grants program be set aside for Grants for Indians in 2004.
The table below presents national data on selected performance
measures for the VR State grants program. The data are based on the
number of individuals whose service records were closed in fiscal years
2000 (377,170) and 2001 (385,235).
CONSUMER OUTCOMES (CASES CLOSED)
2000 actual 2001 actual
Individuals achieving employment
outcomes............................... 236,137 233,692
Percent with significant disabilities.. 87.0% 88.0%
Employment outcomes as a percent all of
individuals receiving services......... 62.6% 60.7%
The 2004 budget request reflects a multi-year Administration effort
to reform job training programs, target resources to programs with
documented effectiveness, and eliminate funding for duplicative and
overlapping programs. Consistent with this crosscutting reform, the
budget consolidates funding for three programs in this account
(Supported Employment State Grants, Projects with Industry, and the
Migrant and Seasonal Farmworkers program) within the Vocational
Rehabilitation State Grants program.
Vocational rehabilitation incentive grants.--Incentive grants will
be used to encourage State VR agencies to improve their performance in
helping individuals with disabilities obtain competitive employment.
Grants will be awarded to State VR agencies based on program
performance. The Administration plans to carry out 2004 activities with
any remaining 2003 funds.
Client assistance State grants.--Formula grants are made to States
to provide assistance in informing and advising clients and applicants
of benefits available under the Rehabilitation Act and, if requested, to
pursue legal or administrative remedies to ensure the protection of the
rights of individuals with disabilities.
Training.--Grants are made to States and public or nonprofit
agencies and organizations, including institutions of higher education,
to increase the number of skilled personnel available for employment in
the field of rehabilitation and to upgrade the skills of those already
employed.
Demonstration and training programs.--Grants are made for programs
that expand and improve the provision of rehabilitation services or that
further the purposes of the Rehabilitation Act.
Protection and advocacy of individual rights.--Formula grants are
made to State protection and advocacy systems to protect the legal and
human rights of individuals with disabilities.
Independent living.--Grants are awarded to States and nonprofit
agencies to assist individuals with significant disabilities in their
achievement of self-determined independent living goals. Grants are also
awarded to provide support services
[[Page 332]]
to older blind individuals to increase their ability to care for their
own needs.
Program improvement.--Funds are used to promote broad-based planning
and coordination, improve accountability, and enhance the Department's
ability to address critical areas of national significance in achieving
the goals of the Rehabilitation Act. Examples of program improvement
activities include technical assistance, dissemination, and performance
measurement activities.
Evaluation.--Studies are conducted to evaluate the impact and
effectiveness of various programs authorized under the Rehabilitation
Act.
Helen Keller National Center for Deaf-Blind Youths and Adults.--The
Center provides services to deaf-blind youths and adults and provides
training and technical assistance to professional and allied personnel
at its national headquarters center and through its regional
representatives and affiliate agencies.
National Institute on Disability and Rehabilitation Research.--The
Institute carries out a comprehensive and coordinated program of
rehabilitation research and related activities. Through grants and
contracts, it supports the conduct and dissemination of research aimed
at improving the lives of individuals with disabilities. The Institute
also promotes the development and utilization of new technologies to
assist these individuals in achieving greater independence and
integration into society.
Assistive technology loan program.--Grants are made to States to
establish alternative financing programs to increase access to assistive
technology for individuals with disabilities. The Administration plans
to carry out 2004 activities with the remaining fiscal year 2003 funds.
Access to telework fund.--Federal matching funds are awarded to
States to provide loans for individuals with disabilities to purchase
computers and other equipment so that they can telework from home.
Object Classification (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0301-0-1-506 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
Direct obligations:
25.1 Advisory and assistance services 8 8 8
25.2 Other services.................. 2 2 2
25.5 Research and development
contracts..................... 2 1
41.0 Grants, subsidies, and
contributions................. 2,876 3,031 3,009
--------- --------- ----------
99.0 Direct obligations............ 2,888 3,042 3,019
99.0 Reimbursable obligations.......... 2 2 2
99.5 Below reporting threshold......... 1
--------- --------- ----------
99.9 Total new obligations........... 2,891 3,044 3,021
---------------------------------------------------------------------------
Special Institutions for Persons With Disabilities
american printing house for the blind
For carrying out the Act of March 3, 1879, as amended (20 U.S.C. 101
et seq.), $14,000,000.
Note.--A regular 2003 appropriation for this account had not been
enacted at the time the budget was prepared; therefore, this account is
operating under a continuing resolution (P.L. 107-229, as amended). The
amounts included for 2003 in this budget reflect the Administration's
2003 policy proposals.
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0600-0-1-501 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Direct program activity........... 14 14 14
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 14 14 14
----------------------------------------------------------------------------
Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 14 14 14
23.95 Total new obligations............. -14 -14 -14
----------------------------------------------------------------------------
New budget authority (gross), detail:
Discretionary:
40.00 Appropriation................... 14 14 14
----------------------------------------------------------------------------
Change in obligated balances:
72.40 Obligated balance, start of year.. 5 6 1
73.10 Total new obligations............. 14 14 14
73.20 Total outlays (gross)............. -13 -19 -14
74.40 Obligated balance, end of year.... 6 1 1
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 9 13 13
86.93 Outlays from discretionary
balances........................ 4 6 1
--------- --------- ----------
87.00 Total outlays (gross)........... 13 19 14
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 14 14 14
90.00 Outlays........................... 13 19 14
---------------------------------------------------------------------------
The Federal appropriation supports the production of free
educational materials for students below the college level who are
blind, research related to developing and improving products, and
advisory services to consumer organizations on the availability and use
of materials. In 2002, the portion of the Federal appropriation
allocated to educational materials represented approximately 62.6
percent of the Printing House's total sales. The full appropriation
represented approximately 60.9 percent of the Printing House's total
budget.
national technical institute for the deaf
For the National Technical Institute for the Deaf under titles I and
II of the Education of the Deaf Act of 1986 (20 U.S.C. 4301 et seq.),
$50,781,000, of which $367,000 shall be for construction and shall
remain available until expended, and of which not less than $1,000,000,
to remain available until expended, shall be used for the endowment
program as authorized under section 207.
Note.--A regular 2003 appropriation for this account had not been
enacted at the time the budget was prepared; therefore, this account is
operating under a continuing resolution (P.L. 107-229, as amended). The
amounts included for 2003 in this budget reflect the Administration's
2003 policy proposals.
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0601-0-1-502 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Operations........................ 50 49 50
00.02 Construction...................... 5 2
00.03 Endowment......................... 1 1
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 55 52 51
----------------------------------------------------------------------------
Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 55 52 51
23.95 Total new obligations............. -55 -52 -51
----------------------------------------------------------------------------
New budget authority (gross), detail:
Discretionary:
40.00 Appropriation................... 55 52 51
----------------------------------------------------------------------------
Change in obligated balances:
72.40 Obligated balance, start of year.. 4
73.10 Total new obligations............. 55 52 51
73.20 Total outlays (gross)............. -55 -47 -51
74.40 Obligated balance, end of year.... 4 4
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 55 47 48
86.93 Outlays from discretionary
balances........................ 3
--------- --------- ----------
87.00 Total outlays (gross)........... 55 47 51
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 55 52 51
[[Page 333]]
90.00 Outlays........................... 55 47 51
---------------------------------------------------------------------------
This residential program provides postsecondary technical and
professional education for people who are deaf to prepare them for
employment, provides training, and conducts applied research into
employment related aspects of deafness. In 2002, Federal appropriations
represented 81 percent of the Institute's operating budget. The request
includes funds for the Endowment Grant program. The request also
includes funds for a construction project to upgrade academic facilities
and enhance dormitory facilities.
gallaudet university
For the Kendall Demonstration Elementary School, the Model Secondary
School for the Deaf, and the partial support of Gallaudet University
under titles I and II of the Education of the Deaf Act of 1986 (20
U.S.C. 4301 et seq.), $94,446,000, of which not less than $1,000,000
shall be used for the endowment program as authorized under section 207:
Provided, That such $1,000,000 is available until expended.
Note.--A regular 2003 appropriation for this account had not been
enacted at the time the budget was prepared; therefore, this account is
operating under a continuing resolution (P.L. 107-229, as amended). The
amounts included for 2003 in this budget reflect the Administration's
2003 policy proposals.
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0602-0-1-502 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Operations........................ 97 93 93
00.02 Endowment......................... 1 1
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 97 94 94
----------------------------------------------------------------------------
Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 97 94 94
23.95 Total new obligations............. -97 -94 -94
----------------------------------------------------------------------------
New budget authority (gross), detail:
Discretionary:
40.00 Appropriation................... 97 94 94
----------------------------------------------------------------------------
Change in obligated balances:
72.40 Obligated balance, start of year.. 6
73.10 Total new obligations............. 97 94 94
73.20 Total outlays (gross)............. -97 -88 -94
74.40 Obligated balance, end of year.... 6 6
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 97 88 88
86.93 Outlays from discretionary
balances........................ 6
--------- --------- ----------
87.00 Total outlays (gross)........... 97 88 94
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 97 94 94
90.00 Outlays........................... 97 88 94
---------------------------------------------------------------------------
This institution provides undergraduate and continuing education
programs for persons who are deaf, and graduate programs related to
deafness for students who are deaf and students who are hearing. The
University also conducts basic and applied research and provides public
service programs for persons who are deaf and persons who work with
them.
Gallaudet operates two elementary and secondary education programs
on the main campus of the University. The Kendall Demonstration
Elementary School serves students who are deaf from infancy through age
15, and the Model Secondary School for the Deaf serves high school age
students who are deaf. Both schools also develop and disseminate
information on effective educational techniques and strategies for
teachers and professionals working with students who are deaf or hard of
hearing.
In 2002, the Federal appropriation represented 65.6 percent of the
University's total revenue, which also includes Federal financial aid,
vocational rehabilitation, Endowment Grant income, and competitive
grants and contracts, and 97.3 percent of the revenue related to the
elementary and secondary schools. The request also includes funds for
the Endowment Grant program.
OFFICE OF VOCATIONAL AND ADULT EDUCATION
Federal Funds
General and special funds:
Vocational and Adult Education
Note.--A regular 2003 appropriation for this account had not been
enacted at the time the budget was prepared; therefore, this account is
operating under a continuing resolution (P.L. 107-229, as amended). The
amounts included for 2003 in this budget reflect the Administration's
2003 policy proposals.
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0400-0-1-501 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
Obligations by program activity:
Vocational education:
Annual appropriations:
Vocational education:
00.01 State grants................ 1,179 1,182 791
00.02 National programs........... 18 12 12
00.03 Occupational and employment
information............... 9 2
00.04 Tribally controlled
postsecondary vocational
institutions.............. 6 7
00.05 Tech-prep education State
grants.................... 108 108
00.06 Tech-prep demonstration....... 5 5
--------- --------- ----------
00.91 Total, Vocational education. 1,325 1,316 803
Adult education:
01.01 State grants................ 571 589
01.02 National Institute for
Literacy.................. 6 7 6
01.03 National leadership
activities................ 14 9 9
--------- --------- ----------
01.91 Total, adult education...... 591 605 15
02.01 State grants for incarcerated
youth offenders............. 20
03.01 Literacy programs for
prisoners................... 5 5
--------- --------- ----------
10.00 Total new obligations........... 1,941 1,926 818
----------------------------------------------------------------------------
Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 65 56 27
22.00 New budget authority (gross)...... 1,934 1,898 791
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 1,999 1,954 818
23.95 Total new obligations............. -1,941 -1,926 -818
23.98 Unobligated balance expiring or
withdrawn....................... -1
24.40 Unobligated balance carried
forward, end of year............ 56 27
----------------------------------------------------------------------------
New budget authority (gross), detail:
Discretionary:
40.00 Appropriation................... 1,143 1,107
55.00 Advance appropriation........... 791 791 791
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 1,934 1,898 791
----------------------------------------------------------------------------
Change in obligated balances:
72.40 Obligated balance, start of year.. 1,496 1,652 1,650
73.10 Total new obligations............. 1,941 1,926 818
73.20 Total outlays (gross)............. -1,778 -1,929 -1,803
73.40 Adjustments in expired accounts
(net)........................... -7
74.40 Obligated balance, end of year.... 1,652 1,650 666
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 814 651 554
86.93 Outlays from discretionary
balances........................ 964 1,278 1,249
--------- --------- ----------
87.00 Total outlays (gross)........... 1,778 1,929 1,803
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 1,934 1,898 791
90.00 Outlays........................... 1,778 1,929 1,803
---------------------------------------------------------------------------
Summary of Budget Authority and Outlays
(in millions of dollars)
2002 actual 2003 est. 2004 est.
Enacted/requested:
Budget Authority.................. 1,934 1,898 791
[[Page 334]]
Outlays........................... 1,778 1,929 1,803
Legislative proposal, not subject to
PAYGO:
Budget Authority.................. 800
Outlays........................... 82
------------------------------------
Total:
Budget Authority.................. 1,934 1,898 1,591
Outlays........................... 1,778 1,929 1,885
====================================
SUMMARY OF PROGRAM LEVEL
(in millions of dollars)
2002-2003
academic
year 2003-2004
academic year 2004-2005
academic year
New Budget Authority................ 1,143 1,107 800
Advance appropriation............... 791 791 791
------------------------------------
Total program level............. 1,934 1,898 1,591
====================================
Change in advance appropriation from
the previous year...................
Vocational and adult education.--The Administration is working with
Congress to develop legislation reauthorizing programs included in the
Carl D. Perkins Vocational and Technical Education Act of 1998 and the
Adult Education and Family Literacy Act. When new authorizing
legislation is enacted resources for the affected programs will be
requested.
Object Classification (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0400-0-1-501 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
Direct obligations:
11.3 Personnel compensation: Other
than full-time permanent...... 1 1 1
25.1 Advisory and assistance services 3 3 3
25.2 Other services.................. 4 3 3
25.3 Other purchases of goods and
services from Government
accounts...................... 16 14 9
25.5 Research and development
contracts..................... 18 17 10
41.0 Grants, subsidies, and
contributions................. 1,898 1,887 791
--------- --------- ----------
99.0 Direct obligations............ 1,940 1,925 817
99.5 Below reporting threshold......... 1 1 1
--------- --------- ----------
99.9 Total new obligations........... 1,941 1,926 818
---------------------------------------------------------------------------
Personnel Summary
----------------------------------------------------------------------------
Identification code 91-0400-0-1-501 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
Total compensable workyears:
1001 Civilian full-time equivalent
employment...................... 16 20 18
---------------------------------------------------------------------------
Vocational and Adult Education
(Legislative proposal, not subject to PAYGO)
The resources in this schedule are proposed for later transmittal
under proposed legislation to reform the Carl D. Perkins Vocational and
Technical Education Act of 1998 (Perkins) and the Adult Education and
Family Literacy Act (AEFLA). The reforms would promote stronger
accountability for results by linking grantee funding to success in
achieving student outcomes.
Secondary and technical education.--The proposed reforms to Perkins
would create a coordinated high school and technical education
improvement program. The program would support and extend the goals of
Title I of the Elementary and Secondary Education Act (ESEA) by
requiring States and LEAs to focus more intensively on improving student
outcomes, such as academic achievement, and ensuring that students are
being taught the necessary skills to make successful transitions from
high school to college and college to the workforce. States would
reserve a portion of their formula allocations to, among other things,
implement assessments consistent with ESEA Title I accountability
requirements to track academic performance and ensure that high school
students are graduating with the necessary proficiency in core academic
areas. States would have the flexibility to transfer funds to support
education-related activities under ESEA Title I. States wouild also make
competitive grants to community and technical colleges to help raise
student academic achievement and provide students with high-quality
training leading to successful employment outcomes.
Adult literacy.--The proposal would amend the current statute to
increase the focus on building stronger skills in basic reading, math,
and English acquisition for adults who need to strengthen weak literacy
skills or want to earn their high school diploma or its recognized
equivalent (the GED). Proposed amendments would revise current
accountability provisions to create specific local accountability
requirements for demonstrating student gains in reading, math, and
English language acquisition, with rewards for high performing programs.
Each State would develop and implement educational standards to guide
local programs in creating a clear sequence of adult literacy activities
leading to high school-level proficiency. The proposal would require
that teachers be trained in the use of research-validated instructional
practices in reading, math and English fluency, and that programs
integrate the use of technology-facilitated learing to accelerate
student learning. In addition, the proposal would strengthen employer
partnerships and the participation of community- and faith-based
organizations to expand availabilty of essential reading, math, and
English acquisition instruction, particularly for low-wage working
adults.
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0400-2-1-501 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Secondary and technical education
State grants.................... 209
00.02 Adult basic and literacy education
State grants.................... 584
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 793
----------------------------------------------------------------------------
Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 800
23.95 Total new obligations............. -793
24.40 Unobligated balance carried
forward, end of year............ 7
----------------------------------------------------------------------------
New budget authority (gross), detail:
Discretionary:
40.00 Appropriation................... 800
----------------------------------------------------------------------------
Change in obligated balances:
73.10 Total new obligations............. 793
73.20 Total outlays (gross)............. -82
74.40 Obligated balance, end of year.... 712
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 82
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 800
90.00 Outlays........................... 82
---------------------------------------------------------------------------
OFFICE OF POSTSECONDARY EDUCATION
Federal Funds
General and special funds:
Higher Education
For carrying out, to the extent not otherwise provided, section 121
and titles II, III, IV, V, VI, and VII of the Higher Education Act of
1965, as amended (``HEA''), section 117 of the Carl D. Perkins
[[Page 335]]
Vocational and Technical Education Act, and the Mutual Educational and
Cultural Exchange Act of 1961, $1,904,438,000, of which $2,000,000 for
interest subsidies authorized by section 121 of the HEA shall remain
available until expended: Provided, That $10,000,000, to remain
available through September 30, 2005, shall be available to fund
fellowships for academic year 2005-2006 under part A, subpart 1 of title
VII of said Act, under the terms and conditions of part A, subpart 1:
Provided further, That $1,000,000 is for data collection and evaluation
activities for programs under the HEA, including such activities needed
to comply with the Government Performance and Results Act of 1993:
Provided further, That notwithstanding any other provision of law, funds
made available in this Act to carry out title VI of the HEA and section
102(b)(6) of the Mutual Educational and Cultural Exchange Act of 1961
may be used to support visits and study in foreign countries by
individuals who are participating in advanced foreign language training
and international studies in areas that are vital to United States
national security and who plan to apply their language skills and
knowledge of these countries in the fields of government, the
professions, or international development: Provided further, That up to
one percent of the funds referred to in the preceding proviso may be
used for program evaluation, national outreach, and information
dissemination activities: Provided further, That the funds provided for
title II of the HEA shall be allocated notwithstanding section 210 of
said Act: Provided further, That the funds provided for part B of title
VII of the HEA may be used, at the discretion of the Secretary of
Education, to fund continuation awards under title VII, part D of said
Act.
Note.--A regular 2003 appropriation for this account had not been
enacted at the time the budget was prepared; therefore, this account is
operating under a continuing resolution (P.L. 107-229, as amended). The
amounts included for 2003 in this budget reflect the Administration's
2003 policy proposals.
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0201-0-1-502 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
Obligations by program activity:
Aid for institutional development:
00.01 Strengthening institutions...... 74 76 76
00.02 Strengthening tribally
controlled colleges and
universities.................. 18 18 19
00.03 Strengthening Alaska Native and
Native Hawaiian-serving
institutions.................. 6 7 4
00.04 Strengthening historically black
colleges and universities..... 206 213 224
00.05 Strengthening historically black
graduate institutions......... 49 51 53
00.06 Minority science and engineering
improvement................... 9 8 8
--------- --------- ----------
00.91 Subtotal, aid for
institutional development... 362 373 384
Other aid for institutions:
01.01 Developing Hispanic-serving
institutions.................. 86 89 94
01.02 International education and
foreign language studies...... 98 103 103
01.03 Fund for the Improvement of
Postsecondary Education....... 181 39 39
01.04 Demonstration projects to ensure
quality higher education for
students with disabilities.... 7
01.05 Interest subsidy grants......... 7 10 2
01.06 Tribally controlled
postsecondary vocational and
technical institutions........ 6
--------- --------- ----------
01.91 Subtotal, other aid for
institutions................ 379 241 244
Assistance for students:
02.01 Federal TRIO programs........... 803 803 803
02.02 Gaining early awareness and
readiness for undergraduate
programs (GEAR UP)............ 285 285 285
02.03 Byrd honors scholarships........ 41 41 41
02.04 Javits fellowships.............. 10 10 10
02.05 Graduate assistance in areas of
national need................. 31 31 31
02.06 Thurgood Marshall legal
educational opportunity
program....................... 4
02.07 B. J. Stupak Olympic
scholarships.................. 1
02.08 Child care access means parents
in school..................... 22 15 15
--------- --------- ----------
02.91 Subtotal, assistance for
students.................... 1,197 1,185 1,185
03.01 Teacher quality enhancement....... 88 90 90
04.01 GPRA data/HEA program evaluation.. 1 1 1
05.01 Underground railroad program...... 2
--------- --------- ----------
10.00 Total new obligations........... 2,029 1,890 1,904
----------------------------------------------------------------------------
Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 19 17 10
22.00 New budget authority (gross)...... 2,028 1,883 1,904
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 2,047 1,900 1,914
23.95 Total new obligations............. -2,029 -1,890 -1,904
23.98 Unobligated balance expiring or
withdrawn....................... -2
24.40 Unobligated balance carried
forward, end of year............ 17 10 10
----------------------------------------------------------------------------
New budget authority (gross), detail:
Discretionary:
40.00 Appropriation................... 2,031 1,883 1,904
41.00 Transferred to other accounts... -3
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 2,028 1,883 1,904
----------------------------------------------------------------------------
Change in obligated balances:
72.40 Obligated balance, start of year.. 2,396 2,702 2,491
73.10 Total new obligations............. 2,029 1,890 1,904
73.20 Total outlays (gross)............. -1,687 -2,100 -1,905
73.40 Adjustments in expired accounts
(net)........................... -34
74.40 Obligated balance, end of year.... 2,702 2,491 2,491
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 68 97 97
86.93 Outlays from discretionary
balances........................ 1,619 2,003 1,808
--------- --------- ----------
87.00 Total outlays (gross)........... 1,687 2,100 1,905
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 2,028 1,883 1,904
90.00 Outlays........................... 1,687 2,100 1,905
---------------------------------------------------------------------------
Note.--Includes $6 million in budget authority in 2004 for
activities previously financed from the Department of Education:
(in millions of dollars)
2002 actual 2003 est.
Office of Vocational and Adult Education 6 6
Aid for institutional development.--
Strengthening institutions.--Funds support planning and development
grants for improving academic programs and financial management at
schools that enroll high proportions of disadvantaged students and have
low per-student expenditures.
Strengthening tribally controlled colleges and universities.--Funds
support grants to American Indian tribally controlled colleges and
universities with scarce resources to enable them to improve and expand
their capacity to serve Indian students.
Strengthening Alaska Native and Native Hawaiian-serving
institutions.--Funds support Alaska Native and Native Hawaiian-serving
institutions to enable them to improve and expand their capacity to
serve Alaska Native and Native Hawaiian students.
Strengthening historically black colleges and universities.--Funds
support grants to help historically black undergraduate institutions to
improve and expand their capacity to serve students, and to strengthen
management and fiscal operations.
Strengthening historically black graduate institutions.--Funds
support grants to help historically black graduate institutions to
improve and expand their capacity to serve students, and to strengthen
management and fiscal operations.
Minority science and engineering improvement.--Funds support grants
to predominantly minority institutions to help them make long-range
improvements in science and engineering education and to increase the
participation of minorities in scientific and technological careers.
Other aid for institutions.--
Developing Hispanic-serving institutions.--Funds support Hispanic-
serving institutions to enable them to improve and expand their capacity
to serve students.
International education and foreign language studies programs.--
Funds promote the development and improvement of international and
foreign language programs.
Fund for the improvement of postsecondary education.--Funds support
a broad range of postsecondary reform and improvement projects, as well
as international consortia pro
[[Page 336]]
grams and projects previously funded under HEA Title VII, Part D to
improve education for students with disabilities.
Interest subsidy grants.--Funds meet mandatory interest subsidy
costs of construction loan commitments made prior to 1974.
Tribally controlled postsecondary vocational and technical
institutions.--Funds support the operation and improvement of tribally
controlled postsecondary vocational institutions, to ensure continued
and expanded educational opportunities for Indian students.
Assistance for students.--
Federal TRIO programs.--Funds support postsecondary education
outreach and student support services through 5 major programs designed
to help individuals from disadvantaged backgrounds enter and complete
college and graduate studies.
Gaining early awareness and readiness for undergraduate programs.--
Funds support early college preparation and awareness activities at the
State and local levels to ensure that low-income elementary and
secondary school students are prepared for and pursue postsecondary
education.
Byrd honors scholarships.--Funds support merit-based scholarships to
students who have demonstrated outstanding academic achievement and who
show promise of continued academic excellence for study at an
institution of higher education.
Javits fellowships.--Funds support fellowships to students of
superior ability who have financial need and who are pursuing doctoral
degrees in the arts, humanities, and social sciences.
Graduate assistance in areas of national need.--Funds support
fellowships to graduate students of superior ability who have financial
need and who are from traditionally under-represented backgrounds for
study in areas of national need.
Child care access means parents in school.--Funds support a program
designed to bolster the participation of low-income parents in
postsecondary education through the provision of campus-based child care
services.
Other aid.--
Teacher quality enhancement.--Funds support programs that seek to
make lasting changes in the ways our Nation recruits, prepares,
licenses, and supports teachers.
GPRA data/HEA program evaluation.--Funds support data collection and
evaluation activities for programs under the Higher Education Act of
1965, including such activities needed to comply with the Government
Performance and Results Act of 1993.
Object Classification (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0201-0-1-502 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
Direct obligations:
25.1 Advisory and assistance services 3 4 4
25.2 Other services.................. 5 5 5
25.3 Other purchases of goods and
services from Government
accounts...................... 2 2 2
41.0 Grants, subsidies, and
contributions................. 2,018 1,879 1,893
--------- --------- ----------
99.0 Direct obligations............ 2,028 1,890 1,904
99.5 Below reporting threshold......... 1
--------- --------- ----------
99.9 Total new obligations........... 2,029 1,890 1,904
---------------------------------------------------------------------------
Howard University
For partial support of Howard University (20 U.S.C. 121 et seq.),
$237,474,000, of which not less than $3,600,000 shall be for a matching
endowment grant pursuant to the Howard University Endowment Act (Public
Law 98-480) and shall remain available until expended.
Note.--A regular 2003 appropriation for this account had not been
enacted at the time the budget was prepared; therefore, this account is
operating under a continuing resolution (P.L. 107-229, as amended). The
amounts included for 2003 in this budget reflect the Administration's
2003 policy proposals.
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0603-0-1-502 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 General support................... 207 211 207
00.02 Howard University Hospital........ 30 30 30
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 237 241 237
----------------------------------------------------------------------------
Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 4 4
22.00 New budget authority (gross)...... 237 237 237
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 241 241 237
23.95 Total new obligations............. -237 -241 -237
24.40 Unobligated balance carried
forward, end of year............ 4
----------------------------------------------------------------------------
New budget authority (gross), detail:
Discretionary:
40.00 Appropriation................... 237 237 237
----------------------------------------------------------------------------
Change in obligated balances:
72.40 Obligated balance, start of year.. 4 15
73.10 Total new obligations............. 237 241 237
73.20 Total outlays (gross)............. -234 -230 -237
74.40 Obligated balance, end of year.... 4 15 15
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 234 223 223
86.93 Outlays from discretionary
balances........................ 7 14
--------- --------- ----------
87.00 Total outlays (gross)........... 234 230 237
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 237 237 237
90.00 Outlays........................... 234 230 237
---------------------------------------------------------------------------
Howard University is a private, nonprofit educational institution
consisting of 12 schools and colleges. Federal funds are used to provide
partial support for university programs as well as for the teaching
hospital facilities. In 2002, direct Federal appropriations for general
support represented approximately 59 percent of the university's
revenue.
College Housing and Academic Facilities Loans Program Account
For Federal administrative expenses authorized under section 121 of
the Higher Education Act of 1965, $774,000 to carry out activities
related to existing facility loans entered into under the Higher
Education Act of 1965.
Note.--A regular 2003 appropriation for this account had not been
enacted at the time the budget was prepared; therefore, this account is
operating under a continuing resolution (P.L. 107-229, as amended). The
amounts included for 2003 in this budget reflect the Administration's
2003 policy proposals.
Historically Black College and University Capital Financing Program
Account
The aggregate principal amount of outstanding bonds insured pursuant
to section 344 of title III, part D of the Higher Education Act of 1965
shall not exceed $355,000,000, and the cost, as defined in section 502
of the Congressional Budget Act of 1974, of such bonds shall not exceed
zero.
For administrative expenses to carry out the Historically Black
College and University Capital Financing Program entered into pursuant
to title III, part D of the Higher Education Act of 1965, as amended,
$210,000.
Note.--A regular 2003 appropriation for this account had not been
enacted at the time the budget was prepared; therefore, this account is
operating under a continuing resolution (P.L. 107-229, as amended). The
amounts included for 2003 in this budget reflect the Administration's
2003 policy proposals.
[[Page 337]]
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0241-0-1-502 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.09 Federal administration............ 1 1 1
--------- --------- ----------
10.00 Total new obligations (object
class 99.5)................... 1 1 1
----------------------------------------------------------------------------
Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 1 1 1
23.95 Total new obligations............. -1 -1 -1
----------------------------------------------------------------------------
New budget authority (gross), detail:
Discretionary:
40.00 Appropriation................... 1 1 1
----------------------------------------------------------------------------
Change in obligated balances:
72.40 Obligated balance, start of year.. 1
73.10 Total new obligations............. 1 1 1
73.20 Total outlays (gross)............. -1 -1 -1
74.40 Obligated balance, end of year.... 1
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 1 1 1
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 1 1 1
90.00 Outlays........................... 1 1 1
---------------------------------------------------------------------------
Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0241-0-1-502 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
Direct loan levels supportable by subsidy
budget authority:
115001Historically Black Colleges and
Universities.................... 44 268 227
--------- --------- ----------
115901Total direct loan levels.......... 44 268 227
Direct loan subsidy (in percent):
132001Historically Black Colleges and
Universities.................... 0.00 0.00 0.00
--------- --------- ----------
132901Weighted average subsidy rate..... 0.00 0.00 0.00
Direct loan subsidy budget authority:
133001Historically Black Colleges and
Universities....................
--------- --------- ----------
133901Total subsidy budget authority....
Direct loan subsidy outlays:
134001Historically Black Colleges and
Universities....................
--------- --------- ----------
134901Total subsidy outlays.............
Direct loan downward reestimate subsidy budget
authority:
137001Downward reestimates subsidy
budget authority................
--------- --------- ----------
137901Total downward reestimate budget
authority.......................
Direct loan downward reestimate subsidy
outlays:
138001Downward reestimates subsidy
outlays.........................
--------- --------- ----------
138901Total downward reestimate subsidy
outlays.........................
----------------------------------------------------------------------------
Administrative expense data:
351001Budget authority.................. 1 1
358001Outlays from balances.............
359001Outlays from new authority........ 1
---------------------------------------------------------------------------
The College Housing and Academic Facilities Loans Program and the
Historically Black College and University Capital Financing Program are
administered separately, but are consolidated for presentation purposes.
College Housing and Academic Facilities Loans Program.--Funds for
this activity pay the Federal costs for administering the College
Housing and Academic Facilities Loans (CHAFL), College Housing Loans
(CHL), and Higher Education Facilities Loans (HEFL) programs. Prior to
1994, these programs provided financing for the construction,
reconstruction, and renovation of housing, academic, and other
educational facilities. Although no new loans have been awarded since
fiscal year 1993, costs for administering the outstanding loans will
remain through 2030.
Historically Black College and University Capital Financing
Program.--The Historically Black College and University (HBCU) Capital
Financing Program provides HBCUs with access to capital financing for
the repair, renovation, and construction of classrooms, libraries,
laboratories, dormitories, instructional equipment, and research
instrumentation. The Higher Education Amendments of 1992 granted the
Department authority to enter into insurance agreements with a private
for-profit Designated Bonding Authority to guarantee no more than
$375,000,000 in outstanding principal and unpaid accrued interest
combined. The bonding authority issues the loans and maintains an escrow
account in which 5 percent of each institution's principal is deposited.
This amount is estimated to be sufficient to cover all potential
delinquencies and defaults. No subsidy appropriations are required. The
2004 budget provides funds for continuing Federal administrative
activities only.
Personnel Summary
----------------------------------------------------------------------------
Identification code 91-0241-0-1-502 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
Total compensable workyears:
1001 Civilian full-time equivalent
employment...................... 7 7 7
---------------------------------------------------------------------------
College Housing and Academic Facilities Loans Financing Account
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-4252-0-3-502 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.02 Interest paid to Treasury......... 2 1 1
--------- --------- ----------
10.00 Total new obligations (object
class 43.0)................... 2 1 1
----------------------------------------------------------------------------
Budgetary resources available for obligation:
22.00 New financing authority (gross)... 2 1 1
23.95 Total new obligations............. -2 -1 -1
----------------------------------------------------------------------------
New financing authority (gross), detail:
Mandatory:
69.00 Offsetting collections (cash)... 3 2 2
69.47 Portion applied to repay debt... -1 -1 -1
--------- --------- ----------
69.90 Spending authority from
offsetting collections
(total mandatory)........... 2 1 1
----------------------------------------------------------------------------
Change in obligated balances:
73.10 Total new obligations............. 2 1 1
73.20 Total financing disbursements
(gross)......................... -2 -1 -1
87.00 Total financing disbursements
(gross)......................... 2 1 1
----------------------------------------------------------------------------
Offsets:
Against gross financing authority and
financing disbursements:
Offsetting collections (cash)
from:
88.00 Federal sources............... -1
Non-Federal sources:
88.40 Interest repayments......... -1 -1 -1
88.40 Principal repayments........ -1 -1 -1
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -3 -2 -2
----------------------------------------------------------------------------
Net financing authority and financing
disbursements:
89.00 Financing authority............... -1 -1 -1
90.00 Financing disbursements........... -1 -1 -1
---------------------------------------------------------------------------
The College Housing and Academic Facilities Loans Financing Account
records all cash flows to and from the Government resulting from direct
loans made in fiscal years 1992 and 1993.
[[Page 338]]
Status of Direct Loans (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-4252-0-3-502 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
Position with respect to appropriations act
limitation on obligations:
1111 Limitation on direct loans........
--------- --------- ----------
1150 Total direct loan obligations...
----------------------------------------------------------------------------
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 25 25 24
1251 Repayments: Repayments and
prepayments..................... -1
--------- --------- ----------
1290 Outstanding, end of year........ 25 24 24
---------------------------------------------------------------------------
Balance Sheet (in millions of dollars)
-----------------------------------------------------------------------------------------------
Identification code 91-4252-0-3-502 2001 actual 2002 actual 2003 est. 2004 est.
-----------------------------------------------------------------------------------------------
ASSETS:
Net value of assets related to
post-1991 direct loans
receivable:
1401 Direct loans receivable, gross.. 25 25 24 24
1405 Allowance for subsidy cost (-).. -2 -2 -2 -2
------------ -------------- ------------ -------------
1499 Net present value of assets
related to direct loans..... 23 23 22 22
------------ -------------- ------------ -------------
1999 Total assets.................... 23 23 22 22
LIABILITIES:
2103 Federal liabilities: Debt......... 23 23 22 22
------------ -------------- ------------ -------------
2999 Total liabilities............... 23 23 22 22
------------ -------------- ------------ -------------
4999 Total liabilities and net position 23 23 22 22
-----------------------------------------------------------------------------------------------
College Housing and Academic Facilities Loans Liquidating Account
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0242-0-1-502 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.02 Interest paid to Treasury......... 14 14 13
--------- --------- ----------
10.00 Total new obligations (object
class 43.0)................... 14 14 13
----------------------------------------------------------------------------
Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 3 5
22.00 New budget authority (gross)...... 13 7 13
22.10 Resources available from
recoveries of prior year
obligations..................... 3 11
22.40 Capital transfer to general fund.. -1
22.60 Portion applied to repay debt..... -8
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 19 14 13
23.95 Total new obligations............. -14 -14 -13
24.40 Unobligated balance carried
forward, end of year............ 5
----------------------------------------------------------------------------
New budget authority (gross), detail:
Mandatory:
60.00 Appropriation................... 2 7 5
69.00 Offsetting collections (cash)..... 56 43 40
69.27 Capital transfer to general fund.. -2 -3 -1
69.47 Portion applied to repay debt..... -43 -40 -31
--------- --------- ----------
69.90 Spending authority from
offsetting collections (total
mandatory).................... 11 8
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 13 7 13
----------------------------------------------------------------------------
Change in obligated balances:
72.40 Obligated balance, start of year.. 21 12
73.10 Total new obligations............. 14 14 13
73.20 Total outlays (gross)............. -20 -14 -13
73.45 Recoveries of prior year
obligations..................... -3 -11
74.40 Obligated balance, end of year.... 12
----------------------------------------------------------------------------
Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 13 7 13
86.98 Outlays from mandatory balances... 7 7
--------- --------- ----------
87.00 Total outlays (gross)........... 20 14 13
----------------------------------------------------------------------------
Offsets:
Against gross budget authority and outlays:
Offsetting collections (cash)
from:
Non-Federal sources:
88.40 Repayments of principal..... -41 -29 -27
88.40 Interest received on loans.. -15 -14 -13
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -56 -43 -40
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. -43 -36 -27
90.00 Outlays........................... -36 -29 -27
---------------------------------------------------------------------------
The College Housing and Academic Facilities Loans Liquidating
Account records all cash flows to and from the Government resulting from
direct loans made prior to 1992. This account includes loans made under
the College Housing and Academic Facilities Loans, College Housing
Loans, and Higher Education Facilities Loans programs, which continue to
be administered separately.
Status of Direct Loans (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0242-0-1-502 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
CHAFL LIQUIDATING
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 117 109 106
1231 Disbursements: Direct loan
disbursements................... 1
1251 Repayments: Repayments and
prepayments..................... -9 -3 -3
--------- --------- ----------
1290 Outstanding, end of year........ 109 106 103
----------------------------------------------------------------------------
HIGHER EDUCATION FACILITIES
LOANS
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 24 22 21
1251 Repayments: Repayments and
prepayments..................... -2 -1 -2
--------- --------- ----------
1290 Outstanding, end of year........ 22 21 19
----------------------------------------------------------------------------
COLLEGE HOUSING LOANS
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 284 254 230
1251 Repayments: Repayments and
prepayments..................... -30 -24 -22
--------- --------- ----------
1290 Outstanding, end of year........ 254 230 208
---------------------------------------------------------------------------
Statement of Operations (in millions of dollars)
-----------------------------------------------------------------------------------------------
Identification code 91-0242-0-1-502 2001 actual 2002 actual 2003 est. 2004 est.
-----------------------------------------------------------------------------------------------
CHAFL LIQUIDATING:
0111 Revenue........................... 9 15 9 9
0112 Expense........................... -35 -17 -21 -14
------------ -------------- ------------ -------------
0115 Net income or loss (-).......... -26 -2 -12 -5
HIGHER EDUCATION FACILITIES LOANS:
0121 Revenue........................... 3 3 3 2
0122 Expense........................... -2 -1 -1 -1
------------ -------------- ------------ -------------
0125 Net income or loss (-).......... 1 2 2 1
COLLEGE HOUSING LOANS:
0131 Revenue........................... 40 38 31 29
0132 Expense........................... -91 -39 -40 -29
------------ -------------- ------------ -------------
0135 Net income or loss (-).......... -51 -1 -9
------------ -------------- ------------ -------------
0191 Total revenues.................... 52 56 43 40
------------ -------------- ------------ -------------
0192 Total expenses.................... -128 -57 -62 -44
------------ -------------- ------------ -------------
0195 Total income or loss (-).......... -76 -1 -19 -4
------------ -------------- ------------ -------------
0199 Total comprehensive income........ -76 -1 -19 -4
-----------------------------------------------------------------------------------------------
[[Page 339]]
Balance Sheet (in millions of dollars)
-----------------------------------------------------------------------------------------------
Identification code 91-0242-0-1-502 2001 actual 2002 actual 2003 est. 2004 est.
-----------------------------------------------------------------------------------------------
ASSETS:
Net value of assets related to
pre-1992 direct loans
receivable and acquired
defaulted guaranteed loans
receivable:
1601 Direct loans, gross............. 425 385 357 330
1602 Interest receivable............. 6 6 6 5
------------ -------------- ------------ -------------
1699 Value of assets related to
direct loans................ 431 391 363 335
------------ -------------- ------------ -------------
1999 Total assets.................... 431 391 363 335
LIABILITIES:
Federal liabilities:
2103 Debt............................ 236 192 143 112
2104 Resources payable to Treasury... 195 199 220 223
------------ -------------- ------------ -------------
2999 Total liabilities............... 431 391 363 335
------------ -------------- ------------ -------------
4999 Total liabilities and net position 431 391 363 335
-----------------------------------------------------------------------------------------------
Historically Black College and University Capital Financing Direct Loan
Financing Account
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-4255-0-3-502 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Direct Loan Awards................ 44 40 40
00.02 Interest paid to Treasury......... 2 2 5
--------- --------- ----------
10.00 Total new obligations (object
class 43.0)................... 46 42 45
----------------------------------------------------------------------------
Budgetary resources available for obligation:
22.00 New financing authority (gross)... 54 42 45
22.10 Resources available from
recoveries of prior year
obligations..................... 14
22.60 Portion applied to repay debt..... -2
22.70 Balance of authority to borrow
withdrawn....................... -20
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 46 42 45
23.95 Total new obligations............. -46 -42 -45
----------------------------------------------------------------------------
New financing authority (gross), detail:
Mandatory:
67.10 Authority to borrow............. 50 40 40
69.00 Offsetting collections (cash)..... 4 3 6
69.47 Portion applied to repay debt..... -1 -1
--------- --------- ----------
69.90 Spending authority from
offsetting collections (total
mandatory).................... 4 2 5
--------- --------- ----------
70.00 Total new financing authority
(gross)....................... 54 42 45
----------------------------------------------------------------------------
Change in obligated balances:
72.40 Obligated balance, start of year.. 30 20 39
73.10 Total new obligations............. 46 42 45
73.20 Total financing disbursements
(gross)......................... -42 -23 -46
73.45 Recoveries of prior year
obligations..................... -14
74.40 Obligated balance, end of year.... 20 39 38
87.00 Total financing disbursements
(gross)......................... 42 23 46
----------------------------------------------------------------------------
Offsets:
Against gross financing authority and
financing disbursements:
Offsetting collections (cash)
from:
Non-Federal sources:
88.40 Interest repayments......... -2 -2 -5
88.40 Principal repayments........ -2 -1 -1
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -4 -3 -6
----------------------------------------------------------------------------
Net financing authority and financing
disbursements:
89.00 Financing authority............... 50 39 39
90.00 Financing disbursements........... 37 20 40
---------------------------------------------------------------------------
The Federal Financing Bank (FFB) purchases bonds issued by the HBCU
Designated Bonding Authority. Under the policies governing Federal
credit programs, bonds purchased by the FFB and supported by the
Department of Education with a letter of credit create the equivalent of
a Federal direct loan. HBCU bonds are also available for purchase by the
private sector, and these will be treated as loan guarantees. However,
the Department anticipates that all HBCU loans will be financed by the
FFB.
Status of Direct Loans (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-4255-0-3-502 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
Position with respect to appropriations act
limitation on obligations:
1111 Limitation on direct loans........ 296 268 227
1142 Unobligated direct loan limitation
(-)............................. -252 -228
--------- --------- ----------
1150 Total direct loan obligations... 44 40 227
----------------------------------------------------------------------------
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 31 69 89
1231 Disbursements: Direct loan
disbursements................... 40 21 41
1251 Repayments: Repayments and
prepayments..................... -2 -1 -1
--------- --------- ----------
1290 Outstanding, end of year........ 69 89 129
---------------------------------------------------------------------------
Balance Sheet (in millions of dollars)
-----------------------------------------------------------------------------------------------
Identification code 91-4255-0-3-502 2001 actual 2002 actual 2003 est. 2004 est.
-----------------------------------------------------------------------------------------------
ASSETS:
1101 Federal assets: Fund balances with
Treasury........................ 30 20 39 38
Net value of assets related to
post-1991 direct loans
receivable:
1401 Direct loans receivable, gross.. 31 69 89 129
1402 Interest receivable............. 3 3 4
------------ -------------- ------------ -------------
1499 Net present value of assets
related to direct loans..... 31 72 92 133
------------ -------------- ------------ -------------
1999 Total assets.................... 61 92 131 171
LIABILITIES:
Federal liabilities:
2102 Interest payable................ 3 3 4
2103 Debt............................ 61 89 128 167
------------ -------------- ------------ -------------
2999 Total liabilities............... 61 92 131 171
------------ -------------- ------------ -------------
4999 Total liabilities and net position 61 92 131 171
-----------------------------------------------------------------------------------------------
Trust Funds
National Security Education Trust Fund
(Legislative proposal, not subject to PAYGO)
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-8261-2-7-054 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 National Security Education Trust
Fund............................ 8
--------- --------- ----------
10.00 Total new obligations........... 8
----------------------------------------------------------------------------
Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 8
23.95 Total new obligations............. -8
----------------------------------------------------------------------------
New budget authority (gross), detail:
Discretionary:
40.26 Appropriation (trust fund)...... 8
----------------------------------------------------------------------------
Change in obligated balances:
73.10 Total new obligations............. 8
73.20 Total outlays (gross)............. -2
74.40 Obligated balance, end of year.... 6
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 2
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 8
[[Page 340]]
90.00 Outlays........................... 2
---------------------------------------------------------------------------
The budget proposes moving this program from the Department of
Defense.
Object Classification (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-8261-2-7-054 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
11.1 Personnel compensation: Full-time
permanent....................... 1
25.2 Other services.................... 1
41.0 Grants, subsidies, and
contributions................... 6
--------- --------- ----------
99.9 Total new obligations........... 8
---------------------------------------------------------------------------
Personnel Summary
----------------------------------------------------------------------------
Identification code 91-8261-2-7-054 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
Total compensable workyears:
1001 Civilian full-time equivalent
employment...................... 7
---------------------------------------------------------------------------
OFFICE OF STUDENT FINANCIAL ASSISTANCE
Federal Funds
General and special funds:
Student Financial Assistance
For carrying out subparts 1, and 3 of part A, part C and part E of
title IV of the Higher Education Act of 1965, as amended,
$14,518,500,000, which shall remain available through September 30,
2005.
The maximum Pell Grant for which a student shall be eligible during
award year 2004-2005 shall be $4,000: Provided, That notwithstanding
section 401(g) of the Act, if the Secretary determines, prior to
publication of the payment schedule for such award year, that the amount
included within this appropriation for Pell Grant awards in such award
year, and any funds available from the fiscal year 2003 appropriation
for Pell Grant awards, are insufficient to satisfy obligations, the
Secretary may reduce the amount paid for each such award by either a
fixed or variable percentage, or by a fixed dollar amount, as determined
in accordance with a schedule of reductions established by the Secretary
for this purpose.
Note.--A regular 2003 appropriation for this account had not been
enacted at the time the budget was prepared; therefore, this account is
operating under a continuing resolution (P.L. 107-229, as amended). The
amounts included for 2003 in this budget reflect the Administration's
2003 policy proposals.
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0200-0-1-502 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
Obligations by program activity:
Federal Pell grants:
01.01 Federal Pell grants............. 11,639 9,980 10,805
Campus-based aid:
02.01 Federal supplemental educational
opportunity grants (SEOG)..... 727 726 725
02.02 Federal work-study.............. 1,024 1,012 1,011
02.03 Federal Perkins loans: Federal
capital contributions......... 102 100
02.05 Federal Perkins loans: Loan
cancellations................. 68 68 68
--------- --------- ----------
02.91 Subtotal, Campus-based
activities.................. 1,921 1,906 1,804
03.01 Leveraging educational assistance
partnership..................... 67
04.01 Loan forgiveness for child care
providers....................... 1 1
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 13,628 11,887 12,609
----------------------------------------------------------------------------
Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 1,288 1,026 1,906
22.00 New budget authority (gross)...... 13,286 12,768 14,519
22.10 Resources available from
recoveries of prior year
obligations..................... 81
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 14,655 13,794 16,425
23.95 Total new obligations............. -13,628 -11,887 -12,609
23.98 Unobligated balance expiring or
withdrawn....................... -1
24.40 Unobligated balance carried
forward, end of year............ 1,026 1,906 3,816
----------------------------------------------------------------------------
New budget authority (gross), detail:
Discretionary:
40.00 Appropriation................... 13,286 12,768 14,519
----------------------------------------------------------------------------
Change in obligated balances:
72.40 Obligated balance, start of year.. 7,153 8,226 6,761
73.10 Total new obligations............. 13,628 11,887 12,609
73.20 Total outlays (gross)............. -12,369 -13,352 -13,366
73.40 Adjustments in expired accounts
(net)........................... -103
73.45 Recoveries of prior year
obligations..................... -81
74.40 Obligated balance, end of year.... 8,226 6,761 6,004
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 4,250 4,389 4,985
86.93 Outlays from discretionary
balances........................ 8,119 8,963 8,381
--------- --------- ----------
87.00 Total outlays (gross)........... 12,369 13,352 13,366
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 13,286 12,768 14,519
90.00 Outlays........................... 12,369 13,352 13,366
---------------------------------------------------------------------------
Status of Direct Loans (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0200-0-1-502 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 384 321 284
1251 Repayments: Repayments and
prepayments..................... -78 -39 -42
Write-offs for default:
1263 Direct loans.................... -20 -22 -23
1264 Other adjustments, net.......... 35 24 24
--------- --------- ----------
1290 Outstanding, end of year........ 321 284 243
---------------------------------------------------------------------------
\1\ Includes in all years institutional matching share of defaulted
notes assigned from institutions to the Education Department.
The Administration's 2004 budget for the SFA account is $14.519
billion. Together with matching funds (less allowable administrative
costs), this level of funding would provide nearly 7.5 million awards
totalling more than $17 billion in available aid.
Federal Pell Grants.--Undergraduate students establish eligibility
for these grants under award and need determination rules set out in the
authorizing statute and the annual appropriations act.
The Administration proposes $12.715 billion for Pell Grants in the
2004 Budget.
In recent years, the number of Pell Grant recipients has grown much
faster than historical trends would predict (as has college enrollment
overall). Specifically, from 2000 to 2002, the number of Pell recipients
increased by nearly 25 percent, compared with a 5 percent growth rate
from 1997 to 1999. Much of this unanticipated increase was due to more
independent students receiving Pell Grants (generally, independent
students are older students who do not depend on their parent or
guardian to pay for college). Many of these students attend community
colleges and career training institutions and predominantly use Pell
Grants and other student aid to help pay for job training or retraining.
So, while Pell Grants remain the single largest source of grant aid for
traditional college students, they are also the single largest source of
federal support for persons in need of training or retraining for new
careers.
As a result of this unexpected growth, as well as a $700 increase in
the maximum grant from 2000 to 2002, Pell Grant appropriations for the
past few years have been insufficient to fully cover annual program
costs. This budget provides $12.7 billion for Pell Grants to retire the
shortfall related to the 2002-2003 award year and maintain a $4,000
maximum award for the growing numbers of students eligible for Pell
Grants.
[[Page 341]]
As part of the Administration's efforts to keep the Pell Grant
program on a solid financial foundation, the budget also proposes to
allow the Internal Revenue Service to match income data on student aid
applications with the applicant's tax data to ensure that students do
not receive awards in excess of the amount for which they are eligible.
This is one component of the Administration's effort to reduce erroneous
payments government-wide. This proposal is projected to save $638
million in Pell Grant costs over 2003-2004, significantly reducing
existing funding shortfalls.
Campus-based programs.--The Federal Supplemental Educational
Opportunity Grants, Federal Work-Study, and Federal Perkins Loan
programs are called the ``campus-based'' programs because participating
institutions are responsible for administering the programs on their own
campuses. These programs provide aid administrators with considerable
flexibility in the packaging of financial aid awards to best meet the
needs of students.
Federal Supplemental Educational Opportunity Grants (SEOG).--Federal
funds are awarded by formula to qualifying institutions, which use these
funds to award grants to undergraduate students. While institutions have
discretion in awarding these funds, they are required to give priority
to Pell Grant recipients and other students with exceptional need. The
Federal share of such grants may not exceed 75 percent of the total
grant. The Administration proposes $725 million for the SEOG program in
2004. This level of funding would provide approximately $918 million in
available aid to an estimated 1.2 million needy students.
Federal Work-Study.--Federal funds are awarded by formula to
qualifying institutions, which develop and provide part-time jobs for
eligible undergraduate and graduate students with demonstrated need.
Hourly earnings under the program must be at least equal to the Federal
minimum wage. Federal funding in most cases pays 75 percent of a
student's hourly wages, with the remaining 25 percent paid by the
employer. The Administration proposes $1.011 billion for the Work-Study
program, which will provide $1.2 billion in aid to over one million
students.
Perkins Loan Program.--Institutions award low-interest loans from
institutional revolving funds, which are comprised of Federal Capital
Contributions, institutional matching funds, and student repayments on
outstanding loans. The Administration proposes no new budget authority
for the Perkins loan program in 2004. Repayments of existing Perkins
Loans into Federal revolving funds held at institutions will continue to
support more than $1 billion in new Perkins Loans in 2004. In addition,
given the existence of the Federal Family Education Loan and Ford Direct
Student Loan programs, as well as the current interest rate environment,
including the statutory shift to a fixed rate of 6.8 percent for most
student loans beginning in 2006, additional Federal capital
contributions are not necessary to assure the availability of affordable
aid for students.
Perkins Loan Program--Cancellations.--Under the Perkins Loan
cancellation program, institutional revolving funds are reimbursed for
indebtedness canceled as a result of a borrower engaging in certain
public service activities, as specified in the Higher Education Act.
Amendments to the Higher Education Act in 1992 and 1998 greatly expanded
the number of borrowers with loans eligible for cancellation. The
Administration's budget proposal for Perkins Loan cancellations is $67.5
million.
Funding Tables.--The following tables display student aid funds
available, the number of aid awards, average awards, and the
unduplicated count of recipients from any Federal student aid program.
The tables include the aid from programs in the Student Financial
Assistance account, as well as aid from the Federal Family Education
Loan (FFEL) program, and the William D. Ford Federal Direct Loan
program. Loan amounts reflect the capital actually loaned, not the
Federal cost of those loans. The data in these tables include the
effects of matching funds wherever applicable.
AID FUNDS AVAILABLE FOR POSTSECONDARY EDUCATION AND TRAINING
[in thousands]
2002 2003 2004
Pell grants......................... 11,619,188 11,479,134 11,405,127
Student loans:
Guaranteed student loans:
Stafford loans.................. 13,441,179 14,559,712 15,340,294
Unsubsidized Stafford loans..... 11,975,791 13,440,125 14,673,794
PLUS............................ 3,188,637 3,536,521 3,930,767
Direct student loans:
Stafford loans.................. 5,764,737 6,177,087 6,476,364
Unsubsidized Stafford loans..... 4,480,553 4,988,117 5,394,484
PLUS............................ 1,443,527 1,598,059 1,765,358
Consolidation:
FFEL............................ 22,693,425 16,985,715 12,998,927
Direct Loans.................... 8,844,598 7,425,136 6,097,974
------------------------------------
Student loans, subtotal..... 71,832,446 68,710,471 66,677,961
Work-study.......................... 1,212,993 1,212,993 1,212,993
Supplemental educational opportunity
grants.............................. 917,722 917,722 917,722
Perkins loans....................... 1,264,889 1,264,889 1,136,684
Leveraging educational assistance
partnership......................... 171,000
Loan forgiveness for child care
providers........................... 1,000 1,000
------------------------------------
Total aid available......... 87,019,237 83,586,208 81,350,486
====================================
NUMBER OF AID AWARDS
[In thousands]
2002 2003 2004
Pell grants......................... 4,639 4,740 4,814
Guaranteed student loans:
Stafford loans.................... 3,084 3,269 3,269
Unsubsidized Stafford loans....... 2,199 2,330 2,330
PLUS.............................. 334 353 353
Consolidation..................... 308 222 222
Direct student loans:
Stafford loans.................... 1,324 1,399 1,399
Unsubsidized Stafford loans....... 878 929 929
PLUS.............................. 153 161 161
Consolidation..................... 357 256 256
Work-study.......................... 1,073 1,073 1,073
Supplemental educational opportunity
grants.............................. 1,189 1,189 1,189
Perkins loans....................... 707 707 635
Leveraging Educational Assistance
Partnership......................... 171 0 0
------------------------------------
Total awards.................. 16,416 16,626 16,628
Note: Detail may not add to totals due to rounding.
*Fewer than 500 recipients
AVERAGE AID AWARDS
[In whole dollars]
2002 2003 2004
Pell grants......................... 2,505 2,422 2,369
Guaranteed student loans:
Stafford loans.................... 3,391 3,402 3,414
Unsubsidized Stafford loans....... 4,120 4,180 4,219
PLUS.............................. 7,894 8,359 8,854
SLS............................... 0 0 0
Consolidation..................... 31,246 29,712 29,845
Direct student loans:
Stafford loans.................... 3,603 3,680 3,693
Unsubsidized Stafford loans....... 3,999 4,114 4,144
PLUS.............................. 7,692 8,181 8,659
Consolidation..................... 24,286 21,926 21,996
Work-study.......................... 1,135 1,135 1,135
Supplemental educational opportunity
grants.............................. 772 772 772
Perkins loans....................... 1,790 1,790 1,790
Leveraging Educational Assistance
Partnership......................... 1,000 0 0
====================================
NUMBER OF STUDENTS AIDED
(In thousands)
Unduplicated student count.......... 8,385 8,855 9,241
The following table displays institutional administrative costs paid
from program funds.
[[Page 342]]
ADMINISTRATIVE PAYMENTS TO INSTITUTIONS
[In thousands of dollars]
2002 2003 2004
Pell grants......................... 23,195 23,700 24,070
Work-study.......................... 75,815 75,815 75,815
Supplemental educational opportunity
grants.............................. 36,709 36,709 36,709
Perkins loans....................... 50,596 50,596 45,467
The following table displays the status of defaulted Perkins loans
held by the Department and by institutions.
DEFAULTED PERKINS LOANS
(In millions of dollars)
2002 actual 2003 est. 2004 est.
Outstanding defaulted loans,
beginning of year:
Assigned defaulted loans \1\...... 384 321 284
Unassigned defaulted loans \2\.... 956 960 963
New defaulted loans................. 155 149 155
Collections on assigned loans....... -78 -39 -42
Collections on unassigned loans..... -107 -112 -117
Write-offs for assigned loans....... -20 -22 -23
Write-offs for unassigned loans..... -10 -10 -9
------------------------------------
Outstanding defaulted loans, end of
year................................ 1,280 1,247 1,210
====================================
\1\ Permanently assigned to the Federal Government for collection.
\2\ Unassigned loans at institutions.
Student Aid Administration
For Federal administrative expenses to carry out part D of title I;
subparts 1, 3, and 4 of part A; and parts B, C, D, and E of title IV of
the Higher Education Act of 1965, as amended, $947,010,000, which shall
remain available through September 30, 2005, of which not more than
$195,000,000 shall be for account maintenance fees for fiscal year 2004
that are payable to guaranty agencies under part B and are calculated in
accordance with section 458 of the Act.
Note.--A regular 2003 appropriation for this account had not been
enacted at the time the budget was prepared; therefore, this account is
operating under a continuing resolution (P.L. 107-229, as amended). The
amounts included for 2003 in this budget reflect the Administration's
2003 policy proposals.
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0202-0-1-502 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Student aid administration........ 932 947
--------- --------- ----------
10.00 Total new obligations........... 932 947
----------------------------------------------------------------------------
Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 932 947
23.95 Total new obligations............. -932 -947
----------------------------------------------------------------------------
New budget authority (gross), detail:
Discretionary:
40.00 Appropriation................... 932 947
----------------------------------------------------------------------------
Change in obligated balances:
72.40 Obligated balance, start of year.. 333
73.10 Total new obligations............. 932 947
73.20 Total outlays (gross)............. -599 -834
74.40 Obligated balance, end of year.... 333 446
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 599 608
86.93 Outlays from discretionary
balances........................ 226
--------- --------- ----------
87.00 Total outlays (gross)........... 599 834
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 932 947
90.00 Outlays........................... 599 834
----------------------------------------------------------------------------
Additional net budget authority and outlays to cover cost of fully accruing
retirement:
99.00 Budget authority.................. 4 4
99.01 Outlays........................... 4 4
---------------------------------------------------------------------------
The Department of Education manages Federal student aid programs
that will provide over $67 billion in Federal student aid grants and
loans to over 8 million students and parents in 2004. Primary
responsibility for administering these programs lies with the Office of
Postsecondary Education and the performance-based Office of Student
Financial Assistance (SFA). SFA was created by Congress in 1998 with a
mandate to improve service to students and other student aid program
participants, reduce the cost of student aid administration, and improve
accountability and program integrity.
The Department's student aid administrative activities are funded
from four main sources: (1) funds appropriated on a permanent basis
under section 458 of the Higher Education Act; (2) a portion of the
Department's general Program Administration funds; (3) a discretionary
appropriation partially supporting administrative activities associated
with the Federal Family Education Loan (FFEL) program; and (4) permanent
funds from the Direct Loan program subsidy account supporting the
origination of Direct Consolidation Loans. Student aid administrative
funds totaled $932 million in the 2003 President's Budget, $195 million
of which supported the payment of account maintenance fees to FFEL
guaranty agencies.
The budget for 2004 includes $947 million for student aid
administration. In order to improve accountability and simplify program
oversight and operations, the Administration is proposing to consolidate
funding for student aid administrative activities into a single
discretionary account. Funding levels for this account will be based on
a workload-based methodology consistent with the goals of the
performance-based organization.
Object Classification (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0202-0-1-502 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
Personnel compensation:
11.1 Full-time permanent............. 83 86
11.5 Other personnel compensation.... 2 3
--------- --------- ----------
11.9 Total personnel compensation.. 85 89
12.1 Civilian personnel benefits....... 19 19
21.0 Travel and transportation of
persons......................... 3 4
23.1 Rental payments to GSA............ 16 16
23.3 Communications, utilities, and
miscellaneous charges........... 53 55
24.0 Printing and reproduction......... 9 9
25.1 Advisory and assistance services.. 7 7
25.2 Other services.................... 31 39
25.3 Other purchases of goods and
services from Government
accounts........................ 7 9
25.7 Operation and maintenance of
equipment....................... 502 499
26.0 Supplies and materials............ 1 1
31.0 Equipment......................... 3 3
32.0 Land and structures............... 1 2
41.0 Grants, subsidies, and
contributions................... 195 195
--------- --------- ----------
99.9 Total new obligations........... 932 947
---------------------------------------------------------------------------
Personnel Summary
----------------------------------------------------------------------------
Identification code 91-0202-0-1-502 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
Total compensable workyears:
1001 Civilian full-time equivalent
employment...................... 1,115 1,115
---------------------------------------------------------------------------
Federal Student Loan Reserve Fund
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-4257-0-3-502 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
Obligations by program activity:
01.02 Obligations, non-federal.......... 4,477 4,911 5,780
--------- --------- ----------
10.00 Total new obligations........... 4,477 4,911 5,780
----------------------------------------------------------------------------
Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 2,462 1,169 1,071
[[Page 343]]
22.00 New budget authority (gross)...... 4,269 4,813 5,684
22.40 Capital transfer to general fund.. -1,085
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 5,646 5,982 6,755
23.95 Total new obligations............. -4,477 -4,911 -5,780
24.40 Unobligated balance carried
forward, end of year............ 1,169 1,071 975
----------------------------------------------------------------------------
New budget authority (gross), detail:
Mandatory:
69.00 Offsetting collections (cash)... 4,269 4,813 5,684
----------------------------------------------------------------------------
Change in obligated balances:
73.10 Total new obligations............. 4,477 4,911 5,780
73.20 Total outlays (gross)............. -4,477 -4,911 -5,780
----------------------------------------------------------------------------
Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 4,269 4,813 5,684
86.98 Outlays from mandatory balances... 208 98 96
--------- --------- ----------
87.00 Total outlays (gross)........... 4,477 4,911 5,780
----------------------------------------------------------------------------
Offsets:
Against gross budget authority and outlays:
Offsetting collections (cash)
from:
88.00 Federal sources............... -3,919 -4,497 -5,300
88.40 Non-Federal sources........... -350 -316 -384
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -4,269 -4,813 -5,684
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays........................... 209 98 96
---------------------------------------------------------------------------
The Higher Education Amendments of 1998 clarified that reserve funds
held by public and non-profit guaranty agencies participating in the
Federal Family Education Loan (FFEL) program are Federal property. These
reserves are used to pay default claims from FFEL lenders and fees to
support agency efforts to successfully avert defaults. The Federal
Government reimburses these reserves for default claim payments. In
addition, optional borrower guarantee fees are deposited into the
reserves (agencies may charge borrowers up to 1 percent of loan
principal as a guarantee fee). The following schedules reflect the
balances in these guaranty agency funds.
Statement of Operations (in millions of dollars)
-----------------------------------------------------------------------------------------------
Identification code 91-4257-0-3-502 2001 actual 2002 actual 2003 est. 2004 est.
-----------------------------------------------------------------------------------------------
0101 Revenue........................... 3,826 4,269 4,813 5,684
0102 Expense........................... -3,595 -4,477 -4,911 -5,780
------------ -------------- ------------ -------------
0105 Net income or loss (-)............ 231 -208 -98 -96
-----------------------------------------------------------------------------------------------
Balance Sheet (in millions of dollars)
-----------------------------------------------------------------------------------------------
Identification code 91-4257-0-3-502 2001 actual 2002 actual 2003 est. 2004 est.
-----------------------------------------------------------------------------------------------
ASSETS:
1101 Federal assets: Fund balances with
Treasury........................ 2,462 1,169 1,071 975
------------ -------------- ------------ -------------
1999 Total assets.................... 2,462 1,169 1,071 975
NET POSITION:
3300 Cumulative results of operations.. 2,462 1,169 1,071 975
------------ -------------- ------------ -------------
3999 Total net position.............. 2,462 1,169 1,071 975
------------ -------------- ------------ -------------
4999 Total liabilities and net position 2,462 1,169 1,071 975
-----------------------------------------------------------------------------------------------
Object Classification (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-4257-0-3-502 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
41.0 Grants, subsidies, and
contributions................... 418 253 271
42.0 Insurance claims and indemnities.. 4,059 4,658 5,509
--------- --------- ----------
99.9 Total new obligations........... 4,477 4,911 5,780
---------------------------------------------------------------------------
Credit accounts:
Federal Direct Student Loan Program, Program Account
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0243-0-1-502 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.05 Upward Restimate Principal........ 3,721
00.06 Interest on Upward Reestimate..... 870
00.09 Student Loan Administrative
Expenses........................ 800
--------- --------- ----------
10.00 Total new obligations........... 800 4,591
----------------------------------------------------------------------------
Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 15 14
22.00 New budget authority (gross)...... 780 4,591
22.10 Resources available from
recoveries of prior year
obligations..................... 19
22.40 Capital transfer to general fund.. -14
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 814 4,591
23.95 Total new obligations............. -800 -4,591
24.40 Unobligated balance carried
forward, end of year............ 14
----------------------------------------------------------------------------
New budget authority (gross), detail:
Discretionary:
40.00 Appropriation................... -795 -795
Mandatory:
Appropriation:
60.00 Appropriation................. 780 795 795
60.00 Appropriation (indefinite)--
Upward reestimate........... 4,591
--------- --------- ----------
62.50 Appropriation (total
mandatory).................. 780 5,386 795
69.00 Offsetting collections (cash)..... 722 488 919
69.27 Capital transfer to general fund.. -722 -488 -919
--------- --------- ----------
69.90 Spending authority from
offsetting collections (total
mandatory)....................
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 780 4,591
----------------------------------------------------------------------------
Change in obligated balances:
72.40 Obligated balance, start of year.. 340 302 70
73.10 Total new obligations............. 800 4,591
73.20 Total outlays (gross)............. -819 -4,822 -80
73.45 Recoveries of prior year
obligations..................... -19
74.40 Obligated balance, end of year.... 302 70 -10
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... -510 -511
86.93 Outlays from discretionary
balances........................ -193
86.97 Outlays from new mandatory
authority....................... 578 5,100 511
86.98 Outlays from mandatory balances... 241 232 273
--------- --------- ----------
87.00 Total outlays (gross)........... 819 4,822 80
----------------------------------------------------------------------------
Offsets:
Against gross budget authority and outlays:
88.00 Offsetting collections (cash)
from: Federal sources......... -722 -488 -919
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 58 4,103 -919
90.00 Outlays........................... 97 4,334 -839
----------------------------------------------------------------------------
Additional net budget authority and outlays to cover cost of fully accruing
retirement:
99.00 Budget authority..................
99.01 Outlays...........................
---------------------------------------------------------------------------
Summary of Budget Authority and Outlays
(in millions of dollars)
2002 actual 2003 est. 2004 est.
Enacted/requested:
Budget Authority.................. 58 4,103 -919
Outlays........................... 97 4,334 -839
Legislative proposal, subject to
PAYGO:
Budget Authority.................. 53
Outlays........................... 53
------------------------------------
Total:
Budget Authority.................. 58 4,103 -866
Outlays........................... 97 4,334 -786
====================================
[[Page 344]]
Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0243-0-1-502 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
Direct loan levels supportable by subsidy
budget authority:
115001Stafford.......................... 5,722 6,613 6,933
115002Unsubsidized Stafford............. 4,626 5,497 5,946
115003PLUS.............................. 1,491 1,732 1,914
115004Consolidated...................... 9,325 7,497 6,161
--------- --------- ----------
115901Total direct loan levels.......... 21,164 21,339 20,954
Direct loan subsidy (in percent):
132001Stafford.......................... 3.63 0.29 -0.12
132002Unsubsidized Stafford............. -12.05 -12.38 -14.91
132003PLUS.............................. -8.89 -12.83 -14.72
132004Consolidated...................... -3.78 2.59 1.13
--------- --------- ----------
132901Weighted average subsidy rate..... -3.95 -3.23 -5.28
Direct loan subsidy budget authority:
133001Stafford.......................... 208 19 -8
133002Unsubsidized Stafford............. -557 -681 -887
133003PLUS.............................. -133 -222 -282
133004Consolidated...................... -353 194 70
--------- --------- ----------
133901Total subsidy budget authority.... -835 -690 -1,107
Direct loan subsidy outlays:
134001Stafford.......................... 247 73
134002Unsubsidized Stafford............. -501 -578 -748
134003PLUS.............................. -119 -175 -241
134004Consolidated...................... -349 191 70
--------- --------- ----------
134901Total subsidy outlays............. -722 -489 -919
Direct loan upward reestimate subsidy budget
authority:
135001Stafford.......................... 1,538
135002Unsubsidized Stafford............. 3,141
135003PLUS.............................. 603
135004Consolidated...................... 73
--------- --------- ----------
135901Total upward reestimate budget
authority....................... 5,355
Direct loan upward reestimate subsidy outlays:
136001Stafford.......................... 1,538
136002Unsubsidized Stafford............. 3,141
136003PLUS.............................. 603
136004Consolidated...................... 73
--------- --------- ----------
136901Total upward reestimate outlays... 5,355
Direct loan downward reestimate subsidy budget
authority:
137001Stafford.......................... -32
137004Consolidated...................... -732
--------- --------- ----------
137901Total downward reestimate budget
authority....................... -764
Direct loan downward reestimate subsidy
outlays:
138001Stafford.......................... -32
138004Consolidated...................... -732
--------- --------- ----------
138901Total downward reestimate subsidy
outlays......................... -764
----------------------------------------------------------------------------
Student loan administrative expense data:
351001Budget authority.................. 804
359001Outlays........................... 819 232 80
---------------------------------------------------------------------------
The Federal Government operates two major student loan programs: the
Federal Family Education Loan (FFEL) program--formerly the Guaranteed
Student Loan (GSL) program--and the William D. Ford Federal Direct Loan
(Direct Loan) program. For 2004, the President is committed to improving
the efficiency of both programs and allowing individual institutions to
choose which of these two programs best meets their needs and the needs
of their students.
This summary section outlines the structure of these two programs,
highlights their differences and similarities, and provides text tables
displaying program cost data; loan volume, subsidy, default, and
interest rates; and other descriptive information. As part of his 2004
budget, the President is proposing a change to the loan forgiveness
provisions of the Direct Loan and FFEL programs. This proposal is
discussed as part of this program description.
From its inception in 1965 through 2001, the FFEL program has
provided over $347 billion in loans to postsecondary students and their
parents. Since July 1, 1994, the Direct Loan program has provided $92
billion in new and consolidation loans to students and parents. Taken
together, the FFEL and Direct Loan programs will make more than $44
billion in new loans available in 2003. Because funding for these two
programs is provided on a permanent indefinite basis, for budget
purposes they are considered separately from other Federal student
financial assistance programs. The FFEL and Direct Loan programs should
be viewed in combination with these other programs, however as part of
the overall Federal effort to ensure access to higher education.
Loan capital in the FFEL program is provided by private lenders.
State and private nonprofit guaranty agencies act as agents of the
Federal Government, providing a variety of services including collection
of some defaulted loans, default avoidance activities, and counseling to
schools, students, and lenders. The Government provides substantial
payments to these guaranty agencies. The Government also pays interest
subsidies to lenders for certain borrowers, as well as most costs
associated with loan defaults and other write-offs.
The Direct Loan program was created by the Student Loan Reform Act
of 1993. Under this program, the Federal Government provides loan funds
to postsecondary institutions directly or through an alternative
originator. The Direct Loan program began operation in academic year
1994-1995 with 7 percent of overall loan volume and is expected to
account for 30 percent in academic year 2002-2003. All eligible
institutions are free to participate in either the Direct Loan or FFEL
program.
The Direct Loan and FFEL programs share many basic elements. Each
program offers four types of loans: Stafford, Unsubsidized Stafford,
PLUS for parents, and Consolidation. Evidence of financial need is
required for a student to receive a subsidized Stafford loan. The other
three loan programs are available to borrowers at all income levels.
Loans can be used only to meet qualified educational expenses.
The borrower interest rate for new Stafford Loans equals the 91-day
Treasury bill rate plus 1.7 percent during in-school, grace, and
deferment periods, and the 91-day Treasury bill plus 2.3 percent at all
other times, with a cap of 8.25 percent, adjusted annually. Interest
payments for these loans are fully subsidized by the Government while a
student is in school and during grace and deferment periods.
Unsubsidized Stafford loans carry the same borrower interest rate as
Stafford loans, but have no interest subsidy. For new PLUS loans, the
borrower interest rate equals the 91-day Treasury bill rate plus 3.1
percent, with a cap of 9 percent and no interest subsidy.
In the FFEL program, lenders may receive an interest subsidy, called
a special allowance, from the Government to ensure a guaranteed rate of
return on their loans. Special allowance payments vary by loan type, are
determined quarterly, and are based on current borrower interest rates
and market-yield formulas. For new Stafford and Unsubsidized Stafford
loans, for example, the Federal Government must pay lenders a special
allowance if the average 3-month commercial paper rate for a given
quarter plus 2.34 percent--or 1.74 percent during in-school, grace, or
deferment periods--is higher than the current interest rate charged
borrowers.
Consolidation loans allow borrowers to combine loans made under
Title IV of the Higher Education Act--FFEL, Direct Loans, and Perkins
Loans--as well as some loans made under the Public Health Service Act.
The interest rate for new FFEL and Direct Consolidation loans equals the
weighted average of the interest rate on the loans consolidated, rounded
up to the nearest one-eighth of one percent. Lenders may choose to offer
a lower rate. Interest rates for all new FFEL and Direct Consolidation
Loans are capped at 8.25 percent.
[[Page 345]]
FFEL borrowers pay an origination fee to the Government equal to 3
percent of principal, and are also liable for a guaranty agency
insurance premium of up to 1 percent of principal. Guaranty agencies
have the option of waiving this premium and FFEL lenders have the option
of paying some or all of a borrower's origination fee for Stafford Loan
borrowers. Direct Loan borrowers are charged an origination fee equal to
3 percent of principal, which partially offsets Federal program
operation costs. Borrowers in both programs may be offered financial
incentives to encourage prompt repayment.
Loan limits are also identical across the two programs. In addition,
loans made under both programs are discharged when borrowers die, are
totally and permanently disabled, or, under some circumstances, declare
bankruptcy.
Under both programs, new borrowers after October 1, 1998, who are
employed as teachers in schools serving low-income populations for five
consecutive, complete school years, qualify for up to $5,000 in loan
forgiveness. The Administration is proposing to increase this benefit to
a maximum of $17,500 for mathematics, science, and special education
teachers considered highly qualified under criteria established in the
No Child Left Behind Act of 2001.
Borrowers under Direct Loans may choose from among five repayment
plans including income-contingent repayment (``pay-as-you-can''), under
which annual repayment amounts vary based on the income of the borrower
and the amount borrowed, and payments can be made over 25 years.
Borrowers may switch between repayment plans at any time. (Income-
contingent repayment is not available to Direct PLUS borrowers).
FFEL borrowers may choose from among four repayment plans. Repayment
periods under standard, graduated, and income-sensitive repayment may
not exceed 10 years. An extended repayment plan of up to 25 years is
available for new borrowers with outstanding loans totalling more than
$30,000. FFEL borrowers may change repayment plans annually.
Student loan program administration activities are supported from a
variety of sources, including a permanent appropriation authorized under
Section 458 of the Higher Education Act, a small discretionary
appropriation partially supporting FFEL program administration, a
portion of funds appropriated under the Department's discretionary
Program Administration account, and subsidy funds associated with the
origination of Direct Consolidation Loans. In order to improve
accountability and simplify the funding process for these administrative
activities, the President is proposing to create a unified,
discretionary Student Aid Administration account.
The following tables display performance indicators and program
data; including projected overall Direct Loan and FFEL costs; loan
volume, number of loans, and average loan amount; descriptive data, and
program activity under the President's budget and legislative request.
Funding Levels (in thousands of dollars)
--------------------------------------------------------------------------
2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
Program Cost
FFEL
Liquidating \1\....................... (527,874) (673,304) (548,878)
Program
Regular............................. 3,324,164 3,769,228 4,093,939
Consolidation....................... 987,575 2,632,419 2,075,121
Reestimate of Prior Year Costs...... 0 (2,979,866) 0
Non-Contractual Modifications \2\... 0 0 103,057
----------- ----------- ----------
Subtotal, Program................. 4,311,738 3,421,781 6,272,117
----------- ----------- ----------
Total FFEL...................... 3,783,864 2,748,477 5,723,239
Direct Loans
Program
Regular............................. (373,162) (679,331) (979,690)
Consolidation....................... (348,767) 191,199 69,623
Reestimate of Prior Year Costs...... 0 4,590,922 0
Non-Contractual Modifications \2\... 0 0 44,167
Total, Direct Loans............. (721,929) 4,102,790 (865,900)
Administration
FFEL \3\.............................. 48,836 0 0
Student Aid \4\....................... 780,063 0 0
----------- ----------- ----------
Subtotal, Administration............ 828,899 0 0
Total, FFEL and Direct Loans.... 3,890,834 6,851,267 4,857,339
Program Cost Outlays
FFEL
Liquidating \1\.......................(1,493,940) (675,015) (548,878)
Program:
Regular............................. 2,806,338 3,161,836 3,505,515
Consolidation....................... 984,049 2,596,007 2,049,157
Reestimate of Prior Year Costs...... 0 (2,979,866) 0
Non-Contractual Modifications \2\... 0 0 103,057
----------- ----------- ----------
Subtotal, Program................. 3,790,387 2,777,976 5,657,728
Total, FFEL..................... 2,296,447 2,102,961 5,108,851
Direct Loans
Program
Regular............................. (373,162) (679,331) (979,690)
Consolidation....................... (348,767) 191,199 69,623
Reestimate of Prior Year Costs...... 4,590,922
Non-Contractual Modifications \2\... 44,167
----------- ----------- ----------
Total, Direct Loans............. (721,929) 4,102,790 (865,900)
Administration
FFEL \3\.............................. 46,382 12,410 3,403
Student Aid \4\....................... 819,233 231,602 80,402
----------- ----------- ----------
Subtotal, Administration............ 865,615 244,012 83,805
Total, FFEL and Direct Loans.... 2,440,133 6,449,764 4,326,755
\1\ Liquidating account reflects loans made prior to 1992.
\2\ Reflects the cost or savings associated with policy changes that
would affect the terms of existing loans.
\3\ Reflects annual discretionary appropriation.
\4\ Supports account maintenance fee payments to FFEL guaranty agencies,
Direct Loan origination and servicing, and a range of administrative
activities such as application printing, mailing, and processing that are
common to all Federal student financial assistance programs.
Summary of Loans Available (net commitments in millions of dollars) \1\
----------------------------------------------------------------------------
2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
FFEL:
Stafford.............................. 13,441 14,560 15,340
Unsubsidized Stafford................. 11,976 13,440 14,674
PLUS.................................. 3,189 3,537 3,931
--------- --------- ----------
Subtotal............................ 28,606 31,536 33,945
Consolidation......................... 22,693 16,986 12,999
--------- --------- ----------
Total, FFEL......................... 51,299 48,522 46,944
Direct Loans:
Stafford.............................. 5,765 6,177 6,476
Unsubsidized Stafford................. 4,481 4,988 5,394
PLUS.................................. 1,444 1,598 1,765
--------- --------- ----------
Subtotal............................ 11,689 12,763 13,636
Consolidation......................... 8,845 7,425 6,098
--------- --------- ----------
Total, Direct Loans................. 20,533 20,188 19,734
Total, All Loans.................... 71,832 68,710 66,678
---------------------------------------------------------------------------
\1\ Net commitments equal gross commitments minus loan cancellations.
Number of Loans (In thousands)
----------------------------------------------------------------------------
2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
FFEL:
Stafford.............................. 3,964 4,280 4,493
Unsubsidized Stafford................. 2,907 3,215 3,478
PLUS.................................. 404 423 444
--------- --------- ----------
Subtotal............................ 7,274 7,919 8,415
Consolidation......................... 726 572 436
--------- --------- ----------
Total, FFEL......................... 8,001 8,490 8,851
Direct Loans:
Stafford.............................. 1,600 1,678 1,754
Unsubsidized Stafford................. 1,120 1,213 1,302
PLUS.................................. 188 195 204
--------- --------- ----------
Subtotal............................ 2,908 3,086 3,259
Consolidation......................... 364 339 277
--------- --------- ----------
Total, Direct Loans................. 3,272 3,425 3,537
[[Page 346]]
Total, All Loans.................... 11,273 11,915 12,387
---------------------------------------------------------------------------
Average Loan Size (in whole dollars)
----------------------------------------------------------------------------
2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
FFEL:
Stafford.............................. 3,391 3,402 3,414
Unsubsidized Stafford................. 4,120 4,180 4,219
PLUS.................................. 7,894 8,359 8,854
--------- --------- ----------
Weighted Average, without
Consolidations.................... 3,932 3,982 4,034
--------- --------- ----------
Consolidation......................... 31,246 29,711 29,845
--------- --------- ----------
Weighted Average, FFEL.............. 6,412 5,715 5,304
Direct Loans:
Stafford.............................. 3,603 3,680 3,693
Unsubsidized Stafford................. 3,999 4,114 4,144
PLUS.................................. 7,692 8,181 8,659
--------- --------- ----------
Weighted Average, Without
Consolidations.................... 4,020 4,135 4,184
--------- --------- ----------
Consolidation......................... 24,286 21,926 21,996
--------- --------- ----------
Weighted Average, Direct Loans...... 6,275 5,894 5,580
Weighted Average, All Loans......... 6,372 5,766 5,383
---------------------------------------------------------------------------
Summary of Subsidy Rates, Default and Interest Rates
----------------------------------------------------------------------------
2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
Subsidy Rates (in percent) \1\
FFEL:
Stafford.............................. 16.41% 16.55% 17.75%
Unsubsidized Stafford................. 6.21% 5.70% 5.03%
PLUS.................................. 4.72% 3.61% 3.26%
Consolidation......................... 5.73% 15.30% 15.76%
Weighted Average, FFEL.............. 8.96% 12.00% 11.85%
Direct Loans:
Stafford.............................. 3.63% 0.29% -0.02%
Unsubsidized Stafford................. -12.05% -12.38% -14.79%
PLUS.................................. -8.89% -12.83% -14.72%
Consolidation......................... -3.78% 2.59% 1.13%
Weighted Average, Direct Loans...... -3.94% -3.23% -5.22%
Default Rates (in percent) \2\
FFEL:
Stafford.............................. 16.26 16.38 16.46
Unsubsidized Stafford................. 14.31 14.37 14.47
PLUS.................................. 9.52 9.49 9.53
Consolidated.......................... 20.53 20.52 20.51
Weighted Average, FFEL.............. 17.27 16.77 16.38
Direct Loans:
Stafford.............................. 14.48 14.60 14.66
Unsubsidized Stafford................. 13.17 13.26 13.36
PLUS.................................. 8.89 8.88 8.89
Consolidation......................... 31.09 31.98 33.31
Weighted Average, Direct Loans...... 20.95 20.21 19.55
Borrower Interest Rates (in percent) \3\
FFEL:
Stafford.............................. 6.62 6.66 6.68
Unsubsidized Stafford................. 6.62 6.66 6.68
PLUS.................................. 6.31 6.39 6.84
Consolidation (reflects Sub and Unsub
Stafford Only)...................... 5.50 4.10 4.40
Direct Loans:
Stafford.............................. 6.62 6.66 6.68
Unsubsidized Stafford................. 6.62 6.66 6.68
PLUS.................................. 6.31 6.39 6.84
Consolidation (reflects Sub and Unsub
Stafford only)...................... 5.48 4.10 4.43
---------------------------------------------------------------------------
\1\ Subsidy rates represent the Federal portion of non-administrative
costs--principally interest subsidies and defaults--associated with each
borrowed dollar. For example, a $1,000 loan with Federal subsidy costs of
$100 would have a subsidy rate of 10 percent.
\2\ Default rates displayed in this table, which reflect projected
defaults over the life of a loan cohort, are used in developing program cost
estimates. The Department uses other rates based on defaults occurring in
the first three years of repayment to determine institutional eligibility to
participate in Federal loan programs. These three-year rates tend to be
lower than those included in this table.
\3\ These represent average borrower interest rates during repayment for
a typical borrower under standard repayment over the life of the loan.
Composition of Loan Collections (In thousands of dollars)
----------------------------------------------------------------------------
2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
FFEL:
Collections by Guaranty Agencies \1\.. 2,611,594 1,404,685 1,616,222
Collections by Department of Education
\2\................................. 956,991 741,378 723,687
Internal Revenue Service Tax Refund
Offsets............................. 723,283 757,509 837,102
Total, FFEL..................... 4,291,868 2,903,571 3,177,011
Direct Loans:
Collections by Department of Education
\2\................................. 362,890 589,264 768,158
Internal Revenue Service Tax Refund
Offsets............................. 42,387 127,483 176,377
Total, Direct Loans............. 405,278 716,747 944,535
Total, FFEL and Direct Loan....... 4,697,146 3,620,318 4,121,546
---------------------------------------------------------------------------
\1\ These figures show collections net of the amount agencies are
allowed to retain under the provisions of the Higher Education Act of 1965.
Agencies may retain 24 percent of most collections, and 18.5 percent of
amounts collected through the consolidation of existing defaulted loans.
\2\ These figures include amounts subsequently paid to Department
contract collections agencies; contract collection costs total $158 million
for 2002 ($102 million for FFEL and $56 million for Direct Loans); $211
million for 2003 ($117 million for FFEL and $94 million for Direct Loans);
and $237 million for 2004 ($115 million for FFEL and $122 million for Direct
Loans).
Projected Participation in Repayment Plans \1\ (in percent)
----------------------------------------------------------------------------
2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
Direct Loans \1\
Standard
Percent of Loan Volume \2\
Stafford.......................... 73.25 73.25 73.25
Unsubsidized Stafford............. 69.96 69.96 69.96
PLUS.............................. 73.52 73.52 73.52
Consolidation..................... 19.81 19.40 18.80
Subsidy Rate (in percent)
Stafford.......................... 4.21 1.46 1.14
Unsubsidized Stafford............. -11.56 -11.11 -13.52
PLUS.............................. -7.23 -10.33 -12.18
Consolidation..................... 0.92 4.19 2.70
Graduated \3\
Percent of Loan Volume \2\
Stafford.......................... 19.02 19.02 19.02
Unsubsidized Stafford............. 20.65 20.65 20.65
PLUS.............................. 20.12 20.12 20.12
Consolidation..................... 17.74 17.40 16.91
Subsidy Rate (in percent)
Stafford.......................... 2.08 -2.93 -3.27
Unsubsidized Stafford............. -14.09 -16.10 -18.64
PLUS.............................. -14.37 -20.09 -22.08
Consolidation..................... 2.96 10.44 7.19
Extended \3\
Percent of Loan Volume \2\
Stafford.......................... 6.18 6.18 6.18
Unsubsidized Stafford............. 7.73 7.73 7.73
PLUS.............................. 6.36 6.36 6.36
Consolidation..................... 20.10 19.62 18.92
Subsidy Rate (in percent)
Stafford.......................... 2.53 -2.26 -2.59
Unsubsidized Stafford............. -13.56 -15.36 -17.88
PLUS.............................. -12.83 -18.80 -20.79
Consolidation..................... 2.71 9.97 6.82
Income-Contingent
Percent of Loan Volume \2\
Stafford.......................... 1.55 1.55 1.55
Unsubsidized Stafford............. 1.67 1.67 1.67
Consolidation..................... 42.35 43.58 45.38
Subsidy Rate (in percent)
Stafford.......................... 0.15 -5.66 -5.57
Unsubsidized Stafford............. -0.13 -5.84 -5.73
Consolidation..................... -12.13 -4.58 -4.14
---------------------------------------------------------------------------
\1\ For modeling purposes, all FFEL borrowers are assumed to have chosen
Standard repayment. For Direct Loans, no data is included for the
Alternative repayment plan, since borrowers are not expected to participate
in this plan due to the flexibility available under the other options.
Income-contingent repayment is not available for Direct PLUS borrowers.
\2\ Percent of Loan Volume represents aggregate data. Individual
borrowers may move between plans over time.
\3\ Maximum terms under the Extended and Graduated repayment plans
reflect the following ``classes'' based on borrower debt levels.
------------------------------------------------------------------------
Percent of Volume
Within Direct
Debt Level Maximum Term (in Extended and
years) Graduated Plans
(Stafford) FY 03
------------------------------------------------------------------------
Below $10,000............... 12 13.00
$10,000-$20,000............. 15 34.97
$20,000-$40,000............. 20 36.81
$40,000-$60,000............. 25 10.65
Above $60,000............... 30 4.57
------------------------------------------------------------------------
The Higher Education Amendments of 1998 broadened the availability
of alternative repayment plans in the FFEL pro
[[Page 347]]
gram. As noted in the table above, data on the extent to which FFEL
borrowers will take advantage of these plans is not yet available.
Consistent with the Federal Credit Reform Act of 1990, the Office of
Management and Budget establishes procedures for the estimation of
subsidy rates for the Federal student loan programs. Subsidy costs for
each loan type are estimated separately and, because costs can vary
widely within a program depending on the characteristics of the
individual borrower, cost estimates are aggregated from data for
homogeneous groups within risk categories.
Risk categories for Stafford and Unsubsidized Stafford Loans are
based on the type of school attended by the borrower. Since PLUS loan
borrowers are all parents, they are assumed to share similar risk
profiles and are grouped together in a single category. For
Consolidation Loans, risk categories distinguish between standard
Consolidation Loans--in which borrowers in repayment consolidate a
number of outstanding loans--and loans consolidated out of default.
Default rates are a major cause of differences in subsidy between
risk categories. The default rates in the following tables reflect
estimates of the percent of borrowers who will default over the lifetime
of the loans. These estimates are revised annually based on an analysis
of default trends. Within each risk group, it is assumed that borrowers
choosing similar repayment plans will have similar default rates,
regardless of whether they borrow under the FFEL or Direct Loan program.
FFEL RISK CATEGORIES: STAFFORD LOANS
Subsidy Rate (as a percentage of loan commitments)
2002 actual 2003 est. 2004 est.
Risk Categories:
Category 1: 4 year college, 1st
and 2nd year students........... 20.06 21.21 22.63
Category 2: 4 year college, 3rd
and 4th year students........... 14.86 15.26 16.56
Category 3: 2 year college, all
students........................ 17.80 17.75 18.83
Category 4: Proprietary school,
all students.................... 12.78 9.74 10.47
Category 5: Graduate students..... 15.89 15.80 16.94
Gross Default Rates (in percent)
2002 actual 2003 est. 2004 est.
Risk Categories:
Category 1: 4 year college, 1st
and 2nd year students........... 20.35 20.38 20.38
Category 2: 4 year college, 3rd
and 4th year students........... 12.63 12.62 12.62
Category 3: 2 year college, all
students........................ 31.41 31.43 31.48
Category 4: Proprietary school,
all students.................... 45.51 45.36 45.39
Category 5: Graduate students..... 8.12 8.11 8.12
UNSUBSIDIZED STAFFORD LOANS
Subsidy Rate (as a percentage of loan commitments)
2002 actual 2003 est. 2004 est.
Risk Categories:
Category 1: 4 year college, 1st
and 2nd year students........... 7.65 7.10 6.59
Category 2: 4 year college, 3rd
and 4th year students........... 5.57 5.49 4.97
Category 3: 2 year college, all
students........................ 10.79 8.16 7.45
Category 4: Proprietary school,
all students.................... 10.48 5.89 5.17
Category 5: Graduate students..... 4.63 4.83 4.01
Gross Default Rates (in percent)
2002 actual 2003 est. 2004 est.
Risk Categories:
Category 1: 4 year college, 1st
and 2nd year students........... 20.30 20.39 20.32
Category 2: 4 year college, 3rd
and 4th year students........... 11.70 11.69 11.69
Category 3: 2 year college, all
students........................ 27.68 27.66 27.68
Category 4: Proprietary school,
all students.................... 35.56 35.45 35.43
Category 5: Graduate students..... 8.21 8.20 8.20
PLUS LOANS
Subsidy Rate (as a percentage of loan commitments)
2002 actual 2003 est. 2004 est.
All PLUS Loans 4.72 3.61 3.26
Gross Default Rates (in percent)
2002 actual 2003 est. 2004 est.
All PLUS Loans 9.52 9.49 9.53
DIRECT LOAN RISK CATEGORIES: STAFFORD LOANS
Subsidy Rate (as a percentage of loan commitments)
2002 actual 2003 est. 2004 est.
Risk Categories:
Category 1: 4 year college, 1st
and 2nd year students........... 6.92 4.28 4.14
Category 2: 4 year college, 3rd
and 4th year students........... 2.13 -1.17 -1.41
Category 3: 2 year college, all
students........................ 5.64 2.88 2.22
Category 4: Proprietary school,
all students.................... 2.97 -1.97 -3.07
Category 5: Graduate students..... 3.16 -0.69 -1.05
Gross Default Rates (in percent)
2002 actual 2003 est. 2004 est.
Risk Categories:
Category 1: 4 year college, 1st
and 2nd year students........... 19.75 19.84 19.85
Category 2: 4 year college, 3rd
and 4th year students........... 12.35 12.34 12.34
Category 3: 2 year college, all
students........................ 31.40 31.37 31.41
Category 4: Proprietary school,
all students.................... 44.94 44.82 44.84
Category 5: Graduate students..... 7.95 7.94 7.95
UNSUBSIDIZED STAFFORD LOANS
Subsidy Rate (as a percentage of loan commitments)
2002 actual 2003 est. 2004 est.
Risk Categories:
Category 1: 4 year college, 1st
and 2nd year students........... -10.58 -11.38 -13.63
Category 2: 4 year college, 3rd
and 4th year students........... -12.58 -12.68 -15.03
Category 3: 2 year college, all
students........................ -5.36 -8.33 -11.06
Category 4: Proprietary school,
all students.................... -3.24 -8.15 -11.14
Category 5: Graduate students..... -13.95 -13.48 -15.95
Gross Default Rates (in percent)
2002 actual 2003 est. 2004 est.
Risk Categories:
Category 1: 4 year college, 1st
and 2nd year students........... 19.56 19.56 19.59
Category 2: 4 year college, 3rd
and 4th year students........... 11.44 11.43 11.43
Category 3: 2 year college, all
students........................ 27.36 27.34 27.36
Category 4: Proprietary school,
all students.................... 34.93 34.81 34.79
Category 5: Graduate students..... 8.05 8.05 8.05
PLUS LOANS
Subsidy Rate (as a percentage of loan commitments)
2002 actual 2003 est. 2004 est.
All PLUS Loans.................... -8.89 -12.83 -14.72
Gross Default Rates (in percent)
2002 actual 2003 est. 2004 est.
All PLUS Loans.................... 8.89 8.88 8.89
Selected Program Costs and Offsets \1\ (in thousands of dollars)
2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
FFEL:
Interest costs:
Interest benefits:
FFEL Liquidating...................... 40,896 463 0
FFEL Program.......................... 2,129,956 1,060,641 1,274,592
----------- ----------- ----------
Total............................... 2,170,852 1,061,104 1,274,592
Special allowance
FFEL Liquidating...................... 19,418 12,282 6,065
FFEL Program.......................... 201,410 688,624 2,542,307
----------- ----------- ----------
Total............................... 220,827 700,906 2,548,372
Default costs and offsets:
Default claims:
FFEL Liquidating...................... 76,997 24,203 4,899
FFEL Program.......................... 2,796,593 4,045,386 4,804,998
----------- ----------- ----------
Total............................... 2,873,571 4,069,589 4,809,898
Net default collections:
FFEL Liquidating...................... 1,796,498 791,883 619,794
FFEL Program.......................... 2,495,370 2,111,688 2,557,217
----------- ----------- ----------
Total............................... 4,291,868 2,903,571 3,177,011
Contract collection costs:
FFEL Liquidating...................... 82,896 57,190 44,185
FFEL Program.......................... 19,345 60,196 71,025
----------- ----------- ----------
Total............................... 102,240 117,386 115,210
Death, disability, and bankruptcy costs:
FFEL Liquidating.................... 24,849 30,793 18,874
FFEL Program........................ 421,474 557,375 659,644
----------- ----------- ----------
Total............................... 446,323 588,168 678,518
Fees:
Borrower origination fees............. 776,458 917,090 997,342
Lender origination fee................ 210,694 237,915 231,238
Sallie Mae offset fee................. 41,065 43,400 39,300
[[Page 348]]
Consolidation loan holder fees........ 382,578 668,261 748,847
Direct Loans
Borrower origination fees............. 333,810 388,502 418,860
Net default Collections............... 405,278 716,747 944,535
Contact Collection Costs.............. 56,202 93,808 122,288
Administrative Costs \2\
Federal administration:
FFEL.................................. 48,836 0 0
Student Aid Management (SAM) \3\...... 780,063 0 0
Guaranty agency administrative
payments:
Account Maintenance Fee (included in
SAM)................................ 180,000 195,000 195,000
Loan Issuance and Processing Fee...... 194,206 234,795 155,589
----------------------------------------------------------------------------
Details may not sum to totals due to rounding.
\1\ This table represents explicit cash flows in the FFEL and Direct
Loan financing accounts. Examples of these flows would include payments of
FFEL interest benefits, default claims, and discharge claims, or collections
on FFEL or Direct Loan defaults, all of which involve explicit events that
are reflected in the Department's financial systems as they occur. Non-
events, such as Direct Loan interest benefits, defaults, or discharges,
involve payments that are not received, and hence not recorded in the
Department's financial systems in the same way. For that reason, these non-
events are not included in this table.
\2\ For 2003, no funds are requested for loan administration, as these
costs would be part of the proposed discretionary Student Aid Administration
account.
\3\ A number of expenses related to the administration of the student
assistance programs are paid out of Student Aid Management funds. One of
these expenses, account maintenance fee payments to guaranty agencies, is
shown as a separate line.
Object Classification (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0243-0-1-502 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
Personnel compensation:
11.1 Full-time permanent............. 43
11.3 Other than full-time permanent.. 1
11.5 Other personnel compensation.... 2
--------- --------- ----------
11.9 Total personnel compensation.. 46
12.1 Civilian personnel benefits....... 10
21.0 Travel and transportation of
persons......................... 4
23.1 Rental payments to GSA............ 11
23.3 Communications, utilities, and
miscellaneous charges........... 46
24.0 Printing and reproduction......... 7
25.1 Advisory and assistance services.. 4
25.2 Other services.................... 31
25.3 Other purchases of goods and
services from Government
accounts........................ 8
25.6 Training.......................... 5
25.7 Operation and maintenance of
equipment....................... 445
26.0 Supplies and materials............ 1
31.0 Equipment......................... 3
32.0 Land and structures............... 3
41.0 Grants, subsidies, and
contributions................... 176 4,591
--------- --------- ----------
99.9 Total new obligations........... 800 4,591
---------------------------------------------------------------------------
Personnel Summary
----------------------------------------------------------------------------
Identification code 91-0243-0-1-502 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
Total compensable workyears:
1001 Civilian full-time equivalent
employment...................... 621
---------------------------------------------------------------------------
Federal Direct Student Loan Program, Program Account
(Legislative proposal, subject to PAYGO)
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0243-4-1-502 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.03 Modification...................... 44
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 44
----------------------------------------------------------------------------
Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 44
23.95 Total new obligations............. -44
----------------------------------------------------------------------------
New budget authority (gross), detail:
Mandatory:
60.00 Appropriation (modification).... 44
69.00 Offsetting collections (cash)..... -9
69.27 Capital transfer to general fund.. 9
--------- --------- ----------
69.90 Spending authority from
offsetting collections (total
mandatory)....................
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 44
----------------------------------------------------------------------------
Change in obligated balances:
73.10 Total new obligations............. 44
73.20 Total outlays (gross)............. -44
----------------------------------------------------------------------------
Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 44
----------------------------------------------------------------------------
Offsets:
Against gross budget authority and outlays:
88.00 Offsetting collections (cash)
from: Federal sources......... 9
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 53
90.00 Outlays........................... 53
----------------------------------------------------------------------------
Additional net budget authority and outlays to cover cost of fully accruing
retirement:
99.00 Budget authority..................
99.01 Outlays...........................
---------------------------------------------------------------------------
Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0243-4-1-502 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
Direct loan levels supportable by subsidy
budget authority:
115001Stafford..........................
115002Unsubsidized Stafford.............
115003PLUS..............................
115004Consolidated......................
--------- --------- ----------
115901Total direct loan levels..........
Direct loan subsidy (in percent):
132001Stafford.......................... 0.03
132002Unsubsidized Stafford............. 0.03
132003PLUS.............................. 0.00
132004Consolidated...................... 0.00
--------- --------- ----------
132901Weighted average subsidy rate..... 0.06
Direct loan subsidy budget authority:
133001Stafford.......................... 7
133002Unsubsidized Stafford............. 7
133003PLUS..............................
133004Consolidated......................
133005Modification...................... 44
--------- --------- ----------
133901Total subsidy budget authority.... 58
Direct loan subsidy outlays:
134001Stafford.......................... 4
134002Unsubsidized Stafford............. 5
134003PLUS..............................
134004Consolidated......................
134005Modification...................... 44
--------- --------- ----------
134901Total subsidy outlays............. 53
----------------------------------------------------------------------------
Student loan administrative expense data:
351001Budget authority..................
359001Outlays...........................
---------------------------------------------------------------------------
Federal Direct Student Loan Program, Financing Account
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-4253-0-3-502 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
Obligations by program activity:
Direct loans:
01.01 Stafford........................ 5,709 6,613 6,933
01.02 Unsubsidized Stafford........... 4,560 5,497 5,946
01.03 PLUS............................ 1,454 1,732 1,914
01.04 Consolidated.................... 9,195 7,496 6,160
--------- --------- ----------
01.91 Subtotal, direct loans
obligations................. 20,918 21,338 20,953
Payment for consolidations:
02.01 Interest rate rebate, Stafford.. 80 91 96
[[Page 349]]
02.02 Interest rate rebate,
Unsubsidized Stafford......... 62 72 79
02.03 Interest rate rebate, PLUS...... 19 23 26
--------- --------- ----------
02.91 Direct Program by Activities--
Subtotal (1 level)............ 161 186 201
03.01 Consolidation loans-Payment of
Orig. Services.................. 28 24 22
04.01 Payment of contract collections... 56 94 122
05.01 Interest payment to Treasury...... 5,716 5,297 6,042
Other obligations:
08.01 Obligation of negative subsidy.. 835 689 1,107
--------- --------- ----------
10.00 Total new obligations........... 27,714 27,628 28,447
----------------------------------------------------------------------------
Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 3 499
22.00 New financing authority (gross)... 28,210 27,130 28,447
22.10 Resources available from
recoveries of prior year
obligations..................... 8
22.60 Portion applied to repay debt..... -8
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 28,213 27,629 28,447
23.95 Total new obligations............. -27,714 -27,628 -28,447
24.40 Unobligated balance carried
forward, end of year............ 499
----------------------------------------------------------------------------
New financing authority (gross), detail:
Mandatory:
67.10 Authority to borrow............. 21,996 21,529 22,060
69.00 Offsetting collections (cash)..... 14,502 15,538 13,118
69.47 Portion applied to repay debt..... -8,288 -9,937 -6,731
--------- --------- ----------
69.90 Spending authority from
offsetting collections (total
mandatory).................... 6,214 5,601 6,387
--------- --------- ----------
70.00 Total new financing authority
(gross)....................... 28,210 27,130 28,447
----------------------------------------------------------------------------
Change in obligated balances:
72.40 Obligated balance, start of year.. 4,240 5,404 4,532
73.10 Total new obligations............. 27,714 27,628 28,447
73.20 Total financing disbursements
(gross)......................... -26,542 -28,501 -28,191
73.45 Recoveries of prior year
obligations..................... -8
74.40 Obligated balance, end of year.... 5,404 4,532 4,788
87.00 Total financing disbursements
(gross)......................... 26,542 28,501 28,191
----------------------------------------------------------------------------
Offsets:
Against gross financing authority and
financing disbursements:
Offsetting collections (cash)
from:
Federal sources:
Payments from program
account:
88.00 Upward reestimate......... -3,721
88.00 Upward reestimate,
interest................ -870
88.25 Interest on uninvested funds.. -972
Non-Federal sources:
Stafford loans:
88.40 Repayment of principal,
Stafford................ -4,207 -2,455 -2,945
88.40 Interest received on
loans, Stafford......... -504 -1,022 -1,226
88.40 Origination Fees, Stafford -164 -182 -192
88.40 Other fees, Stafford...... -14
88.40 Repayment of principal,
Unsubsidized Stafford... -3,196 -1,681 -2,077
88.40 Interest received on
loans, Unsubsidized
Stafford................ -475 -722 -898
88.40 Origination Fees,
Unsubsidized Stafford... -125 -145 -159
88.40 Other fees, Unsubsidized
Stafford................ -10
88.40 Repayment of principal,
PLUS.................... -1,156 -616 -739
88.40 Interest received on
loans, PLUS............. -241 -308 -384
88.40 Origination Fees, PLUS.... -45 -62 -68
88.40 Other fees, PLUS.......... -4
88.40 Payment of principal,
Consolidation........... -2,522 -1,616 -2,023
88.40 Interest received on
loans, Consolidation.... -859 -2,138 -2,407
88.40 Other fees, Consolidation. -8
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -14,502 -15,538 -13,118
----------------------------------------------------------------------------
Net financing authority and financing
disbursements:
89.00 Financing authority............... 13,708 11,592 15,329
90.00 Financing disbursements........... 12,039 12,963 15,073
---------------------------------------------------------------------------
Status of Direct Loans (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-4253-0-3-502 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
STAFFORD
Position with respect to appropriations act
limitation on obligations:
1111 Limitation on direct loans........
1131 Direct loan obligations exempt
from limitation................. 5,709 6,613 6,933
--------- --------- ----------
1150 Total direct loan obligations... 5,709 6,613 6,933
----------------------------------------------------------------------------
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 26,488 27,470 31,023
1231 Disbursements: Direct loan
disbursements................... 5,059 6,062 6,397
1251 Repayments: Repayments and
prepayments..................... -4,207 -2,455 -2,945
1261 Adjustments: Capitalized interest. 169
1264 Write-offs for default: Other
adjustments, net................ -39 -54 -59
--------- --------- ----------
1290 Outstanding, end of year........ 27,470 31,023 34,416
----------------------------------------------------------------------------
UNSUBSIDIZED STAFFORD
Position with respect to appropriations act
limitation on obligations:
1111 Limitation on direct loans........
1131 Direct loan obligations exempt
from limitation................. 4,560 5,497 5,946
--------- --------- ----------
1150 Total direct loan obligations... 4,560 5,497 5,946
----------------------------------------------------------------------------
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 17,170 18,515 22,120
1231 Disbursements: Direct loan
disbursements................... 3,951 4,827 5,288
1251 Repayments: Repayments and
prepayments..................... -3,196 -1,682 -2,077
1261 Adjustments: Capitalized interest. 618 495 445
1264 Write-offs for default: Other
adjustments, net................ -28 -35 -40
--------- --------- ----------
1290 Outstanding, end of year........ 18,515 22,120 25,736
----------------------------------------------------------------------------
PLUS
Position with respect to appropriations act
limitation on obligations:
1111 Limitation on direct loans........
1131 Direct loan obligations exempt
from limitation................. 1,454 1,732 1,914
--------- --------- ----------
1150 Total direct loan obligations... 1,454 1,732 1,914
----------------------------------------------------------------------------
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 4,003 4,279 5,175
1231 Disbursements: Direct loan
disbursements................... 1,225 1,546 1,708
1251 Repayments: Repayments and
prepayments..................... -1,156 -616 -739
1261 Adjustments: Capitalized interest. 226
1264 Write-offs for default: Other
adjustments, net................ -19 -34 -39
--------- --------- ----------
1290 Outstanding, end of year........ 4,279 5,175 6,105
----------------------------------------------------------------------------
CONSOLIDATED
Position with respect to appropriations act
limitation on obligations:
1111 Limitation on direct loans........
1131 Direct loan obligations exempt
from limitation................. 9,195 7,497 6,161
--------- --------- ----------
1150 Total direct loan obligations... 9,195 7,497 6,161
----------------------------------------------------------------------------
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 22,884 29,807 35,524
1231 Disbursements: Direct loan
disbursements................... 9,228 7,436 6,106
1251 Repayments: Repayments and
prepayments..................... -2,522 -1,617 -2,023
1261 Adjustments: Capitalized interest. 312
1264 Write-offs for default: Other
adjustments, net................ -95 -102 -127
--------- --------- ----------
1290 Outstanding, end of year........ 29,807 35,524 39,480
---------------------------------------------------------------------------
Balance Sheet (in millions of dollars)
-----------------------------------------------------------------------------------------------
Identification code 91-4253-0-3-502 2001 actual 2002 actual 2003 est. 2004 est.
-----------------------------------------------------------------------------------------------
ASSETS:
1101 Federal assets: Fund balances with
Treasury........................ 603 970 4,532 4,788
Net value of assets related to
post-1991 direct loans
receivable:
1401 Direct loans receivable, gross.. 70,313 80,070 93,842 105,737
1402 Interest receivable............. 2,616 2,661 6,088 7,047
1405 Allowance for subsidy cost (-).. 1,739 2,115 2,158 2,119
------------ -------------- ------------ -------------
1499 Net present value of assets
related to direct loans..... 74,668 84,846 102,088 114,903
1901 Other Federal assets: Other assets 2,497 3,769
------------ -------------- ------------ -------------
1999 Total assets.................... 77,768 89,585 106,620 119,691
LIABILITIES:
Federal liabilities:
2101 Accounts payable................ 579 87 5,531 3,272
2103 Debt............................ 77,189 89,498 101,089 116,419
------------ -------------- ------------ -------------
2999 Total liabilities............... 77,768 89,585 106,620 119,691
NET POSITION:
------------ -------------- ------------ -------------
[[Page 350]]
3999 Total net position..............
------------ -------------- ------------ -------------
4999 Total liabilities and net position 77,768 89,585 106,620 119,691
----------------------------------------------------------------- ----------------------------
As required by the Federal Credit Reform Act of 1990, this non-
budgetary account records all cash flows to and from the Government
resulting from Direct Loans. The amounts in this account are a means of
financing and are not included in the budget totals.
Federal Direct Student Loan Program, Financing Account
(Legislative proposal, subject to PAYGO)
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-4253-4-3-502 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
Obligations by program activity:
05.01 Interest payment to Treasury...... -1
Other obligations:
08.01 Obligation of negative subsidy.. -14
--------- --------- ----------
10.00 Total new obligations........... -15
----------------------------------------------------------------------------
Budgetary resources available for obligation:
22.00 New financing authority (gross)... -18
23.95 Total new obligations............. 15
24.40 Unobligated balance carried
forward, end of year............ -3
----------------------------------------------------------------------------
New financing authority (gross), detail:
Mandatory:
67.10 Authority to borrow............. -14
69.00 Offsetting collections (cash)..... 44
69.27 Capital transfer to general fund.. -3
69.47 Portion applied to repay debt..... -45
--------- --------- ----------
69.90 Spending authority from
offsetting collections (total
mandatory).................... -4
--------- --------- ----------
70.00 Total new financing authority
(gross)....................... -18
----------------------------------------------------------------------------
Change in obligated balances:
73.10 Total new obligations............. -15
73.20 Total financing disbursements
(gross)......................... 15
87.00 Total financing disbursements
(gross)......................... -15
----------------------------------------------------------------------------
Offsets:
Against gross financing authority and
financing disbursements:
Payments from program account:
88.00 Offsetting collections (cash)
from: Modification.......... -44
----------------------------------------------------------------------------
Net financing authority and financing
disbursements:
89.00 Financing authority............... -62
90.00 Financing disbursements........... -59
---------------------------------------------------------------------------
Federal Family Education Loan Program Account
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0231-0-1-502 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.02 Guaranteed Loan Net Subsidy....... 4,312 6,402 6,131
Administrative expenses:
00.09 Administrative expenses due to
limitations................... 49
--------- --------- ----------
10.00 Total new obligations........... 4,361 6,402 6,131
----------------------------------------------------------------------------
Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 2 2
22.00 New budget authority (gross)...... 4,361 6,402 6,131
22.40 Capital transfer to general fund.. -2
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 4,363 6,402 6,131
23.95 Total new obligations............. -4,361 -6,402 -6,131
23.98 Unobligated balance expiring or
withdrawn....................... -1
24.40 Unobligated balance carried
forward, end of year............ 2
----------------------------------------------------------------------------
New budget authority (gross), detail:
Discretionary:
40.00 Appropriation................... 50
40.71 Reduction pursuant to P.L. XXX-
XX............................ -1
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 49
Mandatory:
60.00 Appropriation................... 4,312 6,402 6,131
69.00 Offsetting collections (cash)--
downward reestimate............. 2,980
69.27 Capital transfer to general fund.. -2,980
--------- --------- ----------
69.90 Spending authority from
offsetting collections (total
mandatory)....................
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 4,361 6,402 6,131
----------------------------------------------------------------------------
Change in obligated balances:
72.40 Obligated balance, start of year.. 870 1,393 2,024
73.10 Total new obligations............. 4,361 6,402 6,131
73.20 Total outlays (gross)............. -3,837 -5,770 -5,536
73.40 Recoveries of prior yr obligations -1
74.40 Obligated balance, end of year.... 1,393 2,024 2,619
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 38
86.93 Outlays from discretionary
balances........................ 9 12 3
86.97 Outlays from new mandatory
authority....................... 2,935 4,794 4,425
86.98 Outlays from mandatory balances... 855 964 1,108
--------- --------- ----------
87.00 Total outlays (gross)........... 3,837 5,770 5,536
----------------------------------------------------------------------------
Offsets:
Against gross budget authority and outlays:
88.00 Offsetting collections (cash)
from: Federal sources......... -2,980
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 4,361 3,422 6,131
90.00 Outlays........................... 3,837 2,790 5,536
---------------------------------------------------------------------------
Summary of Budget Authority and Outlays
(in millions of dollars)
2002 actual 2003 est. 2004 est.
Enacted/requested:
Budget Authority.................. 4,361 3,422 6,131
Outlays........................... 3,837 2,790 5,536
Legislative proposal, subject to
PAYGO:
Budget Authority.................. 141
Outlays........................... 125
------------------------------------
Total:
Budget Authority.................. 4,361 3,422 6,272
Outlays........................... 3,837 2,790 5,661
====================================
Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0231-0-1-502 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
Guaranteed loan levels supportable by subsidy
budget authority:
215001Stafford.......................... 14,305 16,534 17,423
215002Unsubsidized Stafford............. 13,092 15,584 17,023
215003PLUS.............................. 3,470 4,004 4,451
215004Consolidated...................... 17,235 17,205 13,167
--------- --------- ----------
215901Total loan guarantee levels....... 48,102 53,327 52,064
Guaranteed loan subsidy (in percent):
232001Stafford.......................... 16.41 16.55 17.64
232002Unsubsidized Stafford............. 6.21 5.70 4.92
232003PLUS.............................. 4.72 3.61 3.26
232004Consolidated...................... 5.73 15.30 15.76
--------- --------- ----------
232901Weighted average subsidy rate..... 8.96 12.00 11.78
Guaranteed loan subsidy budget authority:
233001Stafford.......................... 2,347 2,736 3,073
233002Unsubsidized Stafford............. 813 888 838
233003PLUS.............................. 164 145 145
[[Page 351]]
233004Consolidated...................... 988 2,632 2,075
--------- --------- ----------
233901Total subsidy budget authority.... 4,312 6,401 6,131
Guaranteed loan subsidy outlays:
234001Stafford.......................... 2,054 2,287 2,616
234002Unsubsidized Stafford............. 632 740 740
234003PLUS.............................. 120 135 128
234004Consolidated...................... 984 2,596 2,049
--------- --------- ----------
234901Total subsidy outlays............. 3,790 5,758 5,533
Guaranteed loan upward reestimate subsidy
budget authority:
235002Unsubsidized Stafford............. 343
235003PLUS.............................. 80
235004Consolidated...................... 32
--------- --------- ----------
235901Total upward reestimate budget
authority....................... 455
Guaranteed loan upward reestimate subsidy
outlays:
236002Unsubsidized Stafford............. 343
236003PLUS.............................. 80
236004Consolidated...................... 32
--------- --------- ----------
236901Total upward reestimate subsidy
outlays......................... 455
Guaranteed loan downward reestimate subsidy
budget authority:
237001Stafford.......................... -2,643
237002Unsubsidized Stafford............. -207
237003PLUS.............................. -5
237004Consolidated...................... -509
237005SLS............................... -71
--------- --------- ----------
237901Total downward reestimate subsidy
budget authority................ -3,435
Guaranteed loan downward reestimate subsidy
outlays:
238001Stafford.......................... -2,643
238002Unsubsidized Stafford............. -207
238003PLUS.............................. -5
238004Consolidated...................... -509
238005SLS............................... -71
--------- --------- ----------
238901Total downward reestimate subsidy
outlays......................... -3,435
----------------------------------------------------------------------------
Administrative expense data:
351001Budget authority.................. 49
359001Outlays........................... 46 12 3
---------------------------------------------------------------------------
As required by the Federal Credit Reform Act of 1990, this program
account records the subsidy costs associated with Federal Family
Education Loans (FFEL), formerly guaranteed student loans (GSL),
committed in 1992 and beyond, as well as certain administrative expenses
of the program. Administrative expenses include discretionary expenses
for salaries, expenses and overhead of employees working directly on the
program. Consistent with the Administration's proposal to consolidate
student aid administrative activities in a single discretionary account,
these expenses are not reflected for 2003 and 2004. For a discussion of
this proposal, see the narrative description above in the Student Aid
Administration account. Beginning with the 1993 cohort, mandatory
administrative costs, specifically contract collection costs, are
included in the FFEL subsidy estimates of each year's cohort. Subsidy
amounts are estimated on a net present value basis.
A description of the FFEL program and accompanying tables are
included under the Federal Direct Student Loan program account.
Object Classification (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0231-0-1-502 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
Personnel compensation:
11.1 Full-time permanent............. 23
11.5 Other personnel compensation.... 1
--------- --------- ----------
11.9 Total personnel compensation.. 24
12.1 Civilian personnel benefits....... 5
23.1 Rental payments to GSA............ 3
23.3 Communications, utilities, and
miscellaneous charges........... 2
25.2 Other services.................... 1
25.3 Other purchases of goods and
services from Government
accounts........................ 1
25.7 Operation and maintenance of
equipment....................... 12
31.0 Equipment......................... 1
41.0 Grants, subsidies, and
contributions................... 4,312 6,402 6,131
--------- --------- ----------
99.9 Total new obligations........... 4,361 6,402 6,131
---------------------------------------------------------------------------
Personnel Summary
----------------------------------------------------------------------------
Identification code 91-0231-0-1-502 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
Total compensable workyears:
1001 Civilian full-time equivalent
employment...................... 320
---------------------------------------------------------------------------
Federal Family Education Loan Program Account
(Legislative proposal, subject to PAYGO)
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0231-4-1-502 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.02 Guaranteed Loan Net Subsidy....... 141
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 141
----------------------------------------------------------------------------
Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 141
23.95 Total new obligations............. -141
----------------------------------------------------------------------------
New budget authority (gross), detail:
Mandatory:
60.00 Appropriation................... 141
----------------------------------------------------------------------------
Change in obligated balances:
73.10 Total new obligations............. 141
73.20 Total outlays (gross)............. -125
74.40 Obligated balance, end of year.... 16
----------------------------------------------------------------------------
Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 125
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 141
90.00 Outlays........................... 125
---------------------------------------------------------------------------
Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0231-4-1-502 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
Guaranteed loan levels supportable by subsidy
budget authority:
215001Stafford..........................
215002Unsubsidized Stafford.............
215003PLUS..............................
215004Consolidated......................
--------- --------- ----------
215901Total loan guarantee levels.......
Guaranteed loan subsidy (in percent):
232001Stafford.......................... 0.03
232002Unsubsidized Stafford............. 0.04
232003PLUS.............................. 0.00
232004Consolidated...................... 0.00
--------- --------- ----------
232901Weighted average subsidy rate..... 0.07
Guaranteed loan subsidy budget authority:
233001Stafford.......................... 19
233002Unsubsidized Stafford............. 19
233003PLUS..............................
233004Consolidated......................
233005Modification...................... 103
--------- --------- ----------
233901Total subsidy budget authority.... 141
Guaranteed loan subsidy outlays:
234001Stafford.......................... 11
234002Unsubsidized Stafford............. 11
234003PLUS..............................
234004Consolidated......................
234005Modification...................... 103
--------- --------- ----------
234901Total subsidy outlays............. 125
Guaranteed loan upward reestimate subsidy
budget authority:
235002Unsubsidized Stafford.............
[[Page 352]]
235003PLUS..............................
235004Consolidated......................
--------- --------- ----------
235901Total upward reestimate budget
authority.......................
Guaranteed loan upward reestimate subsidy
outlays:
236002Unsubsidized Stafford.............
236003PLUS..............................
236004Consolidated......................
--------- --------- ----------
236901Total upward reestimate subsidy
outlays.........................
Guaranteed loan downward reestimate subsidy
budget authority:
237001Stafford..........................
237002Unsubsidized Stafford.............
237003PLUS..............................
237004Consolidated......................
237005Downward reestimate...............
--------- --------- ----------
237901Total downward reestimate subsidy
budget authority................
Guaranteed loan downward reestimate subsidy
outlays:
238001Stafford..........................
238002Unsubsidized Stafford.............
238003PLUS..............................
238004Consolidated......................
238005Downward reestimate subsidy
outlays.........................
--------- --------- ----------
238901Total downward reestimate subsidy
outlays.........................
----------------------------------------------------------------------------
Administrative expense data:
351001Budget authority..................
359001Outlays...........................
---------------------------------------------------------------------------
Federal Family Education Loan Program, Financing Account
Note.--The financing account includes all cash flows to and from the
Government from guaranteed student loans committed after 1991.
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-4251-0-3-502 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
Obligations by program activity:
Stafford loans:
01.01 Interest benefits............... 2,130 1,061 1,275
01.02 Special allowance............... 97 344 1,089
01.03 Default claims.................. 1,363 1,525 1,691
01.04 Death, disability, and
bankruptcy claims............. 144 148 160
01.05 Teacher loan forgiveness, other
write-offs.................... 3 3
01.07 Contract collection costs....... 11 36 41
01.08 Loan Processing Fee............. 120 107 70
01.09 Vol Flex Agree Perf. Fee........ 50
--------- --------- ----------
01.91 Subtotal, Stafford loans...... 3,915 3,224 4,329
Unsubsidized Stafford loans:
02.02 Special allowance............... 66 272 911
02.03 Default claims.................. 752 894 1,104
02.04 Death, disability, and
bankruptcy claims............. 88 89 103
02.05 Teacher loan forgiveness, other
write-offs.................... 3 3
02.07 Contract collection costs....... 4 8 11
02.08 Loan Processing Fee............. 66 101 68
02.09 Vol Flex Agree Perf. Fee........ 25
--------- --------- ----------
02.91 Subtotal, Unsubsidized
Stafford loans.............. 1,001 1,367 2,200
PLUS loans:
03.02 Special allowance............... 4 33 33
03.03 Default claims.................. 94 201 225
03.04 Death, disability, and
bankruptcy claims............. 53 77 88
03.07 Contract Collection Costs....... 1 1 1
03.08 Loan Processing Fee............. 8 26 18
03.09 Vol Flex Agree Perf. Fee........ 8
--------- --------- ----------
03.91 Subtotal, PLUS loans.......... 168 338 365
SLS loans:
04.02 Special allowance............... 1
04.03 Default claims.................. 66 15 6
04.04 Death, disability and bankruptcy
claims........................ 10 6 5
04.07 Contract collection costs....... 1 6 7
04.08 Vol Flex Agree Perf. Fee........ 2
--------- --------- ----------
04.91 Subtotal, SLS loans........... 79 28 18
Consolidation loans:
05.02 Special allowance............... 34 40 509
05.03 Default claims.................. 522 1,410 1,779
05.04 Death, disability, and
bankruptcy claims............. 126 237 303
05.07 Contract collection costs....... 2 9 12
05.08 Vol Flex Agree Perf. Fee........ 50
--------- --------- ----------
05.91 Subtotal, Consolidations loans 734 1,696 2,603
08.02 Payment of downward reestimate to
Program accnt................... 2,206
08.04 Interest on downward reestimate... 774
--------- --------- ----------
08.91 Downward Reestimate- Subtotal (1
level)........................ 2,980
--------- --------- ----------
10.00 Total new obligations........... 5,897 9,633 9,515
----------------------------------------------------------------------------
Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 5,092 7,305 7,964
22.00 New financing authority (gross)... 8,110 10,292 10,742
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 13,202 17,597 18,706
23.95 Total new obligations............. -5,897 -9,633 -9,515
24.40 Unobligated balance carried
forward, end of year............ 7,305 7,964 9,191
----------------------------------------------------------------------------
New financing authority (gross), detail:
Mandatory:
69.00 Offsetting collections (cash)... 8,110 10,292 10,742
----------------------------------------------------------------------------
Change in obligated balances:
72.40 Obligated balance, start of year.. 1,252 1,382 2,257
73.10 Total new obligations............. 5,897 9,633 9,515
73.20 Total financing disbursements
(gross)......................... -5,767 -8,758 -9,542
74.40 Obligated balance, end of year.... 1,382 2,257 2,230
87.00 Total financing disbursements
(gross)......................... 5,767 8,758 9,542
----------------------------------------------------------------------------
Offsets:
Against gross financing authority and
financing disbursements:
Offsetting collections (cash)
from:
Federal sources:
Payments from program
account:
88.00 Stafford loans............ -2,054 -2,287 -2,616
88.00 Unsubsidized Stafford..... -632 -740 -740
88.00 PLUS loans................ -120 -135 -128
88.00 Consolidated loans........ -984 -2,596 -2,049
88.25 Interest on uninvested funds.. -416 -556 -636
Non-Federal sources:
Student Loans: Stafford,
Unsubsidized Stafford,
PLUS, SLS & Consolidation:
88.40 Stafford recoveries on
defaults................ -1,304 -1,101 -1,245
88.40 Stafford origination fees. -420 -498 -529
88.40 Stafford Sallie Mae offset
fees.................... -21 -22 -19
88.40 Stafford Other Fees....... -62
88.40 Unsubsidized Stafford
recoveries on defaults.. -488 -397 -508
88.40 Unsubsidized Stafford
origination fees........ -375 -453 -502
88.40 Unsubsidized Stafford
Sallie Mae offset fees.. -13 -16 -15
88.40 Unsubsidized Stafford
Other Fees.............. -24
88.40 PLUS recoveries on
defaults................ -117 -95 -113
88.40 PLUS origination fees..... -101 -119 -132
88.40 PLUS Sallie Mae offset
fees.................... -5 -5 -5
88.40 PLUS Other Fees........... -5
88.40 SLS recoveries on defaults -131 -115 -109
88.40 SLS Sallie Mae offset fees
88.40 SLS Other Fees............ -6
88.40 Consolidation recoveries
on defaults............. -344 -404 -582
88.40 Consolidation origination
fees.................... -91 -85 -65
88.40 Consolidated loan holders
fee..................... -383 -668 -749
88.40 Consolidation Other Fees.. -14
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -8,110 -10,292 -10,742
----------------------------------------------------------------------------
Net financing authority and financing
disbursements:
89.00 Financing authority...............
90.00 Financing disbursements........... -2,343 -1,534 -1,200
---------------------------------------------------------------------------
[[Page 353]]
Status of Guaranteed Loans (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-4251-0-3-502 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
STAFFORD
Position with respect to appropriations act
limitation on commitments:
2111 Limitation on guaranteed loans
made by private lenders.........
2131 Guaranteed loan commitments exempt
from limitation................. 14,305 16,534 17,423
--------- --------- ----------
2150 Total guaranteed loan
commitments................... 14,305 16,534 17,423
2199 Guaranteed amount of guaranteed
loan commitments................ 14,305 16,534 17,423
----------------------------------------------------------------------------
Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 69,103 70,862 72,622
2231 Disbursements of new guaranteed
loans........................... 11,387 14,217 15,128
2251 Repayments and prepayments........ -8,110 -10,779 -11,298
Adjustments:
2261 Terminations for default that
result in loans receivable.... -1,374 -1,527 -1,695
2263 Terminations for default that
result in claim payments...... -144 -148 -160
2264 Other adjustments, net.......... -3 -3
--------- --------- ----------
2290 Outstanding, end of year........ 70,862 72,622 74,594
----------------------------------------------------------------------------
Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 70,862 72,622 74,594
----------------------------------------------------------------------------
Addendum:
Cumulative balance of defaulted guaranteed
loans that result in loans receivable:
2310 Outstanding, start of year...... 2,497 2,668 3,062
2331 Disbursements for guaranteed
loan claims................... 1,374 1,527 1,695
2351 Repayments of loans receivable.. -1,304 -1,101 -1,245
2361 Write-offs of loans receivable.. -27 -32 -37
2364 Other adjustments, net.......... 128
--------- --------- ----------
2390 Outstanding, end of year...... 2,668 3,062 3,475
----------------------------------------------------------------------------
UNSUBSIDIZED STAFFORD
Position with respect to appropriations act
limitation on commitments:
2111 Limitation on guaranteed loans
made by private lenders.........
2131 Guaranteed loan commitments exempt
from limitation................. 13,092 15,584 17,023
--------- --------- ----------
2150 Total guaranteed loan
commitments................... 13,092 15,584 17,023
2199 Guaranteed amount of guaranteed
loan commitments................ 13,092 15,584 17,023
----------------------------------------------------------------------------
Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 41,838 47,090 52,902
2231 Disbursements of new guaranteed
loans........................... 10,162 12,953 14,332
2251 Repayments and prepayments........ -4,064 -6,161 -7,358
Adjustments:
2261 Terminations for default that
result in loans receivable.... -758 -888 -1,091
2263 Terminations for default that
result in claim payments...... -88 -89 -103
2264 Other adjustments, net.......... -3 -3
--------- --------- ----------
2290 Outstanding, end of year........ 47,090 52,902 58,679
----------------------------------------------------------------------------
Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 47,090 52,902 58,679
----------------------------------------------------------------------------
Addendum:
Cumulative balance of defaulted guaranteed
loans that result in loans receivable:
2310 Outstanding, start of year...... 922 1,264 1,745
2331 Disbursements for guaranteed
loan claims................... 758 888 1,091
2351 Repayments of loans receivable.. -488 -397 -508
2361 Write-offs of loans receivable.. -7 -10 -13
2364 Other adjustments, net.......... 79
--------- --------- ----------
2390 Outstanding, end of year...... 1,264 1,745 2,315
----------------------------------------------------------------------------
PLUS
Position with respect to appropriations act
limitation on commitments:
2111 Limitation on guaranteed loans
made by private lenders.........
2131 Guaranteed loan commitments exempt
from limitation................. 3,470 4,004 4,451
--------- --------- ----------
2150 Total guaranteed loan
commitments................... 3,470 4,004 4,451
2199 Guaranteed amount of guaranteed
loan commitments................ 3,470 4,004 4,451
----------------------------------------------------------------------------
Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 9,625 10,529 11,663
2231 Disbursements of new guaranteed
loans........................... 2,618 3,400 3,785
2251 Repayments and prepayments........ -1,493 -2,001 -2,180
Adjustments:
2261 Terminations for default that
result in loans receivable.... -95 -188 -225
2263 Terminations for default that
result in claim payments...... -126 -77 -88
--------- --------- ----------
2290 Outstanding, end of year........ 10,529 11,663 12,955
----------------------------------------------------------------------------
Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 10,529 11,663 12,955
----------------------------------------------------------------------------
Addendum:
Cumulative balance of defaulted guaranteed
loans that result in loans receivable:
2310 Outstanding, start of year...... 189 208 291
2331 Disbursements for guaranteed
loan claims................... 95 188 225
2351 Repayments of loans receivable.. -117 -95 -113
2361 Write-offs of loans receivable.. -6 -10 -13
2364 Other adjustments, net.......... 47
--------- --------- ----------
2390 Outstanding, end of year...... 208 291 390
----------------------------------------------------------------------------
SLS
Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 1,856 1,276 869
2251 Repayments and prepayments........ -504 -378 -283
Adjustments:
2261 Terminations for default that
result in loans receivable.... -66 -23 -8
2263 Terminations for default that
result in claim payments...... -10 -6 -5
--------- --------- ----------
2290 Outstanding, end of year........ 1,276 869 573
----------------------------------------------------------------------------
Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 1,276 869 573
----------------------------------------------------------------------------
Addendum:
Cumulative balance of defaulted guaranteed
loans that result in loans receivable:
2310 Outstanding, start of year...... 614 554 459
2331 Disbursements for guaranteed
loan claims................... 66 23 8
2351 Repayments of loans receivable.. -131 -115 -109
2361 Write-offs of loans receivable.. -4 -3 -3
2364 Other adjustments, net.......... 9
--------- --------- ----------
2390 Outstanding, end of year...... 554 459 355
----------------------------------------------------------------------------
CONSOLIDATED
Position with respect to appropriations act
limitation on commitments:
2111 Limitation on guaranteed loans
made by private lenders.........
2131 Guaranteed loan commitments exempt
from limitation................. 17,235 17,205 13,167
--------- --------- ----------
2150 Total guaranteed loan
commitments................... 17,235 17,205 13,167
2199 Guaranteed amount of guaranteed
loan commitments................ 17,235 17,205 13,167
----------------------------------------------------------------------------
Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 32,383 49,434 60,712
2231 Disbursements of new guaranteed
loans........................... 20,106 17,013 13,003
2251 Repayments and prepayments........ -2,476 -4,199 -5,372
Adjustments:
2261 Terminations for default that
result in loans receivable.... -526 -1,299 -1,753
2263 Terminations for default that
result in claim payments...... -53 -237 -303
--------- --------- ----------
2290 Outstanding, end of year........ 49,434 60,712 66,287
----------------------------------------------------------------------------
Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 49,434 60,712 66,287
----------------------------------------------------------------------------
Addendum:
Cumulative balance of defaulted guaranteed
loans that result in loans receivable:
2310 Outstanding, start of year...... 1,116 1,404 2,285
2331 Disbursements for guaranteed
loan claims................... 526 1,299 1,753
[[Page 354]]
2351 Repayments of loans receivable.. -344 -404 -582
2361 Write-offs of loans receivable.. -8 -14 -22
2364 Other adjustments, net.......... 114
--------- --------- ----------
2390 Outstanding, end of year...... 1,404 2,285 3,434
---------------------------------------------------------------------------
Balance Sheet (in millions of dollars)
-----------------------------------------------------------------------------------------------
Identification code 91-4251-0-3-502 2001 actual 2002 actual 2003 est. 2004 est.
-----------------------------------------------------------------------------------------------
ASSETS:
1101 Federal assets: Fund balances with
Treasury........................ 6,531 8,687 7,964 9,191
Net value of assets related to
post-1991 acquired defaulted
guaranteed loans receivable:
1501 Defaulted guaranteed loans
receivable, gross............. 5,339 6,098 7,841 9,969
1502 Interest receivable............. 1,287 1,732 1,871 2,020
1505 Allowance for subsidy cost (-).. 1,830 -2,580 -3,147 -3,839
------------ -------------- ------------ -------------
1599 Net present value of assets
related to defaulted
guaranteed loans............ 8,456 5,250 6,565 8,150
1901 Other Federal assets: Other assets 336 339
------------ -------------- ------------ -------------
1999 Total assets.................... 15,323 14,276 14,529 17,341
LIABILITIES:
2101 Federal liabilities: Accounts
payable......................... 2,827 2,706 3,537 6,899
2204 Non-Federal liabilities:
Liabilities for loan guarantees. 12,496 11,570 10,992 10,442
------------ -------------- ------------ -------------
2999 Total liabilities............... 15,323 14,276 14,529 17,341
------------ -------------- ------------ -------------
4999 Total liabilities and net position 15,323 14,276 14,529 17,341
-----------------------------------------------------------------------------------------------
As required by the Federal Credit Reform Act of 1990, this
nonbudgetary account records all cash flows to and from the Government
resulting from Federal Family Education Loans (FFEL), formerly
guaranteed student loans (GSL), committed in 1992 and beyond. The
amounts in this account are a means of financing and are not included in
the budget totals.
Federal Family Education Loan Program Financing Account
(Legislative proposal, subject to PAYGO)
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-4251-4-3-502 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
Obligations by program activity:
Stafford loans:
01.05 Teacher loan forgiveness, other
write-offs.................... 1
--------- --------- ----------
10.00 Total new obligations........... 1
----------------------------------------------------------------------------
Budgetary resources available for obligation:
22.00 New financing authority (gross)... 123
23.95 Total new obligations............. -1
24.40 Unobligated balance carried
forward, end of year............ 122
----------------------------------------------------------------------------
New financing authority (gross), detail:
Mandatory:
69.00 Offsetting collections (cash)... 128
69.27 Capital transfer to general fund -5
--------- --------- ----------
69.90 Spending authority from
offsetting collections
(total mandatory)........... 123
----------------------------------------------------------------------------
Change in obligated balances:
73.10 Total new obligations............. 1
73.20 Total financing disbursements
(gross)......................... -1
87.00 Total financing disbursements
(gross)......................... 1
----------------------------------------------------------------------------
Offsets:
Against gross financing authority and
financing disbursements:
Offsetting collections (cash)
from:
Payments from program account:
Federal sources:
88.00 Stafford loans............ -11
88.00 Unsubsidized Stafford..... -11
88.00 Modification.............. -103
88.25 Interest on uninvested funds.. -3
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -128
----------------------------------------------------------------------------
Net financing authority and financing
disbursements:
89.00 Financing authority............... -5
90.00 Financing disbursements........... -127
---------------------------------------------------------------------------
Balance Sheet (in millions of dollars)
-----------------------------------------------------------------------------------------------
Identification code 91-4251-4-3-502 2001 actual 2002 actual 2003 est. 2004 est.
-----------------------------------------------------------------------------------------------
ASSETS:
1101 Federal assets: Fund balances with
Treasury........................ 122
Net value of assets related to
post-1991 acquired defaulted
guaranteed loans receivable:
1501 Defaulted guaranteed loans
receivable, gross.............
1502 Interest receivable.............
1505 Allowance for subsidy cost (-)..
------------ -------------- ------------ -------------
1599 Net present value of assets
related to defaulted
guaranteed loans............
1901 Other Federal assets: Other assets
------------ -------------- ------------ -------------
1999 Total assets.................... 122
Liabilities:
2101 Federal liabilities: Accounts
payable......................... 122
2204 Non-Federal liabilities:
Liabilities for loan guarantees.
------------ -------------- ------------ -------------
2999 Total liabilities............... 122
------------ -------------- ------------ -------------
4999 Total liabilities and net position 122
-----------------------------------------------------------------------------------------------
Federal Family Education Loan Liquidating Account
Note.--The following tables display the liquidating account, which
includes all cash flows to and from the Government from guaranteed
student loan commitments prior to 1992.
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0230-0-1-502 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
Obligations by program activity:
Stafford loans:
01.01 Interest benefits, net of
origination fees.............. 41 1
01.02 Special allowance net of
origination fees.............. 16 12 6
01.03 Default claims.................. 14 21 4
01.04 Death, disability, and
bankruptcy claims............. 18 22 14
01.07 Contract collection costs....... 70 48 37
--------- --------- ----------
01.91 Subtotal, Stafford loans...... 159 104 61
PLUS/SLS loans:
02.01 Default claims.................. 63 3 1
02.02 Death, disability, and
bankruptcy claims............. 7 9 5
02.05 Contract collection costs....... 13 9 7
02.06 Interest benefits, net of
origination fees.............. 3
--------- --------- ----------
02.91 Subtotal, PLUS/SLS loans...... 86 21 13
--------- --------- ----------
10.00 Total new obligations........... 245 125 74
----------------------------------------------------------------------------
Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 146 1,033
22.00 New budget authority (gross)...... 1,277 125 74
22.40 Capital transfer to general fund.. -146 -1,033
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 1,277 125 74
23.95 Total new obligations............. -245 -125 -74
24.40 Unobligated balance carried
forward, end of year............ 1,033
----------------------------------------------------------------------------
New budget authority (gross), detail:
Mandatory:
69.00 Offsetting collections (cash)... 1,805 798 623
69.27 Capital transfer to general fund -528 -673 -549
--------- --------- ----------
[[Page 355]]
69.90 Spending authority from
offsetting collections
(total mandatory)........... 1,277 125 74
----------------------------------------------------------------------------
Change in obligated balances:
72.40 Obligated balance, start of year.. 65 -2
73.10 Total new obligations............. 245 125 74
73.20 Total outlays (gross)............. -312 -123 -74
74.40 Obligated balance, end of year.... -2
----------------------------------------------------------------------------
Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 247 125 74
86.98 Outlays from mandatory balances... 65 -2
--------- --------- ----------
87.00 Total outlays (gross)........... 312 123 74
----------------------------------------------------------------------------
Offsets:
Against gross budget authority and outlays:
Offsetting collections (cash)
from:
Federal student loans:
Non-Federal sources:
88.40 Fed collections on
defaulted loans,
Stafford................ -568 -303 -231
88.40 Federal collections on
bankruptcies, Stafford.. -5 -5 -3
88.40 Offsets against Federal
tax refunds,Stafford.... -429 -206 -172
88.40 Reimbursements from
guaranty agencies,
Stafford................ -465 -131 -101
88.40 Other Collections/Fees,
Stafford................ -53
88.40 Sallie Mae Offset Fee..... -2
88.40 Federal collections on
defaulted loans, PLUS/
SLS..................... -133 -60 -45
88.40 Federal collections on
bankruptcies, PLUS/SLS.. -1 -2 -1
88.40 Offsets against Federal
tax refunds, PLUS/SLS... -32 -55 -42
PLUS/SLS loans:
88.40
Reimbursements from guaranty agencies,
PLUS/SLS............................ -117 -36 -28
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -1,805 -798 -623
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. -528 -673 -549
90.00 Outlays........................... -1,494 -675 -549
---------------------------------------------------------------------------
Status of Guaranteed Loans (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0230-0-1-502 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
STAFFORD LOANS
Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 3,612 2,052 1,028
2251 Repayments and prepayments........ -1,512 -973 -573
Adjustments:
2261 Terminations for default that
result in loans receivable.... -27 -20 -6
2263 Terminations for default that
result in claim payments...... -21 -31 -19
--------- --------- ----------
2290 Outstanding, end of year........ 2,052 1,028 430
----------------------------------------------------------------------------
Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 2,052 1,028 430
----------------------------------------------------------------------------
Addendum:
Cumulative balance of defaulted guaranteed
loans that result in loans receivable:
2310 Outstanding, start of year...... 12,095 10,887 10,155
2331 Disbursements for guaranteed
loan claims................... 27 21 7
2351 Repayments of loans receivable.. -1,470 -339 -261
2361 Write-offs of loans receivable.. -432 -389 -363
2364 Other adjustments, net.......... 667 -25 -16
--------- --------- ----------
2390 Outstanding, end of year...... 10,887 10,155 9,522
----------------------------------------------------------------------------
PLUS/SLS LOANS
Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 881 672 547
2251 Repayments and prepayments........ -82 -104 -104
Adjustments:
2261 Terminations for default that
result in loans receivable.... -121 -13 -1
2263 Terminations for default that
result in claim payments...... -6 -8 -5
--------- --------- ----------
2290 Outstanding, end of year........ 672 547 437
----------------------------------------------------------------------------
Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 672 547 437
----------------------------------------------------------------------------
Addendum:
Cumulative balance of defaulted guaranteed
loans that result in loans receivable:
2310 Outstanding, start of year...... 2,026 2,041 1,953
2331 Disbursements for guaranteed
loan claims................... 121 12 1
2351 Repayments of loans receivable.. -282 -66 -49
2361 Write-offs of loans receivable.. -29 -29 -28
2364 Other adjustments, net.......... 205 -5 -3
--------- --------- ----------
2390 Outstanding, end of year...... 2,041 1,953 1,874
---------------------------------------------------------------------------
Statement of Operations (in millions of dollars)
-----------------------------------------------------------------------------------------------
Identification code 91-0230-0-1-502 2001 actual 2002 actual 2003 est. 2004 est.
-----------------------------------------------------------------------------------------------
Stafford:
0111 Revenue........................... 868 1,467 645 507
0112 Expense........................... -296 -159 -104 -61
------------ -------------- ------------ -------------
0115 Net income or loss (-)............ 572 1,308 541 446
PLUS/SLS:
0121 Revenue........................... 156 282 153 116
0122 Expense........................... -45 -86 -21 -13
------------ -------------- ------------ -------------
0125 Net income or loss (-)............ 111 196 132 103
------------ -------------- ------------ -------------
0191 Total revenues.................... 1,024 1,749 798 623
------------ -------------- ------------ -------------
0192 Total expenses.................... -341 -245 -125 -74
------------ -------------- ------------ -------------
0195 Total income or loss (-).......... 683 1,504 673 549
------------ -------------- ------------ -------------
0199 Total comprehensive income........ 683 1,504 673 549
-----------------------------------------------------------------------------------------------
Balance Sheet (in millions of dollars)
-----------------------------------------------------------------------------------------------
Identification code 91-0230-0-1-502 2001 actual 2002 actual 2003 est. 2004 est.
-----------------------------------------------------------------------------------------------
ASSETS:
1101 Federal assets: Fund balances with
Treasury........................ 191 1,031 928 835
Net value of assets related to
pre-1992 direct loans
receivable and acquired
defaulted guaranteed loans
receivable:
1701 Defaulted guaranteed loans,
gross......................... 14,160 12,928 12,108 11,396
1702 Interest receivable............. 1,740 1,284 948 700
1703 Allowance for estimated
uncollectible loans and
interest (-).................. -14,533 -13,175 -11,944 -10,828
------------ -------------- ------------ -------------
1704 Defaulted guaranteed loans and
interest receivable, net.... 1,367 1,037 1,112 1,268
------------ -------------- ------------ -------------
1799 Value of assets related to
loan guarantees............. 1,367 1,037 1,112 1,268
1901 Other Federal assets: Other assets 62 62 62 62
------------ -------------- ------------ -------------
1999 Total assets.................... 1,620 2,130 2,102 2,165
LIABILITIES:
2104 Federal liabilities: Resources
payable to Treasury............. 2,007
Non-Federal liabilities:
2201 Accounts payable................ 8 14 23 38
2204 Liabilities for loan guarantees. 1,612 109 2,079 2,127
------------ -------------- ------------ -------------
2999 Total liabilities............... 1,620 2,130 2,102 2,165
------------ -------------- ------------ -------------
4999 Total liabilities and net position 1,620 2,130 2,102 2,165
-----------------------------------------------------------------------------------------------
\1\ Excludes interest and premium collections on insured loans.
As required by the Federal Credit Reform Act of 1990, this
liquidating account records, for this program, all cash flows to and
from the Government resulting from guaranteed student loans committed
prior to 1992. This account is shown on a cash basis. All new loan
activity in this program for 1992 and beyond is recorded in
corresponding program and financing accounts.
[[Page 356]]
Object Classification (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0230-0-1-502 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
25.2 Other services.................... 83 57 44
33.0 Investments and loans............. 77 24 5
41.0 Grants, subsidies, and
contributions................... 60 13 6
42.0 Insurance claims and indemnities.. 25 31 19
--------- --------- ----------
99.9 Total new obligations........... 245 125 74
---------------------------------------------------------------------------
INSTITUTE OF EDUCATION SCIENCES
Federal Funds
General and special funds:
Institute of Education Sciences
For carrying out activities authorized by Public Law 107-279,
$375,915,000, of which $185,000,000 shall remain available for
obligation through September 30, 2005.
Note.--A regular 2003 appropriation for this account had not been
enacted at the time the budget was prepared; therefore, this account is
operating under a continuing resolution (P.L. 107-229, as amended). The
amounts included for 2003 in this budget reflect the Administration's
2003 policy proposals.
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-1100-0-1-503 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
Direct program:
Obligations by program activity:
Research and statistics:
00.01 Research, development, and
dissemination............... 122 175 185
00.02 Statistics.................... 85 95 95
00.03 Regional educational
laboratories.................. 67 68
00.04 Assessment...................... 111 95 96
00.06 Fund for the Improvement of
Education..................... 1
00.07 Technical assistance providers.. 44
00.08 Eisenhower National
Clearinghouse for Mathematics
and Science Education......... 5
--------- --------- ----------
01.00 Total direct program.............. 435 433 376
09.01 Reimbursable program.............. 6 6 6
--------- --------- ----------
10.00 Total new obligations............. 441 439 382
----------------------------------------------------------------------------
Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 1
22.00 New budget authority (gross)...... 441 439 382
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 442 439 382
23.95 Total new obligations............. -441 -439 -382
----------------------------------------------------------------------------
New budget authority (gross), detail:
Discretionary:
40.00 Appropriation................... 444 433 376
41.00 Transferred to other accounts... -9
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 435 433 376
Spending authority from offsetting
collections:
68.00 Offsetting collections (cash)... 12 6
68.10 Change in uncollected customer
payments from Federal sources
(unexpired)................... 6 -6
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total discretionary)....... 6 6 6
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 441 439 382
----------------------------------------------------------------------------
Change in obligated balances:
72.40 Obligated balance, start of year.. 876 683 429
73.10 Total new obligations............. 441 439 382
73.20 Total outlays (gross)............. -625 -699 -439
73.40 Adjustments in expired accounts
(net)........................... -3
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... -6 6
74.40 Obligated balance, end of year.... 683 429 372
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 132 113 98
86.93 Outlays from discretionary
balances........................ 493 586 341
--------- --------- ----------
87.00 Total outlays (gross)........... 625 699 439
----------------------------------------------------------------------------
Offsets:
Against gross budget authority and outlays:
88.00 Offsetting collections (cash)
from: Federal sources......... -12 -6
Against gross budget authority only:
88.95 Change in uncollected customer
payments from Federal sources
(unexpired)................... -6 6
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 435 433 376
90.00 Outlays........................... 625 687 433
---------------------------------------------------------------------------
Research and Statistics.--
Research, development, and dissemination.--Funds support the
National Center for Education Research, which oversees a diverse
portfolio of directed research, field-initiated studies, research
and development centers, and interagency initiatives. Funds also
support dissemination activities that provide parents, teachers, and
schools with valid information on effective educational practice.
Statistics.--Funds support the Department's statistical data
collection activities, which are conducted by the National Center
for Education Statistics (NCES). NCES collects, analyzes, and
disseminates statistics on education at all levels, from preschool
through postsecondary and adult education, including statistics on
international education activities.
Assessment.--Funds support the National Assessment of Educational
Progress (NAEP). NAEP administers assessments to samples of students in
order to gather reliable information about educational attainment in
important academic areas. Funds support collection and reporting of
national, State, and long-term trend information, including the conduct
of biennial State NAEP in reading and mathematics at grades 4 and 8.
Object Classification (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-1100-0-1-503 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
Direct obligations:
Personnel compensation:
11.1 Full-time permanent........... 1 1 1
11.3 Other than full-time permanent 1 1 1
--------- --------- ----------
11.9 Total personnel compensation 2 2 2
24.0 Printing and reproduction....... 1 1 1
25.1 Advisory and assistance services 1 3 3
25.2 Other services.................. 95 93 93
25.3 Other purchases of goods and
services from Government
accounts...................... 19 17 17
25.5 Research and development
contracts..................... 121 105 39
25.7 Operation and maintenance of
equipment..................... 2 2 2
41.0 Grants, subsidies, and
contributions................. 193 209 218
--------- --------- ----------
99.0 Direct obligations............ 434 432 375
99.0 Reimbursable obligations.......... 6 6 6
99.5 Below reporting threshold......... 1 1 1
--------- --------- ----------
99.9 Total new obligations........... 441 439 382
---------------------------------------------------------------------------
Personnel Summary
----------------------------------------------------------------------------
Identification code 91-1100-0-1-503 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
Total compensable workyears:
1001 Civilian full-time equivalent
employment...................... 14 15 15
---------------------------------------------------------------------------
[[Page 357]]
DEPARTMENTAL MANAGEMENT
Federal Funds
General and special funds:
Program Administration
For carrying out, to the extent not otherwise provided, the
Department of Education Organization Act, including rental of conference
rooms in the District of Columbia and hire of three passenger motor
vehicles, $434,494,000, of which $13,644,000, to remain available until
expended, shall be for building alterations and related expenses for the
relocation of Department staff to Potomac Center Plaza in Washington,
D.C.
Note.--A regular 2003 appropriation for this account had not been
enacted at the time the budget was prepared; therefore, this account is
operating under a continuing resolution (P.L. 107-229), as amended). The
amounts included for 2003 in this budget reflect the Administration's
2003 policy proposals.
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0800-0-1-503 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Program administration............ 421 412 434
09.01 Reimbursable program.............. 1 1 1
--------- --------- ----------
10.00 Total new obligations........... 423 413 435
----------------------------------------------------------------------------
Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 423 413 435
23.95 Total new obligations............. -423 -413 -435
23.98 Unobligated balance expiring or
withdrawn....................... -2
----------------------------------------------------------------------------
New budget authority (gross), detail:
Discretionary:
40.00 Appropriation................... 424 412 434
40.71 Reduction pursuant to P.L. 107-
116........................... -1
40.73 Reduction pursuant to P.L. 107-
206........................... -5
42.00 Transferred from other accounts. 4
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 423 412 434
Spending authority from offsetting
collections:
68.00 Offsetting collections (cash)... 1 1
68.10 Change in uncollected customer
payments from Federal sources
(unexpired)................... 1
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total discretionary)....... 1 1 1
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 424 413 435
----------------------------------------------------------------------------
Change in obligated balances:
72.40 Obligated balance, start of year.. 133 122 116
73.10 Total new obligations............. 423 413 435
73.20 Total outlays (gross)............. -417 -419 -416
73.40 Adjustments in expired accounts
(net)........................... -16
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... -1
74.10 Change in uncollected customer
payments from Federal sources
(expired)....................... 2
74.40 Obligated balance, end of year.... 122 116 135
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 324 315 329
86.93 Outlays from discretionary
balances........................ 93 104 87
--------- --------- ----------
87.00 Total outlays (gross)........... 417 419 416
----------------------------------------------------------------------------
Offsets:
Against gross budget authority and outlays:
88.00 Offsetting collections (cash)
from: Federal sources......... -3 -1 -1
Against gross budget authority only:
88.95 Change in uncollected customer
payments from Federal sources
(unexpired)................... -1
88.96 Portion of offsetting
collections (cash) credited to
expired accounts.............. 2
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 422 412 434
90.00 Outlays........................... 415 418 415
----------------------------------------------------------------------------
Additional net budget authority and outlays to cover cost of fully accruing
retirement:
99.00 Budget authority.................. 11 11 11
99.01 Outlays........................... 11 11 11
---------------------------------------------------------------------------
The Program Administration account includes the direct Federal costs
of providing grants and administering elementary and secondary
education, Indian education, English language acquisition, higher
education, technical and adult education, and special education
programs, and programs for persons with disabilities. It also supports
assessment, statistics, and research activities.
In addition, this account includes the cost of providing centralized
support and administrative services, overall policy development, and
strategic planning for the Department. Included in the centralized
activities are rent and mail services; telecommunications; contractual
services; financial management and accounting, including payments to
schools, education agencies and other grant recipients, and preparation
of auditable financial statements; information technology services;
personnel management; personnel security; budget formulation and
execution; program evaluation; legal services; congressional and public
relations; and intergovernmental affairs.
Included in this account is the Department of Education's costs to
relocate Department staff to Potomac Center Plaza, including costs for
building alterations, furniture, information technology equipment and
services, and telecommunications, to remain available until expended.
This account also provided funds for the renovation of the Department's
main headquarters building which was completed in 1998.
Also included in this account are contributions from the public.
Activities supported include Presidential Scholars, Satellite Town
Meetings, School Recognition, and the Gifts and Bequests Miscellaneous
Fund.
Reimbursable program.--Reimbursements to this account are for
providing administrative services to other agencies, recycling
activities, and in-kind travel.
Note.--Excludes $54 million in budget authority in 2003 and $68
million in 2004 for activities proposed to be transferred to the Student
Aid Administration account. The comparable amount for 2002 ($57 million)
is included above.
Object Classification (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0800-0-1-503 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
Direct obligations:
Personnel compensation:
11.1 Full-time permanent........... 173 188 194
11.3 Other than full-time permanent 25 10 10
11.5 Other personnel compensation.. 5 4 4
--------- --------- ----------
11.9 Total personnel compensation 203 202 208
12.1 Civilian personnel benefits..... 43 42 44
21.0 Travel and transportation of
persons....................... 6 5 5
23.1 Rental payments to GSA.......... 30 32 34
23.3 Communications, utilities, and
miscellaneous charges......... 12 11 11
24.0 Printing and reproduction....... 5 4 3
25.1 Advisory and assistance services 3 5 5
25.2 Other services.................. 24 22 23
25.3 Other purchases of goods and
services from Government
accounts...................... 15 11 12
25.7 Operation and maintenance of
equipment..................... 63 58 72
26.0 Supplies and materials.......... 2 2 2
31.0 Equipment....................... 14 15 10
32.0 Land and structures............. 1 3 3
--------- --------- ----------
99.0 Direct obligations............ 421 412 432
99.0 Reimbursable obligations.......... 1 1 1
99.5 Below reporting threshold......... 1 2
--------- --------- ----------
99.9 Total new obligations........... 423 413 435
---------------------------------------------------------------------------
Personnel Summary
----------------------------------------------------------------------------
Identification code 91-0800-0-1-503 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
Total compensable workyears:
1001 Civilian full-time equivalent
employment...................... 2,589 2,464 2,464
---------------------------------------------------------------------------
[[Page 358]]
Office for Civil Rights
For expenses necessary for the Office for Civil Rights, as
authorized by section 203 of the Department of Education Organization
Act, $91,275,000.
Note.--A regular 2003 appropriation for this account had not been
enacted at the time the budget was prepared; therefore, this account is
operating under a continuing resolution (P.L. 107-229, as amended). The
amounts included for 2003 in this budget reflect the Administration's
2003 policy proposals.
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0700-0-1-751 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Civil rights...................... 79 86 91
--------- --------- ----------
10.00 Total new obligations........... 79 86 91
----------------------------------------------------------------------------
Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 80 86 91
23.95 Total new obligations............. -79 -86 -91
23.98 Unobligated balance expiring or
withdrawn....................... -1
----------------------------------------------------------------------------
New budget authority (gross), detail:
Discretionary:
40.00 Appropriation................... 80 86 91
----------------------------------------------------------------------------
Change in obligated balances:
72.40 Obligated balance, start of year.. 17 15 21
73.10 Total new obligations............. 79 86 91
73.20 Total outlays (gross)............. -79 -81 -90
73.40 Adjustments in expired accounts
(net)........................... -2
74.40 Obligated balance, end of year.... 15 21 23
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 69 71 75
86.93 Outlays from discretionary
balances........................ 10 10 15
--------- --------- ----------
87.00 Total outlays (gross)........... 79 81 90
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 80 86 91
90.00 Outlays........................... 79 81 90
----------------------------------------------------------------------------
Additional net budget authority and outlays to cover cost of fully accruing
retirement:
99.00 Budget authority.................. 3 3 3
99.01 Outlays........................... 3 3 3
---------------------------------------------------------------------------
The Office for Civil Rights is responsible for ensuring that no
person is unlawfully discriminated against on the basis of race, color,
national origin, sex, disability, or age in the delivery of services or
the provision of benefits in programs or activities of schools and
institutions receiving financial assistance from the Department of
Education. The authorities under which the Office for Civil Rights
operates are Title VI of the Civil Rights Act of 1964 (racial and ethnic
discrimination), Title IX of the Education Amendments of 1972 (sex
discrimination), section 504 of the Rehabilitation Act of 1973
(discrimination against individuals with a disability), the Age
Discrimination Act of 1975, and the Americans with Disabilities Act of
1990.
Object Classification (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0700-0-1-751 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
Direct obligations:
Personnel compensation:
11.1 Full-time permanent........... 46 49 50
11.3 Other than full-time permanent 2 2 3
--------- --------- ----------
11.9 Total personnel compensation 48 51 53
12.1 Civilian personnel benefits..... 11 11 11
21.0 Travel and transportation of
persons....................... 1 1 1
23.1 Rental payments to GSA.......... 6 7 7
23.3 Communications, utilities, and
miscellaneous charges......... 2 2 2
25.2 Other services.................. 1 1 2
25.3 Other purchases of goods and
services from Government
accounts...................... 2 1 2
25.7 Operation and maintenance of
equipment..................... 6 8 7
31.0 Equipment....................... 1 2 2
--------- --------- ----------
99.0 Direct obligations............ 78 84 87
99.5 Below reporting threshold......... 1 2 4
--------- --------- ----------
99.9 Total new obligations........... 79 86 91
---------------------------------------------------------------------------
Personnel Summary
----------------------------------------------------------------------------
Identification code 91-0700-0-1-751 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
Total compensable workyears:
1001 Civilian full-time equivalent
employment...................... 698 714 714
---------------------------------------------------------------------------
Office of the Inspector General
For expenses necessary for the Office of the Inspector General, as
authorized by section 212 of the Department of Education Organization
Act, $48,137,000.
Note.--A regular 2003 appropriations for this account had not been
enacted at the time the budget was prepared; therefore, this account is
operating under a continuing resolution (P.L. 107-229, as amended). The
amounts include for 2003 in this budget reflect the Administration's
2003 policy proposals.
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-1400-0-1-751 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Inspector General................. 39 41 48
--------- --------- ----------
10.00 Total new obligations........... 39 41 48
----------------------------------------------------------------------------
Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 39 41 48
23.95 Total new obligations............. -39 -41 -48
----------------------------------------------------------------------------
New budget authority (gross), detail:
Discretionary:
40.00 Appropriation................... 39 41 48
----------------------------------------------------------------------------
Change in obligated balances:
72.40 Obligated balance, start of year.. 9 9 11
73.10 Total new obligations............. 39 41 48
73.20 Total outlays (gross)............. -37 -39 -44
73.40 Adjustments in expired accounts
(net)........................... -1
74.40 Obligated balance, end of year.... 9 11 16
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 31 33 37
86.93 Outlays from discretionary
balances........................ 6 6 7
--------- --------- ----------
87.00 Total outlays (gross)........... 37 39 44
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 39 41 48
90.00 Outlays........................... 37 39 44
----------------------------------------------------------------------------
Additional net budget authority and outlays to cover cost of fully accruing
retirement:
99.00 Budget authority.................. 1 1 1
99.01 Outlays........................... 1 1 1
---------------------------------------------------------------------------
The Inspector General is responsible for the quality, coverage, and
coordination of audit and investigation functions relating to Federal
education activities. The Inspector General has the authority to inquire
into all activities of the Department including those performed under
Federal education contracts, grants, or other agreements. Under the
Chief Financial Officers Act of 1990, the Inspector General is also
responsible for internal reviews of the Department's financial systems
and audits of its financial statements.
Object Classification (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-1400-0-1-751 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
Direct obligations:
Personnel compensation:
11.1 Full-time permanent........... 19 22 22
[[Page 359]]
11.3 Other than full-time permanent 1
11.5 Other personnel compensation.. 1
--------- --------- ----------
11.9 Total personnel compensation 20 22 23
12.1 Civilian personnel benefits..... 5 6 6
21.0 Travel and transportation of
persons....................... 2 2 2
23.1 Rental payments to GSA.......... 3 3 3
23.3 Communications, utilities, and
miscellaneous charges......... 1 1 1
25.1 Advisory and assistance services 2 3 7
25.2 Other services.................. 1 1
25.3 Other purchases of goods and
services from Government
accounts...................... 1 1 1
25.7 Operation and maintenance of
equipment..................... 2 2 3
31.0 Equipment....................... 1 1
--------- --------- ----------
99.0 Direct obligations............ 38 40 48
99.5 Below reporting threshold......... 1 1
--------- --------- ----------
99.9 Total new obligations........... 39 41 48
---------------------------------------------------------------------------
Personnel Summary
----------------------------------------------------------------------------
Identification code 91-1400-0-1-751 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
Total compensable workyears:
1001 Civilian full-time equivalent
employment...................... 276 285 285
---------------------------------------------------------------------------
GENERAL FUND RECEIPT ACCOUNTS
(in millions of dollars)
----------------------------------------------------------------------------
2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
Offsetting receipts from the public:
91-291500 Repayment of loans, capital
contributions, higher education
activities.......................... 39 50 50
--------- --------- ----------
General Fund Offsetting receipts from
the public............................. 39 50 50
---------------------------------------------------------------------------
GENERAL PROVISIONS
Sec. 301. No funds appropriated in this Act may be used for the
transportation of students or teachers (or for the purchase of equipment
for such transportation) in order to overcome racial imbalance in any
school or school system, or for the transportation of students or
teachers (or for the purchase of equipment for such transportation) in
order to carry out a plan of racial desegregation of any school or
school system.
Sec. 302. None of the funds contained in this Act shall be used to
require, directly or indirectly, the transportation of any student to a
school other than the school which is nearest the student's home, except
for a student requiring special education, to the school offering such
special education, in order to comply with title VI of the Civil Rights
Act of 1964. For the purpose of this section an indirect requirement of
transportation of students includes the transportation of students to
carry out a plan involving the reorganization of the grade structure of
schools, the pairing of schools, or the clustering of schools, or any
combination of grade restructuring, pairing or clustering. The
prohibition described in this section does not include the establishment
of magnet schools.
Sec. 303. No funds appropriated under this Act may be used to
prevent the implementation of programs of voluntary prayer and
meditation in the public schools.
(transfer of funds)
Sec. 304. Not to exceed 3 percent of any discretionary funds
(pursuant to the Balanced Budget and Emergency Deficit Control Act of
1985, as amended) which are appropriated for the Department of Education
in this Act may be transferred between appropriations, but no such
appropriation shall be increased by more than 10 percent by any such
transfer: Provided, That the Appropriations Committees of both Houses of
Congress are notified at least 15 days in advance of any transfer.
Sec. 305. (a) Discretionary Funding.--Section 458(a)(1) of the
Higher Education Act of 1965 (2 U.S.C. 1087h(a)(1)), is amended--
(1) in the matter preceding subparagraph (A), by striking
``there shall be available to the Secretary, from funds not
otherwise appropriated, funds to be obligated for--'' and inserting
in lieu thereof, ``there are authorized to be appropriated to carry
out this section such sums as may be necessary, for--'';
(2) in subparagraph (B), by striking the comma at the end
thereof and inserting in lieu thereof a period; and
(3) by striking the flush language at the end thereof.
(b) Effective Date.--The amendments made by subsection (a) shall be
effective for fiscal year 2004 and succeeding fiscal years.
Sec. 306. Section 1202 of the Elementary and Secondary Education Act
of 1965 is amended by inserting the following subsection at the end
thereof:
``(g) Supplement, not Supplant.--State or local educational agency
shall use funds received under this subpart only to supplement the level
of non-Federal funds that, in the absence of funds under this subpart,
would be expended for activities authorized under this subpart, and not
to supplant those non-Federal funds.''.