[Appendix]
[Detailed Budget Estimates by Agency]
[Department of Education]
[From the U.S. Government Printing Office, www.gpo.gov]
THE BUDGET FOR FISCAL YEAR 2005
[[Page 343]]
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, [$14,528,522,000] $15,105,168,000, of which [$6,983,169,000]
$7,522,480,000 shall become available on July 1, [2004] 2005, and shall
remain available through September 30, [2005] 2006, and of which
$7,383,301,000 shall become available on October 1, [2004] 2005, and
shall remain available through September 30, [2005] 2006, for academic
year [2004-2005] 2005-2006: Provided, That [$7,107,283,000]
$7,037,592,000 shall be available for basic grants under section 1124:
Provided further, That up to $3,500,000 of these funds shall be
available to the Secretary of Education on October 1, [2003] 2004, to
obtain annually updated educational-agency-level census poverty data
from the Bureau of the Census: Provided further, That $1,365,031,000
shall be available for concentration grants under section 1124A:
Provided further, That [$1,969,843,000] $4,146,187,000 shall be
available for targeted grants under section 1125: Provided further, That
[$1,969,843,000] $793,499,000 shall be available for education finance
incentive grants under section 1125A: Provided further, That $9,500,000
shall be available to carry out part E of title I: [Provided further,
That $235,000,000 shall be available for comprehensive school reform
grants under part F of the ESEA:] Provided further, That from the
[$8,842,000] funds available to carry out part [E] A of title I, up to
[$1,000,000] $10,000,000 shall be available to the Secretary of
Education to provide technical assistance to state and local educational
agencies concerning part A of title I. (Division E, H.R. 2673,
Consolidated Appropriations Bill, FY 2004.)
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0900-0-1-501 2003 actual 2004 est. 2005 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Grants to local educational
agencies........................ 10,045 14,022 13,342
00.05 Reading first State grants........ 1,280 1,077 1,125
00.06 Early reading first............... 149 94 132
00.07 Striving readers.................. 100
00.08 Even start........................ 247 269
00.09 Literacy through school libraries. 12 20 20
00.10 State agency programs............. 443 453 442
00.11 Comprehensive school reform....... 234 244
00.12 Evaluation........................ 9 9 9
00.13 Close up fellowships.............. 1
00.14 Advanced placement................ 23
00.15 Dropout prevention programs....... 11
00.16 Migrant education projects........ 39 35 35
--------- --------- ----------
10.00 Total new obligations........... 12,493 16,223 15,205
Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 490 2,376
22.00 New budget authority (gross)...... 14,379 13,846 15,205
22.10 Resources available from
recoveries of prior year
obligations..................... 2
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 14,871 16,222 15,205
23.95 Total new obligations............. -12,493 -16,223 -15,205
23.98 Unobligated balance expiring or
withdrawn....................... -2
24.40 Unobligated balance carried
forward, end of year............ 2,376
New budget authority (gross), detail:
Discretionary:
40.00 Appropriation................... 7,070 7,145 7,822
40.35 Appropriation permanently
reduced....................... -79 -82
42.00 Transferred from other accounts. 5
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 6,996 7,063 7,822
55.00 Advance appropriation........... 7,383 6,783 7,383
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 14,379 13,846 15,205
Change in obligated balances:
72.40 Obligated balance, start of year.. 6,082 7,289 9,361
73.10 Total new obligations............. 12,493 16,223 15,205
73.20 Total outlays (gross)............. -11,253 -14,151 -14,344
73.40 Adjustments in expired accounts
(net)........................... -31
73.45 Recoveries of prior year
obligations..................... -2
74.40 Obligated balance, end of year.... 7,289 9,361 10,222
Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 6,067 6,149 6,671
86.93 Outlays from discretionary
balances........................ 5,186 8,002 7,673
--------- --------- ----------
87.00 Total outlays (gross)........... 11,253 14,151 14,344
Net budget authority and outlays:
89.00 Budget authority.................. 14,379 13,846 15,205
90.00 Outlays........................... 11,253 14,151 14,344
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SUMMARY OF PROGRAM LEVEL
(in millions of dollars)
2003-2004
academic
year 2004-2005
academic year 2005-2006
academic year
New Budget Authority................ 6,996 7,063 7,822
Advance appropriation............... 6,783 7,383 7,383
------------------------------------
Total program level........... 13,779 14,446 15,205
====================================
Change in advance appropriation from
the previous year................... -600 +600
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 schools 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 do not 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 or more years of a school not making adequate
progress, students who remain in the school would be permitted to obtain
supplemental educational services from a public- or private-sector
provider. Schools that do not improve would be subject to progressively
stronger corrective actions and, after six years of not making adequate
yearly progress, reconstitution under a restructing plan. A portion of
funds would support technical assistance to help States and local
educational agencies implement effective programs.
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 low-income families, through
scientific, research-based strategies and professional development that
are designed to enhance the verbal skills, phonological awareness,
letter knowl
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edge, pre-reading skills, and early language development of children
ages three through five.
Striving readers.--This new initiative supports the development,
implementation, and evaluation of scientifically based reading
interventions for middle school or high school students reading
significantly below grade level. The program complements the Reading
First program, which improves reading in elementary schools.
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 a series of impact studies designed to
identify effective reading interventions in Title I and studies of the
implementation of key No Child Left Behind requirements including
assessments, accountability systems, school improvement requirements,
public school choice, and supplemental educational services.
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)
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Identification code 91-0900-0-1-501 2003 actual 2004 est. 2005 est.
----------------------------------------------------------------------------
24.0 Printing and reproduction......... 1 1 1
25.1 Advisory and assistance services.. 9 12 11
25.2 Other services.................... 50 65 60
25.3 Other purchases of goods and
services from Government
accounts........................ 4 5 5
41.0 Grants, subsidies, and
contributions................... 12,429 16,140 15,128
--------- --------- ----------
99.9 Total new obligations........... 12,493 16,223 15,205
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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, [$1,236,824,000] $1,229,527,000, of
which [$1,070,000,000] $1,063,687,000 shall be for basic support
payments under section 8003(b), [$50,668,000] $50,369,000 shall be for
payments for children with disabilities under section 8003(d),
[$46,208,000] $45,936,000 shall be for construction under section 8007
and shall remain available through September 30, [2005, $62,000,000]
2006, $61,634,000 shall be for Federal property payments under section
8002, and [$7,948,000] $7,901,000, to remain available until expended,
shall be for facilities maintenance under section 8008[: Provided, That
$1,500,000 of the funds for section 8007 shall be available for the
local educational agencies and in the amounts specified in the statement
of the managers on the conference report accompanying this Act: Provided
further, That, notwithstanding any other provision of law, these funds
shall remain available until expended]. (Division E, H.R. 2673,
Consolidated Appropriations Bill, FY 2004.)
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0102-0-1-501 2003 actual 2004 est. 2005 est.
----------------------------------------------------------------------------
Obligations by program activity:
Payments for federally connected children:
00.01 Basic support payments.......... 1,025 1,064 1,064
00.02 Supplemental payments for
children with disabilities.... 51 50 50
--------- --------- ----------
00.91 Subtotal, payments for federally
connected children............ 1,076 1,114 1,114
01.01 Facilities maintenance............ 7 7 8
02.01 Construction...................... 48 47 46
03.01 Payments for Federal property..... 60 62 62
--------- --------- ----------
10.00 Total new obligations........... 1,191 1,230 1,230
Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 38 35 35
22.00 New budget authority (gross)...... 1,188 1,230 1,230
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 1,226 1,265 1,265
23.95 Total new obligations............. -1,191 -1,230 -1,230
24.40 Unobligated balance carried
forward, end of year............ 35 35 35
New budget authority (gross), detail:
Discretionary:
40.00 Appropriation................... 1,196 1,237 1,230
40.35 Appropriation permanently
reduced....................... -8 -7
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 1,188 1,230 1,230
Change in obligated balances:
72.40 Obligated balance, start of year.. 202 293 176
73.10 Total new obligations............. 1,191 1,230 1,230
73.20 Total outlays (gross)............. -1,097 -1,347 -1,235
73.40 Adjustments in expired accounts
(net)........................... -2
74.40 Obligated balance, end of year.... 293 176 171
Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 1,013 1,078 1,078
86.93 Outlays from discretionary
balances........................ 84 269 157
--------- --------- ----------
87.00 Total outlays (gross)........... 1,097 1,347 1,235
Net budget authority and outlays:
89.00 Budget authority.................. 1,188 1,230 1,230
90.00 Outlays........................... 1,097 1,347 1,235
---------------------------------------------------------------------------
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 1.1 million federally connected students enrolled in about
1,290 local educational agencies to assist them in meeting their
operation and maintenance costs. Average per-student payments will be
approximately $980.
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 870 local educational agencies.
Average per-student payments will be approximately $910.
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
180 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
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mately 25 construction grants will be awarded competitively to local
educational agencies.
Payments for Federal Property.--Payments will be made to
approximately 200 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)
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Identification code 91-0102-0-1-501 2003 actual 2004 est. 2005 est.
----------------------------------------------------------------------------
21.0 Travel and transportation of
persons......................... 1 1
25.3 Other purchases of goods and
services from Government
accounts........................ 1 1
41.0 Grants, subsidies, and
contributions................... 1,191 1,228 1,228
--------- --------- ----------
99.9 Total new obligations........... 1,191 1,230 1,230
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School Improvement Programs
For carrying out school improvement activities authorized by titles
II, part B of title IV, part A [and subparts 6 and 9 of part D] of title
V, parts A and B 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; section 203 of the Educational Technical
Assistance Act of 2002; and the Civil Rights Act of 1964,
[$5,834,208,000] $5,940,493,000, of which [$4,282,199,000]
$4,389,178,000 shall become available on July 1, [2004] 2005, and remain
available through September 30, [2005] 2006, and of which $1,435,000,000
shall become available on October 1, [2004] 2005, and shall remain
available through September 30, [2005] 2006, for academic year [2004-
2005] 2005-2006: Provided, That [funds made available to carry out part
B of title VII of the ESEA may be used for construction, renovation and
modernization of any elementary school, secondary school, or structure
related to an elementary school or secondary school, run by the
Department of Education of the State of Hawaii, that serves a
predominantly Native Hawaiian student body: Provided further, That from
the funds referred to in the preceding proviso, not less than $1,000,000
shall be for a grant to the Department of Education of the State of
Hawaii for the activities described in such proviso: Provided further,
That funds made available to carry out part C of title VII of the ESEA
may be used for construction: Provided further, That $391,600,000]
$410,000,000 shall be for subpart 1 of part A of title VI of the ESEA:
Provided further, That [$27,821,000] $27,654,000 shall be available to
carry out [part D of title V of the ESEA] section 203 of the Educational
Technical Assistance Act of 2002: Provided further, That [no funds
appropriated under this heading may be used to carry out section 5494
under the ESEA] notwithstanding section 2202(a)(2) of the ESEA, the
Secretary shall reserve $120,000,000 of the funds available for part B
of title II of that Act for competitive grants under that section that
are designed to improve the achievement of secondary school students in
mathematics, of which up to $1,000,000 may be used for technical
assistance and evaluation. (Division E, H.R. 2673, Consolidated
Appropriations Bill, FY 2004.)
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-1000-0-1-501 2003 actual 2004 est. 2005 est.
----------------------------------------------------------------------------
Direct program:
Obligations by program activity:
Improving teacher quality:
00.01 Improving teacher quality
State grants................ 2,930 2,674 2,930
00.02 Early childhood educator
professional development.... 15 15 15
00.03 Mathematics and science
partnerships................ 98 152 269
00.04 Educational technology State
grants........................ 683 706 692
00.05 Preparing tomorrow's teachers to
use technology................ 62
00.06 21st Century community learning
centers....................... 993 1,015 999
00.07 State grants for innovative
programs...................... 385 582 297
00.08 Javits gifted and talented
education..................... 11 11
00.09 Foreign language assistance..... 16 17
00.10 Foundations for learning grants. 1
00.11 State assessments............... 397 396 410
00.12 Education for homeless children
and youth..................... 55 60 60
00.13 Education for Native Hawaiians.. 31 33 33
00.14 Alaska Native education equity.. 31 33 33
00.15 Training and advisory services.. 7 7 7
00.16 Rural education................. 167 169 168
00.17 Comprehensive assistance centers 28
00.18 School leadership............... 12
00.19 Advanced credentialling......... 10
00.20 Troops-to-teachers.............. 18 11
00.21 Transition to teaching.......... 42
00.22 National writing project........ 17
00.23 Civic education................. 29
00.24 Teaching of traditional American
history....................... 99
00.25 Education technology national
activities.................... 15
00.26 Ready-to-learn television....... 23
00.27 Charter schools grants.......... 199
00.28 Credit enhancement for charter
school facilities............. 25
00.29 Voluntary public school choice.. 26
00.30 Magnet schools assistance....... 109
00.31 Fund for the Improvement of
Education programs of national
significance.................. 245
00.32 Character education............. 25
00.33 Reading is fundamental/
Inexpensive book distribution. 25
00.34 Elementary and secondary school
counselling................... 32
00.35 Smaller learning communities.... 140 161
00.36 Star schools.................... 27
00.37 Ready to teach.................. 13
00.38 Physical education for progress. 60
00.39 Community technology centers.... 32
00.40 Exchanges with historic whaling
and trading partners.......... 7
00.41 Arts in education............... 34
00.42 Parental information resource
centers....................... 42
00.43 Women's educational equity...... 3
00.44 Comprehensive school reform..... 75 1
Safe and drug-free schools and
communities:
00.45 State grants.................. 469 336
00.46 National programs............. 253 14
--------- --------- ----------
01.00 Total direct program.............. 7,988 6,393 5,941
09.01 Reimbursable program.............. 67
--------- --------- ----------
10.00 Total new obligations............. 8,055 6,393 5,941
Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 249 263
22.00 New budget authority (gross)...... 8,069 6,130 5,940
22.10 Resources available from
recoveries of prior year
obligations..................... 2
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 8,320 6,393 5,940
23.95 Total new obligations............. -8,055 -6,393 -5,941
24.40 Unobligated balance carried
forward, end of year............ 263
New budget authority (gross), detail:
Discretionary:
40.00 Appropriation................... 6,289 4,399 4,505
40.35 Appropriation permanently
reduced....................... -52 -34
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 6,237 4,365 4,505
55.00 Advance appropriation........... 1,765 1,765 1,435
68.10 Spending authority from offsetting
collections: Change in
uncollected customer payments
from Federal sources (unexpired) 67
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 8,069 6,130 5,940
Change in obligated balances:
72.40 Obligated balance, start of year.. 8,142 9,581 7,017
73.10 Total new obligations............. 8,055 6,393 5,941
73.20 Total outlays (gross)............. -6,592 -9,003 -6,611
73.40 Adjustments in expired accounts
(net)........................... -16
73.45 Recoveries of prior year
obligations..................... -2
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... -67
74.10 Change in uncollected customer
payments from Federal sources
(expired)....................... 60 46
74.40 Obligated balance, end of year.... 9,581 7,017 6,347
Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 1,124 1,526 1,301
86.93 Outlays from discretionary
balances........................ 5,468 7,477 5,310
--------- --------- ----------
87.00 Total outlays (gross)........... 6,592 9,003 6,611
Offsets:
Against gross budget authority and outlays:
88.00 Offsetting collections (cash)
from: Federal sources......... -60 -46
Against gross budget authority only:
88.95 Change in uncollected customer
payments from Federal sources
(unexpired)................... -67
88.96 Portion of offsetting
collections (cash) credited to
expired accounts.............. 60 46
Net budget authority and outlays:
89.00 Budget authority.................. 8,002 6,130 5,940
[[Page 346]]
90.00 Outlays........................... 6,532 8,957 6,611
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Note.--Includes $28 million in budget authority in 2005 for
activities previously financed from the Department of Education:
(in millions of dollars)
2003 actual 2004 est. 2005 est.
Institute of Education Sciences,
Institute of Education Sciences..... 58 57
SUMMARY OF PROGRAM LEVEL
(in millions of dollars)
2003-2004
Academic
Year 2004-2005
Academic Year 2005-2006
Academic Year
New Budget Authority................ 6,237 4,365 4,279
Advance Appropriation............... 1,765 1,435 1,435
------------------------------------
Total program level........... 8,002 5,790 5,714
====================================
Change in advance appropriation over
previous year....................... 0 -330 0
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.
Early childhood educator professional development.--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 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.
Rural education.--Funds support formula grants under two programs:
Small, Rural Schools Achievement and Rural and Low-Income Schools
programs. Funds under the Small, Rural Schools Achievement program,
which provides rural local educational agencies with small enrollments
with additional formula funds and flexibility in the use of other
Federal formula funds, are allocated by formula directly from the
Department to eligible local educational agencies. Funds under the Rural
and Low-Income Schools program, which targets rural local educational
agencies that serve concentrations of poor students, are allocated by
formula to States, who in turn allocate funds to eligible local
educational agencies within the States.
Comprehensive centers.--Funds support no fewer than 20 comprehensive
centers, with at least one center in each of the 10 geographic regions,
to provide technical assistance, training, and professional development
in reading, mathematics, science, and technology to States, districts,
and schools.
Object Classification (in millions of dollars)
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Identification code 91-1000-0-1-501 2003 actual 2004 est. 2005 est.
----------------------------------------------------------------------------
Direct obligations:
24.0 Printing and reproduction....... 1
25.1 Advisory and assistance services 15 20 22
25.2 Other services.................. 62 18 18
25.3 Other purchases of goods and
services from Government
accounts...................... 23
25.5 Research and development
contracts..................... 10
25.7 Operation and maintenance of
equipment..................... 1
41.0 Grants, subsidies, and
contributions................. 7,876 6,355 5,901
--------- --------- ----------
99.0 Direct obligations............ 7,988 6,393 5,941
99.0 Reimbursable obligations.......... 67
--------- --------- ----------
99.9 Total new obligations........... 8,055 6,393 5,941
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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, [$121,573,000] $120,856,000. (Division E, H.R. 2673,
Consolidated Appropriations Bill, FY 2004.)
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0101-0-1-501 2003 actual 2004 est. 2005 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Grants to local educational
agencies........................ 97 96 96
00.02 Special programs for Indian
children........................ 19 20 20
00.03 National activities............... 5 5 5
--------- --------- ----------
10.00 Total new obligations........... 121 121 121
Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 121 121 121
23.95 Total new obligations............. -121 -121 -121
New budget authority (gross), detail:
Discretionary:
40.00 Appropriation................... 122 122 121
40.35 Appropriation permanently
reduced....................... -1 -1
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 121 121 121
[[Page 347]]
Change in obligated balances:
72.40 Obligated balance, start of year.. 145 147 142
73.10 Total new obligations............. 121 121 121
73.20 Total outlays (gross)............. -116 -126 -121
73.40 Adjustments in expired accounts
(net)........................... -3
74.40 Obligated balance, end of year.... 147 142 141
Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 3 6 6
86.93 Outlays from discretionary
balances........................ 113 120 115
--------- --------- ----------
87.00 Total outlays (gross)........... 116 126 121
Net budget authority and outlays:
89.00 Budget authority.................. 121 121 121
90.00 Outlays........................... 116 126 121
---------------------------------------------------------------------------
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 2003, the Department made
1,183 formula grants to local educational agencies and tribal schools
serving more than 470,000 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 2003 actual 2004 est. 2005 est.
----------------------------------------------------------------------------
25.2 Other services.................... 4 4 4
41.0 Grants, subsidies, and
contributions................... 117 117 117
--------- --------- ----------
99.9 Total new obligations........... 121 121 121
---------------------------------------------------------------------------
Reading Excellence
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0011-0-1-501 2003 actual 2004 est. 2005 est.
----------------------------------------------------------------------------
Change in obligated balances:
72.40 Obligated balance, start of year.. 447 226 65
73.20 Total outlays (gross)............. -220 -161 -65
74.40 Obligated balance, end of year.... 226 65
Outlays (gross), detail:
86.93 Outlays from discretionary
balances........................ 220 161 65
Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays........................... 220 161 65
---------------------------------------------------------------------------
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.
Education Reform
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0500-0-1-501 2003 actual 2004 est. 2005 est.
----------------------------------------------------------------------------
Change in obligated balances:
72.40 Obligated balance, start of year.. 781 226
73.20 Total outlays (gross)............. -532 -226
73.40 Adjustments in expired accounts
(net)........................... -24
74.40 Obligated balance, end of year.... 226
Outlays (gross), detail:
86.93 Outlays from discretionary
balances........................ 532 226
Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays........................... 532 226
---------------------------------------------------------------------------
Programs in this account have been transferred to the School
Improvement account or discontinued. Amounts in this schedule reflect
balances that are spending out from prior-year appropriations.
Chicago Litigation Settlement
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0220-0-1-501 2003 actual 2004 est. 2005 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
23.95 Total new obligations............. -1
Change in obligated balances:
72.40 Obligated balance, start of year.. 1 1
73.10 Total new obligations............. 1
73.20 Total outlays (gross)............. -1
74.40 Obligated balance, end of year.... 1
Outlays (gross), detail:
86.93 Outlays from discretionary
balances........................ 1
Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays........................... 1
---------------------------------------------------------------------------
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 [parts] part G [and H] of
title I, subpart 5 of part A and parts C and D of title II, and parts B,
C, and D of title V[, and section 1504] of the Elementary and Secondary
Education Act of 1965 (``ESEA''), [$1,106,811,000] $885,181,000:
Provided, That [$74,513,000 for continuing and new grants to demonstrate
effective approaches to comprehensive school reform shall become
available on July 1, 2004, and remain available through September 30,
2005, and shall be allocated and expended in the same manner as the
funds provided under the Fund for the Improvement of Education for this
purpose were allocated and expended in fiscal year 2003: Provided
further, That $18,500,000 shall be available to carry out section
2151(c) of the ESEA, of which not
[[Page 348]]
less than $10,000,000 shall be provided to the National Board for
Professional Teaching Standards, not less than $7,000,000 shall be
provided to the National Council on Teacher Quality, and up to
$1,500,000 may be reserved by the Secretary to conduct an evaluation of
activities authorized by such section] $100,000,000 shall be for subpart
2 of part B of title V: Provided further, That [$430,463,000]
$170,185,000 shall be available to carry out part D of title V of the
ESEA[: Provided further, That $177,271,000 of the funds for subpart 1,
part D of title V of the ESEA shall be available for the projects and in
the amounts specified in the statement of the managers on the conference
report accompanying this Act]. (Division E, H.R. 2673, Consolidated
Appropriations Bill, FY 2004.)
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0204-0-1-501 2003 actual 2004 est. 2005 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Troops-to-teachers................ 15 15
00.02 Transition to teaching............ 45 45
00.03 National writing project.......... 18
00.04 Teaching of traditional American
history......................... 119 119
00.05 School leadership................. 12
00.06 Advanced credentialing............ 18 7
00.07 Charter school grants............. 219 219
00.08 Credit enhancement for charter
school facilities............... 37 100
00.09 Voluntary public school choice.... 27 27
00.10 Magnet schools assistance......... 109 109
00.11 Choice incentive fund............. 50
00.12 Advanced placement................ 24 51
00.13 Dropout prevention program........ 5
00.14 Close Up fellowships.............. 2
00.15 Ready-to-learn television......... 23 23
00.16 FIE programs of national
significance.................... 281 45
00.17 Adjunct Teacher Corps............. 40
00.18 Military Families Initiative...... 10
00.19 Reading is fundamental/Inexpensive
book distribution............... 25 25
00.20 Star schools...................... 20
00.21 Ready to teach.................... 14
00.22 Exchanges with historic whaling
and trading partners............ 8
00.23 Excellence in economic education.. 2
00.24 Arts in education................. 35
00.25 Parental assistance information
centers......................... 42
00.26 Women's educational equity........ 3
--------- --------- ----------
10.00 Total new obligations........... 1,103 885
Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 1,103 885
23.95 Total new obligations............. -1,103 -885
New budget authority (gross), detail:
Discretionary:
40.00 Appropriation................... 1,110 885
40.35 Appropriation permanently
reduced....................... -7
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 1,103 885
Change in obligated balances:
72.40 Obligated balance, start of year.. 1,048
73.10 Total new obligations............. 1,103 885
73.20 Total outlays (gross)............. -55 -761
74.40 Obligated balance, end of year.... 1,048 1,172
Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 55 44
86.93 Outlays from discretionary
balances........................ 717
--------- --------- ----------
87.00 Total outlays (gross)........... 55 761
Net budget authority and outlays:
89.00 Budget authority.................. 1,103 885
90.00 Outlays........................... 55 761
---------------------------------------------------------------------------
Improving teacher quality.--
Troops-to-teachers.--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 of American history.
School choice and flexibility.--
Advanced credentialing.--Funds support the development of an
advanced credential based on the content expertise of master
teachers. Funds also support related activities to encourage and
support teachers seeking advanced certification or advanced
credentials.
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.
Funds above $200 million are used for the Per-Pupil Facilities Aid
program, which provides funds to States to assist charter schools in
obtaining 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 public 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.
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.
Adjunct Teacher Corps.--Funds will support partnerships between
school districts and appropriate public and/or private institutions to
enable well-qualified professionals to teach specific high-school
courses in the core academic subjects, particularly in mathematics and
science. The program would support multiple approaches for utilizing
these highly-trained individuals, such as part-time or substitute
teaching and distance learning in areas of their professional expertise.
Military Families.--Funds would assist military families meet the
challenges of moving their children into new school districts with
varying academic and health-related requirements. The state grant
program, to be jointly administered by the Department of Education and
Defense, will encourage reciprocity agreements among states and school
districts and fund data management systems and other activities to
facilitate moves from one school district to another.
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
[[Page 349]]
national nonprofit educational entities to expand access for low-income
individuals to Advanced Placement classes.
Object Classification (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0204-0-1-501 2003 actual 2004 est. 2005 est.
----------------------------------------------------------------------------
25.1 Advisory and assistance services.. 2 2
25.2 Other services.................... 34 25
25.3 Other purchases of goods and
services from Government
accounts........................ 5 3
25.5 Research and development contracts 4 3
41.0 Grants, subsidies, and
contributions................... 1,058 852
--------- --------- ----------
99.9 Total new obligations........... 1,103 885
---------------------------------------------------------------------------
OFFICE OF SAFE AND DRUG-FREE SCHOOLS
Federal Funds
General and special funds:
Safe Schools and Citizenship Education
For carrying out activities authorized by subpart 3 of part C of
title II, part A of title IV, and subparts [2,] 3 and 10 of part D of
title V of the Elementary and Secondary Education Act of 1965
(``ESEA''), [title VIII-D of the Higher Education Amendments of 1998,
and Public Law 102-73, $862,813,000,] $838,897,000 of which
[$470,483,000] $440,908,000, shall become available on July 1, [2004]
2005 and remain available through September 30, [2005] 2006: Provided,
That [of the amount available for subpart 2 of part A of title IV of the
ESEA, $850,000 shall be used to continue the National Recognition Awards
program under the same guidelines outlined by section 120(f) of Public
Law 105-244: Provided further, That $445,483,000] $440,908,000 shall be
available for subpart 1 of part A of title IV and [$234,680,000]
$275,069,000 shall be available for subpart 2 of part A of title IV[:
Provided further, That $128,838,000 shall be available to carry out part
D of title V of the ESEA] , of which $5,000,000, 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: Provided further, That
of the funds available to carry out subpart 3 of part C of title II, up
to [$11,922,000] $11,852,000 may be used to carry out section 2345 [and
$2,980,000 shall be used by the Center for Civic Education to implement
a comprehensive program to improve public knowledge, understanding, and
support of the Congress and the state legislatures: Provided further,
That $25,000,000 shall be for Youth Offender Grants, of which $5,000,000
shall be used in accordance with section 601 of Public Law 102-73 as
that section was in effect prior to enactment of Public Law 105-220]:
Provided further, That of the funds available to carry-out subpart 10 of
part D of title V, up to $2,000,000 may be used to support the Special
Olympics. (Division E, H.R. 2673, Consolidated Appropriations Bill, FY
2004.)
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0203-0-1-501 2003 actual 2004 est. 2005 est.
----------------------------------------------------------------------------
Obligations by program activity:
Safe and drug-free schools and communities:
00.01 State grants.................... 441 441
National programs:
00.02 Alcohol abuse reduction....... 30
00.03 Mentoring program............. 50 100
00.04 Other national programs....... 154 175
--------- --------- ----------
00.91 Subtotal, Safe and drug-free
schools and communities....... 675 716
01.01 Character education............... 25 25
02.01 Elementary and secondary school
counseling...................... 34
03.01 Physical education program........ 70 70
04.01 Civic education................... 29 29
05.01 State grants for incarcerated
youth offenders................. 20
06.01 Literacy program for prisoners.... 5
--------- --------- ----------
10.00 Total new obligations........... 858 840
Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 856 839
23.95 Total new obligations............. -858 -840
New budget authority (gross), detail:
Discretionary:
40.00 Appropriation................... 863 839
40.35 Appropriation permanently
reduced....................... -7
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 856 839
Change in obligated balances:
72.40 Obligated balance, start of year.. 815
73.10 Total new obligations............. 858 840
73.20 Total outlays (gross)............. -43 -598
74.40 Obligated balance, end of year.... 815 1,057
Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 43 42
86.93 Outlays from discretionary
balances........................ 556
--------- --------- ----------
87.00 Total outlays (gross)........... 43 598
Net budget authority and outlays:
89.00 Budget authority.................. 856 839
90.00 Outlays........................... 43 598
---------------------------------------------------------------------------
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.
Mentoring program.--Funds provide grants to local educational
agencies and community-based organizations for mentoring programs
serving at-risk youth in conjunction with the efforts of the USA
Freedom Corps.
Other National Programs.--Funds support national activities to
prevent violence and the illegal use of drugs among, and to promote
safety and discipline for, students.
Character Education.--Funds provide grants to support the design and
implementation of character education programs in the Nation's
elementary and secondary schools.
Physical Education Program.--Funds provide grants to local
educational agencies and community-based organizations to initiate,
expand, or improve physical education programs for students.
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.
Object Classification (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0203-0-1-501 2003 actual 2004 est. 2005 est.
----------------------------------------------------------------------------
24.0 Printing and reproduction......... 1 1
25.1 Advisory and assistance services.. 2 2
25.2 Other services.................... 13 12
25.3 Other purchases of goods and
services from Government
accounts........................ 2
41.0 Grants, subsidies, and
contributions................... 840 825
--------- --------- ----------
99.9 Total new obligations........... 858 840
---------------------------------------------------------------------------
OFFICE OF ENGLISH LANGUAGE ACQUISITION
Federal Funds
General and special funds:
English Language Acquisition
For carrying out part A of title III of the ESEA, [$685,258,000]
$681,215,000, of which [$560,301,000] $595,715,000 shall become
[[Page 350]]
available on July 1, [2004] 2005, and shall remain available through
September 30, [2005: Provided, That notwithstanding section
3111(c)(4)(B)(ii), the Secretary may, in determining the allotments
under section 3111(c)(3), use the same Census data for the number of
limited English proficient children and youth used for the previous
year's allotments under section 3111(c)(3) and the most recent data
collected from States for the number of immigrant children and youth
that is acceptable to the Secretary] 2006: Provided [further], That
funds reserved under section 3111(c)(1)(D) of the ESEA that are not used
in accordance with section 3111(c)(2) may be added to the funds that are
available July 1, [2004] 2005 through September 30, [2005] 2006 for
State allotments under section 3111(c)(3). (Division E, H.R. 2673,
Consolidated Appropriations Bill, FY 2004.)
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-1300-0-1-501 2003 actual 2004 est. 2005 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Language acquisition State grants. 685 692 681
--------- --------- ----------
10.00 Total new obligations........... 685 692 681
Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 12 11
22.00 New budget authority (gross)...... 684 681 681
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 696 692 681
23.95 Total new obligations............. -685 -692 -681
24.40 Unobligated balance carried
forward, end of year............ 11
New budget authority (gross), detail:
Discretionary:
40.00 Appropriation................... 690 685 681
40.35 Appropriation permanently
reduced....................... -4 -4
41.00 Transferred to other accounts... -2
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 684 681 681
Change in obligated balances:
72.40 Obligated balance, start of year.. 833 938 811
73.10 Total new obligations............. 685 692 681
73.20 Total outlays (gross)............. -565 -819 -627
73.40 Adjustments in expired accounts
(net)........................... -14
74.40 Obligated balance, end of year.... 938 811 865
Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 5 34 34
86.93 Outlays from discretionary
balances........................ 560 785 593
--------- --------- ----------
87.00 Total outlays (gross)........... 565 819 627
Net budget authority and outlays:
89.00 Budget authority.................. 684 681 681
90.00 Outlays........................... 565 819 627
---------------------------------------------------------------------------
Language acquisition State grants.--This program provides formula
grants to States 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 national activities including professional development and
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 2003 actual 2004 est. 2005 est.
----------------------------------------------------------------------------
25.5 Research and development contracts 2 2 2
41.0 Grants, subsidies, and
contributions................... 683 690 679
--------- --------- ----------
99.9 Total new obligations........... 685 692 681
---------------------------------------------------------------------------
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, [$11,307,072,000] $12,176,101,000, of which
[$5,604,762,000] $6,560,447,000 shall become available for obligation on
July 1, [2004] 2005, and shall remain available through September 30,
[2005] 2006, and of which $5,413,000,000 shall become available on
October 1, [2004] 2005, and shall remain available through September 30,
[2005] 2006, for academic year [2004-2005] 2005-2006: Provided, [That
$11,400,000 shall be for Recording for the Blind and Dyslexic to support
the development, production, and circulation of recorded educational
materials: Provided further, That $1,500,000 shall be for the recipient
of funds provided by Public Law 105-78 under section 687(b)(2)(G) of the
Act to provide information on diagnosis, intervention, and teaching
strategies for children with disabilities: Provided further,] That the
amount for section 611(c) of the Act shall be equal to the amount
available for that section during fiscal year [2003] 2004, increased by
the amount of inflation as specified in section 611(f)(1)(B)(ii) of the
Act[: Provided further, That $6,879,000 of the funds for section 672 of
the Act shall be available for the projects and in the amounts specified
in the statement of the managers of the conference report accompanying
this Act]. (Division E, H.R. 2673, Consolidated Appropriations Bill, FY
2004.)
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0300-0-1-501 2003 actual 2004 est. 2005 est.
----------------------------------------------------------------------------
Direct program:
Obligations by program activity:
State grants:
00.01 Grants to States.............. 8,246 10,371 11,068
00.02 Preschool grants.............. 384 391 388
00.03 Grants for infants and
families.................... 430 486 467
--------- --------- ----------
00.91 Subtotal, State grants...... 9,060 11,248 11,923
National activities:
01.01 State improvement............. 52 97 51
01.02 Research and innovation....... 77 78
01.03 Technical assistance and
dissemination............... 53 53 53
01.04 Personnel preparation......... 92 92 91
01.05 Parent information centers.... 26 26 26
01.06 Technology and media services. 38 39 32
--------- --------- ----------
01.91 Subtotal, National
activities................ 338 385 253
--------- --------- ----------
02.00 Total Direct Program.............. 9,398 11,633 12,176
--------- --------- ----------
10.00 Total new obligations............. 9,398 11,633 12,176
Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 99 135
22.00 New budget authority (gross)...... 9,433 11,498 12,176
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 9,532 11,633 12,176
23.95 Total new obligations............. -9,398 -11,633 -12,176
24.40 Unobligated balance carried
forward, end of year............ 135
New budget authority (gross), detail:
Discretionary:
40.00 Appropriation................... 4,423 5,894 6,763
40.35 Appropriation permanently
reduced....................... -62 -68
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 4,361 5,826 6,763
55.00 Advance appropriation........... 5,072 5,672 5,413
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 9,433 11,498 12,176
Change in obligated balances:
72.40 Obligated balance, start of year.. 6,137 7,019 9,543
73.10 Total new obligations............. 9,398 11,633 12,176
73.20 Total outlays (gross)............. -8,491 -9,109 -10,751
73.40 Adjustments in expired accounts
(net)........................... -25
74.40 Obligated balance, end of year.... 7,019 9,543 10,968
Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 3,224 3,912 3,762
86.93 Outlays from discretionary
balances........................ 5,267 5,197 6,989
--------- --------- ----------
87.00 Total outlays (gross)........... 8,491 9,109 10,751
[[Page 351]]
Net budget authority and outlays:
89.00 Budget authority.................. 9,433 11,498 12,176
90.00 Outlays........................... 8,491 9,109 10,751
---------------------------------------------------------------------------
Note.--Excludes $78 million in budget authority for Research and
Innovation in Special Education, which is proposed for later transmittal
under the Institute of Education Sciences account. Comparable amounts
for 2003 ($77 million) and 2004 ($78 million) are included above.
SUMMARY OF GRANTS TO STATES PROGRAM LEVEL
[In millions of dollars]
2003-2004
academic
year 2004-2005
academic year 2005-2006
academic year
Current Budget Authority............ 3,202 4,655 5,655
Advance appropriation............... 5,672 5,413 5,413
------------------------------------
Total program level............. 8,874 10,068 11,068
====================================
Change in advance appropriation from
the previous year................... +600 -259
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 personnel preparation, technical
assistance, 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 applied
through September 30, 2003; authorizing legislation is required.
Pending legislation would transfer research activities currently
funded under this account to the Institute of Education Sciences.
Performance data related to program goals include:
2003 actual 2004 est. 2005 est.
Number of children served in first
quarter of fiscal year (in
thousands):
Ages 3 through 21..................... 6,611 6,737 6,858
Ages 3 through 5...................... 647 666 686
Birth through 2....................... 268 290 313
1999-2000 ac2000-2001 actual 2001-2002
actual
Educational Environment
Percent of children ages 6 through 21
provided special education in:
Regular classrooms.................... 47.3 46.5 48.4
Resource rooms........................ 28.3 29.8 28.3
Separate classes...................... 20.3 19.5 19.2
Separate schools...................... 2.9 3.0 2.9
Residential facilities................ .7 .7 .7
Home or hospital...................... .5 .5 .4
Status of Exiting Students
Percent of students with disabilities
aged 14-21 leaving school:
Graduated with a diploma.............. 46.1 47.6 51.1
Graduated through certification....... 9.4 9.2 9.5
Dropped out of school................. 42.1 41.1 37.6
Reached maximum age and other......... 2.4 2.1 1.8
Object Classification (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0300-0-1-501 2003 actual 2004 est. 2005 est.
----------------------------------------------------------------------------
25.1 Advisory and assistance services.. 2 2 2
25.2 Other services.................... 22 23 23
41.0 Grants, subsidies, and
contributions................... 9,374 11,608 12,151
--------- --------- ----------
99.9 Total new obligations........... 9,398 11,633 12,176
---------------------------------------------------------------------------
Rehabilitation Services and Disability Research
For carrying out, to the extent not otherwise provided, the
Rehabilitation Act of 1973, the Assistive Technology Act of 1998 (``the
AT Act''), and the Helen Keller National Center Act, [$3,013,305,000, of
which $1,000,000 shall be awarded to the American Academy of Orthotists
and Prosthetists for activities that further the purposes of the grant
received by the Academy for the period beginning October 1, 2003,
including activities to meet the demand for orthotic and prosthetic
provider services and improve patient care] $3,047,197,000, of which
$15,000,000 shall be for grants to States under title III of the AT Act:
Provided, That [the funds provided for title I of the Assistive
Technology Act of 1998 (``the AT Act'') shall be allocated
notwithstanding section 105(b)(1) of the AT Act: Provided further, That
section 101(f) of the AT Act shall not limit the award of an extension
grant to three years: Provided further, That no State or outlying area
awarded funds under section 101 shall receive less than the amount
received in fiscal year 2003] the Federal share of such grants shall not
exceed 75 percent, and the requirements in sections 301(c)(2) and 302 of
the AT Act shall not apply to such grants: Provided further, That
[$5,035,000 of the funds for section 303 of the Rehabilitation Act of
1973 shall be available for the projects and in the amounts specified in
the statement of the managers of the conference report accompanying this
Act] funds available under the Vocational Rehabilitation State Grants
program may be used by State Vocational agencies to pay for the fiscal
year 2005 continuation costs of projects funded in fiscal year 2003
under title VI, Part A, of the Rehabilitation Act. (Division E, H.R.
2673, Consolidated Appropriations Bill, FY 2004.)
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0301-0-1-506 2003 actual 2004 est. 2005 est.
----------------------------------------------------------------------------
Obligations by program activity:
Direct program:
00.01 Vocational rehabilitation State
grants........................ 2,533 2,584 2,697
00.02 Client assistance State grants.. 12 12 12
00.03 Training........................ 39 39 39
00.04 Demonstration and training
programs...................... 21 24 19
00.05 Migrant and seasonal farmworkers 2 2
00.06 Recreational programs........... 3 2
00.07 Protection and advocacy of
individual rights............. 17 17 19
00.08 Projects with industry.......... 22 22
00.09 Supported employment State
grants........................ 38 38
00.10 Independent living.............. 119 127 127
00.11 Program improvement............. 1 1 1
00.12 Evaluation...................... 1 1 2
00.13 Helen Keller National Center.... 9 9 9
00.14 National Institute on Disability
and Rehabilitation Research... 109 107 107
00.15 Assistive technology............ 63 26 15
00.16 Access to Telework Fund......... 20
--------- --------- ----------
01.00 Total direct program............ 3,009 3,011 3,047
09.01 Reimbursable program.............. 2 2 2
--------- --------- ----------
10.00 Total new obligations........... 3,011 3,013 3,049
Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 56
22.00 New budget authority (gross)...... 2,956 3,013 3,049
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 3,012 3,013 3,049
23.95 Total new obligations............. -3,011 -3,013 -3,049
[[Page 352]]
23.98 Unobligated balance expiring or
withdrawn....................... -1
New budget authority (gross), detail:
Discretionary:
40.00 Appropriation................... 424 430 411
40.35 Appropriation permanently
reduced....................... -3 -3
41.00 Transferred to other accounts... -1
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 420 427 411
Mandatory:
60.00 Appropriation................... 2,534 2,584 2,636
Spending authority from offsetting
collections:
Discretionary:
68.00 Offsetting collections (cash). 1 1
68.10 Change in uncollected customer
payments from Federal
sources (unexpired)......... 2 1 1
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total discretionary)..... 2 2 2
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 2,956 3,013 3,049
Change in obligated balances:
72.40 Obligated balance, start of year.. 1,070 1,193 994
73.10 Total new obligations............. 3,011 3,013 3,049
73.20 Total outlays (gross)............. -2,874 -3,210 -3,040
73.40 Adjustments in expired accounts
(net)........................... -14
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... -2 -1 -1
74.10 Change in uncollected customer
payments from Federal sources
(expired)....................... 1
74.40 Obligated balance, end of year.... 1,193 994 1,001
Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 80 300 288
86.93 Outlays from discretionary
balances........................ 329 483 150
86.97 Outlays from new mandatory
authority....................... 1,941 1,809 1,845
86.98 Outlays from mandatory balances... 524 618 757
--------- --------- ----------
87.00 Total outlays (gross)........... 2,874 3,210 3,040
Offsets:
Against gross budget authority and outlays:
88.00 Offsetting collections (cash)
from: Federal sources......... -2 -3 -1
Against gross budget authority only:
88.95 Change in uncollected customer
payments from Federal sources
(unexpired)................... -2 -1 -1
88.96 Portion of offsetting
collections (cash) credited to
expired accounts.............. 2 2
Net budget authority and outlays:
89.00 Budget authority.................. 2,954 3,011 3,047
90.00 Outlays........................... 2,872 3,207 3,039
---------------------------------------------------------------------------
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
2001 (385,221) and 2002 (367,625).
CONSUMER OUTCOMES (CASES CLOSED)
2001 actual 2002 actual
Individuals achieving employment
outcomes............................... 233,691 221,084
Percent with significant disabilities.. 88.0% 88.8%
Employment outcomes as a percent all of
individuals receiving services......... 60.7% 60.1%
The 2005 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.
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 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 or expand alternative financing programs to increase access to
assistive technology for individuals with disabilities.
Object Classification (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0301-0-1-506 2003 actual 2004 est. 2005 est.
----------------------------------------------------------------------------
Direct obligations:
25.1 Advisory and assistance services 10 10 9
25.2 Other services.................. 2 2 2
25.3 Other purchases of goods and
services from Government
accounts...................... 1 2 1
25.5 Research and development
contracts..................... 1
41.0 Grants, subsidies, and
contributions................. 2,995 2,997 3,035
--------- --------- ----------
[[Page 353]]
99.0 Direct obligations............ 3,009 3,011 3,047
99.0 Reimbursable obligations.......... 2 2 2
--------- --------- ----------
99.9 Total new obligations........... 3,011 3,013 3,049
---------------------------------------------------------------------------
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.), [$16,500,000] $16,403,000. (Division E, H.R. 2673,
Consolidated Appropriations Bill, FY 2004.)
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0600-0-1-501 2003 actual 2004 est. 2005 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Direct Program Activity........... 15 16 16
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 15 16 16
Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 16 16 16
23.95 Total new obligations............. -15 -16 -16
New budget authority (gross), detail:
Discretionary:
40.00 Appropriation................... 16 16 16
Change in obligated balances:
72.40 Obligated balance, start of year.. 6 7 1
73.10 Total new obligations............. 15 16 16
73.20 Total outlays (gross)............. -14 -22 -16
74.40 Obligated balance, end of year.... 7 1 1
Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 8 15 15
86.93 Outlays from discretionary
balances........................ 6 7 1
--------- --------- ----------
87.00 Total outlays (gross)........... 14 22 16
Net budget authority and outlays:
89.00 Budget authority.................. 16 16 16
90.00 Outlays........................... 15 22 16
---------------------------------------------------------------------------
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 2003, the portion of the Federal appropriation
allocated to educational materials represented approximately 58.5
percent of the Printing House's total sales. The full appropriation
represented approximately 61.6 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.),
[$53,800,000] $53,803,000, of which [$367,000] $685,000 shall be for
construction and shall remain available until expended: Provided, That
from the total amount available, the Institute may at its discretion use
funds for the endowment program as authorized under section 207.
(Division E, H.R. 2673, Consolidated Appropriations Bill, FY 2004.)
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0601-0-1-502 2003 actual 2004 est. 2005 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Operations........................ 52 53 53
00.02 Construction...................... 2 1
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 54 53 54
Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 54 53 54
23.95 Total new obligations............. -54 -53 -54
New budget authority (gross), detail:
Discretionary:
40.00 Appropriation................... 54 53 54
Change in obligated balances:
72.40 Obligated balance, start of year.. 2 5
73.10 Total new obligations............. 54 53 54
73.20 Total outlays (gross)............. -53 -50 -54
74.40 Obligated balance, end of year.... 2 5 4
Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 52 50 50
86.93 Outlays from discretionary
balances........................ 1 4
--------- --------- ----------
87.00 Total outlays (gross)........... 53 50 54
Net budget authority and outlays:
89.00 Budget authority.................. 54 53 54
90.00 Outlays........................... 53 50 54
---------------------------------------------------------------------------
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 2003, 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 part of the cost of construction projects to renovate
the NTID theater and construct a new student development center.
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.), [$100,800,000] $100,205,000: Provided, That from
the total amount available, the University may at its discretion use
funds for the endowment program as authorized under section 207.
(Division E, H.R. 2673, Consolidated Appropriations Bill, FY 2004.)
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0602-0-1-502 2003 actual 2004 est. 2005 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Operations........................ 98 100 100
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 98 100 100
Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 97 100 100
23.95 Total new obligations............. -98 -100 -100
New budget authority (gross), detail:
Discretionary:
40.00 Appropriation................... 98 101 100
40.35 Appropriation permanently
reduced....................... -1 -1
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 97 100 100
Change in obligated balances:
72.40 Obligated balance, start of year.. 6
73.10 Total new obligations............. 98 100 100
73.20 Total outlays (gross)............. -97 -94 -100
74.40 Obligated balance, end of year.... 6 6
Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 97 94 94
86.93 Outlays from discretionary
balances........................ 6
--------- --------- ----------
87.00 Total outlays (gross)........... 97 94 100
Net budget authority and outlays:
89.00 Budget authority.................. 97 100 100
90.00 Outlays........................... 98 94 100
---------------------------------------------------------------------------
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
[[Page 354]]
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 2003, the Federal appropriation represented 65.3 percent of the
University's total revenue, which also includes other Federal funds such
as student financial aid, vocational rehabilitation, Endowment Grant
program 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
For carrying out, to the extent not otherwise provided, [the Carl D.
Perkins Vocational and Technical Education Act of 1998,] the Adult
Education and Family Literacy Act, [and subparts 4 and 11 of part D of
title V of the Elementary and Secondary Education Act of 1965
(``ESEA''), $2,121,690,000, of] $590,233,000, which [$1,304,712,000]
shall become available on July 1, [2004] 2005 and shall remain available
through September 30, [2005 and of which $791,000,000 shall become
available on October 1, 2004 and shall remain available through
September 30, 2005: Provided, That notwithstanding any other provision
of law or any regulation, the Secretary of Education shall not require
the use of a restricted indirect cost rate for grants issued pursuant to
section 117 of the Carl D. Perkins Vocational and Technical Education
Act of 1998] 2006: Provided, [further] That of the amount provided for
Adult Education State Grants, [$69,545,000] $69,135,000 shall be made
available for integrated English literacy and civics education services
to immigrants and other limited English proficient populations: Provided
further, That of the amount reserved for integrated English literacy and
civics education, notwithstanding section 211 of the Adult Education and
Family Literacy Act, 65 percent shall be allocated to States based on a
State's absolute need as determined by calculating each State's share of
a 10-year average of the Immigration and Naturalization Service data for
immigrants admitted for legal permanent residence for the 10 most recent
years, and 35 percent allocated to States that experienced growth as
measured by the average of the 3 most recent years for which Immigration
and Naturalization Service data for immigrants admitted for legal
permanent residence are available, except that no State shall be
allocated an amount less than $60,000: Provided further, That of the
amounts made available for the Adult Education and Family Literacy Act,
[$9,223,000] $9,169,000 shall be for national leadership activities
under section 243 and [$6,732,000] $6,692,000 shall be for the National
Institute for Literacy under section 242[: Provided further, That
$185,000,000 shall be available to carry out part D of title V of the
ESEA: Provided further, That $175,000,000 shall be available to support
the activities authorized under subpart 4 of part D of title V of the
Elementary and Secondary Education Act of 1965, of which up to 5 percent
shall become available October 1, 2003 and shall remain available
through September 30, 2005, for evaluation, technical assistance, school
networking, peer review of applications, and program outreach
activities, and of which not less than 95 percent shall become available
on July 1, 2004, and remain available through September 30, 2005, for
grants to local educational agencies: Provided further, That funds made
available to local education agencies under this subpart shall be used
only for activities related to establishing smaller learning communities
in high schools]. (Division E, H.R. 2673, Consolidated Appropriations
Bill, FY 2004.)
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0400-0-1-501 2003 actual 2004 est. 2005 est.
----------------------------------------------------------------------------
Obligations by program activity:
Vocational education:
Annual appropriations:
Vocational education:
00.01 State grants................ 1,185 1,204 791
00.02 National programs........... 12 12 12
00.03 Occupational and employment
information............... 10 9 1
00.04 Tribally controlled
postsecondary vocational
institutions.............. 7 7
00.05 Tech-prep education State
grants.................... 105 109
00.06 Tech-prep demonstration....... 10 5
--------- --------- ----------
00.91 Total, Vocational education. 1,329 1,346 804
Adult education:
01.01 State grants................ 554 595 574
01.02 National Institute for
Literacy.................. 6 7 7
01.03 National leadership
activities................ 9 9 9
--------- --------- ----------
01.91 Total, adult education...... 569 611 590
02.01 State grants for incarcerated
youth offenders............. 19
03.01 Literacy programs for
prisoners................... 5 5
04.01 Smaller learning communities.... 174
05.01 Community technology centers.... 10
--------- --------- ----------
10.00 Total new obligations........... 1,922 1,972 1,568
Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 56 78 215
22.00 New budget authority (gross)...... 1,943 2,109 1,381
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 1,999 2,187 1,596
23.95 Total new obligations............. -1,922 -1,972 -1,568
24.40 Unobligated balance carried
forward, end of year............ 78 215 27
New budget authority (gross), detail:
Discretionary:
40.00 Appropriation................... 1,165 1,331 590
40.35 Appropriation permanently
reduced....................... -13 -13
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 1,152 1,318 590
55.00 Advance appropriation from prior
year.......................... 791 791 791
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 1,943 2,109 1,381
Change in obligated balances:
72.40 Obligated balance, start of year.. 1,652 1,618 1,658
73.10 Total new obligations............. 1,922 1,972 1,568
73.20 Total outlays (gross)............. -1,943 -1,932 -1,965
73.40 Adjustments in expired accounts
(net)........................... -13
74.40 Obligated balance, end of year.... 1,618 1,658 1,261
Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 613 661 585
86.93 Outlays from discretionary
balances........................ 1,330 1,271 1,380
--------- --------- ----------
87.00 Total outlays (gross)........... 1,943 1,932 1,965
Net budget authority and outlays:
89.00 Budget authority.................. 1,943 2,109 1,381
90.00 Outlays........................... 1,943 1,932 1,965
---------------------------------------------------------------------------
Summary of Budget Authority and Outlays
(in millions of dollars)
2003 actual 2004 est. 2005 est.
Enacted/requested:
Budget Authority.................. 1,943 2,109 1,381
Outlays........................... 1,943 1,932 1,965
Legislative proposal, not subject to
PAYGO:
Budget Authority.................. 221
Outlays........................... 51
------------------------------------
Total:
Budget Authority.................. 1,943 2,109 1,602
Outlays........................... 1,943 1,932 2,016
====================================
Vocational 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. When new
authorizing legislation is enacted resources for the affected programs
will be requested.
Adult education--
State programs.--Funds support formula grants to States to help
eliminate functional illiteracy among the Nation's adults, to assist
adults in obtaining a high school diploma
[[Page 355]]
or its equivalent, and to promote family literacy. A portion of the
funds are reserved for formula grants to States to provide English
literacy and civics education for immigrants and other limited
English proficient adults.
National Institute for Literacy.--Funds support the Institute's
national leadership activities to improve and expand the Nation's
system for delivery of literacy services.
National leadership activities.--Funds support discretionary
activities to evaluate the effectiveness of Federal, State, and
local adult education programs, and to test and demonstrate methods
of improving program quality.
Object Classification (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0400-0-1-501 2003 actual 2004 est. 2005 est.
----------------------------------------------------------------------------
Direct obligations:
Personnel compensation:
11.1 Full-time permanent........... 1 1
11.3 Other than full-time permanent 1 1 1
--------- --------- ----------
11.9 Total personnel compensation 1 2 2
25.1 Advisory and assistance services 1
25.2 Other services.................. 3 3 5
25.3 Other purchases of goods and
services from Government
accounts...................... 18 27 27
25.5 Research and development
contracts..................... 9 1 5
41.0 Grants, subsidies, and
contributions................. 1,889 1,939 1,528
--------- --------- ----------
99.0 Direct obligations............ 1,921 1,972 1,567
99.5 Below reporting threshold......... 1 1
--------- --------- ----------
99.9 Total new obligations........... 1,922 1,972 1,568
---------------------------------------------------------------------------
Personnel Summary
----------------------------------------------------------------------------
Identification code 91-0400-0-1-501 2003 actual 2004 est. 2005 est.
----------------------------------------------------------------------------
1001 Total compensable workyears:
Civilian full-time equivalent
employment...................... 15 19 19
---------------------------------------------------------------------------
Office of Vocational and Adult Education
Vocational and Adult Education
(Legislative proposal, not subject to PAYGO)
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0400-2-1-501 2003 actual 2004 est. 2005 est.
----------------------------------------------------------------------------
Obligations by program activity:
Vocational education:
Annual appropriations:
Vocational education:
00.01 Secondary and technical
education................. 199
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 199
Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 221
23.95 Total new obligations............. -199
24.40 Unobligated balance carried
forward, end of year............ 22
New budget authority (gross), detail:
Discretionary:
40.00 Appropriation................... 221
Change in obligated balances:
73.10 Total new obligations............. 199
73.20 Total outlays (gross)............. -51
74.40 Obligated balance, end of year.... 149
Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 51
Net budget authority and outlays:
89.00 Budget authority.................. 221
90.00 Outlays........................... 51
---------------------------------------------------------------------------
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). The reforms would promote
stronger accountability for results by linking grantee funding to
success in achieving improved 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.
Funds would flow to States by formula, and States, in turn, would
use most of their allocations to make competitive grants to partnerships
between local education agencies and community and technical colleges.
In addition, under the proposed national activities authority, the
Department of Education would make grants to States to expand the State
Scholars programs that increase the percentage of high school students
who have the solid academic foundation necessary to succeed in
postsecondary education and a dynamic labor market.
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 (``HEA''), as amended, [section 1543 of the Higher Education
Amendments of 1992, title VIII of the Higher Education Amendments of
1998, and] the Mutual Educational and Cultural Exchange Act of 1961,
[$2,094,511,000,] and section 117 of the Carl D. Perkins Vocational and
Technical Education Act, $1,977,028,000, of which [$2,000,000]
$1,500,000 for interest subsidies authorized by section 121 of the HEA
shall remain available until expended: Provided, That [$9,935,000]
$9,876,000, to remain available through September 30, [2005] 2006, shall
be available to fund fellowships for academic year [2005-2006] 2006-2007
under part A, subpart 1 of title VII of said Act, under the terms and
conditions of part A, subpart 1: Provided further, That [$994,000]
$988,000 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 [$123,110,000 of the funds for part B of title VII of the
Higher Education Act of 1965 shall be available for the projects and in
the amounts specified in the statement of the managers of the conference
report accompanying this Act] the funds provided for title II of the HEA
shall be allocated notwithstanding section 210 of such Act. (Division E,
H.R. 2673, Consolidated Appropriations Bill, FY 2004.)
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0201-0-1-502 2003 actual 2004 est. 2005 est.
----------------------------------------------------------------------------
Obligations by program activity:
Aid for institutional development:
00.01 Strengthening institutions...... 81 81 81
00.02 Strengthening tribally
controlled colleges and
universities.................. 23 23 24
00.03 Strengthening Alaska Native and
Native Hawaiian-serving
institutions.................. 8 11 6
[[Page 356]]
00.04 Strengthening historically black
colleges and universities..... 214 223 240
00.05 Strengthening historically black
graduate institutions......... 54 53 58
00.06 Minority science and engineering
improvement................... 9 9 9
--------- --------- ----------
00.91 Subtotal, aid for
institutional development... 389 400 418
Other aid for institutions:
01.01 Developing Hispanic-serving
institutions.................. 92 94 96
01.02 International education and
foreign language studies...... 108 103 103
01.03 Fund for the Improvement of
Postsecondary Education....... 171 157 32
01.05 Demonstration projects to ensure
quality higher education for
students with disabilities.... 7 7
01.06 Interest subsidy grants......... 3 10 2
01.07 Tribally controlled
postsecondary vocational and
technical institutions........ 7
--------- --------- ----------
01.91 Subtotal, other aid for
institutions................ 381 371 240
Assistance for students:
02.01 Federal TRIO programs........... 827 833 833
02.02 Gaining early awareness and
readiness for undergraduate
programs (GEAR UP)............ 293 298 298
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....................... 5
02.07 B.J. Stupak Olympic scholarships 1 1
02.08 Child care access means parents
in school..................... 16 16 16
--------- --------- ----------
02.91 Subtotal, assistance for
students.................... 1,224 1,230 1,229
03.01 Teacher quality enhancement....... 89 89 89
04.01 GPRA data/HEA program evaluation.. 1 1 1
05.01 Underground railroad program...... 2 2
--------- --------- ----------
10.00 Total new obligations........... 2,086 2,093 1,977
Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 17 18 10
22.00 New budget authority (gross)...... 2,086 2,085 1,977
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 2,103 2,103 1,987
23.95 Total new obligations............. -2,086 -2,093 -1,977
24.40 Unobligated balance carried
forward, end of year............ 18 10 10
New budget authority (gross), detail:
Discretionary:
40.00 Appropriation................... 2,100 2,097 1,977
40.35 Appropriation permanently
reduced....................... -14 -12
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 2,086 2,085 1,977
Change in obligated balances:
72.40 Obligated balance, start of year.. 2,702 2,833 2,752
73.10 Total new obligations............. 2,086 2,093 1,977
73.20 Total outlays (gross)............. -1,931 -2,174 -2,105
73.40 Adjustments in expired accounts
(net)........................... -24
74.40 Obligated balance, end of year.... 2,833 2,752 2,624
Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 62 106 100
86.93 Outlays from discretionary
balances........................ 1,869 2,068 2,005
--------- --------- ----------
87.00 Total outlays (gross)........... 1,931 2,174 2,105
Net budget authority and outlays:
89.00 Budget authority.................. 2,086 2,085 1,977
90.00 Outlays........................... 1,930 2,174 2,105
---------------------------------------------------------------------------
Note.--Includes $7 million in budget authority in 2005 for
activities previously financed from the Department of Education:
(in millions of dollars)
2003 actual 2004 est.
Office of Vocational and Adult Education 7 7
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 programs.
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.
[[Page 357]]
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 2003 actual 2004 est. 2005 est.
----------------------------------------------------------------------------
25.1 Advisory and assistance services.. 3 4 4
25.2 Other services.................... 4 5 6
25.3 Other purchases of goods and
services from Government
accounts........................ 2 2 2
25.7 Operation and maintenance of
equipment....................... 1 1 1
41.0 Grants, subsidies, and
contributions................... 2,076 2,081 1,964
--------- --------- ----------
99.9 Total new obligations........... 2,086 2,093 1,977
---------------------------------------------------------------------------
Howard University
For partial support of Howard University (20 U.S.C. 121 et seq.),
[$240,180,000] $238,763,000, of which not less than [$3,573,000]
$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. (Division E, H.R. 2673, Consolidated
Appropriations Bill, FY 2004.)
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0603-0-1-502 2003 actual 2004 est. 2005 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 General support................... 205 216 209
00.02 Howard University Hospital........ 30 30 30
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 235 246 239
Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 4 7
22.00 New budget authority (gross)...... 238 239 239
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 242 246 239
23.95 Total new obligations............. -235 -246 -239
24.40 Unobligated balance carried
forward, end of year............ 7
New budget authority (gross), detail:
Discretionary:
40.00 Appropriation................... 240 240 239
40.35 Appropriation permanently
reduced....................... -2 -1
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 238 239 239
Change in obligated balances:
72.40 Obligated balance, start of year.. 4 15
73.10 Total new obligations............. 235 246 239
73.20 Total outlays (gross)............. -239 -232 -239
74.40 Obligated balance, end of year.... 15 14
Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 235 225 225
86.93 Outlays from discretionary
balances........................ 4 7 14
--------- --------- ----------
87.00 Total outlays (gross)........... 239 232 239
Net budget authority and outlays:
89.00 Budget authority.................. 238 239 239
90.00 Outlays........................... 238 232 239
---------------------------------------------------------------------------
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 2003, Federal funding represented approximately
58 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] $578,000 to carry out
activities related to existing facility loans entered into under the
Higher Education Act of 1965.
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 $357,000,000, 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] $212,000. (Division E, H.R. 2673, Consolidated Appropriations
Bill, FY 2004.)
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0241-0-1-502 2003 actual 2004 est. 2005 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
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 2003 actual 2004 est. 2005 est.
----------------------------------------------------------------------------
Direct loan levels supportable by subsidy
budget authority:
115001Historically Black Colleges and
Universities.................... 269 269 170
--------- --------- ----------
115901Total direct loan levels.......... 269 269 170
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:
137001Historically Black Colleges and
Universities....................
--------- --------- ----------
137901Total downward reestimate budget
authority.......................
----------------------------------------------------------------------------
Administrative expense data:
351001Budget authority.................. 1 1 1
358001Outlays from balances.............
359001Outlays from new authority........
---------------------------------------------------------------------------
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.
[[Page 358]]
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
2005 budget provides funds for continuing Federal administrative
activities only.
Personnel Summary
----------------------------------------------------------------------------
Identification code 91-0241-0-1-502 2003 actual 2004 est. 2005 est.
----------------------------------------------------------------------------
1001 Total compensable workyears:
Civilian full-time equivalent
employment...................... 7 7 5
---------------------------------------------------------------------------
College Housing and Academic Facilities Loans Financing Account
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-4252-0-3-502 2003 actual 2004 est. 2005 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:
21.40 Unobligated balance carried
forward, start of year.......... 1
22.00 New financing authority (gross)... 3 1 1
22.60 Portion applied to repay debt..... -1
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 3 1 1
23.95 Total new obligations............. -2 -1 -1
24.40 Unobligated balance carried
forward, end of year............ 1
New financing authority (gross), detail:
Mandatory:
69.00 Offsetting collections (cash)... 5 2 2
69.47 Portion applied to repay debt... -2 -1 -1
--------- --------- ----------
69.90 Spending authority from
offsetting collections
(total mandatory)........... 3 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:
88.40 Interest repayments........... -2 -1 -1
88.40 Principal repayments.......... -3 -1 -1
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -5 -2 -2
Net financing authority and financing
disbursements:
89.00 Financing authority............... -2 -1 -1
90.00 Financing disbursements........... -3 -1 -1
---------------------------------------------------------------------------
Consistent with the Federal Credit Reform Act of 1990, 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. The amounts in this account are a means of
financing, and are not incuded in the budget totals.
Status of Direct Loans (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-4252-0-3-502 2003 actual 2004 est. 2005 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 22 21
1251 Repayments: Repayments and
prepayments..................... -3 -1
--------- --------- ----------
1290 Outstanding, end of year........ 22 21 21
---------------------------------------------------------------------------
Balance Sheet (in millions of dollars)
-----------------------------------------------------------------------------------------------
Identification code 91-4252-0-3-502 2002 actual 2003 actual 2004 est. 2005 est.
-----------------------------------------------------------------------------------------------
ASSETS:
Net value of assets related to
post-1991 direct loans
receivable:
1401 Direct loans receivable, gross.. 22
1402 Interest receivable............. 1
1405 Allowance for subsidy cost (-).. -3
------------ -------------- ------------ -------------
1499 Net present value of assets
related to direct loans..... 20
------------ -------------- ------------ -------------
1999 Total assets.................... 20
LIABILITIES:
2103 Federal liabilities: Debt......... 20
------------ -------------- ------------ -------------
2999 Total liabilities............... 20
------------ -------------- ------------ -------------
4999 Total liabilities and net position 20
-----------------------------------------------------------------------------------------------
Note: Consistent with Government-wide practice, information for 2004
and 2005 was not required to be collected.
College Housing and Academic Facilities Loans Liquidating Account
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0242-0-1-502 2003 actual 2004 est. 2005 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.02 Interest paid to Treasury......... 8 10 9
--------- --------- ----------
10.00 Total new obligations (object
class 43.0)................... 8 10 9
Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 5 1
22.00 New budget authority (gross)...... 9 10 9
22.10 Resources available from
recoveries of prior year
obligations..................... 3
22.40 Capital transfer to general fund.. -2
22.60 Portion applied to repay debt..... -6 -1
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 9 10 9
23.95 Total new obligations............. -8 -10 -9
24.40 Unobligated balance carried
forward, end of year............ 1
New budget authority (gross), detail:
Mandatory:
60.00 Appropriation................... 16 3 3
60.47 Portion applied to repay debt... -13
--------- --------- ----------
62.50 Appropriation (total
mandatory).................. 3 3 3
69.00 Offsetting collections (cash)..... 51 38 36
69.27 Capital transfer to general fund.. -2 -1 -22
[[Page 359]]
69.47 Portion applied to repay debt..... -43 -30 -8
--------- --------- ----------
69.90 Spending authority from
offsetting collections (total
mandatory).................... 6 7 6
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 9 10 9
Change in obligated balances:
72.40 Obligated balance, start of year.. 12 4 4
73.10 Total new obligations............. 8 10 9
73.20 Total outlays (gross)............. -13 -10 -9
73.45 Recoveries of prior year
obligations..................... -3
74.40 Obligated balance, end of year.... 4 4 4
Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 9 10 9
86.98 Outlays from mandatory balances... 4
--------- --------- ----------
87.00 Total outlays (gross)........... 13 10 9
Offsets:
Against gross budget authority and outlays:
Offsetting collections (cash)
from:
88.40 Repayments of principal....... -37 -26 -25
88.40 Interest received on loans.... -14 -12 -11
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -51 -38 -36
Net budget authority and outlays:
89.00 Budget authority.................. -42 -28 -27
90.00 Outlays........................... -38 -28 -27
---------------------------------------------------------------------------
As required by the Federal Credit Reform Act of 1990, 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 2003 actual 2004 est. 2005 est.
----------------------------------------------------------------------------
CHAFL LIQUIDATING
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 109 100 97
1251 Repayments: Repayments and
prepayments..................... -9 -3 -3
--------- --------- ----------
1290 Outstanding, end of year........ 100 97 94
----------------------------------------------------------------------------
HIGHER EDUCATION FACILITIES
LOANS
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 22 20 19
1251 Repayments: Repayments and
prepayments..................... -2 -1 -2
--------- --------- ----------
1290 Outstanding, end of year........ 20 19 17
----------------------------------------------------------------------------
COLLEGE HOUSING LOANS
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 254 228 207
1251 Repayments: Repayments and
prepayments..................... -26 -21 -20
--------- --------- ----------
1290 Outstanding, end of year........ 228 207 187
---------------------------------------------------------------------------
Balance Sheet (in millions of dollars)
-----------------------------------------------------------------------------------------------
Identification code 91-0242-0-1-502 2002 actual 2003 actual 2004 est. 2005 est.
-----------------------------------------------------------------------------------------------
ASSETS:
Net value of assets related to
pre-1992 direct loans
receivable and acquired
defaulted guaranteed loans
receivable:
1601 Direct loans, gross............. 385 348
1602 Interest receivable............. 6 5
------------ -------------- ------------ -------------
1699 Value of assets related to
direct loans................ 391 353
------------ -------------- ------------ -------------
1999 Total assets.................... 391 353
LIABILITIES:
Federal liabilities:
2103 Debt............................ 192 130
2104 Resources payable to Treasury... 199 223
------------ -------------- ------------ -------------
2999 Total liabilities............... 391 353
------------ -------------- ------------ -------------
4999 Total liabilities and net position 391 353
-----------------------------------------------------------------------------------------------
Note: Consistent with Government-wide practice, information for 2004
and 2005 was not required to be collected.
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 2003 actual 2004 est. 2005 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Direct Loan Awards................ 100 40
00.02 Interest paid to Treasury......... 2 5 6
--------- --------- ----------
10.00 Total new obligations (object
class 43.0)................... 2 105 46
Budgetary resources available for obligation:
22.00 New financing authority (gross)... 42 105 46
22.70 Balance of authority to borrow
withdrawn....................... -40
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 2 105 46
23.95 Total new obligations............. -2 -105 -46
New financing authority (gross), detail:
Mandatory:
67.10 Authority to borrow............. 40 100 40
69.00 Offsetting collections (cash)..... 3 7 8
69.47 Portion applied to repay debt..... -1 -2 -2
--------- --------- ----------
69.90 Spending authority from
offsetting collections (total
mandatory).................... 2 5 6
--------- --------- ----------
70.00 Total new financing authority
(gross)....................... 42 105 46
Change in obligated balances:
72.40 Obligated balance, start of year.. 20 9 70
73.10 Total new obligations............. 2 105 46
73.20 Total financing disbursements
(gross)......................... -14 -44 -63
74.40 Obligated balance, end of year.... 9 70 53
87.00 Total financing disbursements
(gross)......................... 14 44 63
Offsets:
Against gross financing authority and
financing disbursements:
Offsetting collections (cash)
from:
88.40 Interest repayments........... -2 -5 -6
88.40 Principal repayments.......... -1 -2 -2
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -3 -7 -8
Net financing authority and financing
disbursements:
89.00 Financing authority............... 39 98 38
90.00 Financing disbursements........... 11 37 55
---------------------------------------------------------------------------
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 2003 actual 2004 est. 2005 est.
----------------------------------------------------------------------------
Position with respect to appropriations act
limitation on obligations:
1111 Limitation on direct loans........ 269 269 170
1142 Unobligated direct loan limitation
(-)............................. -269 -169 -130
--------- --------- ----------
1150 Total direct loan obligations... 100 40
----------------------------------------------------------------------------
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 69 79 116
1231 Disbursements: Direct loan
disbursements................... 11 38 57
1251 Repayments: Repayments and
prepayments..................... -1 -1 -2
--------- --------- ----------
1290 Outstanding, end of year........ 79 116 171
---------------------------------------------------------------------------
[[Page 360]]
Balance Sheet (in millions of dollars)
-----------------------------------------------------------------------------------------------
Identification code 91-4255-0-3-502 2002 actual 2003 actual 2004 est. 2005 est.
-----------------------------------------------------------------------------------------------
ASSETS:
1101 Federal assets: Fund balances with
Treasury........................ 9
Net value of assets related to
post-1991 direct loans
receivable:
1401 Direct loans receivable, gross.. 79
1402 Interest receivable............. 3
------------ -------------- ------------ -------------
1499 Net present value of assets
related to direct loans..... 82
------------ -------------- ------------ -------------
1999 Total assets.................... 91
LIABILITIES:
Federal liabilities:
2102 Interest payable................ 3
2103 Debt............................ 79
2201 Non-Federal liabilities:
Undisbursed direct loans........ 9
------------ -------------- ------------ -------------
2999 Total liabilities............... 91
------------ -------------- ------------ -------------
4999 Total liabilities and net position 91
-----------------------------------------------------------------------------------------------
Note: Consistent with Government-wide practice, information for 2004
and 2005 was not required to be collected.
OFFICE OF STUDENT FINANCIAL ASSISTANCE
Federal Funds
General and special funds:
[Student Financial Assistance]
[For carrying out subparts 1, 3 and 4 of part A, part C and part E
of title IV of the Higher Education Act of 1965, as amended,
$14,090,430,000, 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 $4,050.] (Division E, H.R. 2673,
Consolidated Appropriations Bill, FY 2004.)
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0200-0-1-502 2003 actual 2004 est. 2005 est.
----------------------------------------------------------------------------
Obligations by program activity:
Federal Pell grants:
01.01 Federal Pell grants............. 12,608 10,224 2,264
Campus-based aid:
02.01 Federal supplemental educational
opportunity grants (SEOG)..... 761 771
02.02 Federal work-study.............. 1,011 999
02.03 Federal Perkins loans: Federal
capital contributions......... 102 99
02.05 Federal Perkins loans: Loan
cancellations................. 67 67
--------- --------- ----------
02.91 Subtotal, Campus-based
activities.................. 1,941 1,936
03.01 Leveraging educational assistance
program......................... 72 66
04.01 Loan forgiveness for child care
providers....................... 1
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 14,621 12,227 2,264
Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 1,026 33 1,813
22.00 New budget authority (gross)...... 13,363 14,007
22.10 Resources available from
recoveries of prior year
obligations..................... 266
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 14,655 14,040 1,813
23.95 Total new obligations............. -14,621 -12,227 -2,264
23.98 Unobligated balance expiring or
withdrawn....................... -1
24.40 Unobligated balance carried
forward, end of year............ 33 1,813 -451
New budget authority (gross), detail:
Discretionary:
40.00 Appropriation................... 13,451 14,090
40.35 Appropriation permanently
reduced....................... -87 -83
41.00 Transferred to other accounts... -1
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 13,363 14,007
Change in obligated balances:
72.40 Obligated balance, start of year.. 8,226 8,479 6,335
73.10 Total new obligations............. 14,621 12,227 2,264
73.20 Total outlays (gross)............. -14,048 -14,371 -7,830
73.40 Adjustments in expired accounts
(net)........................... -53
73.45 Recoveries of prior year
obligations..................... -266
74.40 Obligated balance, end of year.... 8,479 6,335 769
Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 5,098 6,168
86.93 Outlays from discretionary
balances........................ 8,950 8,203 7,830
--------- --------- ----------
87.00 Total outlays (gross)........... 14,048 14,371 7,830
Net budget authority and outlays:
89.00 Budget authority.................. 13,363 14,007
90.00 Outlays........................... 14,048 14,371 7,830
---------------------------------------------------------------------------
Summary of Budget Authority and Outlays
(in millions of dollars)
2003 actual 2004 est. 2005 est.
Enacted/requested:
Budget Authority.................. 13,363 14,007
Outlays........................... 14,048 14,371 7,830
Legislative proposal, not subject to
PAYGO:
Budget Authority.................. 14,699
Outlays........................... 7,158
------------------------------------
Total:
Budget Authority.................. 13,363 14,007 14,699
Outlays........................... 14,048 14,371 14,988
====================================
Note: Includes in all years institutional matching share of
defaulted notes assigned from institutions to the Education Department.
The Administration is working with Congress to develop legislation
reauthorizing programs included in the Higher Education Act. When new
authorizing legislation is enacted, resources for the affected programs
will be requested.
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. The 2005 data in these
tables reflect the Administration's legislative proposals.
AID FUNDS AVAILABLE FOR POSTSECONDARY EDUCATION AND TRAINING
[in thousands]
2003 2004 2005
Pell grants:
Regular program................... 12,680,295 13,042,280 12,803,320
State Scholars pilot.............. 33,000
Student loans:
Guaranteed student loans:
Stafford loans.................. 15,618,242 17,698,690 19,052,088
Unsubsidized Stafford loans..... 14,185,510 16,406,054 18,012,122
PLUS............................ 3,987,072 4,873,629 5,523,922
Direct student loans:
Stafford loans.................. 5,789,975 6,309,213 6,737,974
Unsubsidized Stafford loans..... 4,518,826 4,962,978 5,395,837
PLUS............................ 1,659,964 1,947,252 2,195,405
Consolidation:
FFEL............................ 34,935,100 25,604,812 22,048,423
Direct Loans.................... 6,657,328 6,276,200 6,320,042
Student loans, subtotal....... 87,352,018 84,078,827 85,285,814
Work-study.......................... 1,202,993 1,195,690 1,195,690
Supplemental educational opportunity
grants.............................. 962,061 975,260 975,260
Perkins loans....................... 1,201,367 1,262,882 1,136,684
Leveraging educational assistance
partnership......................... 169,695 168,517
Loan forgiveness for child care
providers........................... 994
------------------------------------
Total aid available........... 103,569,423 100,723,456 101,396,768
====================================
[[Page 361]]
NUMBER OF AID AWARDS
[in thousands]
2003 2004 2005
Pell grants:
Regular program................... 5,141 5,344 5,336
State Scholars pilot.............. 36
Guaranteed student loans--Stafford
loans............................... 3,723 4,200 4,473
Guaranteed student loans--
Unsubsidized Stafford loans......... 2,728 3,112 3,355
Guaranteed student loans--PLUS...... 400 542 496
Guaranteed student loans--
Consolidation....................... 1,204 881 750
Direct student loans--Stafford loans 1,318 1,408 1,489
Direct student loans--Unsubsidized
Stafford loans...................... 915 966 1,035
Direct student loans--PLUS.......... 181 198 213
Direct sudent loans--Consolidation.. 297 269 260
Work-study.......................... 863 858 858
Supplemental educational opportunity
grants.............................. 1,237 1,254 1,254
Perkins loans....................... 641 674 606
Leveraging Educational Assistance
Partnership......................... 170 169 0
------------------------------------
Total awards.................. 18,817 19,875 20,123
====================================
AVERAGE AID AWARDS
[in whole dollars]
2003 2004 2005
Pell grants:
Regular program................... 2,467 2,441 2,399
State Scholars pilot.............. 916
Guaranteed student loans--Stafford
loans............................... 3,420 3,435 3,473
Guaranteed student loans--
Unsubsidized Stafford loans......... 4,182 4,239 4,318
Guaranteed student loans--PLUS...... 8,475 9,000 9,469
Guaranteed student loans--SLS....... 0 0 0
Guaranteed student loans--
Consolidation....................... 27,907 27,950 28,284
Direct student loans--Stafford loans 3,600 3,674 3,710
Direct student loans--Unsubsidized
Stafford loans...................... 4,040 4,199 4,265
Direct student loans--PLUS.......... 7,889 8,461 8,878
Direct student loans--Consolidation. 22,319 23,209 24,183
Work-study.......................... 1,394 1,394 1,394
Supplemental educational opportunity
grants.............................. 778 778 778
Perkins loans....................... 1,875 1,875 1,875
Leveraging Educational Assistance
Partnership......................... 1,000 1,000 0
NUMBER OF STUDENTS AIDED
[in thousands]
Unduplicated student count.......... 8,385 8,855 9,241
ADMINISTRATIVE PAYMENTS TO INSTITUTIONS
[in thousands of dollars]
2003 2004 2005
Pell grants......................... 25,705 26,720 26,680
Work-study.......................... 75,216 74,762 74,762
Supplemental educational opportunity
grants.............................. 38,482 39,010 39,010
Perkins loans....................... 48,055 50,515 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)
2003 actual 2004 est. 2005 est.
Outstanding defaulted loans,
beginning of year:
Assigned defaulted loans \1\...... 321 325 320
Unassigned defaulted loans \2\.... 913 895 876
New defaulted loans................. 124 128 136
Collections on assigned loans....... -25 -31 -37
Collections on unassigned loans..... -107 -112 -117
Write-offs for assigned loans....... -3 -4 -4
Write-offs for unassigned loans..... -4 -5 -6
------------------------------------
Outstanding defaulted loans, end of
year................................ 1,219 1,196 1,168
====================================
\1\ Permanently assigned to the Federal Government for collection.
\2\ Unassigned loans at institutions.
Student Financial Assistance
(Legislative proposal, not subject to PAYGO)
Status of Direct Loans (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0200-0-1-502 2003 actual 2004 est. 2005 est.
----------------------------------------------------------------------------
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 321 325 320
1251 Repayments: Repayments and
prepayments..................... -25 -31 -37
Write-offs for default:
1263 Direct loans.................... -3 -4 -4
1264 Other adjustments, net.......... 32 30 31
--------- --------- ----------
1290 Outstanding, end of year........ 325 320 310
---------------------------------------------------------------------------
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0200-2-1-502 2003 actual 2004 est. 2005 est.
----------------------------------------------------------------------------
Obligations by program activity:
Federal Pell grants:
01.01 Federal Pell grants............. 10,007
01.02 Enhanced Pell Grants for State
Scholars...................... 26
--------- --------- ----------
01.91 Direct Program by Activities--
Subtotal (1 level).......... 10,033
--------- --------- ----------
01.92 Subtotal, Federal Pell Grants... 10,033
Campus-based aid:
02.01 Federal supplemental educational
opportunity grants (SEOG)..... 770
02.02 Federal work-study.............. 999
02.05 Federal Perkins loans: Loan
cancellations................. 67
--------- --------- ----------
02.91 Subtotal, Campus-based
activities.................. 1,836
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 11,869
Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 14,699
23.95 Total new obligations............. -11,869
24.40 Unobligated balance carried
forward, end of year............ 2,830
New budget authority (gross), detail:
Discretionary:
40.00 Appropriation................... 14,699
Change in obligated balances:
73.10 Total new obligations............. 11,869
73.20 Total outlays (gross)............. -7,158
74.40 Obligated balance, end of year.... 4,711
Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 7,158
Net budget authority and outlays:
89.00 Budget authority.................. 14,699
90.00 Outlays........................... 7,158
---------------------------------------------------------------------------
The resources in this schedule are proposed for later transmittal
under proposed legislation to reauthorize the Higher Education Act.
Together with matching funds, this funding would provide nearly 8.3
million awards totaling more than $16 billion in available aid.
Federal Pell Grants.--Pell Grants are the single largest source of
grant aid for postsecondary education. This year, more than five million
undergraduates will receive up to $4,050 to help pay for postsecondary
education. 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
$12.830 billion for Pell Grants in the 2005 Budget. Based on current
estimates, this should provide sufficient funding for every Pell Grant
that will be awarded to students in the 2005-2006 school year.
However, the Pell Grant program also has a $3.7 billion funding
shortfall that requires it to borrow from the subsequent year's
appropriation to pay for program costs. This shortfall is largely due to
recent underfunding. For instance, in last year's budget the
Administration requested $12.7 billion for Pell Grants to pay for both
student awards in the 2004-2005 school year and part of the shortfall.
The Congress, however, increased the cost of the Pell Grant program and
provided less money than requested. We now expect the Pell Grant
shortfall to increase to $3.7 billion this year, $1 billion more than
the shortfall was in 2003 and $2.3 billion more than 2002. The
Administration will work closely with the Congress to provide sufficient
funding for Pell Grants in the 2005-2006 school year, and retire the
shortfall.
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
[[Page 362]]
tax data to ensure that students do not receive awards that are higher
or lower than the amount for which they are eligible. This is one
component of the Administration's efforts to reduce erroneous payments
governmentwide. This proposal is projected to save $50 million in Pell
Grant costs in 2005. Savings are expected to grow substantially in
future years when the Department of Education fully implements this
match.
Enhanced Pell Grants for State Scholars.--The Administration
proposes to establish a $33 million pilot within the Pell Grant program
to encourage students and States to participate in the State Scholars
program. This pilot program would provide up to an additional $1,000 to
students who complete the rigorous State Scholars curriculum in high
school. Students who complete a rigorous curriculum--with at least three
years of mathematics and science, as well as four years of English and
social studies, and courses in foreign language--are more successful in
pursuing and completing further education. Currently, thirteen states
participate in the State Scholars program. Although this pilot will
operate within the larger Pell Grant program, total funding will be
capped at the $33 million level. If recipients qualify for more than
this amount, a process will be developed to allocate awards within the
available funding level.
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.
The allocation formula for the three campus-based programs has
historically distributed a disproportionate share of funding to schools
with a long history of program participation. The PART found that this
statutory formula for allocating funding to schools fails to target aid
to the neediest students. Beginning in 2005, the Administration proposes
to phase-in a revised allocation formula under which funding
distributions are based more directly on institutional need.
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 $770 million for the SEOG program in
2005. This level of funding would provide approximately $975 million in
aid to an estimated 1.3 million needy students.
Federal Work Study.--Federal funds are awarded by formula to
qualifying institutions, which provide part-time jobs to eligible
undergraduate and graduate students. Hourly earnings under this 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
$999 million for the Federal Work Study program, which will provide $1.2
billion in aid to over one million students.
The Federal Work Study program also requires participating
institutions to use at least 7 percent of the total funds granted to
compensate students employed in community service jobs. However, the
PART found that, while institutions placed an average of 15 percent of
their students in community service jobs, many institutions (including
many ``elite'' colleges and universities) fail to meet even the 7
percent requirement. To address this issue, the Administration proposes
to replace the 7 percent community service requirement with a separate
set-aside for community service equal to 20 percent of the Work Study
appropriation. Schools would apply for these community service funds
separate from their regular allocation.
Perkins Loan Program.--Institutions award low-interest loans from
Federal revolving funds held at institutions, 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 2005. The PART found that the program is redundant and
duplicative, given the broad availability of need-based, subsidized,
relatively low interest loans available through the two larger student
loan programs (Family Federal Education Loans and Direct Student Loans).
Plus, 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 2005.
Perkins Loan Program--Cancellations.--The Department of Education
reimburses Federal revolving funds held at institutions for cancelled
Perkins loans. Under the Higher Education Act, borrowers are eligible to
have some or all of their Perkins loan repayment obligation cancelled if
they enter certain fields of public service after graduation. Perkins
loan balances are also cancelled in the event of a borrower's death, or
total and permanent disability. In general, the revolving funds are
reimbursed for 100 percent of the principal and accrued interest of the
loan cancelled. The Administration's budget proposal for Perkins Loan
cancellations is $66.5 million.
Student Aid Administration
For Federal administrative expenses (in addition to funds made
available under section 458), to carry out part D of title I, and
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, [$118,010,000]
$934,639,000, which shall remain available through September 30, 2006,
of which not more than $195,000,000 shall be for account maintenance
fees for fiscal year 2005 that are payable to guaranty agencies under
part B and are calculated in accordance with section 458 of the Act.
(Division E, H.R. 2673, Consolidated Appropriations Bill, FY 2004.)
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0202-0-1-502 2003 actual 2004 est. 2005 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Student aid administration........ 79 117 935
--------- --------- ----------
10.00 Total new obligations........... 79 117 935
Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 79 117 935
23.95 Total new obligations............. -79 -117 -935
New budget authority (gross), detail:
Discretionary:
40.00 Appropriation................... 105 117 935
41.00 Transferred to other accounts... -26
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 79 117 935
Change in obligated balances:
72.40 Obligated balance, start of year.. 35 44
73.10 Total new obligations............. 79 117 935
73.20 Total outlays (gross)............. -44 -108 -637
74.40 Obligated balance, end of year.... 35 44 342
Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 44 82 607
86.93 Outlays from discretionary
balances........................ 26 30
--------- --------- ----------
87.00 Total outlays (gross)........... 44 108 637
Net budget authority and outlays:
89.00 Budget authority.................. 79 117 935
90.00 Outlays........................... 44 108 637
---------------------------------------------------------------------------
[[Page 363]]
The Department of Education manages Federal student aid programs
that will provide over $67 billion in Federal student aid grants and
loans to over 9 million students and parents in 2005. Primary
responsibility for administering these programs lies with the Office of
Postsecondary Education and the performance-based Office of Federal
Student Aid (FSA). FSA 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 two main sources: (1) funds appropriated on a permanent basis under
section 458 of the Higher Education Act and (2) a discretionary
appropriation partially supporting student aid administrative
activities. Student aid administrative funds for 2004 totaled $912
million, $195 million of which supported the payment of account
maintenance fees to FFEL guaranty agencies.
The budget for 2005 includes $935 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 2003 actual 2004 est. 2005 est.
----------------------------------------------------------------------------
Personnel compensation:
11.1 Full-time permanent............. 23 43 94
11.5 Other personnel compensation.... 1 2 3
--------- --------- ----------
11.9 Total personnel compensation.. 24 45 97
12.1 Civilian personnel benefits....... 5 10 21
21.0 Travel and transportation of
persons......................... 4
23.1 Rental payments to GSA............ 5 7 14
23.3 Communications, utilities, and
miscellaneous charges........... 3 7 26
24.0 Printing and reproduction......... 4 3 8
25.1 Advisory and assistance services.. 5
25.2 Other services.................... 1 2 27
25.3 Other purchases of goods and
services from Government
accounts........................ 2 2 26
25.7 Operation and maintenance of
equipment....................... 34 38 507
26.0 Supplies and materials............ 1
31.0 Equipment......................... 1 3 4
41.0 Grants, subsidies, and
contributions................... 195
--------- --------- ----------
99.9 Total new obligations........... 79 117 935
---------------------------------------------------------------------------
Personnel Summary
----------------------------------------------------------------------------
Identification code 91-0202-0-1-502 2003 actual 2004 est. 2005 est.
----------------------------------------------------------------------------
1001 Total compensable workyears:
Civilian full-time equivalent
employment...................... 313 533 1,140
---------------------------------------------------------------------------
Federal Student Loan Reserve Fund
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-4257-0-3-502 2003 actual 2004 est. 2005 est.
----------------------------------------------------------------------------
Obligations by program activity:
01.02 Obligations, non-federal.......... 4,415 6,454 7,389
--------- --------- ----------
10.00 Total new obligations (object
class 42.0)................... 4,415 6,454 7,389
Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 1,169 1,107 918
22.00 New budget authority (gross)...... 4,354 6,265 7,347
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 5,523 7,372 8,265
23.95 Total new obligations............. -4,415 -6,454 -7,389
24.40 Unobligated balance carried
forward, end of year............ 1,107 918 876
New budget authority (gross), detail:
Mandatory:
69.00 Offsetting collections (cash)... 4,354 6,265 7,347
Change in obligated balances:
73.10 Total new obligations............. 4,415 6,454 7,389
73.20 Total outlays (gross)............. -4,416 -6,454 -7,389
Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 4,354 6,265 7,347
86.98 Outlays from mandatory balances... 62 189 42
--------- --------- ----------
87.00 Total outlays (gross)........... 4,416 6,454 7,389
Offsets:
Against gross budget authority and outlays:
Offsetting collections (cash)
from:
88.00 Federal sources............... -4,031 -5,913 -6,950
88.40 Non-Federal sources........... -323 -352 -397
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -4,354 -6,265 -7,347
Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays........................... 62 189 42
---------------------------------------------------------------------------
Summary of Budget Authority and Outlays
(in millions of dollars)
2003 actual 2004 est. 2005 est.
Enacted/requested:
Budget Authority..................
Outlays........................... 62 189 42
Legislative proposal, subject to
PAYGO:
Budget Authority..................
Outlays........................... -246
------------------------------------
Total:
Budget Authority..................
Outlays........................... 62 189 -204
====================================
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. The
following schedules reflect the balances in these guaranty agency funds.
Balance Sheet (in millions of dollars)
-----------------------------------------------------------------------------------------------
Identification code 91-4257-0-3-502 2002 actual 2003 actual 2004 est. 2005 est.
-----------------------------------------------------------------------------------------------
ASSETS:
1101 Federal assets: Fund balances with
Treasury........................ 1,169 1,107
------------ -------------- ------------ -------------
1999 Total assets.................... 1,169 1,107
NET POSITION:
3300 Cumulative results of operations.. 1,169 1,107
------------ -------------- ------------ -------------
3999 Total net position.............. 1,169 1,107
------------ -------------- ------------ -------------
4999 Total liabilities and net position 1,169 1,107
-----------------------------------------------------------------------------------------------
Note: Consistent with Government-wide practice, information for 2004
and 2005 was not required to be collected.
Federal Student Loan Reserve Fund
(Legislative proposal, subject to PAYGO)
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-4257-4-3-502 2003 actual 2004 est. 2005 est.
----------------------------------------------------------------------------
Obligations by program activity:
01.02 Obligations, non-federal.......... 251
--------- --------- ----------
10.00 Total new obligations (object
class 42.0)................... 251
Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 497
23.95 Total new obligations............. -251
[[Page 364]]
24.40 Unobligated balance carried
forward, end of year............ 246
New budget authority (gross), detail:
Mandatory:
69.00 Offsetting collections (cash)... 497
Change in obligated balances:
73.10 Total new obligations............. 251
73.20 Total outlays (gross)............. -251
Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 251
Offsets:
Against gross budget authority and outlays:
88.40 Offsetting collections (cash)
from: Non-Federal sources..... -497
Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays........................... -246
---------------------------------------------------------------------------
A description of how the Administration's legislative proposal will
affect the Federal Student Loan Reserve Fund is included under the
Federal Direct Student Loan Program Account.
Credit accounts:
Federal Direct Student Loan Program, Program Account
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0243-0-1-502 2003 actual 2004 est. 2005 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.05 Upward Restimate Principal........ 3,721 2,102
00.06 Interest on Upward Reestimate..... 870 627
00.09 Administrative expenses........... 791 795
--------- --------- ----------
10.00 Total new obligations........... 5,381 3,524
Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 14 26
22.00 New budget authority (gross)...... 5,387 3,524
22.10 Resources available from
recoveries of prior year
obligations..................... 7
22.40 Capital transfer to general fund.. -26
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 5,408 3,524
23.95 Total new obligations............. -5,381 -3,524
24.40 Unobligated balance carried
forward, end of year............ 26
New budget authority (gross), detail:
Discretionary:
40.00 Appropriation................... -795
Mandatory:
60.00 Appropriation................... 795 795 795
60.00 Appropriation (indefinite)--
Upward reestimate............. 4,591 2,729
--------- --------- ----------
62.50 Appropriation (total
mandatory).................. 5,386 3,524 795
69.00 Offsetting collections (cash)--
negative subsidy................ 366 245 492
69.00 Offsetting collections (cash)--
downward reestimate, principal.. 97
69.00 Offsetting collections (cash)--
downward reestimate,interest.... 6
69.10 Change in uncollected customer
payments from Federal sources
(unexpired)..................... 1
69.27 Capital transfer to general fund.. -366 -348 -492
--------- --------- ----------
69.90 Spending authority from
offsetting collections (total
mandatory).................... 1
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 5,387 3,524
Change in obligated balances:
72.40 Obligated balance, start of year.. 302 255 323
73.10 Total new obligations............. 5,381 3,524
73.20 Total outlays (gross)............. -5,421 -3,456 -208
73.45 Recoveries of prior year
obligations..................... -7
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... -1
74.40 Obligated balance, end of year.... 255 323 116
Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... -515
86.97 Outlays from new mandatory
authority....................... 5,165 3,242 515
86.98 Outlays from mandatory balances... 256 214 208
--------- --------- ----------
87.00 Total outlays (gross)........... 5,421 3,456 208
Offsets:
Against gross budget authority and outlays:
88.00 Offsetting collections (cash)
from: Federal sources......... -366 -348 -492
Against gross budget authority only:
88.95 Change in uncollected customer
payments from Federal sources
(unexpired)................... -1
Net budget authority and outlays:
89.00 Budget authority.................. 5,020 3,176 -492
90.00 Outlays........................... 5,054 3,108 -284
---------------------------------------------------------------------------
Summary of Budget Authority and Outlays
(in millions of dollars)
2003 actual 2004 est. 2005 est.
Enacted/requested:
Budget Authority.................. 5,020 3,176 -492
Outlays........................... 5,055 3,108 -284
Legislative proposal, subject to
PAYGO:
Budget Authority..................
Outlays...........................
------------------------------------
Total:
Budget Authority.................. 5,020 3,176 -492
Outlays........................... 5,055 3,108 -284
====================================
Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0243-0-1-502 2003 actual 2004 est. 2005 est.
----------------------------------------------------------------------------
Direct loan levels supportable by subsidy
budget authority:
115001Stafford.......................... 6,613 6,962 7,370
115002Unsubsidized Stafford............. 5,497 5,648 6,115
115003PLUS.............................. 1,732 2,049 2,309
115004Consolidation..................... 7,363 6,354 6,385
--------- --------- ----------
115901Total direct loan levels.......... 21,205 21,013 22,179
Direct loan subsidy (in percent):
132001Stafford.......................... 3.63 4.03 3.06
132002Unsubsidized Stafford............. -6.20 -5.48 -8.58
132003PLUS.............................. -6.53 -6.68 -8.96
132004Consolidation..................... -1.42 -1.33 -2.16
--------- --------- ----------
132901Weighted average subsidy rate..... -1.50 -1.19 -2.90
Direct loan subsidy budget authority:
133001Stafford.......................... 240 281 226
133002Unsubsidized Stafford............. -341 -309 -525
133003PLUS.............................. -113 -137 -207
133004Consolidation..................... -104 -85 -138
--------- --------- ----------
133901Total subsidy budget authority.... -318 -250 -644
Direct loan subsidy outlays:
134001Stafford.......................... 213 245 221
134002Unsubsidized Stafford............. -369 -284 -402
134003PLUS.............................. -109 -122 -175
134004Consolidation..................... -102 -84 -136
--------- --------- ----------
134901Total subsidy outlays............. -367 -245 -492
Direct loan upward reestimate subsidy budget
authority:
135001Stafford.......................... 1,538 1,180
135002Unsubsidized Stafford............. 3,141 1,305
135003PLUS.............................. 603 241
135004Consolidation..................... 73 619
--------- --------- ----------
135901Total upward reestimate budget
authority....................... 5,355 3,345
Direct loan downward reestimate subsidy budget
authority:
137001Stafford.......................... -32 -88
137003PLUS.............................. -17
137004Consolidation..................... -732 -613
--------- --------- ----------
137901Total downward reestimate budget
authority....................... -764 -718
----------------------------------------------------------------------------
Student loan administrative expense data:
351001Budget authority.................. 795 795
359001Outlays........................... 830 727 208
---------------------------------------------------------------------------
The Federal Government operates two major student loan programs: the
Federal Family Education Loan (FFEL) pro
[[Page 365]]
gram--formerly the Guaranteed Student Loan (GSL) program--and the
William D. Ford Federal Direct Loan (Direct Loan) program. For 2005, 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 2005
budget, the President is proposing a package of policy proposals related
to the reauthorization of the Higher Education Act (HEA). These
proposals, which will expand student benefits and improve program
efficiency, are discussed as part of this program description.
From its inception in 1965 through 2003, the FFEL program has
provided over $467 billion in loans to postsecondary students and their
parents. Since July 1, 1994, the Direct Loan program has provided $135
billion in new and consolidation loans to students and parents. Taken
together, the FFEL and Direct Loan programs will make more than $52
billion in new loans available in 2004. 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 25 percent in academic year 2004-2005. 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.
Annual and aggregate loan limits are the same across the two
programs. In order to help students meet increasing higher education
costs, the Administration is proposing to increase loan limits for
first-year students from $2,625 to $3,000. This limit has not been
raised since 1986 and, when taking origination fees into account, has
essentially remained unchanged since the early 1970's. This proposal
will increase FFEL and Direct Loan costs by $775 million over 2005-2014.
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.
The borrower rate on Stafford and Unsubsidized Stafford Loans is
scheduled to be fixed at 6.8 percent for new loans beginning July 1,
2006. Under current interest rate projections, this would result in a
substantial increase in interest rates for most borrowers. The
Administration is proposing to eliminate the scheduled change and
maintain the current variable interest rate formula, at a cost of $1.8
billion over 2006-2014.
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.
Loans funded with the proceeds of tax-exempt securities originally
issued before October 1, 1993, receive substantially higher special
allowance payments than are currently paid on other types of loans. Loan
holders are currently able to retain these higher benefits indefinitely
by refinancing the underlying securities. The Administration is
proposing to eliminate this refinancing provision, reducing special
allowance payments by $4.9 billion over 2005-2014.
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.
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. In order to assure equal terms for FFEL borrowers, as well as
strengthen the financial stability of the guaranty agency system, the
Administration is proposing that agencies be required to collect the 1
percent insurance premium on all loans guaranteed or disbursed after
October 1, 2004. This change will increase the Federal Student Loan
Reserve Fund account by $3.8 billion over 2005-2014.
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.
[[Page 366]]
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.
To standardize loan terms and help borrowers manage their debt, the
Administration is proposing to standardize extended repayment terms in
the FFEL and Direct Loan programs. Under this proposal, the repayment
term for borrowers in both programs would be up to: 12 years for
balances between $7,500 and $10,000; 15 years between $10,000 and
$20,000; 20 years between $20,000 and $40,000; 25 years between $40,000
and $60,000; and 30 years in excess of $60,000. This change will cost $1
billion over 2005-2014.
Beyond the proposals discussed above, the Budget provides $3 billion
over 10 years for additional student benefits. These additional
proposals--which could include reduced fees, default prevention
activities, or additional loan limit increases--will be developed in
consultation with Congress as part of the HEA reauthorization process.
The Budget allocates this $3 billion over 10 years across three
accounts: (i) Approximately $400 million in the Direct Loan account;
(ii) approximately $1.2 billion in the FFEL account; and (iii)
approximately $1.4 billion in the Federal Student Loan Reserve Fund
account (which realizes increased revenues through the universal
imposition of the 1 percent insurance premium). Under the current budget
structure, student benefits funded in the Federal Student Loan Reserve
Fund account do not affect subsidy calculations in the FFEL and DL
accounts. If the Administration's negotiations with Congress result in
some or all of the $1.4 billion in student benefits being shifted into
the FFEL and/or DL accounts, the FFEL and/or DL subsidy rates would
change. However, any such shift will not affect the net budgetary effect
of the Administration's HEA proposals.
The Administration also proposes to reinstate two expired provisions
affecting institutions with cohort default rates of less than 10 percent
for the three most recent fiscal years. This proposal would exempt these
institutions from the requirement that loans to first-year students be
delayed for 30 days prior to disbursement. It would also exempt these
schools from the requirement that loans be issued in at least two
separate disbursements.
Finally, the Administration proposes to clarify a current provision
under which student aid applicants who have been convicted of a drug-
related offense are ineligible for Federal student aid. Under this
proposal, the current provision would only affect students who commit a
drug-related offense while enrolled in higher education; offenses that
occur prior to enrollment would not be subject to this provision.
Student loan program administration activities are supported from
two sources, including a permanent appropriation authorized under
Section 458 of the Higher Education Act and a discretionary student aid
administration appropriation. In order to improve accountability and
simplify the funding process for these administrative activities, the
President is proposing to combine all funding in the 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)
----------------------------------------------------------------------------
2003 actual 2004 est. 2005 est.
----------------------------------------------------------------------------
Program Cost:
FFEL:
Liquidating \1\....................... (755,570) (953,905) (816,743)
Program:
Regular............................. 3,769,228 4,093,939 4,266,168
Consolidation....................... 2,632,419 2,075,121 729,635
Reestimate of Prior Year Costs...... (2,979,866) 0 0
Non-Contractual Modifications \2\... 0 0 0
--------- --------- ----------
Subtotal, Program................. 3,421,781 6,169,060 4,995,803
--------- --------- ----------
Total FFEL...................... 2,666,210 5,215,155 4,179,059
Direct Loans:
Program:
Regular............................. (679,331) (979,690) (1,167,196)
Consolidation....................... 191,199 69,623 (246,814)
Reestimate of Prior Year Costs...... 4,590,922 0 0
Non-Contractual Modifications \2\... 0 0 0
Total, Direct Loans............. 4,102,790 (910,067) (1,414,010)
Student Aid Administration \3\.......... 0 0 0
Total, FFEL and Direct Loans.... 6,769,001 4,305,087 2,765,049
Program Cost Outlays:
FFEL:
Liquidating \1\....................... (1,700,833) (897,374) (816,743)
Program:
Regular............................. 3,161,836 3,505,515 3,690,099
Consolidation....................... 2,596,007 2,049,157 721,633
Reestimate of Prior Year Costs...... (2,979,866 0 0
Non-Contractual Modifications \2\... 0 0 0
--------- --------- ----------
Subtotal, Program................. 2,777,976 5,554,672 4,411,732
--------- --------- ----------
Total, FFEL..................... 1,077,143 4,657,298 3,594,988
Direct Loans:
Program:
Regular............................. (679,331) (979,690) (1,167,196)
Consolidation....................... 191,199 69,623 (246,814)
Reestimate of Prior Year Costs...... 4,590,922 0 0
Non-Contractual Modifications \2\... 0 0 0
--------- --------- ----------
Total, Direct Loans............. 4,102,790 (910,067) (1,414,010)
Student Aid Administration \3\.......... 0 0 0
Total, FFEL and Direct Loans.... 5,179,933 3,747,230 2,180,978
---------------------------------------------------------------------------
\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\ 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\
----------------------------------------------------------------------------
2003 est. 2004 est. 2005 est.
----------------------------------------------------------------------------
FFEL:
Stafford.............................. 15,618 17,699 19,052
Unsubsidized Stafford................. 14,186 16,406 18,012
PLUS.................................. 3,987 4,874 5,524
--------- --------- ----------
Subtotal............................ 33,791 38,978 42,588
Consolidation......................... 34,935 25,605 22,048
--------- --------- ----------
Total, FFEL......................... 68,726 64,583 64,637
Direct Loans:
Stafford.............................. 5,790 6,309 6,738
Unsubsidized Stafford................. 4,519 4,963 5,396
PLUS.................................. 1,660 1,947 2,195
--------- --------- ----------
Subtotal............................ 11,969 13,219 14,329
Consolidation......................... 6,657 6,276 6,320
--------- --------- ----------
Total, Direct Loans................. 18,626 19,496 20,649
Total, All Loans.................... 87,352 84,079 85,286
---------------------------------------------------------------------------
\1\ Net commitments equal gross commitments minus loan cancellations.
[[Page 367]]
Number of Loans (in thousands)
----------------------------------------------------------------------------
2003 est. 2004 est. 2005 est.
----------------------------------------------------------------------------
FFEL:
Stafford.............................. 4,566 5,152 5,486
Unsubsidized Stafford................. 3,392 3,871 4,172
PLUS.................................. 470 542 583
--------- --------- ----------
Subtotal............................ 8,429 9,564 10,241
Consolidation......................... 1,252 916 780
--------- --------- ----------
Total, FFEL......................... 9,681 10,480 11,021
Direct Loans:
Stafford.............................. 1,608 1,717 1,816
Unsubsidized Stafford................. 1,119 1,182 1,265
PLUS.................................. 210 230 247
--------- --------- ----------
Subtotal............................ 2,937 3,129 3,328
Consolidation......................... 298 270 261
--------- --------- ----------
Total, Direct Loans................. 3,236 3,400 3,590
Total, All Loans.................... 12,917 13,880 14,611
---------------------------------------------------------------------------
Average Loan Size (in whole dollars)
----------------------------------------------------------------------------
2003 est. 2004 est. 2005 est.
----------------------------------------------------------------------------
FFEL:
Stafford.............................. 3,420 3,435 3,473
Unsubsidized Stafford................. 4,182 4,239 4,318
PLUS.................................. 8,475 9,000 9,469
--------- --------- ----------
Weighted Average, without
Consolidations.................... 4,009 4,076 4,158
--------- --------- ----------
Consolidation......................... 27,907 27,950 28,284
--------- --------- ----------
Weighted Average, FFEL.............. 7,099 6,162 5,865
Direct Loans:
Stafford.............................. 3,600 3,674 3,710
Unsubsidized Stafford................. 4,040 4,199 4,265
PLUS.................................. 7,889 8,461 8,878
--------- --------- ----------
Weighted Average, without
Consolidations.................... 4,075 4,224 4,305
--------- --------- ----------
Consolidation......................... 22,319 23,209 24,183
--------- --------- ----------
Weighted Average, Direct Loans...... 5,757 5,734 5,752
Weighted Average, All Loans......... 6,763 6,058 5,837
---------------------------------------------------------------------------
Summary of Subsidy, Default and Interest Rates
----------------------------------------------------------------------------
2003 est. 2004 est. 2005 est.
----------------------------------------------------------------------------
Subsidy Rates (in percent) \1\
FFEL:
Stafford.............................. 13.84% 15.51% 16.37%
Unsubsidized Stafford................. 3.91% 4.19% 3.38%
PLUS.................................. 1.95% 1.76% 1.43%
Consolidation......................... 6.11% 9.54% 10.82%
Weighted Average, FFEL.............. 7.22% 9.19% 9.49%
Direct Loans:
Stafford.............................. 7.96% 4.03% 3.05%
Unsubsidized Stafford................. 0.08% -5.48% -8.68%
PLUS.................................. -1.95% -6.68% -9.07%
Consolidation......................... -8.16% -1.33% -2.14%
Weighted Average, Direct Loans...... -0.36% -1.19% -2.93%
Default Rates (in percent) \2\
FFEL:
Stafford.............................. 12.80 12.93 13.09
Unsubsidized Stafford................. 12.17 12.31 12.41
PLUS.................................. 6.44 6.44 6.44
Consolidation......................... 15.46 15.33 15.60
Weighted Average, FFEL.............. 13.65 13.23 13.19
Direct Loans:
Stafford.............................. 11.47 11.56 11.69
Unsubsidized Stafford................. 11.58 11.55 11.65
PLUS.................................. 5.57 5.61 5.63
Consolidation......................... 30.91 28.50 26.63
Weighted Average, Direct Loans...... 17.92 16.42 15.61
Borrower Interest Rates (in percent) \3\
FFEL:
Stafford.............................. 6.50 6.72 6.79
Unsubsidized Stafford................. 6.50 6.72 6.79
PLUS.................................. 5.54 5.88 6.39
Consolidation (reflects Sub and Unsub
Stafford only)...................... 4.58 4.06 4.34
Direct Loans:
Stafford.............................. 6.50 6.72 6.79
Unsubsidized Stafford................. 6.50 6.72 6.79
PLUS.................................. 5.54 5.88 6.39
Consolidation (reflects Sub and Unsub
Stafford only)...................... 4.99 4.53 4.84
---------------------------------------------------------------------------
\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 two years of repayment to determine institutional eligibility to
participate in Federal loan programs. These two-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.
Selected Program Costs and Offsets \1\ (in thousands of dollars)
----------------------------------------------------------------------------
2003 actual 2004 est. 2005 est.
----------------------------------------------------------------------------
FFEL:
Interest costs:
Interest benefits:
FFEL Liquidating...................... 27,478 0 0
FFEL Program.......................... 1,196,434 1,009,011 1,253,472
--------- --------- ----------
Total............................... 1,223,913 1,009,011 1,253,472
Special allowance
FFEL Liquidating...................... 2,776 0 181
FFEL Program.......................... 449,325 783,549 2,542,307
--------- --------- ----------
Total............................... 452,101 783,549 2,542,487
Default costs and offsets:
Default claims:
FFEL Liquidating...................... 121,969 0 0
FFEL Program.......................... 2,751,692 3,845,840 4,369,511
--------- --------- ----------
Total............................... 2,873,661 3,845,840 4,369,511
Net default collections:
FFEL Liquidating...................... 1,950,621 0 0
FFEL Program.......................... 2,021,970 2,338,724 2,805,257
--------- --------- ----------
Total............................... 3,972,591 2,338,724 2,805,257
Contract collection costs:
FFEL Liquidating...................... 112,140 0 0
FFEL Program.......................... 60,196 52,705 61,159
--------- --------- ----------
Total............................... 172,336 52,705 61,159
Death, disability, and bankruptcy costs:
FFEL Liquidating.................... 35,048 0 0
FFEL Program........................ 599,056 723,247 851,032
--------- --------- ----------
Total............................... 634,104 723,247 851,032
Fees:
Borrower origination fees............. 933,028 1,123,335 1,246,185
Lender origination fee................ 327,447 315,365 317,964
Sallie Mae offset fee................. 44,546 43,400 5,307
Consolidation loan holder fees........ 743,337 914,630 1,022,085
Direct Loans:
Borrower repayments................... 16,003,203 0 0
Borrower origination fees............. 365,493 402,675 442,105
Net default Collections............... 518,616 1,819,669 2,099,480
Contact Collection Costs.............. 88,664 90,605 122,288
Administrative Costs: \2\
Student Aid Administration............ 0 0 0
Guaranty agency administrative payments:
Account Maintenance Fee (included in
Student Aid Administration)....... 195,000 195,000 195,000
Loan Processing and Issuance Fee...... 173,366 179,433 196,180
---------------------------------------------------------------------------
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 2005, no funds are requested for loan administration, as these
costs would be part of the proposed discretionary Student Aid Administration
account.
Object Classification (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0243-0-1-502 2003 actual 2004 est. 2005 est.
----------------------------------------------------------------------------
Personnel compensation:
11.1 Full-time permanent............. 45 49
11.3 Other than full-time permanent.. 1
11.5 Other personnel compensation.... 1 2
--------- --------- ----------
11.9 Total personnel compensation.. 47 51
[[Page 368]]
12.1 Civilian personnel benefits....... 11 11
21.0 Travel and transportation of
persons......................... 3 3
23.1 Rental payments to GSA............ 7 7
23.3 Communications, utilities, and
miscellaneous charges........... 41 18
24.0 Printing and reproduction......... 6 5
25.1 Advisory and assistance services.. 6 6
25.2 Other services.................... 20 24
25.3 Other purchases of goods and
services from Government
accounts........................ 12 13
25.6 Training.......................... 3 3
25.7 Operation and maintenance of
equipment....................... 437 455
31.0 Equipment......................... 2 3
32.0 Land and structures............... 1
41.0 Grants, subsidies, and
contributions................... 4,786 2,924
--------- --------- ----------
99.9 Total new obligations........... 5,381 3,524
---------------------------------------------------------------------------
Personnel Summary
----------------------------------------------------------------------------
Identification code 91-0243-0-1-502 2003 actual 2004 est. 2005 est.
----------------------------------------------------------------------------
1001 Total compensable workyears:
Civilian full-time equivalent
employment...................... 589 607
---------------------------------------------------------------------------
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 2003 actual 2004 est. 2005 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.03 Loan modifications................ 5
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 5
Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 5
23.95 Total new obligations............. -5
New budget authority (gross), detail:
Mandatory:
60.00 Appropriation................... 5
69.00 Offsetting collections (cash)--
negative subsidy................ 5
69.27 Capital transfer to general fund.. -5
--------- --------- ----------
69.90 Spending authority from
offsetting collections (total
mandatory)....................
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 5
Change in obligated balances:
73.10 Total new obligations............. 5
73.20 Total outlays (gross)............. -5
Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 5
Offsets:
Against gross budget authority and outlays:
88.00 Offsetting collections (cash)
from: Federal sources......... -5
Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................
---------------------------------------------------------------------------
A description of how the Administration's legislative proposal will
affect the Direct Loan program is included in the preceding discussion
under the Federal Direct Student Loan Program Account.
Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0243-4-1-502 2003 actual 2004 est. 2005 est.
----------------------------------------------------------------------------
Direct loan levels supportable by subsidy
budget authority:
115001Stafford.......................... 67
115002Unsubsidized Stafford............. 26
115003PLUS.............................. 2
115004Consolidation..................... 13
--------- --------- ----------
115901Total direct loan levels.......... 108
Direct loan subsidy (in percent):
132001Stafford.......................... -0.01
132002Unsubsidized Stafford............. -0.10
132003PLUS.............................. -0.11
132004Consolidation..................... 0.02
--------- --------- ----------
132901Weighted average subsidy rate..... -3.70
Direct loan subsidy budget authority:
133001Stafford.......................... 1
133002Unsubsidized Stafford............. -8
133003PLUS.............................. -3
133004Consolidation..................... 1
133005subsidy for loan modifications.... 5
--------- --------- ----------
133901Total subsidy budget authority.... -4
Direct loan subsidy outlays:
134001Stafford.......................... 1
134002Unsubsidized Stafford............. -5
134003PLUS.............................. -2
134004Consolidation..................... 1
134005Subsidy outlays for loan
modification.................... 5
--------- --------- ----------
134901Total subsidy outlays.............
--------- --------- ----------
135901Total upward reestimate budget
authority.......................
--------- --------- ----------
137901Total downward reestimate budget
authority.......................
---------------------------------------------------------------------------
Federal Direct Student Loan Program, Financing Account
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-4253-0-3-502 2003 actual 2004 est. 2005 est.
----------------------------------------------------------------------------
Obligations by program activity:
Direct loans:
01.01 Stafford........................ 6,776 6,962 7,370
01.02 Unsubsidized Stafford........... 5,381 5,648 6,115
01.03 PLUS............................ 1,901 2,049 2,309
01.04 Consolidated.................... 6,450 6,354 6,385
--------- --------- ----------
01.91 Subtotal, direct loans
obligations................. 20,508 21,013 22,179
Payment for consolidations:
02.01 Interest rate rebate, Stafford.. 84 92 99
02.02 Interest rate rebate,
Unsubsidized Stafford......... 67 72 79
02.03 Interest rate rebate, PLUS...... 24 28 32
--------- --------- ----------
02.91 Direct Program by Activities--
Subtotal (1 level)............ 175 192 210
03.01 Consolidation loans-Payment of
Orig. Services.................. 19 18 17
04.01 Payment of contract collections... 89 91 114
05.01 Interest payment to Treasury...... 6,030 5,198 5,639
Other obligations:
08.01 Obligation of negative subsidy.. 318 250 644
08.02 Payment of downward reestimate
to program account............ 103
--------- --------- ----------
08.91 Direct Program by Activities--
Subtotal (1 level)............ 318 353 644
--------- --------- ----------
10.00 Total new obligations........... 27,139 26,865 28,803
Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 499 503
22.00 New financing authority (gross)... 27,845 26,865 28,803
22.10 Resources available from
recoveries of prior year
obligations..................... 264 1,365 2,380
22.60 Portion applied to repay debt..... -912 -452
22.70 Balance of authority to borrow
withdrawn....................... -54 -1,416 -2,380
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 27,642 26,865 28,803
23.95 Total new obligations............. -27,139 -26,865 -28,803
24.40 Unobligated balance carried
forward, end of year............ 503
New financing authority (gross), detail:
Mandatory:
67.10 Authority to borrow............. 21,726 21,366 22,823
69.00 Offsetting collections (cash)..... 22,554 19,566 16,616
[[Page 369]]
69.47 Portion applied to repay debt..... -16,435 -14,067 -10,636
--------- --------- ----------
69.90 Spending authority from
offsetting collections (total
mandatory).................... 6,119 5,499 5,980
--------- --------- ----------
70.00 Total new financing authority
(gross)....................... 27,845 26,865 28,803
Change in obligated balances:
72.40 Obligated balance, start of year.. 5,404 7,459 8,117
73.10 Total new obligations............. 27,139 26,865 28,803
73.20 Total financing disbursements
(gross)......................... -24,821 -24,841 -26,765
73.45 Recoveries of prior year
obligations..................... -264 -1,365 -2,380
74.40 Obligated balance, end of year.... 7,459 8,117 7,775
87.00 Total financing disbursements
(gross)......................... 24,821 24,841 26,765
Offsets:
Against gross financing authority and
financing disbursements:
Offsetting collections (cash)
from:
Payments from program account:
88.00 Upward reestimate........... -3,721 -2,102
88.00 Upward reestimate, interest. -870 -627
88.25 Interest on uninvested funds.. -1,076
Stafford loans:
88.40 Repayment of principal,
Stafford.................. -5,719 -4,719 -4,315
88.40 Interest received on loans,
Stafford.................. -419 -525 -600
88.40 Origination Fees, Stafford.. -176 -185 -198
88.40 Other fees, Stafford........ -18
88.40 Repayment of principal,
Unsubsidized Stafford..... -4,251 -3,741 -3,488
88.40 Interest received on loans,
Unsubsidized Stafford..... -413 -350 -411
88.40 Origination Fees,
Unsubsidized Stafford..... -140 -144 -158
88.40 Other fees, Unsubsidized
Stafford.................. -9
88.40 Repayment of principal, PLUS -1,379 -1,185 -1,188
88.40 Interest received on loans,
PLUS...................... -180 -197 -245
88.40 Origination Fees, PLUS...... -49 -74 -85
88.40 Other fees, PLUS............ -2
88.40 Payment of principal,
Consolidation............. -3,236 -3,418 -3,440
88.40 Interest received on loans,
Consolidation............. -880 -2,299 -2,488
88.40 Origination / Other fees,
Consolidation............. -16
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -22,554 -19,566 -16,616
Net financing authority and financing
disbursements:
89.00 Financing authority............... 5,291 7,299 12,187
90.00 Financing disbursements........... 2,266 5,275 10,149
---------------------------------------------------------------------------
Status of Direct Loans (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-4253-0-3-502 2003 actual 2004 est. 2005 est.
----------------------------------------------------------------------------
STAFFORD
Position with respect to appropriations act
limitation on obligations:
1111 Limitation on direct loans........
1131 Direct loan obligations exempt
from limitation................. 6,776 6,962 7,370
--------- --------- ----------
1150 Total direct loan obligations... 6,776 6,962 7,370
----------------------------------------------------------------------------
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 27,470 27,420 28,792
1231 Disbursements: Direct loan
disbursements................... 5,663 6,151 6,594
1251 Repayments: Repayments and
prepayments..................... -5,720 -4,719 -4,315
1261 Adjustments: Capitalized interest. 108
1264 Write-offs for default: Other
adjustments, net................ -101 -60 -65
--------- --------- ----------
1290 Outstanding, end of year........ 27,420 28,792 31,006
----------------------------------------------------------------------------
UNSUBSIDIZED STAFFORD
Position with respect to appropriations act
limitation on obligations:
1111 Limitation on direct loans........
1131 Direct loan obligations exempt
from limitation................. 5,381 5,648 6,115
--------- --------- ----------
1150 Total direct loan obligations...
--------- --------- ----------
1150 Total direct loan obligations... 5,381 5,648 6,115
----------------------------------------------------------------------------
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 18,515 19,098 20,523
1231 Disbursements: Direct loan
disbursements................... 4,497 4,806 5,268
1251 Repayments: Repayments and
prepayments..................... -4,251 -3,741 -3,488
1261 Adjustments: Capitalized interest. 407 410 381
1264 Write-offs for default: Other
adjustments, net................ -70 -50 -56
--------- --------- ----------
1290 Outstanding, end of year........ 19,098 20,523 22,628
----------------------------------------------------------------------------
PLUS
Position with respect to appropriations act
limitation on obligations:
1111 Limitation on direct loans........
1131 Direct loan obligations exempt
from limitation................. 1,901 2,049 2,309
--------- --------- ----------
1150 Total direct loan obligations...
--------- --------- ----------
1150 Total direct loan obligations... 1,901 2,049 2,309
----------------------------------------------------------------------------
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 4,279 4,495 5,119
1231 Disbursements: Direct loan
disbursements................... 1,589 1,849 2,124
1251 Repayments: Repayments and
prepayments..................... -1,378 -1,185 -1,188
1261 Adjustments: Capitalized interest. 23
1264 Write-offs for default: Other
adjustments, net................ -18 -40 -46
--------- --------- ----------
1290 Outstanding, end of year........ 4,495 5,119 6,009
----------------------------------------------------------------------------
CONSOLIDATION
Position with respect to appropriations act
limitation on obligations:
1111 Limitation on direct loans........
1131 Direct loan obligations exempt
from limitation................. 6,450 6,354 6,385
--------- --------- ----------
1150 Total direct loan obligations...
--------- --------- ----------
1150 Total direct loan obligations... 6,450 6,354 6,385
----------------------------------------------------------------------------
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 29,807 33,507 36,224
1231 Disbursements: Direct loan
disbursements................... 6,673 6,290 6,307
1251 Repayments: Repayments and
prepayments..................... -3,236 -3,418 -3,440
1261 Adjustments: Capitalized interest. 386
1264 Write-offs for default: Other
adjustments, net................ -123 -155 -175
--------- --------- ----------
1290 Outstanding, end of year........ 33,507 36,224 38,916
---------------------------------------------------------------------------
Balance Sheet (in millions of dollars)
-----------------------------------------------------------------------------------------------
Identification code 91-4253-0-3-502 2002 actual 2003 actual 2004 est. 2005 est.
-----------------------------------------------------------------------------------------------
ASSETS:
1101 Federal assets: Fund balances with
Treasury........................ 970 992
Net value of assets related to
post-1991 direct loans
receivable:
1401 Direct loans receivable, gross.. 80,070 84,520
1402 Interest receivable............. 2,661 2,771
1405 Allowance for subsidy cost (-).. 2,115 -657
------------ -------------- ------------ -------------
1499 Net present value of assets
related to direct loans..... 84,846 86,634
1901 Other Federal assets: Other assets 3,769 4,223
------------ -------------- ------------ -------------
1999 Total assets.................... 89,585 91,849
LIABILITIES:
Federal liabilities:
2101 Accounts payable................ 87 62
2103 Debt............................ 89,498 91,787
------------ -------------- ------------ -------------
2999 Total liabilities............... 89,585 91,849
NET POSITION:
------------ -------------- ------------ -------------
3999 Total net position..............
------------ -------------- ------------ -------------
4999 Total liabilities and net position 89,585 91,849
-----------------------------------------------------------------------------------------------
Note: Consistent with Government-wide practice, information for 2004
and 2005 was not required to be collected.
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 2003 actual 2004 est. 2005 est.
----------------------------------------------------------------------------
Obligations by program activity:
Direct loans:
01.01 Stafford........................ 67
[[Page 370]]
01.02 Unsubsidized Stafford........... 26
01.03 PLUS............................ 2
01.04 Consolidated.................... 13
--------- --------- ----------
01.91 Subtotal, direct loans
obligations................. 108
Payment for consolidations:
02.01 Interest rate rebate, Stafford.. 1
05.01 Interest payment to Treasury...... 1
Other obligations:
08.01 Obligation of negative subsidy.. 9
--------- --------- ----------
10.00 Total new obligations........... 119
Budgetary resources available for obligation:
22.00 New financing authority (gross)... 118
23.95 Total new obligations............. -119
New financing authority (gross), detail:
Mandatory:
60.00 Appropriation................... 1
67.10 Authority to borrow............. 117
69.00 Offsetting collections (cash)..... 8
69.47 Portion applied to repay debt..... -8
--------- --------- ----------
69.90 Spending authority from
offsetting collections (total
mandatory)....................
--------- --------- ----------
70.00 Total new financing authority
(gross)....................... 118
Change in obligated balances:
73.10 Total new obligations............. 119
73.20 Total financing disbursements
(gross)......................... -62
74.40 Obligated balance, end of year.... 57
87.00 Total financing disbursements
(gross)......................... 62
Offsets:
Against gross financing authority and
financing disbursements:
Offsetting collections (cash)
from:
Payments from program account:
88.00 Non-Contractual Modification -5
Stafford loans:
88.40 Origination Fees, Stafford.. -1
88.40 Payment of principal,
Consolidation............. -2
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -8
Net financing authority and financing
disbursements:
89.00 Financing authority............... 110
90.00 Financing disbursements........... 54
---------------------------------------------------------------------------
Federal Family Education Loan Program Account
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0231-0-1-502 2003 actual 2004 est. 2005 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.02 Guaranteed Loan Net Subsidy....... 6,411 6,501 7,146
00.07 Upward reestimate, principal...... 216
00.08 Upward reestimate, interest....... 129
Administrative expenses:
00.09 Administrative expenses......... 12
--------- --------- ----------
10.00 Total new obligations........... 6,423 6,846 7,146
Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 6,423 6,846 7,146
22.10 Resources available from
recoveries of prior year
obligations..................... 413 465 540
22.40 Capital transfer to general fund.. -413 -465 -540
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 6,423 6,846 7,146
23.95 Total new obligations............. -6,423 -6,846 -7,146
New budget authority (gross), detail:
Discretionary:
42.00 Transferred from other accounts. 12
Mandatory:
60.00 Appropriation................... 6,411 6,846 7,146
69.00 Offsetting collections (cash)--
downward reestimate............. 2,980 3,966
69.27 Capital transfer to general fund.. -2,980 -3,966
--------- --------- ----------
69.90 Spending authority from
offsetting collections (total
mandatory)....................
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 6,423 6,846 7,146
Change in obligated balances:
72.40 Obligated balance, start of year.. 1,393 1,506 1,733
73.10 Total new obligations............. 6,423 6,846 7,146
73.20 Total outlays (gross)............. -5,897 -6,154 -6,327
73.45 Recoveries of prior year
obligations..................... -413 -465 -540
74.40 Obligated balance, end of year.... 1,506 1,733 2,012
Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 12
86.93 Outlays from discretionary
balances........................ 12 3
86.97 Outlays from new mandatory
authority....................... 4,909 5,114 5,135
86.98 Outlays from mandatory balances... 964 1,037 1,192
--------- --------- ----------
87.00 Total outlays (gross)........... 5,897 6,154 6,327
Offsets:
Against gross budget authority and outlays:
88.00 Offsetting collections (cash)
from: Federal sources......... -2,980 -3,966
Net budget authority and outlays:
89.00 Budget authority.................. 3,443 2,880 7,146
90.00 Outlays........................... 2,917 2,188 6,327
---------------------------------------------------------------------------
Summary of Budget Authority and Outlays
(in millions of dollars)
2003 actual 2004 est. 2005 est.
Enacted/requested:
Budget Authority.................. 3,443 2,880 7,146
Outlays........................... 2,917 2,188 6,327
Legislative proposal, subject to
PAYGO:
Budget Authority.................. -96
Outlays........................... 57
------------------------------------
Total:
Budget Authority.................. 3,443 2,880 7,050
Outlays........................... 2,917 2,188 6,384
====================================
Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0231-0-1-502 2003 actual 2004 est. 2005 est.
----------------------------------------------------------------------------
Guaranteed loan levels supportable by subsidy
budget authority:
215001Stafford.......................... 16,534 20,186 21,542
215002Unsubsidized Stafford............. 15,584 19,125 20,937
215003PLUS.............................. 4,004 5,547 6,285
215004Consolidation..................... 30,854 25,902 22,297
--------- --------- ----------
215901Total loan guarantee levels....... 66,976 70,760 71,061
Guaranteed loan subsidy (in percent):
232001Stafford.......................... 14.74 15.51 17.38
232002Unsubsidized Stafford............. 6.02 4.19 4.24
232003PLUS.............................. 3.78 1.76 1.72
232004Consolidation..................... 9.35 9.54 10.79
--------- --------- ----------
232901Weighted average subsidy rate..... 9.57 9.19 10.06
Guaranteed loan subsidy budget authority:
233001Stafford.......................... 2,437 3,131 3,744
233002Unsubsidized Stafford............. 938 801 888
233003PLUS.............................. 151 98 108
233004Consolidation..................... 2,885 2,471 2,406
--------- --------- ----------
233901Total subsidy budget authority.... 6,411 6,501 7,146
Guaranteed loan subsidy outlays:
234001Stafford.......................... 2,112 2,536 3,117
234002Unsubsidized Stafford............. 769 724 740
234003PLUS.............................. 138 104 92
234004Consolidation..................... 2,854 2,442 2,378
--------- --------- ----------
234901Total subsidy outlays............. 5,873 5,806 6,327
Guaranteed loan upward reestimate subsidy
budget authority:
235001Stafford.......................... 1,464
235002Unsubsidized Stafford............. 343
235003PLUS.............................. 80 2
235004Consolidation..................... 32 634
--------- --------- ----------
235901Total upward reestimate budget
authority....................... 455 2,100
Guaranteed loan downward reestimate subsidy
budget authority:
237001Stafford.......................... -2,643 -364
[[Page 371]]
237002Unsubsidized Stafford............. -207 -2,691
237003PLUS.............................. -5 -625
237004Consolidation..................... -509 -1,542
237005SLS............................... -71 -499
--------- --------- ----------
237901Total downward reestimate subsidy
budget authority................ -3,435 -5,721
----------------------------------------------------------------------------
Administrative expense data:
351001Budget authority.................. 12
359001Outlays........................... 24 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 2004 and 2005. 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 2003 actual 2004 est. 2005 est.
----------------------------------------------------------------------------
11.1 Personnel compensation: Full-time
permanent....................... 10
12.1 Civilian personnel benefits....... 2
41.0 Grants, subsidies, and
contributions................... 6,411 6,846 7,146
--------- --------- ----------
99.9 Total new obligations........... 6,423 6,846 7,146
---------------------------------------------------------------------------
Personnel Summary
----------------------------------------------------------------------------
Identification code 91-0231-0-1-502 2003 actual 2004 est. 2005 est.
----------------------------------------------------------------------------
1001 Total compensable workyears:
Civilian full-time equivalent
employment...................... 129
---------------------------------------------------------------------------
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 2003 actual 2004 est. 2005 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.02 Guaranteed Loan Net Subsidy....... -96
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... -96
Budgetary resources available for obligation:
22.00 New budget authority (gross)...... -96
23.95 Total new obligations............. 96
New budget authority (gross), detail:
Mandatory:
60.00 Appropriation................... -96
Change in obligated balances:
73.10 Total new obligations............. -96
73.20 Total outlays (gross)............. -57
74.40 Obligated balance, end of year.... -153
Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 57
Net budget authority and outlays:
89.00 Budget authority.................. -96
90.00 Outlays........................... 57
---------------------------------------------------------------------------
A description of how the Administration's legislative proposal will
affect the Federal Family Education Loan program is included under the
Federal Direct Student Loan Program Account.
Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0231-4-1-502 2003 actual 2004 est. 2005 est.
----------------------------------------------------------------------------
Guaranteed loan levels supportable by subsidy
budget authority:
215001Stafford.......................... 204
215002Unsubsidized Stafford............. 72
215003PLUS.............................. 5
215004Consolidation..................... 7
--------- --------- ----------
215901Total loan guarantee levels....... 288
Guaranteed loan subsidy (in percent):
232001Stafford.......................... -1.01
232002Unsubsidized Stafford............. -0.86
232003PLUS.............................. -0.29
232004Consolidation..................... -0.03
--------- --------- ----------
232901Weighted average subsidy rate..... -33.33
Guaranteed loan subsidy budget authority:
233001Stafford.......................... -184
233002Unsubsidized Stafford............. -178
233003PLUS.............................. -18
233004Consolidation..................... 7
233005Subsidy due to modification....... 277
--------- --------- ----------
233901Total subsidy budget authority.... -96
Guaranteed loan subsidy outlays:
234001Stafford.......................... -114
234002Unsubsidized Stafford............. -103
234003PLUS.............................. -10
234004Consolidation..................... 7
234005Subsidy outlays due to
modification.................... 277
--------- --------- ----------
234901Total subsidy outlays............. 57
--------- --------- ----------
235901Total upward reestimate budget
authority.......................
--------- --------- ----------
237901Total downward reestimate subsidy
budget authority................
---------------------------------------------------------------------------
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 2003 actual 2004 est. 2005 est.
----------------------------------------------------------------------------
Obligations by program activity:
Stafford loans:
01.01 Interest benefits............... 1,063 1,168 1,438
01.02 Special allowance............... 333 407 868
01.03 Default claims.................. 1,123 1,439 1,504
01.04 Death, disability, and
bankruptcy claims............. 168 146 157
01.05 Teacher loan forgiveness, other
write-offs.................... 3 4 6
01.07 Contract collection costs....... 40 29 32
01.08 Loan Processing Fee............. 81 81 86
01.09 Voluntary flexible agreement
performance fee............... 138
--------- --------- ----------
01.91 Subtotal, Stafford loans...... 2,949 3,274 4,091
Unsubsidized Stafford loans:
02.02 Special allowance............... 40 293 707
02.03 Default claims.................. 745 1,006 1,131
02.04 Death, disability, and
bankruptcy claims............. 122 126 146
02.05 Teacher loan forgiveness, other
write-offs.................... 3 4 6
02.07 Contract collection costs....... 2 9 11
02.08 Loan Processing Fee............. 73 76 84
02.09 Voluntary flexible agreement
performance fee............... 43
--------- --------- ----------
02.91 Subtotal, Unsubsidized
Stafford loans.............. 1,028 1,514 2,085
PLUS loans:
03.02 Special allowance............... 16 16 18
03.03 Default claims.................. 228 149 170
03.04 Death, disability, and
bankruptcy claims............. 71 92 107
03.07 Contract Collection Costs....... 2 1 1
03.08 Loan Processing Fee............. 19 22 25
03.09 Voluntary flexible agreement
performance fee............... 6
--------- --------- ----------
[[Page 372]]
03.91 Subtotal, PLUS loans.......... 342 280 321
SLS loans:
04.03 Default claims.................. 53 16 10
04.04 Death, disability and bankruptcy
claims........................ 10 3 3
04.07 Contract collection costs....... 10 4 4
04.08 Voluntary flexible agreement
performance fee............... 4
--------- --------- ----------
04.91 Subtotal, SLS loans........... 77 23 17
Consolidation loans:
05.01 Interest benefit................ 134 215 229
05.02 Special allowance............... 61 68 476
05.03 Default claims.................. 603 1,342 1,647
05.04 Death, disability, and
bankruptcy claims............. 228 362 443
05.07 Contract collection costs....... 6 10 12
05.08 Voluntary flexible agreement
performance fee............... 41
--------- --------- ----------
05.91 Subtotal, Consolidations loans 1,073 1,997 2,807
08.02 Payment of downward reestimate to
Program accnt................... 2,206 3,494
08.04 Interest on downward reestimate... 774 472
--------- --------- ----------
08.91 Downward Reestimate- Subtotal (1
level)........................ 2,980 3,966
--------- --------- ----------
10.00 Total new obligations........... 8,449 11,054 9,321
Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 7,305 9,262 10,260
22.00 New financing authority (gross)... 10,400 11,509 12,483
22.10 Resources available from
recoveries of prior year
obligations..................... 5
22.22 Unobligated balance transferred
from other accounts............. 543
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 17,710 21,314 22,743
23.95 Total new obligations............. -8,449 -11,054 -9,321
24.40 Unobligated balance carried
forward, end of year............ 9,262 10,260 13,422
New financing authority (gross), detail:
Mandatory:
69.00 Offsetting collections (cash)... 10,400 11,509 12,483
Change in obligated balances:
72.40 Obligated balance, start of year.. 1,382 931 1,218
73.10 Total new obligations............. 8,449 11,054 9,321
73.20 Total financing disbursements
(gross)......................... -8,895 -10,767 -9,512
73.45 Recoveries of prior year
obligations..................... -5
74.40 Obligated balance, end of year.... 931 1,218 1,027
87.00 Total financing disbursements
(gross)......................... 8,895 10,767 9,512
Offsets:
Against gross financing authority and
financing disbursements:
Offsetting collections (cash)
from:
Payments from program account:
88.00 Stafford loans.............. -2,112 -2,536 -3,117
88.00 Unsubsidized Stafford....... -769 -724 -740
88.00 PLUS loans.................. -138 -104 -92
88.00 Consolidated loans.......... -2,854 -2,442 -2,378
88.00 Upward reestimate........... -345
88.25 Interest on uninvested funds.. -458 -629 -734
Student Loans: Stafford,
Unsubsidized Stafford,
PLUS, SLS & Consolidation:
88.40 Stafford recoveries on
defaults.................. -1,143 -1,153 -1,302
88.40 Stafford origination fees... -506 -599 -650
88.40 Stafford other fees......... -14
88.40 Stafford Sallie mae offset
fee....................... -23 -8 -2
88.40 Unsubsidized Stafford
recoveries on defaults.... -416 -508 -635
88.40 Unsubsidized Stafford
origination fees.......... -458 -552 -613
88.40 Unsubsidized Stafford other
fees...................... -5
88.40 Unsubsidized Stafford Sallie
mae fees.................. -15 -6 -2
88.40 PLUS recoveries on defaults. -74 -86 -100
88.40 PLUS origination fees....... -121 -160 -185
88.40 PLUS other fees............. -1
88.40 PLUS Sallie Mae offset fees. -4 -4 -1
88.40 SLS recoveries on defaults.. -91 -111 -104
88.40 SLS other fees.............. -1
88.40 SLS Sallie mae offset fee... -1
88.40 Consolidation recoveries on
defaults.................. -273 -489 -687
88.40 Consolidation origination
fees...................... -176 -128 -110
88.40 Consolidation loan holders
fee....................... -743 -925 -1,031
88.40 Consolidation loan other
fees...................... -4
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -10,400 -11,509 -12,483
Net financing authority and financing
disbursements:
89.00 Financing authority...............
90.00 Financing disbursements........... -1,506 -742 -2,971
---------------------------------------------------------------------------
Status of Guaranteed Loans (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-4251-0-3-502 2003 actual 2004 est. 2005 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................. 16,534 20,186 21,542
--------- --------- ----------
2150 Total guaranteed loan
commitments................... 16,534 20,186 21,542
2199 Guaranteed amount of guaranteed
loan commitments................ 16,534 20,186 21,542
----------------------------------------------------------------------------
Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 70,862 69,011 73,046
2231 Disbursements of new guaranteed
loans........................... 10,732 17,116 18,574
2251 Repayments and prepayments........ -10,069 -11,515 -10,132
Adjustments:
2261 Terminations for default that
result in loans receivable.... -1,061 -1,416 -1,520
2263 Terminations for default that
result in claim payments...... -168 -146 -157
2264 Other adjustments, net.......... -1,285 -4 -6
--------- --------- ----------
2290 Outstanding, end of year........ 69,011 73,046 79,805
----------------------------------------------------------------------------
Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 69,011 73,046 79,805
----------------------------------------------------------------------------
Addendum:
Cumulative balance of defaulted guaranteed
loans that result in loans receivable:
2310 Outstanding, start of year...... 2,668 2,714 2,943
2331 Disbursements for guaranteed
loan claims................... 1,061 1,416 1,520
2351 Repayments of loans receivable.. -1,025 -1,153 -1,302
2361 Write-offs of loans receivable.. -31 -34 -36
2364 Other adjustments, net.......... 41
--------- --------- ----------
2390 Outstanding, end of year...... 2,714 2,943 3,125
----------------------------------------------------------------------------
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................. 15,584 19,125 20,937
--------- --------- ----------
2150 Total guaranteed loan
commitments................... 15,584 19,125 20,937
2199 Guaranteed amount of guaranteed
loan commitments................ 15,584 19,125 20,937
----------------------------------------------------------------------------
Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 47,090 50,194 54,982
2231 Disbursements of new guaranteed
loans........................... 9,847 15,758 17,514
2251 Repayments and prepayments........ -5,908 -9,857 -9,372
Adjustments:
2261 Terminations for default that
result in loans receivable.... -713 -983 -1,132
2263 Terminations for default that
result in claim payments...... -122 -126 -146
2264 Other adjustments, net.......... -4 -6
--------- --------- ----------
2290 Outstanding, end of year........ 50,194 54,982 61,840
----------------------------------------------------------------------------
Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 50,194 54,982 61,840
----------------------------------------------------------------------------
Addendum:
Cumulative balance of defaulted guaranteed
loans that result in loans receivable:
2310 Outstanding, start of year...... 1,264 1,608 2,071
2331 Disbursements for guaranteed
loan claims................... 713 983 1,132
2351 Repayments of loans receivable.. -383 -507 -635
2361 Write-offs of loans receivable.. -10 -13 -15
2364 Other adjustments, net.......... 24
--------- --------- ----------
2390 Outstanding, end of year...... 1,608 2,071 2,553
----------------------------------------------------------------------------
[[Page 373]]
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................. 4,004 5,548 6,285
--------- --------- ----------
2150 Total guaranteed loan
commitments................... 4,004 5,548 6,285
2199 Guaranteed amount of guaranteed
loan commitments................ 4,004 5,548 6,285
----------------------------------------------------------------------------
Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 10,529 10,739 12,150
2231 Disbursements of new guaranteed
loans........................... 2,617 4,572 5,293
2251 Repayments and prepayments........ -1,906 -2,906 -2,975
Adjustments:
2261 Terminations for default that
result in loans receivable.... -245 -164 -170
2263 Terminations for default that
result in claim payments...... -71 -91 -107
2264 Other adjustments, net.......... -185
--------- --------- ----------
2290 Outstanding, end of year........ 10,739 12,150 14,191
----------------------------------------------------------------------------
Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 10,739 12,150 14,191
----------------------------------------------------------------------------
Addendum:
Cumulative balance of defaulted guaranteed
loans that result in loans receivable:
2310 Outstanding, start of year...... 209 389 460
2331 Disbursements for guaranteed
loan claims................... 245 164 170
2351 Repayments of loans receivable.. -64 -86 -100
2361 Write-offs of loans receivable.. -6 -7 -7
2364 Other adjustments, net.......... 5
--------- --------- ----------
2390 Outstanding, end of year...... 389 460 523
----------------------------------------------------------------------------
SLS
Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 1,276 511 395
2251 Repayments and prepayments........ -227 -91 -106
Adjustments:
2261 Terminations for default that
result in loans receivable.... -52 -22 -11
2263 Terminations for default that
result in claim payments...... -10 -3 -3
2264 Other adjustments, net.......... -476
--------- --------- ----------
2290 Outstanding, end of year........ 511 395 275
----------------------------------------------------------------------------
Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 511 395 275
----------------------------------------------------------------------------
Addendum:
Cumulative balance of defaulted guaranteed
loans that result in loans receivable:
2310 Outstanding, start of year...... 555 538 446
2331 Disbursements for guaranteed
loan claims................... 52 22 11
2351 Repayments of loans receivable.. -74 -111 -104
2361 Write-offs of loans receivable.. -4 -3 -3
2364 Other adjustments, net.......... 9
--------- --------- ----------
2390 Outstanding, end of year...... 538 446 350
----------------------------------------------------------------------------
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................. 30,853 25,902 22,298
--------- --------- ----------
2150 Total guaranteed loan
commitments................... 30,853 25,902 22,298
2199 Guaranteed amount of guaranteed
loan commitments................ 30,853 25,902 22,298
----------------------------------------------------------------------------
Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 49,434 79,017 94,372
2231 Disbursements of new guaranteed
loans........................... 34,958 25,631 22,047
2251 Repayments and prepayments........ -4,465 -8,661 -9,942
Adjustments:
2261 Terminations for default that
result in loans receivable.... -682 -1,253 -1,629
2263 Terminations for default that
result in claim payments...... -228 -362 -443
--------- --------- ----------
2290 Outstanding, end of year........ 79,017 94,372 104,405
----------------------------------------------------------------------------
Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 79,017 94,372 104,405
----------------------------------------------------------------------------
Addendum:
Cumulative balance of defaulted guaranteed
loans that result in loans receivable:
2310 Outstanding, start of year...... 1,402 1,870 2,616
2331 Disbursements for guaranteed
loan claims................... 682 1,253 1,629
2351 Repayments of loans receivable.. -230 -490 -687
2361 Write-offs of loans receivable.. -12 -17 -23
2364 Other adjustments, net.......... 28
--------- --------- ----------
2390 Outstanding, end of year...... 1,870 2,616 3,535
---------------------------------------------------------------------------
Balance Sheet (in millions of dollars)
-----------------------------------------------------------------------------------------------
Identification code 91-4251-0-3-502 2002 actual 2003 actual 2004 est. 2005 est.
-----------------------------------------------------------------------------------------------
ASSETS:
1101 Federal assets: Fund balances with
Treasury........................ 8,687 10,193
Net value of assets related to
post-1991 acquired defaulted
guaranteed loans receivable:
1501 Defaulted guaranteed loans
receivable, gross............. 6,098 7,119
1502 Interest receivable............. 1,732 1,553
1505 Allowance for subsidy cost (-).. -2,580 -1,312
------------ -------------- ------------ -------------
1599 Net present value of assets
related to defaulted
guaranteed loans............ 5,250 7,360
1901 Other Federal assets: Other assets 339 1,034
------------ -------------- ------------ -------------
1999 Total assets.................... 14,276 18,587
LIABILITIES:
2101 Federal liabilities: Accounts
payable......................... 2,706 3,277
2204 Non-Federal liabilities:
Liabilities for loan guarantees. 11,570 15,310
------------ -------------- ------------ -------------
2999 Total liabilities............... 14,276 18,587
------------ -------------- ------------ -------------
4999 Total liabilities and net position 14,276 18,587
-----------------------------------------------------------------------------------------------
Note: Consistent with Government-wide practice, information for 2004
and 2005 was not required to be collected.
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 2003 actual 2004 est. 2005 est.
----------------------------------------------------------------------------
Obligations by program activity:
Stafford loans:
01.01 Interest benefits............... 1
01.02 Special allowance............... -27
01.05 Teacher loan forgiveness, other
write-offs.................... 1
01.08 Loan Processing Fee............. 1
--------- --------- ----------
01.91 Subtotal, Stafford loans...... -24
Unsubsidized Stafford loans:
02.02 Special allowance............... -22
02.05 Teacher loan forgiveness, other
write-offs.................... 1
--------- --------- ----------
02.91 Subtotal, Unsubsidized
Stafford loans.............. -21
PLUS loans:
03.02 Special allowance............... -2
Consolidation loans:
05.01 Interest benefit................ -3
05.02 Special allowance............... -8
05.03 Default claims.................. -93
05.04 Death, disability, and
bankruptcy claims............. -5
--------- --------- ----------
05.91 Subtotal, Consolidations loans -109
--------- --------- ----------
10.00 Total new obligations........... -156
[[Page 374]]
Budgetary resources available for obligation:
22.00 New financing authority (gross)... 36
23.95 Total new obligations............. 156
24.40 Unobligated balance carried
forward, end of year............ 192
New financing authority (gross), detail:
Mandatory:
69.00 Offsetting collections (cash)... 36
Change in obligated balances:
73.10 Total new obligations............. -156
73.20 Total financing disbursements
(gross)......................... 138
74.40 Obligated balance, end of year.... -17
87.00 Total financing disbursements
(gross)......................... -138
Offsets:
Against gross financing authority and
financing disbursements:
Offsetting collections (cash)
from:
Payments from program account:
88.00 Stafford loans.............. 114
88.00 Unsubsidized Stafford....... 103
88.00 PLUS loans.................. 10
88.00 Consolidated loans.......... -7
88.00 Noncontractual modifications -277
88.25 Interest on uninvested funds.. -4
Student Loans: Stafford,
Unsubsidized Stafford,
PLUS, SLS & Consolidation:
88.40 Stafford origination fees... -3
88.40 Unsubsidized Stafford
origination fees.......... -1
88.40 PLUS origination fees....... -2
88.40 Consolidation recoveries on
defaults.................. 23
88.40 Consolidation loan holders
fee....................... 8
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -36
Net financing authority and financing
disbursements:
89.00 Financing authority...............
90.00 Financing disbursements........... -174
---------------------------------------------------------------------------
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 2003 actual 2004 est. 2005 est.
----------------------------------------------------------------------------
Obligations by program activity:
01.01 Interest benefits, net of
origination fees................ 27 13 7
01.02 Special allowance net of
origination fees................ 3 2 3
01.03 Default claims.................... 100 96 65
01.04 Death, disability, and bankruptcy
claims.......................... 26 20 14
01.05 Contract collection costs......... 92 62 51
01.06 Voluntary flexible agreements..... 15
--------- --------- ----------
01.91 Subtotal, Stafford loans........ 263 193 140
02.01 Default claims.................... 22 13 9
02.02 Death, disability, and bankruptcy
claims.......................... 10 8 5
02.05 Contract collection costs......... 20 12 10
02.06 Voluntary flexible agreements..... 4
--------- --------- ----------
02.91 Subtotal, PLUS/SLS loans........ 56 33 24
--------- --------- ----------
10.00 Total new obligations........... 319 226 164
Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 1,032 887
22.00 New budget authority (gross)...... 1,202 226 164
22.10 Resources available from
recoveries of prior year
obligations..................... 4
22.21 Unobligated balance transferred to
other accounts.................. -543
22.40 Capital transfer to general fund.. -1,032 -344
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 1,206 226 164
23.95 Total new obligations............. -319 -226 -164
24.40 Unobligated balance carried
forward, end of year............ 887
New budget authority (gross), detail:
Mandatory:
60.00 Appropriation................... 50
69.00 Offsetting collections (cash)..... 1,957 1,180 981
69.27 Capital transfer to general fund.. -755 -1,004 -817
--------- --------- ----------
69.90 Spending authority from
offsetting collections (total
mandatory).................... 1,202 176 164
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 1,202 226 164
Change in obligated balances:
72.40 Obligated balance, start of year.. -2 57
73.10 Total new obligations............. 319 226 164
73.20 Total outlays (gross)............. -256 -283 -164
73.45 Recoveries of prior year
obligations..................... -4
74.40 Obligated balance, end of year.... 57
Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 258 226 164
86.98 Outlays from mandatory balances... -2 57
--------- --------- ----------
87.00 Total outlays (gross)........... 256 283 164
Offsets:
Against gross budget authority and outlays:
Offsetting collections (cash)
from:
88.40 Fed collections on defaulted
loans, Stafford............. -272 -372 -310
88.40 Federal collections on
bankruptcies, Stafford...... -5 -5 -4
88.40 Offsets against Federal tax
refunds,Stafford............ -395 -281 -234
88.40 Reimbursements from guaranty
agencies, Stafford.......... -914 -301 -250
88.40 Other collections/ fees,
Stafford.................... -131 -36 -30
88.40 Sallie Mae offset fee......... -1
88.40 Federal collections on
defaulted loans, PLUS/SLS... -50 -87 -72
88.40 Federal collections on
bankruptcies, PLUS/SLS...... -1 -1 -1
88.40 Offsets against Federal tax
refunds, PLUS/SLS........... -27 -21 -17
PLUS/SLS loans:
88.40 Reimbursements from guaranty
agencies, PLUS/SLS........ -161 -76 -63
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -1,957 -1,180 -981
Net budget authority and outlays:
89.00 Budget authority.................. -755 -954 -817
90.00 Outlays........................... -1,701 -897 -817
---------------------------------------------------------------------------
Status of Guaranteed Loans (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0230-0-1-502 2003 actual 2004 est. 2005 est.
----------------------------------------------------------------------------
STAFFORD LOANS
Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 2,052 2,431 1,933
2251 Repayments and prepayments........ -782 -378 -178
Adjustments:
2261 Terminations for default that
result in loans receivable.... -100 -100 -72
2263 Terminations for default that
result in claim payments...... -26 -20 -14
2264 Other adjustments, net.......... 1,287
--------- --------- ----------
2290 Outstanding, end of year........ 2,431 1,933 1,669
----------------------------------------------------------------------------
Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 2,431 1,933 1,669
----------------------------------------------------------------------------
Addendum:
Cumulative balance of defaulted guaranteed
loans that result in loans receivable:
2310 Outstanding, start of year...... 10,887 8,864 8,270
2331 Disbursements for guaranteed
loan claims................... 100 100 72
2351 Repayments of loans receivable.. -911 -528 -440
2361 Write-offs of loans receivable.. -128 -104 -97
2364 Other adjustments, net.......... -1,084 -62 -51
--------- --------- ----------
2390 Outstanding, end of year...... 8,864 8,270 7,754
----------------------------------------------------------------------------
PLUS/SLS LOANS
Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 672 1,252 1,126
2251 Repayments and prepayments........ -51 -104 -104
Adjustments:
2261 Terminations for default that
result in loans receivable.... -22 -15 -10
2263 Terminations for default that
result in claim payments...... -9 -7 -5
[[Page 375]]
2264 Other adjustments, net.......... 662
--------- --------- ----------
2290 Outstanding, end of year........ 1,252 1,126 1,007
----------------------------------------------------------------------------
Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 1,252 1,126 1,007
----------------------------------------------------------------------------
Addendum:
Cumulative balance of defaulted guaranteed
loans that result in loans receivable:
2310 Outstanding, start of year...... 2,041 1,692 1,575
2331 Disbursements for guaranteed
loan claims................... 22 15 10
2351 Repayments of loans receivable.. -143 -99 -82
2361 Write-offs of loans receivable.. -22 -18 -17
2364 Other adjustments, net.......... -206 -15 -12
--------- --------- ----------
2390 Outstanding, end of year...... 1,692 1,575 1,474
---------------------------------------------------------------------------
Balance Sheet (in millions of dollars)
-----------------------------------------------------------------------------------------------
Identification code 91-0230-0-1-502 2002 actual 2003 actual 2004 est. 2005 est.
-----------------------------------------------------------------------------------------------
ASSETS:
1101 Federal assets: Fund balances with
Treasury........................ 1,031 944
Net value of assets related to
pre-1992 direct loans
receivable and acquired
defaulted guaranteed loans
receivable:
1701 Defaulted guaranteed loans,
gross......................... 12,928 10,555
1702 Interest receivable............. 1,284 1,144
1703 Allowance for estimated
uncollectible loans and
interest (-).................. -13,175 -8,273
------------ -------------- ------------ -------------
1704 Defaulted guaranteed loans and
interest receivable, net.... 1,037 3,426
------------ -------------- ------------ -------------
1799 Value of assets related to
loan guarantees............. 1,037 3,426
1901 Other Federal assets: Other assets 62 56
------------ -------------- ------------ -------------
1999 Total assets.................... 2,130 4,426
LIABILITIES:
2104 Federal liabilities: Resources
payable to Treasury............. 2,007 3,761
Non-Federal liabilities:
2201 Accounts payable................ 14 543
2204 Liabilities for loan guarantees. 109 122
------------ -------------- ------------ -------------
2999 Total liabilities............... 2,130 4,426
------------ -------------- ------------ -------------
4999 Total liabilities and net position 2,130 4,426
-----------------------------------------------------------------------------------------------
Note: Consistent with Government-wide practice, information for 2004
and 2005 was not required to be collected.
\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.
Object Classification (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0230-0-1-502 2003 actual 2004 est. 2005 est.
----------------------------------------------------------------------------
25.2 Other services.................... 113 74 61
33.0 Investments and loans............. 122 109 74
41.0 Grants, subsidies, and
contributions................... 49 16 10
42.0 Insurance claims and indemnities.. 35 27 19
--------- --------- ----------
99.9 Total new obligations........... 319 226 164
---------------------------------------------------------------------------
INSTITUTE OF EDUCATION SCIENCES
Federal Funds
General and special funds:
Institute of Education Sciences
For carrying out activities authorized by Public Law 107-279,
[$478,717,000] $371,496,000: Provided, That, of the amount appropriated,
[$166,500,000] $185,000,000 shall be available for obligation through
September 30, [2005: Provided further, That of the amount provided to
carry out title I, parts B and D of Public Law 107-279, not less than
$24,362,000 shall be for the national research and development centers
authorized under section 133(c): Provided further, That $4,968,000 shall
be available to extend for one additional year the contract for the
Eisenhower National Clearinghouse for Mathematics and Science Education
authorized under section 2102(a)(2) of the Elementary and Secondary
Education Act of 1965, prior to its amendment by the No Child Left
Behind Act of 2001, Public Law 107-110] 2006. (Division E, H.R. 2673,
Consolidated Appropriations Bill, FY 2004.)
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-1100-0-1-503 2003 actual 2004 est. 2005 est.
----------------------------------------------------------------------------
Direct program:
Obligations by program activity:
Research and statistics:
00.01 Research, development, and
dissemination............... 138 165 185
00.02 Statistics.................... 89 91 91
00.03 Regional educational
laboratories.................. 67 67
00.04 Assessment...................... 95 95 95
Technical assistance providers:
00.05 Regional technology in
education consortia......... 10 10
00.06 Comprehensive regional
assistance centers.......... 28 28
00.07 Eisenhower regional
mathematics and science
education consortia......... 15 15
00.08 Eisenhower National
Clearinghouse for
Mathematics and Science
Education................... 5 5
--------- --------- ----------
01.00 Total direct program.............. 447 476 371
09.01 Reimbursable program.............. 5 5 5
--------- --------- ----------
10.00 Total new obligations............. 452 481 376
Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 453 481 376
23.95 Total new obligations............. -452 -481 -376
New budget authority (gross), detail:
Discretionary:
40.00 Appropriation................... 451 479 371
40.35 Appropriation permanently
reduced....................... -3 -3
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 448 476 371
Spending authority from offsetting
collections:
68.00 Offsetting collections (cash)... 1 1 1
68.10 Change in uncollected customer
payments from Federal sources
(unexpired)................... 4 4 4
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total discretionary)....... 5 5 5
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 453 481 376
Change in obligated balances:
72.40 Obligated balance, start of year.. 683 575 449
73.10 Total new obligations............. 452 481 376
73.20 Total outlays (gross)............. -586 -603 -453
73.40 Adjustments in expired accounts
(net)........................... 24
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... -4 -4 -4
74.10 Change in uncollected customer
payments from Federal sources
(expired)....................... 6
74.40 Obligated balance, end of year.... 575 449 368
Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 108 115 96
86.93 Outlays from discretionary
balances........................ 478 488 357
--------- --------- ----------
87.00 Total outlays (gross)........... 586 603 453
Offsets:
Against gross budget authority and outlays:
88.00 Offsetting collections (cash)
from: Federal sources......... -34 -5 -1
Against gross budget authority only:
88.95 Change in uncollected customer
payments from Federal sources
(unexpired)................... -4 -4 -4
88.96 Portion of offsetting
collections (cash) credited to
expired accounts.............. 33 4
Net budget authority and outlays:
89.00 Budget authority.................. 448 476 371
90.00 Outlays........................... 552 598 452
---------------------------------------------------------------------------
Note.--Excludes $28 million in budget authority in 2005 for
activities transferred to Department of Education School Improvement
Programs. Comparable amounts for 2003 ($58 million) and 2004 ($57
million) are included above.
[[Page 376]]
Summary of Budget Authority and Outlays
(in millions of dollars)
2003 actual 2004 est. 2005 est.
Enacted/requested:
Budget Authority.................. 448 476 371
Outlays........................... 552 598 452
Legislative proposal, not subject to
PAYGO:
Budget Authority.................. 78
Outlays........................... 20
------------------------------------
Total:
Budget Authority.................. 448 476 449
Outlays........................... 552 598 472
====================================
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 2003 actual 2004 est. 2005 est.
----------------------------------------------------------------------------
Direct obligations:
Personnel compensation:
11.1 Full-time permanent........... 1 1 1
11.3 Other than full-time permanent 1 1
--------- --------- ----------
11.9 Total personnel compensation 1 2 2
24.0 Printing and reproduction....... 1 1 1
25.1 Advisory and assistance services 2 3 3
25.2 Other services.................. 183 185 179
25.3 Other purchases of goods and
services from Government
accounts...................... 18 14 14
25.5 Research and development
contracts..................... 86 72 6
25.7 Operation and maintenance of
equipment..................... 3 3 3
41.0 Grants, subsidies, and
contributions................. 152 196 163
--------- --------- ----------
99.0 Direct obligations............ 446 476 371
99.0 Reimbursable obligations.......... 5 5 5
99.5 Below reporting threshold......... 1
--------- --------- ----------
99.9 Total new obligations........... 452 481 376
---------------------------------------------------------------------------
Personnel Summary
----------------------------------------------------------------------------
Identification code 91-1100-0-1-503 2003 actual 2004 est. 2005 est.
----------------------------------------------------------------------------
1001 Total compensable workyears:
Civilian full-time equivalent
employment...................... 12 15 15
---------------------------------------------------------------------------
Institute of Education Sciences
(Legislative proposal, not subject to PAYGO)
Pending legislation would transfer the authority for research in
special education from the Individuals with Disabilities Education Act
to the Education Sciences Reform Act of 2002 and create a National
Center for Special Education Research within the Institute of Education
Sciences.
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-1100-2-1-503 2003 actual 2004 est. 2005 est.
----------------------------------------------------------------------------
Direct program:
Obligations by program activity:
00.09 Research and innovation in
special education............. 78
--------- --------- ----------
10.00 Total new obligations............. 78
Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 78
23.95 Total new obligations............. -78
New budget authority (gross), detail:
Discretionary:
40.00 Appropriation................... 78
Change in obligated balances:
73.10 Total new obligations............. 78
73.20 Total outlays (gross)............. -20
74.40 Obligated balance, end of year.... 58
Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 20
Net budget authority and outlays:
89.00 Budget authority.................. 78
90.00 Outlays........................... 20
---------------------------------------------------------------------------
Note: Includes $78 million in budget authority for Research and
Innovation in Special Education previously financed from the Department
of Education:
(in millions of dollars)
2003 actual 2004 est.
Office of Special Education and 77 78
Rehabilitative Services, Special
Education..............................
Research and innovation in special education.--Funds support
research and dissemination activities to address gaps in scientific
knowledge in order to improve special education and early intervention
services and results for infants, toddlers, and children with
disabilities.
Object Classification (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-1100-2-1-503 2003 actual 2004 est. 2005 est.
----------------------------------------------------------------------------
25.2 Other services.................... 3
25.3 Other purchases of goods and
services from Government
accounts........................ 5
41.0 Grants, subsidies, and
contributions................... 70
--------- --------- ----------
99.9 Total new obligations........... 78
---------------------------------------------------------------------------
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, [$425,000,000, 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.] $429,568,000. (Division E, H.R. 2673, Consolidated Appropriations
Bill, FY 2004.)
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0800-0-1-503 2003 actual 2004 est. 2005 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Program administration............ 418 425 430
09.01 Reimbursable program.............. 3 3 3
--------- --------- ----------
10.00 Total new obligations........... 422 428 433
Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 5
[[Page 377]]
22.00 New budget authority (gross)...... 427 423 433
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 427 428 433
23.95 Total new obligations............. -422 -428 -433
23.98 Unobligated balance expiring or
withdrawn....................... -1
24.40 Unobligated balance carried
forward, end of year............ 5
New budget authority (gross), detail:
Discretionary:
40.00 Appropriation................... 413 425 430
40.35 Appropriation permanently
reduced....................... -3 -5
42.00 Transferred from other accounts. 14
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 424 420 430
Spending authority from offsetting
collections:
68.00 Offsetting collections (cash)... 1 1
68.10 Change in uncollected customer
payments from Federal sources
(unexpired)................... 3 2 2
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total discretionary)....... 3 3 3
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 427 423 433
Change in obligated balances:
72.40 Obligated balance, start of year.. 122 113 146
73.10 Total new obligations............. 422 428 433
73.20 Total outlays (gross)............. -429 -394 -425
73.40 Adjustments in expired accounts
(net)........................... -2
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... -3 -2 -2
74.10 Change in uncollected customer
payments from Federal sources
(expired)....................... 3
74.40 Obligated balance, end of year.... 113 146 152
Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 335 316 329
86.93 Outlays from discretionary
balances........................ 94 78 96
--------- --------- ----------
87.00 Total outlays (gross)........... 429 394 425
Offsets:
Against gross budget authority and outlays:
88.00 Offsetting collections (cash)
from: Federal sources......... -6 -1 -1
Against gross budget authority only:
88.95 Change in uncollected customer
payments from Federal sources
(unexpired)................... -3 -2 -2
88.96 Portion of offsetting
collections (cash) credited to
expired accounts.............. 5
Net budget authority and outlays:
89.00 Budget authority.................. 424 420 430
90.00 Outlays........................... 424 393 424
---------------------------------------------------------------------------
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, 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.
Also included in this account are contributions from the public.
Activities supported include receptions for Blue Ribbon Schools,
Historically Black Colleges and Universities, and School Recognition.
Contributions not designated for a specific purpose are in the account's
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.
Object Classification (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0800-0-1-503 2003 actual 2004 est. 2005 est.
----------------------------------------------------------------------------
Direct obligations:
Personnel compensation:
11.1 Full-time permanent........... 171 195 199
11.3 Other than full-time permanent 29 5 6
11.5 Other personnel compensation.. 4 4 4
--------- --------- ----------
11.9 Total personnel compensation 204 204 209
12.1 Civilian personnel benefits..... 44 43 44
13.0 Benefits for former personnel... 1
21.0 Travel and transportation of
persons....................... 5 6 6
23.1 Rental payments to GSA.......... 31 37 41
23.3 Communications, utilities, and
miscellaneous charges......... 10 13 12
24.0 Printing and reproduction....... 4 4 5
25.1 Advisory and assistance services 5 4 3
25.2 Other services.................. 29 24 27
25.3 Other purchases of goods and
services from Government
accounts...................... 15 13 12
25.7 Operation and maintenance of
equipment..................... 52 58 57
26.0 Supplies and materials.......... 2 2 2
31.0 Equipment....................... 14 12 11
32.0 Land and structures............. 2 4 1
--------- --------- ----------
99.0 Direct obligations............ 418 424 430
99.0 Reimbursable obligations.......... 3 3 3
99.5 Below reporting threshold......... 1 1
--------- --------- ----------
99.9 Total new obligations........... 422 428 433
---------------------------------------------------------------------------
Personnel Summary
----------------------------------------------------------------------------
Identification code 91-0800-0-1-503 2003 actual 2004 est. 2005 est.
----------------------------------------------------------------------------
1001 Total compensable workyears:
Civilian full-time equivalent
employment...................... 2,461 2,358 2,351
---------------------------------------------------------------------------
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, [$89,275,000] $92,801,000. (Division E, H.R. 2673, Consolidated
Appropriations Bill, FY 2004.)
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0700-0-1-751 2003 actual 2004 est. 2005 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Civil rights...................... 84 88 93
--------- --------- ----------
10.00 Total new obligations........... 84 88 93
Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 84 88 93
23.95 Total new obligations............. -84 -88 -93
New budget authority (gross), detail:
Discretionary:
40.00 Appropriation................... 86 89 93
40.35 Appropriation permanently
reduced....................... -1 -1
41.00 Transferred to other accounts... -1
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 84 88 93
Change in obligated balances:
72.40 Obligated balance, start of year.. 15 16 19
73.10 Total new obligations............. 84 88 93
73.20 Total outlays (gross)............. -83 -85 -88
74.40 Obligated balance, end of year.... 16 19 22
Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 74 72 75
86.93 Outlays from discretionary
balances........................ 9 13 13
--------- --------- ----------
87.00 Total outlays (gross)........... 83 85 88
Net budget authority and outlays:
89.00 Budget authority.................. 84 88 93
90.00 Outlays........................... 83 85 88
---------------------------------------------------------------------------
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
[[Page 378]]
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, the Americans with Disabilities Act of 1990
and the Boy Scouts of America Equal Access Act of 2002.
Object Classification (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0700-0-1-751 2003 actual 2004 est. 2005 est.
----------------------------------------------------------------------------
Direct obligations:
Personnel compensation:
11.1 Full-time permanent........... 47 49 50
11.3 Other than full-time permanent 2 2 3
--------- --------- ----------
11.9 Total personnel compensation 49 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 8 10
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 2 2
25.7 Operation and maintenance of
equipment..................... 9 7 7
31.0 Equipment....................... 1 1 1
--------- --------- ----------
99.0 Direct obligations............ 82 84 89
99.5 Below reporting threshold......... 2 4 4
--------- --------- ----------
99.9 Total new obligations........... 84 88 93
---------------------------------------------------------------------------
Personnel Summary
----------------------------------------------------------------------------
Identification code 91-0700-0-1-751 2003 actual 2004 est. 2005 est.
----------------------------------------------------------------------------
1001 Total compensable workyears:
Civilian full-time equivalent
employment...................... 672 663 663
---------------------------------------------------------------------------
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, [$47,137,000] $50,576,000. (Division E, H.R. 2673, Consolidated
Appropriations Bill, FY 2004.)
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-1400-0-1-751 2003 actual 2004 est. 2005 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Inspector General................. 41 47 51
--------- --------- ----------
10.00 Total new obligations........... 41 47 51
Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 41 47 51
23.95 Total new obligations............. -41 -47 -51
New budget authority (gross), detail:
Discretionary:
40.00 Appropriation................... 41 47 51
Change in obligated balances:
72.40 Obligated balance, start of year.. 9 7 10
73.10 Total new obligations............. 41 47 51
73.20 Total outlays (gross)............. -42 -44 -48
74.40 Obligated balance, end of year.... 7 10 13
Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 35 37 41
86.93 Outlays from discretionary
balances........................ 7 7 7
--------- --------- ----------
87.00 Total outlays (gross)........... 42 44 48
Net budget authority and outlays:
89.00 Budget authority.................. 41 47 51
90.00 Outlays........................... 42 44 48
---------------------------------------------------------------------------
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 2003 actual 2004 est. 2005 est.
----------------------------------------------------------------------------
Direct obligations:
Personnel compensation:
11.1 Full-time permanent........... 20 23 25
11.3 Other than full-time permanent 1 1 2
11.5 Other personnel compensation.. 1
--------- --------- ----------
11.9 Total personnel compensation 22 24 27
12.1 Civilian personnel benefits..... 6 6 7
21.0 Travel and transportation of
persons....................... 2 1 2
23.1 Rental payments to GSA.......... 3 4 4
23.3 Communications, utilities, and
miscellaneous charges......... 1 1 1
25.1 Advisory and assistance services 2 4 4
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............ 39 45 51
99.5 Below reporting threshold......... 2 2
--------- --------- ----------
99.9 Total new obligations........... 41 47 51
---------------------------------------------------------------------------
Personnel Summary
----------------------------------------------------------------------------
Identification code 91-1400-0-1-751 2003 actual 2004 est. 2005 est.
----------------------------------------------------------------------------
1001 Total compensable workyears:
Civilian full-time equivalent
employment...................... 281 285 302
---------------------------------------------------------------------------
GENERAL FUND RECEIPT ACCOUNTS
(in millions of dollars)
----------------------------------------------------------------------------
2003 actual 2004 est. 2005 est.
----------------------------------------------------------------------------
Offsetting receipts from the public:
91-291500 Repayment of loans, capital
contributions, higher education
activities.......................... 44 50 50
--------- --------- ----------
General Fund Offsetting receipts from
the public............................. 44 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
[[Page 379]]
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 1 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 3 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. Special Study of Simplification of Need Analysis and
Application for Title IV Aid. (a) Study Required.--The Advisory
Committee on Student Financial Assistance established by section 491 of
the Higher Education Act of 1965 (20 U.S.C. 1098), hereafter in this
section referred to as ``the Advisory Committee'', shall conduct a
thorough study of the feasibility of simplifying the need analysis
methodology for all Federal student financial assistance programs and
the process of applying for such assistance.
(b) Required Subjects of Study.--In performing the study, the
Advisory Committee shall, at a minimum, examine the following:
(1) whether the methodology used to calculate the expected
family contribution can be simplified without significant adverse
effects on program intent, costs, integrity, delivery, and
distribution of awards;
(2) whether the number of data elements, and, accordingly, the
number and complexity of questions asked of students and families,
used to calculate the expected family contribution can be reduced
without such adverse effects;
(3) whether the procedures for determining such data elements,
including determining and updating offsets and allowances, is the
most efficient, effective, and fair means to determine a family's
available income and assets;
(4) whether the methodology used to calculate the expected
family contribution, specifically the consideration of income earned
by a dependent student and its effect on Pell grant eligibility, is
an effective and fair means to determine a family's available income
and a student's need;
(5) whether the nature and timing of the application required in
section 483(a)(1) of the Higher Education Act of 1965 (20 U.S.C.
1090(a)(1)), eligibility and award determination, financial aid
processing, and funds delivery can be streamlined further for
students and families, institutions, and States;
(6) whether it is feasible to allow students to complete only
those limited sections of the financial aid application that apply
to their specific circumstances and the State in which they reside;
(7) whether a widely disseminated printed form, or the use of an
Internet or other electronic means, can be developed to notify
individuals of an estimation of their approximate eligibility for
grant, work-study, and loan assistance upon completion and
verification of the simplified application form;
(8) whether information provided on other Federal forms (such as
the form applying for supplemental security income under title XVI
of the Social Security Act, the form for applying for food stamps
under the Food Stamp Act of 1977, and the schedule for applying for
the earned income tax credit under section 32 of the Internal
Revenue Code of 1986) that are designed to determine eligibility for
various Federal need-based assistance programs could be used to
qualify potential students for the simplified needs test; and
(9) whether any proposed changes to data elements collected, in
addition to those used to calculate expected family contribution, or
any proposed changes to the form's design or the process of applying
for aid, may have adverse effects on program costs, integrity,
delivery, or distribution of awards, as well as, application
development or application processing.
(c) Additional Considerations.--In conducting the feasibility study,
the Advisory Committee's primary objective under this subsection shall
be simplifying the financial aid application forms and process and
obtaining a substantial reduction in the number of required data items.
In carrying out that objective, the Advisory Committee shall pay special
attention to the needs of low-income and moderate-income students and
families.
(d) Consultation.--
(1) In general.--The Advisory Committee shall consult with a
broad range of interested parties in higher education, including
parents and students, high school guidance counselors, financial aid
and other campus administrators, appropriate State administrators,
administrators of intervention and outreach programs, and
appropriate officials from the Department of Education.
(2) Forms design expert.--With the goal of making significant
changes to the form to make the questions more easily
understandable, the Advisory Committee shall consult a forms design
expert to ensure that its recommendations for revision of the
application form would assist in making the form easily readable and
understood by parents, students, and other members of the public.
(3) Congressional consultation.--The Advisory Committee shall
consult on a regular basis with the Committee on Education and the
Workforce of the House of Representatives and the Committee on
Health, Education, Labor, and Pensions of the Senate in carrying out
the feasibility study required by this subsection.
(4) Departmental consultation.--The Secretary of Education shall
provide such assistance to the Advisory Committee as is requested
and practicable in conducting the study required by this subsection.
(e) Reports.--
(1) Interim report.--The Advisory Committee shall, not later
than six months after the date of enactment of this Act, prepare and
submit an interim report containing any such legislative changes as
the Advisory Committee recommends to reform and simplify the needs
analysis under part F of title IV of the Higher Education Act of
1965 (20 U.S.C. 1087kk et seq.) and forms and other requirements
under such title to the Committee on Education and the Workforce of
the House of Representatives, the Committee on Health, Education,
Labor, and Pensions of the Senate, and the Secretary of Education.
(2) Final report.--The Advisory Committee shall, not later than
one year after the date of enactment of this Act, prepare and submit
a full final report on the study, including recommendations for
regulatory and administrative changes required by this section, to
the Committee on Education and the Workforce of the House of
Representatives, the Committee on Health, Education, Labor, and
Pensions of the Senate, and the Secretary of Education.
(f) Implementation.--The Secretary of Education shall consult with
the Committee on Education and the Workforce of the House of
Representatives and the Committee on Health, Education, Labor, and
Pensions of the Senate and shall subsequently initiate a redesign of the
form required by section 483 of the Higher Education Act of 1965 (20
U.S.C. 1090). Such redesign shall include the testing of alternative
simplified versions of the free federal form. The Secretary shall keep
the Committee on Education and the Workforce of the House of
Representatives and the Committee on Health, Education, Labor, and
Pensions of the Senate fully and currently informed on the progress of
these efforts.
(g) Postponement of Tax Table Update Pending Report and
Implementation.--The Secretary of Education shall not implement or
enforce for the award year 2004-2005 the annual update to the allowances
for State and other taxes in the tables used in the Federal needs
analysis methodology, as prescribed by the Secretary on May 30, 2003 (68
Fed. Reg. 32473).]
[Sec. 306. The Secretary of Education shall treat as timely filed an
application under section 8003 of the Elementary and Secondary Education
Act of 1965 from the local educational agency for Hydaburg, Alaska, for
a payment for fiscal year 2004, and shall process such application for
payment, if the Secretary has received the fiscal year 2004 application
not later than 30 days after the date of enactment of this Act.]
Sec. 305. (a) Discretionary Funding.--Section 458(a)(1) of the
Higher Education Act of 1965 (20 U.S.C. 1087h(a)(1)), is amended--
[[Page 380]]
(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 2005 and succeeding fiscal years. (Division E,
H.R. 2673, Consolidated Appropriations Bill, FY 2004.)
Note: Section 167, Division H, H.R. 2673, Consolidated
Appropriations Bill, 2004, appropriates additional amounts for the
Department of Education for 2004. The language is presented with the
government-wide general provisions.