[Appendix]
[Detailed Budget Estimates by Agency]
[Department of Education]
[From the U.S. Government Printing Office, www.gpo.gov]
THE BUDGET FOR FISCAL YEAR 2008
[[Page 313]]
DEPARTMENT OF EDUCATION
OFFICE OF ELEMENTARY AND SECONDARY EDUCATION
Federal 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, $16,139,090,000, of which $8,571,383,000 shall become available on
July 1, 2008, and shall remain available through September 30, 2009, and
of which $7,383,301,000 shall become available on October 1, 2008, and
shall remain available through September 30, 2009 for academic year
2008-2009: Provided, That $6,808,408,000 shall be for basic grants under
section 1124: Provided further, That up to $4,000,000 of these funds
shall be available to the Secretary of Education on October 1, 2007, 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 for concentration grants under section 1124A: Provided further,
That $3,466,618,000 shall be for targeted grants under section 1125:
Provided further, That $2,269,843,000 shall be for education finance
incentive grants under section 1125A: Provided further, That
$500,000,000 shall be for school improvement grants under section
1003(g): Provided further, That $9,327,000 shall be to carry out part E
of title I.
Note.--A regular 2007 appropriation for this account had not been
enacted at the time the budget was prepared; therefore, this account is
operating under a continuing resolution (P.L. 109-289, Division B, as
amended). The amounts included for 2007 in this budget reflect the
levels provided by the continuing resolution.
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0900-0-1-501 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Grants to local educational
agencies........................ 12,519 12,731 13,910
00.02 School improvement grants......... 500
00.03 Reading first State grants........ 1,213 1,084 1,019
00.04 Early reading first............... 103 103 118
00.05 Striving readers.................. 32 54 100
00.06 Even start........................ 112 119
00.07 Literacy through school libraries. 19 19 19
00.08 State agency programs............. 431 447 430
00.09 Comprehensive school reform....... 10 10
00.10 Evaluation........................ 9 9 9
00.11 Migrant education projects........ 34 34 34
--------- --------- ----------
10.00 Total new obligations........... 14,482 14,610 16,139
----------------------------------------------------------------------------
Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 130 129
22.00 New budget authority (gross)...... 14,481 14,481 16,139
22.10 Resources available from
recoveries of prior year
obligations..................... 1
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 14,612 14,610 16,139
23.95 Total new obligations............. -14,482 -14,610 -16,139
23.98 Unobligated balance expiring or
withdrawn....................... -1
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 129
----------------------------------------------------------------------------
New budget authority (gross), detail:
Discretionary:
40.00 Appropriation................... 7,244 7,098 8,756
40.35 Appropriation permanently
reduced....................... -146
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 7,098 7,098 8,756
55.00 Advance appropriation........... 7,383 7,383 7,383
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 14,481 14,481 16,139
----------------------------------------------------------------------------
Change in obligated balances:
72.40 Obligated balance, start of year.. 11,043 10,803 10,575
73.10 Total new obligations............. 14,482 14,610 16,139
73.20 Total outlays (gross)............. -14,696 -14,838 -14,523
73.40 Adjustments in expired accounts
(net)........................... -25
73.45 Recoveries of prior year
obligations..................... -1
--------- --------- ----------
74.40 Obligated balance, end of year.. 10,803 10,575 12,191
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 5,383 6,049 6,082
86.93 Outlays from discretionary
balances........................ 9,313 8,789 8,441
--------- --------- ----------
87.00 Total outlays (gross)........... 14,696 14,838 14,523
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 14,481 14,481 16,139
90.00 Outlays........................... 14,696 14,838 14,523
---------------------------------------------------------------------------
Summary of Budget Authority and Outlays
(in millions of dollars)
2006 actual 2007 est. 2008 est.
Enacted/requested:
Budget Authority............ 14,481 14,481 16,139
Outlays..................... 14,696 14,838 14,523
Legislative proposal, not subject to
PAYGO:
Budget Authority............ 550
Outlays..................... 11
Total:
Budget Authority............ 14,481 14,481 16,689
Outlays..................... 14,696 14,838 14,534
SUMMARY OF PROGRAM LEVEL
(in millions of dollars)
2006-2007
Academic
Year 2007-2008
Academic Year 2008-2009
Academic Year
New Budget Authority.......... 7,098 7,098 8,756
Advance appropriation......... 7,383 7,383 7,383
------------------------------------
Total program level..... 14,481 14,481 16,139
====================================
Change in advance
appropriation from the
previous year................. 0 0 0
Note: Additional authorizing language is sought for $16,105,163,000
in this account.
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, mathematics, and science, 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 in reading and mathematics. 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
are permitted to obtain supplemental educational services from a public-
or private-sector provider. Schools that do not improve are subject to
progressively stronger corrective actions and, after six years of not
making adequate yearly progress, reconstitution under a restructuring
plan. 2008 funds would be expended under a reauthorization proposal to
expand the benefits of the program to more high school students, refine
accountability systems, include science in accountability
determinations, and give students in low-performing schools more
options.
School improvement grants.--Funds would support grants to States to
assist schools and districts identified as in need
[[Page 314]]
of improvement because they have not met their student achievement goals
for at least two consecutive years. Activities may include the
development and implementation of school improvement plans, professional
development for teachers and staff, corrective actions such as
instituting a new curriculum, and the provision of public school choice
and supplemental educational services.
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 knowledge, pre-reading skills, and early language development of
children ages three through five. For the reauthorization of ESEA, the
Department is proposing to strengthen partnerships between preschool
providers and institutions of higher education that provide professional
development to early childhood educators.
Striving readers.--Funds support 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 certified professional
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 Act 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)
----------------------------------------------------------------------------
Identification code 91-0900-0-1-501 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Direct obligations:
24.0 Printing and reproduction......... 2 2 2
25.1 Advisory and assistance services.. 5 7 7
25.2 Other services.................... 58 46 41
25.3 Other purchases of goods and
services from Government
accounts........................ 3 4 5
25.7 Operation and maintenance of
equipment....................... 6
41.0 Grants, subsidies, and
contributions................... 14,408 14,551 16,084
--------- --------- ----------
99.9 Total new obligations........... 14,482 14,610 16,139
---------------------------------------------------------------------------
Education for the Disadvantaged
(Legislative proposal, not subject to PAYGO)
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0900-2-1-501 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Math now for elementary school
students........................ 125
00.02 Math now for middle school
students........................ 125
00.03 Promise scholarships.............. 250
00.04 Opportunity scholarships.......... 50
--------- --------- ----------
10.00 Total new obligations........... 550
----------------------------------------------------------------------------
Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 550
23.95 Total new obligations............. -550
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year..........
----------------------------------------------------------------------------
New budget authority (gross), detail:
Discretionary:
40.00 Appropriation................... 550
----------------------------------------------------------------------------
Change in obligated balances:
73.10 Total new obligations............. 550
73.20 Total outlays (gross)............. -11
--------- --------- ----------
74.40 Obligated balance, end of year.. 539
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 11
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 550
90.00 Outlays........................... 11
---------------------------------------------------------------------------
The resources in this schedule are proposed for later transmittal
under proposed legislation to revise and reauthorize programs currently
authorized under the Elementary and Secondary Education Act.
Math now for elementary school students.--Funds would support
competitive grants to improve instruction in mathematics for students in
kindergarten through 6th grade through such activities as professional
development, diagnostic assessments, and curriculum implementation.
Math now for middle school students.--Funds would support
competitive grants to improve mathematics instruction for middle school
students whose achievement is significantly below grade level.
Promise scholarships.--Funds would support formula grants to States
for scholarships to enable low-income students enrolled in persistently
low-performing schools to attend a private or out-of-district public
school or to receive intensive, sustained tutoring assistance.
Opportunity scholarships.--Funds would support competitive grants to
support local efforts to enable low-income students enrolled in
persistently low-performing schools to attend a private or out-of-
district public school or to receive intensive, sustained tutoring
assistance.
Object Classification (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0900-2-1-501 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Direct obligations:
25.1 Advisory and assistance services.. 3
25.2 Other services.................... 1
41.0 Grants, subsidies, and
contributions................... 546
--------- --------- ----------
99.9 Total new obligations........... 550
---------------------------------------------------------------------------
Impact Aid
For carrying out programs of financial assistance to federally
affected schools authorized by title VIII of the Elementary and Sec
[[Page 315]]
ondary Education Act of 1965, $1,228,100,000, of which $1,091,867,000
shall be for basic support payments under section 8003(b), $49,466,000
shall be for payments for children with disabilities under section
8003(d), $17,820,000 shall be for construction under section 8007(b) and
shall remain available through September 30, 2009, $64,350,000 shall be
for Federal property payments under section 8002, and $4,597,000, to
remain available until expended, shall be for facilities maintenance
under section 8008: Provided, That for purposes of computing the amount
of a payment for an eligible local educational agency under section
8003(a) for school year 2007-2008, children enrolled in a school of such
agency that would otherwise be eligible for payment under section
8003(a)(1)(B) of such Act, but due to the deployment of both parents or
legal guardians, or a parent or legal guardian having sole custody of
such children, or due to the death of a military parent or legal
guardian while on active duty (so long as such children reside on
Federal property as described in section 8003(a)(1)(B)), are no longer
eligible under such section, shall be considered as eligible students
under such section, provided such students remain in average daily
attendance at a school in the same local educational agency they
attended prior to their change in eligibility status.
Note.--A regular 2007 appropriation for this account had not been
enacted at the time the budget was prepared; therefore, this account is
operating under a continuing resolution (P.L. 109-289, Division B, as
amended). The amounts included for 2007 in this budget reflect the
levels provided by the continuing resolution.
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0102-0-1-501 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Basic support payments............ 1,092 1,092 1,092
00.02 Supplemental payments for children
with disabilities............... 49 49 49
--------- --------- ----------
00.91 Subtotal, payments for federally
connected children............ 1,141 1,141 1,141
01.01 Facilities maintenance............ 5 5 5
02.01 Construction...................... 47 47 18
03.01 Payments for Federal property..... 64 64 64
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 1,257 1,257 1,228
----------------------------------------------------------------------------
Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 35 7 7
22.00 New budget authority (gross)...... 1,229 1,257 1,228
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 1,264 1,264 1,235
23.95 Total new obligations............. -1,257 -1,257 -1,228
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 7 7 7
----------------------------------------------------------------------------
New budget authority (gross), detail:
Discretionary:
40.00 Appropriation................... 1,241 1,257 1,228
40.35 Appropriation permanently
reduced....................... -12
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 1,229 1,257 1,228
----------------------------------------------------------------------------
Change in obligated balances:
72.40 Obligated balance, start of year.. 264 379 164
73.10 Total new obligations............. 1,257 1,257 1,228
73.20 Total outlays (gross)............. -1,141 -1,472 -1,227
73.40 Adjustments in expired accounts
(net)........................... -1
--------- --------- ----------
74.40 Obligated balance, end of year.. 379 164 165
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 1,069 1,128 1,087
86.93 Outlays from discretionary
balances........................ 72 344 140
--------- --------- ----------
87.00 Total outlays (gross)........... 1,141 1,472 1,227
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 1,229 1,257 1,228
90.00 Outlays........................... 1,141 1,472 1,227
---------------------------------------------------------------------------
Note: Additional authorizing language is sought for all of the
resources requested in this account.
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 1.0 million federally connected students enrolled in about
1,260 local educational agencies to assist them in meeting their
operation and maintenance costs. Average per-student payments will be
approximately $1,100.
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 58,000 federally connected
students with disabilities in about 900 local educational agencies.
Average per-student payments will be approximately $850.
Facilities maintenance.--Funds will be used to provide emergency
repairs for school facilities that serve military dependents and are
owned by the Department of Education. Funds will be also used to
transfer the facilities to local educational agencies.
Construction.--Approximately 20 construction grants will be awarded
competitively to the highest need impact aid districts for emergency
repairs and modernization of school facilities.
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.
School Improvement Programs
For carrying out school improvement activities authorized by title
II, part B of title IV, subpart 9 of part D of title V, and parts A and
B of title VI 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; the Compact of Free
Association Amendments Act of 2003; and the Civil Rights Act of 1964,
$4,698,276,000, of which $3,158,151,000 shall become available on July
1, 2008, and remain available through September 30, 2009, and of which
$1,435,000,000 shall become available on October 1, 2008, and shall
remain available through September 30, 2009, for academic year 2008-
2009: Provided, That $411,630,000 shall be for State assessments and
related activities authorized under sections 6111 and 6112 of the ESEA:
Provided further, That $56,256,000 shall be available to carry out
section 203 of the Educational Technical Assistance Act of 2002:
Provided further, That $23,755,000 shall be available to carry out part
D of title V of the ESEA: Provided further, That no funds appropriated
under this heading may be used to carry out section 5494 under the ESEA:
Provided further, That $18,001,000 shall be available to carry out the
Supplemental Education Grants program for the Federated States of
Micronesia and for the Republic of the Marshall Islands: Provided
further, That up to 5 percent of these amounts may be reserved by the
Federated States of Micronesia and the Republic of the Marshall Islands
to administer the Supplemental Education Grants programs and to obtain
technical assistance, oversight and consultancy services in the
administration of these grants and to reimburse the United States
Departments of Labor, Health and Human Services, and Education for such
services.
Note.--A regular 2007 appropriation for this account had not been
enacted at the time the budget was prepared; therefore, this account is
operating under a continuing resolution (P.L. 109-289, Division B, as
amended). The amounts included for 2007 in this budget reflect the
levels provided by the continuing resolution.
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-1000-0-1-501 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Improving teacher quality State
grants.......................... 2,887 2,907 2,787
00.02 Early childhood educator
professional development........ 15 15
00.03 Mathematics and science
partnerships.................... 182 184 182
00.04 Educational technology State
grants.......................... 273 279
00.05 21st Century community learning
centers......................... 981 991 981
00.06 State grants for innovative
programs........................ 99 99
[[Page 316]]
00.07 Javits gifted and talented
education....................... 10 10
00.08 Foreign language assistance....... 22 22 24
00.09 State assessments................. 412 420 412
00.10 Education for homeless children
and youth....................... 62 62 62
00.11 Education for Native Hawaiians.... 34 34
00.12 Alaska Native education equity.... 34 34
00.13 Training and advisory services.... 7 7 7
00.14 Rural education................... 169 169 169
00.15 Supplemental education grants..... 18 18 18
00.16 Comprehensive centers............. 56 56 56
00.17 Safe and drug-free schools and
communities national programs... 5 5
--------- --------- ----------
10.00 Total new obligations........... 5,266 5,312 4,698
----------------------------------------------------------------------------
Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 56 47
22.00 New budget authority (gross)...... 5,256 5,265 4,698
22.10 Resources available from
recoveries of prior year
obligations..................... 1
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 5,313 5,312 4,698
23.95 Total new obligations............. -5,266 -5,312 -4,698
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 47
----------------------------------------------------------------------------
New budget authority (gross), detail:
Discretionary:
40.00 Appropriation................... 3,874 3,830 3,263
40.35 Appropriation permanently
reduced....................... -53
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 3,821 3,830 3,263
55.00 Advance appropriation........... 1,435 1,435 1,435
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 5,256 5,265 4,698
----------------------------------------------------------------------------
Change in obligated balances:
72.40 Obligated balance, start of year.. 7,286 6,712 6,394
73.10 Total new obligations............. 5,266 5,312 4,698
73.20 Total outlays (gross)............. -5,797 -5,630 -5,253
73.40 Adjustments in expired accounts
(net)........................... -42
73.45 Recoveries of prior year
obligations..................... -1
--------- --------- ----------
74.40 Obligated balance, end of year.. 6,712 6,394 5,839
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 760 966 955
86.93 Outlays from discretionary
balances........................ 5,037 4,664 4,298
--------- --------- ----------
87.00 Total outlays (gross)........... 5,797 5,630 5,253
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 5,256 5,265 4,698
90.00 Outlays........................... 5,797 5,630 5,253
---------------------------------------------------------------------------
SUMMARY OF PROGRAM LEVEL
(in millions of dollars)
2006-2007
Academic
Year 2007-2008
Academic Year 2008-2009
Academic Year
New Budget Authority.......... 3,820 3,825 3,263
Advance Appropriation......... 1,435 1,435 1,435
------------------------------------
Total program level..... 5,255 5,260 4,698
====================================
Change in advance
appropriation over previous
year.......................... 0 0 0
Note: Additional authorizing language is sought for $4,614,906,000
in this account.
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.
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. These efforts may include the integration of teaching
methods based on scientifically-based research and technology into the
curriculum.
Other Activities:
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.
Foreign language assistance.--Funds support competitive grants to
States and school districts to create innovative model programs
providing for the establishment, improvement, or expansion of critical
foreign language study for elementary and secondary school students.
State assessments.--Funds support formula grants to States to
develop and implement the assessments, and related accountability
efforts, that States use to test children in reading, mathematics, and
science.
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.
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. The
Small, Rural Schools Achievement program provides rural local
educational agencies with small enrollments with additional formula
funds and flexibility in the use of other Federal formula funds. 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, which in turn allocate funds to
eligible local educational agencies within the States.
Supplemental education grants.--Funds support grants to the
Federated States of Micronesia and to the Republic of the Marshall
Islands in place of grant programs discontinued by the Compact of Free
Association Amendments Act of 2003.
Comprehensive centers.--Funds support 21 comprehensive centers that
focus on building State capacity to help school districts and schools
meet the requirements of the No Child Left Behind Act.
Object Classification (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-1000-0-1-501 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Direct obligations:
25.1 Advisory and assistance services.. 13 14 12
25.2 Other services.................... 22 23 21
41.0 Grants, subsidies, and
contributions................... 5,231 5,275 4,665
--------- --------- ----------
99.9 Total new obligations........... 5,266 5,312 4,698
---------------------------------------------------------------------------
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, $118,683,000.
Note.--A regular 2007 appropriation for this account had not been
enacted at the time the budget was prepared; therefore, this account is
operating under a continuing resolution (P.L. 109-289, Division B, as
amended). The amounts included for 2007 in this budget reflect the
levels provided by the continuing resolution.
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0101-0-1-501 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Grants to local educational
agencies........................ 96 96 96
[[Page 317]]
00.02 Special programs for Indian
children........................ 19 19 19
00.03 National activities............... 4 4 4
--------- --------- ----------
10.00 Total new obligations........... 119 119 119
----------------------------------------------------------------------------
Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 119 119 119
23.95 Total new obligations............. -119 -119 -119
----------------------------------------------------------------------------
New budget authority (gross), detail:
Discretionary:
40.00 Appropriation................... 120 119 119
40.35 Appropriation permanently
reduced....................... -1
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 119 119 119
----------------------------------------------------------------------------
Change in obligated balances:
72.40 Obligated balance, start of year.. 146 140 138
73.10 Total new obligations............. 119 119 119
73.20 Total outlays (gross)............. -120 -121 -117
73.40 Adjustments in expired accounts
(net)........................... -5
--------- --------- ----------
74.40 Obligated balance, end of year.. 140 138 140
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 6 6 6
86.93 Outlays from discretionary
balances........................ 114 115 111
--------- --------- ----------
87.00 Total outlays (gross)........... 120 121 117
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 119 119 119
90.00 Outlays........................... 120 121 117
---------------------------------------------------------------------------
Note: Additional authorizing language is sought for all of the
resources requested in this account.
The Indian Education programs support 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 2006, the Department made
1,196 formula grants to local educational agencies and tribal schools
serving more than 469,000 students.
Special programs for Indian Children.--The Department makes
competitive awards for demonstration projects in early childhood
education and college preparation, as well as professional development
grants for training Native American teachers and administrators for
employment 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 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Direct obligations:
25.1 Advisory and assistance services.. 1 1 1
25.2 Other services.................... 2 2 2
25.7 Operation and maintenance of
equipment....................... 1 1 1
41.0 Grants, subsidies, and
contributions................... 115 115 115
--------- --------- ----------
99.9 Total new obligations........... 119 119 119
---------------------------------------------------------------------------
Reading Excellence
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0011-0-1-501 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Change in obligated balances:
72.40 Obligated balance, start of year.. 20 6
73.20 Total outlays (gross)............. -1 -6
73.40 Adjustments in expired accounts
(net)........................... -13
--------- --------- ----------
74.40 Obligated balance, end of year.. 6
----------------------------------------------------------------------------
Outlays (gross), detail:
86.93 Outlays from discretionary
balances........................ 1 6
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays........................... 1 6
---------------------------------------------------------------------------
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 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Change in obligated balances:
72.40 Obligated balance, start of year.. 64 4
73.20 Total outlays (gross)............. -17 -4
73.40 Adjustments in expired accounts
(net)........................... -43
--------- --------- ----------
74.40 Obligated balance, end of year.. 4
----------------------------------------------------------------------------
Outlays (gross), detail:
86.93 Outlays from discretionary
balances........................ 17 4
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays........................... 17 4
---------------------------------------------------------------------------
Programs in this account have been transferred to the School
Improvement Programs account or discontinued. Amounts in this schedule
reflect balances that are spending out from prior-year appropriations.
OFFICE OF INNOVATION AND IMPROVEMENT
Federal Funds
Innovation and Improvement
For carrying out activities authorized by part G of title I, parts
C and D of title II, and parts B, C, and D of title V of the Elementary
and Secondary Education Act of 1965, $897,018,000: Provided, That from
funds for subpart 4, part C of title II, up to 3 percent shall be
available to the Secretary for technical assistance and dissemination of
information: Provided further, That $36,611,000 shall be for subpart 2
of part B of title V: Provided further, That $257,108,000 shall be
available to carry out part D of title V of the ESEA, of which
$199,000,000 of the funds for subpart 1 shall be for competitive grants
to local educational agencies, including charter schools that are local
educational agencies, or States, or partnerships of (1) a local
educational agency, a State, or both and (2) at least one non-profit
organization to develop and implement performance-based teacher and
principal compensation systems in high-need schools: Provided further,
That such performance-based compensation systems must consider gains in
student academic achievement as well as classroom evaluations conducted
multiple times during each school year among other factors and provide
educators with incentives to take on additional responsibilities and
leadership roles: Provided further, That up to five percent of such
funds for competitive grants shall be available for technical
assistance, training, peer review of applications, program outreach and
evaluation activities.
Note.--A regular 2007 appropriation for this account had not been
enacted at the time the budget was prepared; therefore, this account is
operating under a continuing resolution (P.L. 109-289, Division B, as
amended). The amounts included for 2007 in this budget reflect the
levels provided by the continuing resolution.
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0204-0-1-501 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
[[Page 318]]
00.01 Teacher incentive fund............ 4 98 199
00.02 Troops-to-teachers................ 15 15 15
00.03 Transition to teaching............ 44 44 44
00.04 National writing project.......... 21 21
00.05 Teaching American history......... 120 120 50
00.06 School leadership................. 15 15
00.07 Advanced credentialing............ 17 17
School choice and flexibility:
00.08 Charter schools grants.......... 215 215 215
00.09 Credit enhancement for charter
school facilities............. 37 37 37
00.10 Voluntary public school choice.. 26 26 26
00.11 Magnet schools assistance....... 107 107 107
00.12 Advanced placement................ 32 32 122
00.13 School dropout prevention......... 5 5
00.14 Close Up fellowships.............. 1 1
00.15 Ready-to-learn-television......... 24 24 24
00.16 Academies for American history and
civics.......................... 2 2
00.17 FIE programs of national
significance.................... 12 12 33
00.18 Reading is fundamental/Inexpensive
book distribution............... 25 25 25
00.19 Star schools...................... 15 15
00.20 Ready to teach.................... 11 11
00.21 Exchanges with historic whaling
and trading partners............ 9 9
00.22 Excellence in economic education.. 1 1
00.23 Mental health integration in
schools......................... 5 5
00.24 Foundations for learning.......... 1 1
00.25 Arts in education................. 35 35
00.26 Parental information and resource
centers......................... 39 39
00.27 Womens educational equity......... 3 3
--------- --------- ----------
01.00 Total direct program............ 841 935 897
09.01 DC School Choice.................. 14 14 15
09.02 Reimbursable program.............. 1
--------- --------- ----------
10.00 Total new obligations........... 856 949 912
----------------------------------------------------------------------------
Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 95 1
22.00 New budget authority (gross)...... 952 855 912
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 952 950 913
23.95 Total new obligations............. -856 -949 -912
23.98 Unobligated balance expiring or
withdrawn....................... -1
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 95 1 1
----------------------------------------------------------------------------
New budget authority (gross), detail:
Discretionary:
40.00 Appropriation................... 946 841 897
40.35 Appropriation permanently
reduced....................... -9
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 937 841 897
58.00 Spending authority from
offsetting collections:
Offsetting collections (cash). 15 14 15
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 952 855 912
----------------------------------------------------------------------------
Change in obligated balances:
72.40 Obligated balance, start of year.. 1,595 1,535 1,196
73.10 Total new obligations............. 856 949 912
73.20 Total outlays (gross)............. -915 -1,288 -937
73.40 Adjustments in expired accounts
(net)........................... -1
--------- --------- ----------
74.40 Obligated balance, end of year.. 1,535 1,196 1,171
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 26 43 46
86.93 Outlays from discretionary
balances........................ 889 1,245 891
--------- --------- ----------
87.00 Total outlays (gross)........... 915 1,288 937
----------------------------------------------------------------------------
Offsets:
Against gross budget authority and outlays:
Offsetting collections (cash)
from:
88.00 Federal sources............... -1
88.40 Non-Federal sources........... -14 -14 -15
--------- --------- ----------
88.90 Total, offsetting collections
(cash)...................... -15 -14 -15
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 937 841 897
90.00 Outlays........................... 900 1,274 922
---------------------------------------------------------------------------
Summary of Budget Authority and Outlays
(in millions of dollars)
2006 actual 2007 est. 2008 est.
Enacted/requested:
Budget Authority............ 937 841 897
Outlays..................... 900 1,274 922
Legislative proposal, not subject to
PAYGO:
Budget Authority............ 25
Outlays..................... 1
Total:
Budget Authority............ 937 841 922
Outlays..................... 900 1,274 923
Note: Additional authorizing language is sought for all of the
resources requested in this account.
Recruiting and training high quality teachers:
Teacher incentive fund.--Funds support the development of
performance-based teacher compensation systems that reward teachers and
schools that are raising student achievement and closing the achievement
gap.
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 mid-career professionals and
recent college graduates as teachers in high-need schools.
Teaching American history.--Funds support competitive grants to
school districts for activities to improve history instruction and
provide professional development for teachers of American history.
Other activities:
Charter schools 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. A portion of the funding supports
State efforts to assist charter schools in obtaining facilities.
Credit enhancement for charter school facilities.--Funds support
competitive grants to State and local governments, nonprofit entities,
and public and nonprofit consortia, to assist charter schools in
acquiring, leasing, and renovating school facilities.
Voluntary public school choice.--Funds support competitive grants to
State 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.
Advanced placement.--Funds support competitive grants to State
educational agencies, local educational agencies, and national nonprofit
educational entities to expand access for low-income individuals to
Advanced Placement (AP) or International Baccalaureate (IB) courses, and
grants to States to pay test fees for low-income students who are
enrolled in AP or IB courses.
Ready-to-learn television.--Funds support the development,
distribution, and production of educational video programming and
accompanying materials and services for preschool and elementary school
children and their parents to facilitate student academic achievement.
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.
[[Page 319]]
Reading is fundamental/Inexpensive book distribution.--Funds support
reading motivation activities, including the distribution of free books
to children.
Object Classification (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0204-0-1-501 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Direct obligations:
25.1 Advisory and assistance services 2 3 5
25.2 Other services.................. 53 52 53
41.0 Grants, subsidies, and
contributions................. 786 880 839
--------- --------- ----------
99.0 Direct obligations............ 841 935 897
99.0 Reimbursable obligations.......... 15 14 15
--------- --------- ----------
99.9 Total new obligations........... 856 949 912
---------------------------------------------------------------------------
Innovation and improvement
(Legislative proposal, not subject to PAYGO)
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0204-2-1-501 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Adjunct Teacher Corps............. 25
--------- --------- ----------
01.00 Total direct program............ 25
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 25
----------------------------------------------------------------------------
Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 25
23.95 Total new obligations............. -25
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year..........
----------------------------------------------------------------------------
New budget authority (gross), detail:
Discretionary:
40.00 Appropriation................... 25
----------------------------------------------------------------------------
Change in obligated balances:
73.10 Total new obligations............. 25
73.20 Total outlays (gross)............. -1
--------- --------- ----------
74.40 Obligated balance, end of year.. 24
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 1
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 25
90.00 Outlays........................... 1
---------------------------------------------------------------------------
The resources in this schedule are proposed for later transmittal
under proposed legislation to revise and reauthorize programs currently
authorized under the Elementary and Secondary Education Act.
Adjunct teacher corps.--Funds would 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 mathematics and
science.
OFFICE OF SAFE AND DRUG-FREE SCHOOLS
Federal Funds
Safe Schools and Citizenship Education
For carrying out activities authorized by part A of title IV of the
Elementary and Secondary Education Act of 1965, $324,248,000, of which
$100,000,000 shall become available on July 1, 2008 and remain available
through September 30, 2009: Provided, That $224,248,000 shall be
available for subpart 2 of part A of title IV, of which $10,000,000, to
remain available until expended, shall be for the Project School
Emergency Response to Violence program to provide education-related
services to local educational agencies in which the learning environment
has been disrupted due to a violent or traumatic crisis.
Note.--A regular 2007 appropriation for this account had not been
enacted at the time the budget was prepared; therefore, this account is
operating under a continuing resolution (P.L. 109-289, Division B, as
amended). The amounts included for 2007 in this budget reflect the
levels provided by the continuing resolution.
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0203-0-1-501 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
Safe and drug-free schools and communities:
00.01 State grants.................... 346 355 100
National programs:
00.02 National activities........... 138 171 224
00.03 Alcohol abuse reduction....... 32 32
00.04 Mentoring program............. 49 19
--------- --------- ----------
00.91 Subtotal, Safe and drug-free
schools and communities....... 565 577 324
01.01 Character education............... 24 24
02.01 Elementary and secondary school
counseling...................... 35 35
03.01 Physical education program........ 73 73
04.01 Civic education................... 29 29
05.01 Literacy program for prisoners.... 5
09.00 Reimbursable program.............. 70 70 70
--------- --------- ----------
10.00 Total new obligations........... 801 808 394
----------------------------------------------------------------------------
Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 7 6
22.00 New budget authority (gross)...... 800 802 394
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 807 808 394
23.95 Total new obligations............. -801 -808 -394
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 6
----------------------------------------------------------------------------
New budget authority (gross), detail:
Discretionary:
40.00 Appropriation................... 737 732 324
40.35 Appropriation permanently
reduced....................... -7
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 730 732 324
58.00 Spending authority from
offsetting collections:
Offsetting collections (cash). 70 70 70
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 800 802 394
----------------------------------------------------------------------------
Change in obligated balances:
72.40 Obligated balance, start of year.. 1,291 1,255 1,202
73.10 Total new obligations............. 801 808 394
73.20 Total outlays (gross)............. -836 -861 -810
73.40 Adjustments in expired accounts
(net)........................... -1
--------- --------- ----------
74.40 Obligated balance, end of year.. 1,255 1,202 786
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 24 16 7
86.93 Outlays from discretionary
balances........................ 812 845 803
--------- --------- ----------
87.00 Total outlays (gross)........... 836 861 810
----------------------------------------------------------------------------
Offsets:
Against gross budget authority and outlays:
88.00 Offsetting collections (cash)
from: Federal sources......... -70 -70 -70
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 730 732 324
90.00 Outlays........................... 766 791 740
---------------------------------------------------------------------------
Note: Additional authorizing language is sought for all of the
resources requested in this account.
Safe and drug-free schools and communities:
State grants.--Funds provide formula grants to State educational
agencies to provide local educational agencies with training, technical
assistance, and information regarding effective models for the creation
of safe, healthy, drug-free, and secure schools.
National programs.--Funds support programs and activities in the
areas of (1) emergency management planning, (2) preventing violence and
drug use, including student drug testing, (3) school culture and
climate, including character education, and (4) other needs related to
improving students' learning
[[Page 320]]
environment to enable those students to meet challenging academic
standards.
Object Classification (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0203-0-1-501 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Direct obligations:
25.1 Advisory and assistance services 6 7 7
25.2 Other services.................. 9 9 9
25.3 Other purchases of goods and
services from Government
accounts...................... 4 4 4
41.0 Grants, subsidies, and
contributions................. 712 718 304
--------- --------- ----------
99.0 Direct obligations............ 731 738 324
99.0 Reimbursable obligations.......... 70 70 70
--------- --------- ----------
99.9 Total new obligations........... 801 808 394
---------------------------------------------------------------------------
OFFICE OF ENGLISH LANGUAGE ACQUISITION
Federal Funds
English Language Acquisition
For carrying out part A of title III of the ESEA, $670,819,000,
which shall become available on July 1, 2008, and shall remain available
through September 30, 2009, except that 6.5 percent of such amount shall
be available on October 1, 2007 and shall remain available through
September 30, 2009, to carry out activities under section 3111(c)(1)(C).
Note.--A regular 2007 appropriation for this account had not been
enacted at the time the budget was prepared; therefore, this account is
operating under a continuing resolution (P.L. 109-289, Division B, as
amended). The amounts included for 2007 in this budget reflect the
levels provided by the continuing resolution.
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-1300-0-1-501 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Language acquisition State grants. 671 678 671
--------- --------- ----------
10.00 Total new obligations........... 671 678 671
----------------------------------------------------------------------------
Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 9 7
22.00 New budget authority (gross)...... 669 671 671
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 678 678 671
23.95 Total new obligations............. -671 -678 -671
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 7
----------------------------------------------------------------------------
New budget authority (gross), detail:
Discretionary:
40.00 Appropriation................... 676 671 671
40.35 Appropriation permanently
reduced....................... -7
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 669 671 671
----------------------------------------------------------------------------
Change in obligated balances:
72.40 Obligated balance, start of year.. 937 983 805
73.10 Total new obligations............. 671 678 671
73.20 Total outlays (gross)............. -616 -856 -624
73.40 Adjustments in expired accounts
(net)........................... -9
--------- --------- ----------
74.40 Obligated balance, end of year.. 983 805 852
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 8 34 34
86.93 Outlays from discretionary
balances........................ 608 822 590
--------- --------- ----------
87.00 Total outlays (gross)........... 616 856 624
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 669 671 671
90.00 Outlays........................... 616 856 624
---------------------------------------------------------------------------
Note: Additional authorizing language is sought for all of the
resources requested in this account.
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.
Object Classification (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-1300-0-1-501 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Direct obligations:
25.5 Research and development contracts 2 2 2
41.0 Grants, subsidies, and
contributions................... 669 676 669
--------- --------- ----------
99.9 Total new obligations........... 671 678 671
---------------------------------------------------------------------------
OFFICE OF SPECIAL EDUCATION AND REHABILITATIVE SERVICES
Federal Funds
Special Education
For carrying out the Individuals with Disabilities Education Act,
$11,485,147,000, of which $5,080,559,000 shall become available on July
1, 2008, and shall remain available through September 30, 2009, and of
which $6,215,200,000 shall become available on October 1, 2008, and
shall remain available through September 30, 2009, for academic year
2008-2009: Provided, That the amount for section 611(b)(2) of the Act
shall be equal to the lesser of the amount available for that activity
during fiscal year 2007, increased by the amount of inflation as
specified in section 619(d)(2)(B) of the Act, or the percentage increase
in the funds appropriated under section 611(i) of the Act.
Note.--A regular 2007 appropriation for this account had not been
enacted at the time the budget was prepared; therefore, this account is
operating under a continuing resolution (P.L. 109-289, Division B, as
amended). The amounts included for 2007 in this budget reflect the
levels provided by the continuing resolution.
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0300-0-1-501 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
State grants:
00.01 Grants to States................ 10,481 10,598 9,699
00.02 Preschool grants................ 381 381 381
00.03 Grants for infants and families. 423 438 423
--------- --------- ----------
00.91 Subtotal, State grants........ 11,285 11,417 10,503
National activities:
01.01 State personnel development..... 50 50 50
01.02 Technical assistance and
dissemination................. 49 49 49
01.03 Personnel preparation........... 90 90 90
01.04 Parent information centers...... 26 26 26
01.05 Technology and media services... 38 38 25
--------- --------- ----------
01.91 Subtotal, National activities. 253 253 240
--------- --------- ----------
02.00 Total Direct Program............ 11,538 11,670 10,743
--------- --------- ----------
10.00 Total new obligations........... 11,538 11,670 10,743
----------------------------------------------------------------------------
Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 67 170 49
22.00 New budget authority (gross)...... 11,641 11,549 10,694
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 11,708 11,719 10,743
23.95 Total new obligations............. -11,538 -11,670 -10,743
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 170 49
----------------------------------------------------------------------------
New budget authority (gross), detail:
Discretionary:
40.00 Appropriation................... 6,346 6,125 5,270
40.35 Appropriation permanently
reduced....................... -118
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 6,228 6,125 5,270
[[Page 321]]
55.00 Advance appropriation........... 5,413 5,424 5,424
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 11,641 11,549 10,694
----------------------------------------------------------------------------
Change in obligated balances:
72.40 Obligated balance, start of year.. 9,532 9,212 9,345
73.10 Total new obligations............. 11,538 11,670 10,743
73.20 Total outlays (gross)............. -11,836 -11,537 -10,771
73.40 Adjustments in expired accounts
(net)........................... -22
--------- --------- ----------
74.40 Obligated balance, end of year.. 9,212 9,345 9,317
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 3,032 4,136 4,135
86.93 Outlays from discretionary
balances........................ 8,804 7,401 6,636
--------- --------- ----------
87.00 Total outlays (gross)........... 11,836 11,537 10,771
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 11,641 11,549 10,694
90.00 Outlays........................... 11,836 11,537 10,771
---------------------------------------------------------------------------
SUMMARY OF GRANTS TO STATES PROGRAM LEVEL
[In millions of dollars]
2006-2007 2007-2008 2008-2009
academic
year academic yeaacademic year
Current Budget Authority...... $5,159 $5,068 4,277
Advance appropriation......... 5,424 5,424 6,215
------------------------------------
Total program level....... 10,583 10,492 10,492
====================================
Change in advance
appropriation from the
previous year................. +11 0 +791
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.
Performance data related to program goals include:
2002-2003
actual 2003-2004
actual 2004-2005
actual
Status of Exiting Students
Percent of students with
disabilities aged 14-21 leaving
school:
Graduated with a diploma.... 51.9 54.2 54.4
Graduated through
certification............. 12.7 13.1 15.5
Dropped out of school/not
known to continue......... 33.6 30.9 28.3
Reached maximum age for
services/other............ 1.8 1.8 1.8
Object Classification (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0300-0-1-501 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Direct obligations:
25.2 Other services.................... 4 4 4
41.0 Grants, subsidies, and
contributions................... 11,534 11,666 10,739
--------- --------- ----------
99.9 Total new obligations........... 11,538 11,670 10,743
---------------------------------------------------------------------------
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, and
the Helen Keller National Center Act, $3,184,263,000, of which
$2,837,160,000 shall be for grants for vocational rehabilitation
services under Title I of the Rehabilitation Act.
Note.--A regular 2007 appropriation for this account had not been
enacted at the time the budget was prepared; therefore, this account is
operating under a continuing resolution (P.L. 109-289, Division B, as
amended). The amounts included for 2007 in this budget reflect the
levels provided by the continuing resolution.
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0301-0-1-506 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Vocational rehabilitation State
grants.......................... 2,720 2,837 2,837
00.02 Client assistance State grants.... 12 12 12
00.03 Training.......................... 38 38 38
00.04 Demonstration and training
programs........................ 8 7 7
00.05 Migrant and seasonal farmworkers.. 2 2
00.06 Recreational programs............. 3 3
00.07 Protection and advocacy of
individual rights............... 16 16 16
00.08 Projects with industry............ 20 20
00.09 Supported employment State grants. 30 30
00.10 Independent living................ 130 130 130
00.11 Program improvement............... 1 1 1
00.12 Evaluation........................ 1 1 2
00.13 Helen Keller National Center...... 9 9 8
00.14 National Institute on Disability
and Rehabilitation Research..... 107 107 107
00.15 Assistive technology.............. 29 30 26
--------- --------- ----------
01.00 Total direct program............ 3,126 3,243 3,184
09.01 Reimbursable program.............. 2 2 2
--------- --------- ----------
10.00 Total new obligations........... 3,128 3,245 3,186
----------------------------------------------------------------------------
Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 3,127 3,244 3,186
23.95 Total new obligations............. -3,128 -3,245 -3,186
----------------------------------------------------------------------------
New budget authority (gross), detail:
Discretionary:
40.00 Appropriation................... 409 405 310
40.35 Appropriation permanently
reduced....................... -4
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 405 405 310
Spending authority from
offsetting collections:
58.00 Offsetting collections (cash). 2 2
58.10 Change in uncollected customer
payments from Federal
sources (unexpired)......... 2
--------- --------- ----------
58.90 Spending authority from
offsetting collections
(total discretionary)....... 2 2 2
Mandatory:
60.00 Appropriation................... 2,720 2,837 2,874
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 3,127 3,244 3,186
----------------------------------------------------------------------------
Change in obligated balances:
72.40 Obligated balance, start of year.. 1,393 1,396 1,086
73.10 Total new obligations............. 3,128 3,245 3,186
73.20 Total outlays (gross)............. -3,116 -3,555 -3,218
73.40 Adjustments in expired accounts
(net)........................... -7
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... -2
--------- --------- ----------
74.40 Obligated balance, end of year.. 1,396 1,086 1,054
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 81 285 218
86.93 Outlays from discretionary
balances........................ 356 422 142
86.97 Outlays from new mandatory
authority....................... 1,920 1,986 2,012
[[Page 322]]
86.98 Outlays from mandatory balances... 759 862 846
--------- --------- ----------
87.00 Total outlays (gross)........... 3,116 3,555 3,218
----------------------------------------------------------------------------
Offsets:
Against gross budget authority and outlays:
88.00 Offsetting collections (cash)
from: Federal sources......... -2 -2
Against gross budget authority only:
88.95 Change in uncollected customer
payments from Federal sources
(unexpired)................... -2
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 3,125 3,242 3,184
90.00 Outlays........................... 3,116 3,553 3,216
---------------------------------------------------------------------------
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.
The program performance measures for this program are based on State
VR agency performance indicators developed pursuant to Section 106 of
the Rehabilitation Act. One of these indicators measures the percentage
of general and combined State VR agencies that assist at least 55.8
percent of individuals receiving services to achieve an employment
outcome. In 2005, 71 percent of the agencies met this performance
criterion. Another indicator measures the percentage of general and
combined State VR agencies that assist at least 85 percent of
individuals with employment outcomes to achieve competitive employment.
In 2005, 95 percent of general and combined agencies met this
performance criterion. This outcome data are based on the approximately
356,229 individuals whose service records were closed in 2005 after
receiving services.
The 2008 Budget 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 eliminates funding for three programs (Supported Employment State
Grants, Projects with Industry, and the Migrant and Seasonal Farmworkers
program). The services provided by these programs can continue to be
provided by the larger 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 and
development 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.--Formula grants are made to States to
implement comprehensive Statewide programs designed to maximize the
ability of individuals with disabilities of all ages to obtain assistive
technology. States conduct activities that include alternative financing
programs, device reutilization programs, device loan programs, and
device demonstrations. Funds also support national technical assistance
activities.
Object Classification (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0301-0-1-506 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Direct obligations:
25.1 Advisory and assistance services 9 10 11
25.2 Other services.................. 1 1 1
41.0 Grants, subsidies, and
contributions................. 3,115 3,231 3,172
--------- --------- ----------
99.0 Direct obligations............ 3,125 3,242 3,184
99.0 Reimbursable obligations.......... 2 2 2
99.5 Below reporting threshold......... 1 1
--------- --------- ----------
99.9 Total new obligations........... 3,128 3,245 3,186
---------------------------------------------------------------------------
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.), $17,573,000.
Note.--A regular 2007 appropriation for this account had not been
enacted at the time the budget was prepared; therefore, this account is
operating under a continuing resolution (P.L. 109-289, Division B, as
amended). The amounts included for 2007 in this budget reflect the
levels provided by the continuing resolution.
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0600-0-1-501 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Direct program activity........... 18 18 18
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 18 18 18
----------------------------------------------------------------------------
[[Page 323]]
Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 18 18 18
23.95 Total new obligations............. -18 -18 -18
----------------------------------------------------------------------------
New budget authority (gross), detail:
Discretionary:
40.00 Appropriation................... 18 18 18
----------------------------------------------------------------------------
Change in obligated balances:
72.40 Obligated balance, start of year.. 5 4 2
73.10 Total new obligations............. 18 18 18
73.20 Total outlays (gross)............. -19 -20 -18
--------- --------- ----------
74.40 Obligated balance, end of year.. 4 2 2
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 14 17 17
86.93 Outlays from discretionary
balances........................ 5 3 1
--------- --------- ----------
87.00 Total outlays (gross)........... 19 20 18
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 18 18 18
90.00 Outlays........................... 19 20 18
---------------------------------------------------------------------------
The Federal appropriation supports the production and distribution
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 2006, the portion of the Federal appropriation
allocated to educational materials represented approximately 68.6
percent of the Printing House's total sales. The full appropriation
represented approximately 68.8 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.), $56,262,000, of which $913,000 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.
Note.--A regular 2007 appropriation for this account had not been
enacted at the time the budget was prepared; therefore, this account is
operating under a continuing resolution (P.L. 109-289, Division B, as
amended). The amounts included for 2007 in this budget reflect the
levels provided by the continuing resolution.
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0601-0-1-502 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Operations........................ 55 55 55
00.02 Construction...................... 1 1 1
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 56 56 56
----------------------------------------------------------------------------
Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 56 56 56
23.95 Total new obligations............. -56 -56 -56
----------------------------------------------------------------------------
New budget authority (gross), detail:
Discretionary:
40.00 Appropriation................... 57 56 56
40.35 Appropriation permanently
reduced....................... -1
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 56 56 56
----------------------------------------------------------------------------
Change in obligated balances:
72.40 Obligated balance, start of year.. 2 1 3
73.10 Total new obligations............. 56 56 56
73.20 Total outlays (gross)............. -57 -54 -56
--------- --------- ----------
74.40 Obligated balance, end of year.. 1 3 3
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 55 52 53
86.93 Outlays from discretionary
balances........................ 2 2 3
--------- --------- ----------
87.00 Total outlays (gross)........... 57 54 56
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 56 56 56
90.00 Outlays........................... 57 54 56
---------------------------------------------------------------------------
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 2006, the Federal
appropriation represented 80 percent of the Institute's operating
budget. The request includes funds for a variety of construction
projects. The request also includes funds for the Endowment Grant
program.
Gallaudet University
For the Kendall Demonstration Elementary School, the Model
Secondary School for the Deaf, and the partial support of Gallaudet
University and related activities under titles I and II of the Education
of the Deaf Act of 1986 (20 U.S.C. 4301, et seq.), $106,998,000, of
which $600,000 shall be for the Secretary of Education to carry out
section 205 of the Act: Provided, That from the total amount available
to the University, the University may at its discretion use funds for
the endowment program as authorized under section 207.
Note.--A regular 2007 appropriation for this account had not been
enacted at the time the budget was prepared; therefore, this account is
operating under a continuing resolution (P.L. 109-289, Division B, as
amended). The amounts included for 2007 in this budget reflect the
levels provided by the continuing resolution.
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0602-0-1-502 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Operations........................ 107 107 106
00.02 Evaluation........................ 1
--------- --------- ----------
10.00 Total new obligations........... 107 107 107
----------------------------------------------------------------------------
Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 107 107 107
23.95 Total new obligations............. -107 -107 -107
----------------------------------------------------------------------------
New budget authority (gross), detail:
Discretionary:
40.00 Appropriation................... 108 107 107
40.35 Appropriation permanently
reduced....................... -1
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 107 107 107
----------------------------------------------------------------------------
Change in obligated balances:
72.40 Obligated balance, start of year.. 6
73.10 Total new obligations............. 107 107 107
73.20 Total outlays (gross)............. -107 -101 -107
--------- --------- ----------
74.40 Obligated balance, end of year.. 6 6
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 107 101 101
86.93 Outlays from discretionary
balances........................ 6
--------- --------- ----------
87.00 Total outlays (gross)........... 107 101 107
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 107 107 107
90.00 Outlays........................... 107 101 107
---------------------------------------------------------------------------
This institution provides undergraduate and continuing education
programs for persons who are deaf, and graduate programs related to
deafness for students who are deaf and students who are hearing. The
University also conducts basic and applied research and provides public
service programs for persons who are deaf and persons who work with
them.
Gallaudet operates two elementary and secondary education programs
on the main campus of the University. The Kendall Demonstration
Elementary School serves students who are deaf from infancy through age
15, and the Model Secondary
[[Page 324]]
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 2006, the appropriation for Gallaudet represented 63.3 percent of
the total revenue for university-level programs and 97.8 percent of the
revenue related to the elementary and secondary schools. In addition,
the University receives other Federal funds such as student financial
aid, vocational rehabilitation, Endowment Grant program income, and
competitive grants and contracts. The request includes $600,000 for the
Secretary of Education to conduct a study that is intended to assist
Galluadet in improving its performance on key outcome measures. The
request also includes funds for the Endowment Grant program.
Object Classification (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0602-0-1-502 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Direct obligations:
25.1 Advisory and assistance services.. 1
41.0 Grants, subsidies, and
contributions................... 107 107 106
--------- --------- ----------
99.9 Total new obligations........... 107 107 107
---------------------------------------------------------------------------
OFFICE OF VOCATIONAL AND ADULT EDUCATION
Federal Funds
Career, Technical, and Adult Education
For carrying out, to the extent not otherwise provided, the Carl D.
Perkins Career and Technical Education Act of 2006 and the Adult
Education and Family Literacy Act, $1,197,174,000, of which
$1,189,808,000 shall become available on July 1, 2008 and shall remain
available through September 30, 2009: Provided, That of the amounts made
available for the Carl D. Perkins Career and Technical Education Act of
2006, $7,366,000 is for postsecondary career and technical institutions
under section 117: Provided further, That of the amount provided for
Adult Education State Grants, $67,896,000 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 United States Citizenship and Immigration Services
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
United States Citizenship and Immigration Services 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, $9,096,000 shall be for national leadership activities
under section 243 and $6,638,000 shall be for the National Institute for
Literacy under section 242.
Note.--A regular 2007 appropriation for this account had not been
enacted at the time the budget was prepared; therefore, this account is
operating under a continuing resolution (P.L. 109-289, Division B, as
amended). The amounts included for 2007 in this budget reflect the
levels provided by the continuing resolution.
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0400-0-1-501 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
Career and technical education:
00.01 State grants.................... 1,183 1,182 1,391
00.02 National programs............... 11 9 11
00.03 Occupational and employment
information................... 1 1
00.04 Tech prep education State grants 105 105
00.05 Tech prep demonstration......... 5 5
00.06 Tribally controlled
postsecondary career and
technical institutions........ 7
--------- --------- ----------
00.91 Total, Career and technical
education..................... 1,305 1,302 1,409
Adult education:
01.01 State grants.................... 564 565 564
01.02 National leadership activities.. 9 7 9
01.03 National Institute for Literacy. 6 9 7
--------- --------- ----------
01.91 Total, adult education.......... 579 581 580
02.01 Smaller learning communities...... 90 94 90
03.01 State grants for incarcerated
youth offenders................. 23 23
--------- --------- ----------
10.00 Total new obligations........... 1,997 2,000 2,079
----------------------------------------------------------------------------
Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 136 131 128
22.00 New budget authority (gross)...... 1,992 1,997 1,988
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 2,128 2,128 2,116
23.95 Total new obligations............. -1,997 -2,000 -2,079
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 131 128 37
----------------------------------------------------------------------------
New budget authority (gross), detail:
Discretionary:
40.00 Appropriation................... 1,221 1,206 1,197
40.35 Appropriation permanently
reduced....................... -20
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 1,201 1,206 1,197
55.00 Advance appropriation from prior
year.......................... 791 791 791
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 1,992 1,997 1,988
----------------------------------------------------------------------------
Change in obligated balances:
72.40 Obligated balance, start of year.. 1,755 1,762 1,670
73.10 Total new obligations............. 1,997 2,000 2,079
73.20 Total outlays (gross)............. -1,987 -2,092 -1,939
73.40 Adjustments in expired accounts
(net)........................... -3
--------- --------- ----------
74.40 Obligated balance, end of year.. 1,762 1,670 1,810
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 602 654 614
86.93 Outlays from discretionary
balances........................ 1,385 1,438 1,325
--------- --------- ----------
87.00 Total outlays (gross)........... 1,987 2,092 1,939
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 1,992 1,997 1,988
90.00 Outlays........................... 1,987 2,092 1,939
---------------------------------------------------------------------------
Career and technical education:
State grants.--Funds support formula grants to States and localities
to expand and improve their programs of career and technical education
and promote equal opportunity in career and technical education programs
for historically underserved populations.
National programs.--Funds appropriated in 2007 will be used in 2008
to support discretionary activities that contribute to knowledge of how
to improve career and technical education nationally. Activities include
a national evaluation, a national center for research and dissemination
in career and technical education, and a program of discretionary
research and development projects.
Tribally controlled postsecondary career and technical
institutions.--Funds support the operation and improvement of tribally
controlled postsecondary career and technical institutions to help
ensure continued and expanded educational opportunities for Indian
students.
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 or its equivalent, and to
promote family literacy. A portion of the funds is reserved for formula
grants to States to provide English literacy and civics education for
immigrants and other limited English proficient adults.
[[Page 325]]
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 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Direct obligations:
11.3 Personnel compensation: Other than
full-time permanent............. 1 1 1
23.1 Rental payments to GSA............ 1
25.1 Advisory and assistance services.. 2 6 7
25.2 Other services.................... 4 12 8
25.3 Other purchases of goods and
services from Government
accounts........................ 17 17 9
25.5 Research and development contracts 13 1 2
41.0 Grants, subsidies, and
contributions................... 1,958 1,962 2,051
--------- --------- ----------
99.0 Direct obligations.............. 1,996 1,999 2,078
99.5 Below reporting threshold......... 1 1 1
--------- --------- ----------
99.9 Total new obligations........... 1,997 2,000 2,079
---------------------------------------------------------------------------
Employment Summary
----------------------------------------------------------------------------
Identification code 91-0400-0-1-501 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Direct:
1001 Civilian full-time equivalent
employment...................... 13 16 16
---------------------------------------------------------------------------
OFFICE OF POSTSECONDARY EDUCATION
Federal Funds
Higher Education
For carrying out, to the extent not otherwise provided, titles III,
IV, V, VI, and VII of the Higher Education Act of 1965 (``HEA''), as
amended, the Mutual Educational and Cultural Exchange Act of 1961,
$1,837,737,000: Provided, That $9,797,000, to remain available through
September 30, 2009, shall be available to fund fellowships for academic
year 2009-2010 under part A, subpart 1 of title VII of the HEA, under
the terms and conditions of part A, subpart 1: Provided further, That
$970,000 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 of the funds referred to in the
preceding proviso, up to 1 percent may be used for program evaluation,
national outreach, and information dissemination activities: Provided
further, That $24,000,000 shall be for grants to institutions of higher
education, in partnership with local educational agencies, to establish
instructional programs at all educational levels in languages critical
to U.S. national security.
Note.--A regular 2007 appropriation for this account had not been
enacted at the time the budget was prepared; therefore, this account is
operating under a continuing resolution (P.L. 109-289, Division B, as
amended). The amounts included for 2007 in this budget reflect the
levels provided by the continuing resolution.
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0201-0-1-502 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Strengthening institutions........ 79 79 79
00.02 Strengthening tribally controlled
colleges and universities....... 24 24 19
00.03 Strengthening Alaska Native and
Native Hawaiian-serving
institutions.................... 12 12
00.04 Strengthening historically black
colleges and universities....... 238 238 238
00.05 Strengthening historically black
graduate institutions........... 58 58 58
00.06 Minority science and engineering
improvement..................... 9 9 9
--------- --------- ----------
00.91 Subtotal, aid for institutional
development................... 420 420 403
Other aid for institutions:
01.01 Developing Hispanic-serving
institutions.................. 95 95 95
01.02 International education and
foreign language studies...... 106 106 106
01.03 Fund for the Improvement of
Postsecondary Education....... 22 22 22
01.04 Demonstration projects to ensure
quality higher education for
students with disabilities.... 7 7
01.05 Interest subsidy grants......... 4 4
01.06 Tribally controlled
postsecondary vocational and
technical institutions........ 7 7
--------- --------- ----------
01.91 Subtotal, other aid for
institutions................ 241 241 223
Assistance for students:
02.01 Federal TRIO programs........... 828 828 828
02.02 Gaining early awareness and
readiness for undergraduate
programs (GEAR UP)............ 303 303 303
02.03 Byrd honors scholarships........ 40 40
02.04 Javits fellowships.............. 10 10 10
02.05 Graduate assistance in areas of
national need................. 30 30 30
02.06 Thurgood Marshall legal
educational opportunity....... 3 3
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.................... 1,231 1,231 1,187
03.01 Teacher quality enhancement....... 60 60
04.01 Other higher education activities. 3 3 1
05.01 Advancing America through foreign
language partnerships........... 24
--------- --------- ----------
10.00 Total new obligations........... 1,955 1,955 1,838
----------------------------------------------------------------------------
Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 19 15 15
22.00 New budget authority (gross)...... 1,951 1,955 1,837
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 1,970 1,970 1,852
23.95 Total new obligations............. -1,955 -1,955 -1,838
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 15 15 14
----------------------------------------------------------------------------
New budget authority (gross), detail:
Discretionary:
40.00 Appropriation................... 1,971 1,955 1,837
40.35 Appropriation permanently
reduced....................... -20
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 1,951 1,955 1,837
----------------------------------------------------------------------------
Change in obligated balances:
72.40 Obligated balance, start of year.. 2,870 2,746 2,602
73.10 Total new obligations............. 1,955 1,955 1,838
73.20 Total outlays (gross)............. -2,059 -2,099 -2,003
73.40 Adjustments in expired accounts
(net)........................... -20
--------- --------- ----------
74.40 Obligated balance, end of year.. 2,746 2,602 2,437
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 54 101 92
86.93 Outlays from discretionary
balances........................ 2,005 1,998 1,911
--------- --------- ----------
87.00 Total outlays (gross)........... 2,059 2,099 2,003
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 1,951 1,955 1,837
90.00 Outlays........................... 2,059 2,099 2,003
---------------------------------------------------------------------------
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.
[[Page 326]]
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.--Balances from prior year appropriations
meet mandatory interest subsidy costs of construction loan commitments
made prior to 1974.
Assistance for students:
Federal TRIO programs.--Funds support postsecondary education
outreach and support services to help disadvantaged adults 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.
Javits fellowships.--Funds support fellowships to students of
superior ability who have financial need and who are pursuing doctoral
degrees in the arts, humanities, and social sciences.
Graduate assistance in areas of national need.--Funds support
fellowships to graduate students of superior ability who have financial
need and who are from traditionally under-represented backgrounds for
study in areas of national need.
Child care access means parents in school.--Funds support a program
designed to bolster the participation of low-income parents in
postsecondary education through the provision of campus-based child care
services.
Other activities:
Other higher education activities.--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.
Advancing America through foreign language partnerships.--Funds
support an initiative to establish fully articulated language programs
of study in languages critical to U.S. national security through grants
to institutions of higher education for partnerships with school
districts for language learning from kindergarten through high school
and into advanced language learning at the postsecondary education
level.
Object Classification (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0201-0-1-502 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Direct obligations:
25.1 Advisory and assistance services.. 4 4 4
25.2 Other services.................... 4 3 5
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................... 1,944 1,945 1,826
--------- --------- ----------
99.9 Total new obligations........... 1,955 1,955 1,838
---------------------------------------------------------------------------
Howard University
For partial support of Howard University (20 U.S.C. 121 et seq.),
$233,866,000.
Note.--A regular 2007 appropriation for this account had not been
enacted at the time the budget was prepared; therefore, this account is
operating under a continuing resolution (P.L. 109-289, Division B, as
amended). The amounts included for 2007 in this budget reflect the
levels provided by the continuing resolution.
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0603-0-1-502 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 General support................... 205 212 209
00.02 Howard University Hospital........ 29 29 29
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 234 241 238
----------------------------------------------------------------------------
Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 7 11 4
22.00 New budget authority (gross)...... 238 234 234
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 245 245 238
23.95 Total new obligations............. -234 -241 -238
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 11 4
----------------------------------------------------------------------------
New budget authority (gross), detail:
Discretionary:
40.00 Appropriation................... 240 234 234
40.35 Appropriation permanently
reduced....................... -2
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 238 234 234
----------------------------------------------------------------------------
Change in obligated balances:
72.40 Obligated balance, start of year.. 10
73.10 Total new obligations............. 234 241 238
73.20 Total outlays (gross)............. -234 -231 -234
--------- --------- ----------
74.40 Obligated balance, end of year.. 10 14
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 234 220 220
86.93 Outlays from discretionary
balances........................ 11 14
--------- --------- ----------
87.00 Total outlays (gross)........... 234 231 234
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 238 234 234
90.00 Outlays........................... 234 231 234
---------------------------------------------------------------------------
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 2006, Federal funding represented approximately
51 percent of the university's revenue.
College Housing and Academic Facilities Loans Program Account
For Federal administrative expenses to carry out activities related
to existing facility loans pursuant to section 121 of the Higher
Education Act of 1965, as amended $481,000.
Historically Black College and University Capital Financing Program
Account
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,
$188,000.
[[Page 327]]
Note.--A regular 2007 appropriation for this account had not been
enacted at the time the budget was prepared; therefore, this account is
operating under a continuing resolution (P.L. 109-289, Division B, as
amended). The amounts included for 2007 in this budget reflect the
levels provided by the continuing resolution.
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0241-0-1-502 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Direct loan subsidy............... 179
00.05 Reestimates of direct loan subsidy 11
00.06 Interest on reestimates of direct
loan subsidy.................... 3
00.09 Federal administration............ 1 1 1
--------- --------- ----------
10.00 Total new obligations........... 1 194 1
----------------------------------------------------------------------------
Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 1 194 1
23.95 Total new obligations............. -1 -194 -1
----------------------------------------------------------------------------
New budget authority (gross), detail:
Discretionary:
40.00 Appropriation................... 1 180 1
Mandatory:
60.00 Appropriation................... 14
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 1 194 1
----------------------------------------------------------------------------
Change in obligated balances:
73.10 Total new obligations............. 1 194 1
73.20 Total outlays (gross)............. -1 -194 -1
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 1 180 1
86.97 Outlays from new mandatory
authority....................... 14
--------- --------- ----------
87.00 Total outlays (gross)........... 1 194 1
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 1 194 1
90.00 Outlays........................... 1 194 1
---------------------------------------------------------------------------
Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0241-0-1-502 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Direct loan levels supportable by subsidy
budget authority:
115002Historically Black Colleges and
Universities.................... 15 75
115003HBCU Hurricane Supplemental....... 235
--------- --------- ----------
115999Total direct loan levels.......... 15 310
Direct loan subsidy (in percent):
132002Historically Black Colleges and
Universities.................... 0.00 0.00 0.00
132003HBCU Hurricane Supplemental....... 0.00 76.14 0.00
--------- --------- ----------
132999Weighted average subsidy rate..... 0.00 57.72 0.00
Direct loan subsidy budget authority:
133003HBCU Hurricane Supplemental....... 179
--------- --------- ----------
133999Total subsidy budget authority.... 179
Direct loan subsidy outlays:
134003HBCU Hurricane Supplemental....... 179
--------- --------- ----------
134999Total subsidy outlays............. 179
Direct loan upward reestimates:
135002Historically Black Colleges and
Universities.................... 14
--------- --------- ----------
135999Total upward reestimate budget
authority....................... 14
----------------------------------------------------------------------------
Administrative expense data:
3510 Budget authority.................. 1 1 1
3590 Outlays from new authority........ 1 1 1
---------------------------------------------------------------------------
As required by the Federal Credit Reform Act of 1990, this account
records the subsidy costs associated with the direct loans obligated and
loan guarantees committed in 1992 and beyond, as well as any
administrative expenses for the College Housing and Academic Facilities
Loans Program and the Historically Black College and University Capital
Financing Program. The subsidy amounts are estimated on a present value
basis; the administrative expenses are estimated on a cash basis. These
programs are administered separately but consolidated in the President's
budget for presentation purposes.
College Housing and Academic Facilities Loans Program.--Funds for
this activity pay the Federal costs for administering the College
Housing and Academic Facilities Loans (CHAFL), College Housing Loans
(CHL), and Higher Education Facilities Loans (HEFL) programs. Prior to
1994, these programs provided financing for the construction,
reconstruction, and renovation of housing, academic, and other
educational facilities. Although no new loans have been awarded since
fiscal year 1993, costs for administering the outstanding loans will
remain through 2030.
Historically Black College and University Capital Financing
Program.--The Historically Black College and University (HBCU) Capital
Financing Program provides HBCUs with access to capital financing for
the repair, renovation, and construction of classrooms, libraries,
laboratories, dormitories, instructional equipment, and research
instrumentation. The Higher Education Amendments of 1992 granted the
Department authority to enter into insurance agreements with a private
for-profit Designated Bonding Authority to guarantee no more than
$375,000,000 in outstanding principal and unpaid accrued interest
combined. The bonding authority issues the loans and maintains an escrow
account in which 5 percent of each institution's principal is deposited.
In 2006 P.L. 109-234, an emergency supplemental appropriation act,
provided authority issue loans with more favorable terms to HBCUs
affected by Hurricane Katrina. The Department estimates that it will
guarantee $235 million of these loans in 2007, at a cost of $179
million. The Department anticipates that the program will surpass the
statutory loan cap of $375 million in principal and accrued interest in
fiscal year 2007, at which point the Department will not have authority
to make additional loan guarantees. The 2008 Budget provides funds for
continuing Federal administrative activities only.
Object Classification (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0241-0-1-502 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
41.0 Direct obligations: Grants,
subsidies, and contributions.... 193
99.5 Below reporting threshold......... 1 1 1
--------- --------- ----------
99.9 Total new obligations........... 1 194 1
---------------------------------------------------------------------------
Employment Summary
----------------------------------------------------------------------------
Identification code 91-0241-0-1-502 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Direct:
1001 Civilian full-time equivalent
employment...................... 5 4 4
---------------------------------------------------------------------------
College Housing and Academic Facilities Loans Financing Account
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-4252-0-3-502 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.02 Interest paid to Treasury......... 1 1 1
--------- --------- ----------
10.00 Total new obligations........... 1 1 1
----------------------------------------------------------------------------
Budgetary resources available for obligation:
22.00 New financing authority (gross)... 1 1 1
23.95 Total new obligations............. -1 -1 -1
----------------------------------------------------------------------------
New financing authority (gross), detail:
Mandatory:
Spending authority from
offsetting collections:
69.00 Offsetting collections (cash). 2 2 2
69.47 Portion applied to repay debt. -1 -1 -1
--------- --------- ----------
[[Page 328]]
69.90 Spending authority from
offsetting collections
(total mandatory)........... 1 1 1
----------------------------------------------------------------------------
Change in obligated balances:
73.10 Total new obligations............. 1 1 1
73.20 Total financing disbursements
(gross)......................... -1 -1 -1
----------------------------------------------------------------------------
Outlays (gross), detail:
87.00 Total financing disbursements
(gross)......................... 1 1 1
----------------------------------------------------------------------------
Offsets:
Against gross financing authority and
financing disbursements:
Offsetting collections (cash)
from:
88.40 Interest repayments........... -1 -1 -1
88.40 Principal repayments.......... -1 -1 -1
--------- --------- ----------
88.90 Total, offsetting collections
(cash)...................... -2 -2 -2
----------------------------------------------------------------------------
Net financing authority and financing
disbursements:
89.00 Financing authority............... -1 -1 -1
90.00 Financing disbursements........... -1 -1
---------------------------------------------------------------------------
Status of Direct Loans (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-4252-0-3-502 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 19 18 18
1251 Repayments: Repayments and
prepayments..................... -1
--------- --------- ----------
1290 Outstanding, end of year........ 18 18 18
---------------------------------------------------------------------------
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 obligated in fiscal years 1992 and 1993. The
amounts in this account are a means of financing and are not incuded in
the budget totals.
Balance Sheet (in millions of dollars)
-----------------------------------------------------------------------------------------------
Identification code 91-4252-0-
3-502
2005 actual
2006 actual
-----------------------------------------------------------------------------------------------
ASSETS:
Net value of assets related to
post-1991 direct loans
receivable:
1401
Direct loans receivable, gross
19
19
1402
Interest receivable
1
1
1405
Allowance for subsidy cost (-)
-3
-3
1499
Net present value of assets related to direct loans
17
17
1999
Total assets
17
17
LIABILITIES:
2103
Federal liabilities: Debt
17
17
2999
Total liabilities
17
17
4999
Total liabilities and net position
17
17
-----------------------------------------------------------------------------------------------
College Housing and Academic Facilities Loans Liquidating Account
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0242-0-1-502 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.02 Interest paid to Treasury......... 7 8 7
--------- --------- ----------
10.00 Total new obligations (object
class 43.0)................... 7 8 7
----------------------------------------------------------------------------
Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 1
22.00 New budget authority (gross)...... 8 8 7
22.40 Capital transfer to general fund.. -1
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 8 8 7
23.95 Total new obligations............. -7 -8 -7
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 1
----------------------------------------------------------------------------
New budget authority (gross), detail:
Mandatory:
60.00 Appropriation................... 3 2 2
Spending authority from
offsetting collections:
69.00 Offsetting collections (cash). 37 31 28
69.27 Capital transfer to general
fund........................ -25 -22 -20
69.47 Portion applied to repay debt. -7 -3 -3
--------- --------- ----------
69.90 Spending authority from
offsetting collections
(total mandatory)........... 5 6 5
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 8 8 7
----------------------------------------------------------------------------
Change in obligated balances:
72.40 Obligated balance, start of year.. 1
73.10 Total new obligations............. 7 8 7
73.20 Total outlays (gross)............. -8 -8 -7
--------- --------- ----------
74.40 Obligated balance, end of year..
----------------------------------------------------------------------------
Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 8 8 7
----------------------------------------------------------------------------
Offsets:
Against gross budget authority and outlays:
Offsetting collections (cash)
from:
88.40 Repayments of principal....... -27 -21 -19
88.40 Interest received on loans.... -10 -10 -9
--------- --------- ----------
88.90 Total, offsetting collections
(cash)...................... -37 -31 -28
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. -29 -23 -21
90.00 Outlays........................... -29 -23 -21
---------------------------------------------------------------------------
Status of Direct Loans (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0242-0-1-502 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 83 76 73
1251 Repayments: Repayments and
prepayments..................... -7 -3 -3
--------- --------- ----------
1290 Outstanding, end of year........ 76 73 70
----------------------------------------------------------------------------
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 17 16 14
1251 Repayments: Repayments and
prepayments..................... -1 -2 -2
--------- --------- ----------
1290 Outstanding, end of year........ 16 14 12
----------------------------------------------------------------------------
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 182 163 147
1251 Repayments: Repayments and
prepayments..................... -19 -16 -15
--------- --------- ----------
1290 Outstanding, end of year........ 163 147 132
---------------------------------------------------------------------------
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
obligated 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.
Balance Sheet (in millions of dollars)
-----------------------------------------------------------------------------------------------
Identification code 91-0242-0-
1-502
2005 actual
2006 actual
-----------------------------------------------------------------------------------------------
ASSETS:
1601
Direct loans, gross
282
255
1602
Interest receivable
6
6
1699
Value of assets related to direct loans
288
261
1999
Total assets
288
261
[[Page 329]]
LIABILITIES:
Federal liabilities:
2103
Debt
83
76
2104
Resources payable to Treasury
205
185
2999
Total liabilities
288
261
4999
Total liabilities and net position
288
261
-----------------------------------------------------------------------------------------------
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 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Direct loan awards................ 15 310
00.02 Interest paid to Treasury......... 7 7 7
--------- --------- ----------
10.00 Total new obligations........... 22 317 7
----------------------------------------------------------------------------
Budgetary resources available for obligation:
22.00 New financing authority (gross)... 22 317 7
23.95 Total new obligations............. -22 -317 -7
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year..........
----------------------------------------------------------------------------
New financing authority (gross), detail:
Mandatory:
67.10 Authority to borrow............. 15 310
Spending authority from
offsetting collections:
69.00 Offsetting collections (cash). 20 205 12
69.47 Portion applied to repay debt. -13 -198 -5
--------- --------- ----------
69.90 Spending authority from
offsetting collections
(total mandatory)........... 7 7 7
--------- --------- ----------
70.00 Total new financing authority
(gross)....................... 22 317 7
----------------------------------------------------------------------------
Change in obligated balances:
72.40 Obligated balance, start of year.. 38 11 150
73.10 Total new obligations............. 22 317 7
73.20 Total financing disbursements
(gross)......................... -49 -178 -256
--------- --------- ----------
74.40 Obligated balance, end of year.. 11 150 -99
----------------------------------------------------------------------------
Outlays (gross), detail:
87.00 Total financing disbursements
(gross)......................... 49 178 256
----------------------------------------------------------------------------
Offsets:
Against gross financing authority and
financing disbursements:
Offsetting collections (cash)
from:
88.00 Federal sources............... -193
88.40 Interest repayments........... -7 -7 -7
88.40 Principal repayments.......... -13 -5 -5
--------- --------- ----------
88.90 Total, offsetting collections
(cash)...................... -20 -205 -12
----------------------------------------------------------------------------
Net financing authority and financing
disbursements:
89.00 Financing authority............... 2 112 -5
90.00 Financing disbursements........... 29 -27 244
---------------------------------------------------------------------------
Status of Direct Loans (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-4255-0-3-502 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Position with respect to appropriations act
limitation on obligations:
1111 Limitation on direct loans........ 208 216
1142 Unobligated direct loan limitation
(-)............................. -193 94
--------- --------- ----------
1150 Total direct loan obligations... 15 310
----------------------------------------------------------------------------
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 126 155 320
1231 Disbursements: Direct loan
disbursements................... 42 170 249
1251 Repayments: Repayments and
prepayments..................... -13 -5 -5
--------- --------- ----------
1290 Outstanding, end of year........ 155 320 564
---------------------------------------------------------------------------
As required by the Federal Credit Reform Act of 1990, this non-
budgetary account records all cash flows to and from the Federal
Government resulting from direct loans obligated in fiscal year 1996 and
beyond. 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. The amounts in this account are a means of financing and are not
included in the budget totals.
Balance Sheet (in millions of dollars)
-----------------------------------------------------------------------------------------------
Identification code 91-4255-0-
3-502
2005 actual
2006 actual
-----------------------------------------------------------------------------------------------
ASSETS:
1101
Federal assets: Fund balances with Treasury
10
22
Net value of assets related to
post-1991 direct loans
receivable:
1401
Direct loans receivable, gross
126
155
1402
Interest receivable
3
3
1499
Net present value of assets related to direct loans
129
158
1999
Total assets
139
180
LIABILITIES:
Federal liabilities:
2102
Interest payable
3
3
2103
Debt
126
155
2201
Non-Federal liabilities: Undisbursed direct loans
10
22
2999
Total liabilities
139
180
4999
Total liabilities and net position
139
180
-----------------------------------------------------------------------------------------------
OFFICE OF FEDERAL STUDENT AID
Federal Funds
Student Financial Assistance
For carrying out subpart 1 of part A, and part C of title IV of the
Higher Education Act of 1965, as amended, $14,203,492,000, which shall
remain available through September 30, 2009.
The maximum Pell Grant for which a student shall be eligible during
award year 2008-2009 shall be $4,050.
Note.--A regular 2007 appropriation for this account had not been
enacted at the time the budget was prepared; therefore, this account is
operating under a continuing resolution (P.L. 109-289, Division B, as
amended). The amounts included for 2007 in this budget reflect the
levels provided by the continuing resolution.
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0200-0-1-502 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
01.01 Federal Pell grants............... 14,801 12,297 12,985
02.01 Federal supplemental educational
opportunity grants (SEOG)....... 776 772
02.02 Federal work-study................ 1,005 981 980
02.03 Federal Perkins loans: Fed.
capital contributions........... 5
02.04 Federal Perkins loans: Loan
cancellations................... 65 65
--------- --------- ----------
02.91 Campus-based activities--
Subtotal (1 level)............ 1,851 1,818 980
03.01 Leveraging educational assistance
partnership..................... 65 65
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 16,717 14,180 13,965
----------------------------------------------------------------------------
Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 23 2,694 3,002
22.00 New budget authority (gross)...... 19,255 14,488 14,203
22.10 Resources available from
recoveries of prior year
obligations..................... 133
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 19,411 17,182 17,205
23.95 Total new obligations............. -16,717 -14,180 -13,965
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 2,694 3,002 3,240
----------------------------------------------------------------------------
New budget authority (gross), detail:
Discretionary:
[[Page 330]]
40.00 Appropriation................... 15,078 14,488 14,203
40.00 Appropriation...................
40.35 Appropriation permanently
reduced....................... -151
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 14,927 14,488 14,203
Mandatory:
60.00 Appropriation................... 4,300
63.00 Reappropriation................. 28
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 19,255 14,488 14,203
----------------------------------------------------------------------------
Change in obligated balances:
72.40 Obligated balance, start of year.. 6,861 8,722 8,702
73.10 Total new obligations............. 16,717 14,180 13,965
73.20 Total outlays (gross)............. -14,710 -14,200 -14,244
73.40 Adjustments in expired accounts
(net)........................... -13
73.45 Recoveries of prior year
obligations..................... -133
--------- --------- ----------
74.40 Obligated balance, end of year.. 8,722 8,702 8,423
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 8,011 3,216 2,997
86.93 Outlays from discretionary
balances........................ 6,679 10,976 11,247
86.97 Outlays from new mandatory
authority....................... 20
86.98 Outlays from mandatory balances... 8
--------- --------- ----------
87.00 Total outlays (gross)........... 14,710 14,200 14,244
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 19,255 14,488 14,203
90.00 Outlays........................... 14,710 14,200 14,244
---------------------------------------------------------------------------
Summary of Budget Authority and Outlays
(in millions of dollars)
2006 actual 2007 est. 2008 est.
Enacted/requested:
Budget Authority............ 19,254 14,488 14,203
Outlays..................... 14,710 14,200 14,244
Legislative proposal, subject to
PAYGO:
Budget Authority............ 2,216
Outlays..................... 532
Total:
Budget Authority............ 19,254 14,488 16,419
Outlays..................... 14,710 14,200 14,776
Status of Direct Loans (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0200-0-1-502 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 323 322 321
1251 Repayments: Repayments and
prepayments..................... -26 -26 -26
Write-offs for default:
1263 Direct loans.................... -14 -14 -14
1264 Other adjustments, net.......... 39 39 39
--------- --------- ----------
1290 Outstanding, end of year........ 322 321 320
---------------------------------------------------------------------------
Notes: Figures include, in all years, institutional matching share
of defaulted notes assigned from institutions to the Education
Department.
The Administration's student aid policy proposals, including funding
levels for programs in the Student Financial Assistance account, are
discussed under the Federal Direct Student Loan Program account.
Authorizing legislation to implement these policies, which will be
proposed for later transmittal, will provide substantial mandatory
funding resources that will allow the maximum Pell Grant level to be
increased to $4,600, $550 above the level shown in the above
appropriations language. When these mandatory funds are taken into
account, funding from the Student Financial Assistance account and
related matching funds would provide nearly 6.3 million awards totaling
over $16.4 billion in available aid in award year 2008-2009.
Federal Pell Grants.--Pell Grants are the single largest source of
grant aid for postsecondary education. In 2007, more than 5 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.
Federal Work Study.--This program provides aid administrators with
considerable flexibility in packaging financial aid awards to best meet
student needs. 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 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.
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 aid from programs in the Student Financial Assistance
account, as well as aid from the Academic Competitiveness/SMART Grant,
Federal Family Education Loan, and William D. Ford Direct Student Loan
programs. Loan amounts reflect the capital actually loaned, not the
Federal cost of these loans. The data in these tables include matching
funds wherever appropriate. The 2008 data in these tables reflect the
Administration's legislative proposals.
AID FUNDS AVAILABLE FOR POSTSECONDARY EDUCATION AND TRAINING
[in thousands]
2006 2007 2008
Pell grants................... 12,880,787 12,954,395 15,175,820
Academic Competitiveness
Grants........................ 340,000 420,000 830,000
SMART grants.................. 310,000 310,000 350,000
Student loans:
Guaranteed student loans:
Stafford loans............ 19,856,009 21,410,043 23,721,725
Unsubsidized Stafford
loans................... 20,067,865 21,784,501 23,912,997
PLUS...................... 7,382,849 9,207,694 10,210,395
Direct student loans:
Stafford loans............ 5,604,411 5,943,987 6,637,369
Unsubsidized Stafford
loans................... 4,784,107 5,158,934 5,649,747
PLUS...................... 2,288,328 2,493,366 2,762,814
Consolidation:
FFEL...................... 72,009,607 26,852,938 31,882,248
Direct Loans.............. 19,347,290 4,465,821 4,996,000
Perkins loans............... 1,134,733 1,104,497 0
Student loans, subtotal. 152,475,199 98,421,781 112,783,271
Work study.................... 1,174,800 1,174,970 1,174,970
Supplemental educational
opportunity grants............ 975,864 975,432 0
Leveraging educational
assistance partnerships....... 164,960 164,960 0
------------------------------------
Total aid available..... 168,321,610 114,421,538 127,304,154
NUMBER OF AID AWARDS
[in thousands]
2006 2007 2008
Pell grants............... 5,165 5,274 5,478
Academic competitiveness
grants.................. 400 497 662
SMART grants.............. 80 82 93
Guaranteed student loans--
Stafford loans.......... 5,706 5,913 6,090
Guaranteed student loans--
Unsubsidized Stafford
loans................... 4,585 4,786 4,976
Guaranteed student loans--
PLUS.................... 691 797 840
Guaranteed student loans--
Consolidation........... 2,622 992 1,137
Direct student loans--
Stafford loans.......... 1,153 1,503 1,547
Direct student loans--
Unsubsidized Stafford
loans................... 1,091 1,094 1,133
Direct student loans--PLUS 237 242 255
Direct student loans--
Consolidation........... 756 200 200
Perkins loans............. 514 501 0
Work-study................ 880 880 880
Supplemental educational
opportunity grants...... 1,291 1,290 0
Leveraging eduational
assistance partnerships. 165 165 0
------------------------------------
Total awards............ 25,696 24,216 23,291
[[Page 331]]
AVERAGE AID AWARDS
[in whole dollars]
2006 2007 2008
Pell grants............... 2,494 2,456 2,770
Academic competitiveness.. 850 845 1,254
SMART Grants.............. 3,875 3,780 3,763
Guaranteed student loans--
Stafford loans.......... 3,480 3,621 3,895
Guaranteed student loans--
Unsubsidized Stafford
loans................... 4,377 4,552 4,806
Guaranteed student loans--
PLUS.................... 10,678 11,557 12,152
Guaranteed student loans--
Consolidation........... 27,465 27,075 28,040
Direct student loans--
Stafford loans.......... 3,704 3,954 4,290
Direct student loans--
Unsubsidized Stafford
loans................... 4,386 4,715 4,987
Direct student loans--PLUS 9,675 10,300 10,834
Direct student loans--
Consolidation........... 25,607 22,292 22,673
Perkins loans............. 2,206 2,206 0
Work-study................ 1,335 1,335 1,335
Supplemental educational
opportunity grants...... 756 756 0
Leveraging educational
assistance partnerships. 1,000 1,000 0
NUMBER OF STUDENTS AIDED
[in thousands]
Unduplicated student count.... 10,409 10,766 11,076
ADMINISTRATIVE PAYMENTS TO INSTITUTIONS
[in thousands of dollars]
2006 2007 2008
Pell grants................... 25,827 26,372 27,389
Work-study.................... 73,445 73,456 73,445
Supplemental educational
opportunity grants............ 39,035 39,017 0
Perkins loans................. 45,389 44,180 0
Student financial assistance
(Legislative proposal, subject to PAYGO)
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0200-4-1-502 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
01.01 Federal Pell Grants............... 1,640
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 1,640
----------------------------------------------------------------------------
Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 2,216
23.95 Total new obligations............. -1,640
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 576
----------------------------------------------------------------------------
New budget authority (gross), detail:
Mandatory:
60.00 Appropriation................... 2,216
----------------------------------------------------------------------------
Change in obligated balances:
73.10 Total new obligations............. 1,640
73.20 Total outlays (gross)............. -532
--------- --------- ----------
74.40 Obligated balance, end of year.. 1,108
----------------------------------------------------------------------------
Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 532
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 2,216
90.00 Outlays........................... 532
---------------------------------------------------------------------------
Status of Direct Loans (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0200-4-1-502 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........
1251 Repayments: Repayments and
prepayments..................... 26
Write-offs for default:
1263 Direct loans.................... 14
1264 Other adjustments, net.......... -360
--------- --------- ----------
1290 Outstanding, end of year........ -320
---------------------------------------------------------------------------
Academic Competitiveness/SMART Grant Program
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0205-0-1-502 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Direct program activity........... 47 1,187 850
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 47 1,187 850
----------------------------------------------------------------------------
Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 790 850 920
22.30 Expired unobligated balance
transfer to unexpired account... 743 406
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 790 1,593 1,326
23.95 Total new obligations............. -47 -1,187 -850
23.98 Unobligated balance expiring or
withdrawn....................... -743 -406 -476
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year..........
----------------------------------------------------------------------------
New budget authority (gross), detail:
Mandatory:
60.00 Appropriation................... 790 850 920
----------------------------------------------------------------------------
Change in obligated balances:
72.40 Obligated balance, start of year.. 3 323
73.10 Total new obligations............. 47 1,187 850
73.20 Total outlays (gross)............. -44 -867 -771
--------- --------- ----------
74.40 Obligated balance, end of year.. 3 323 402
----------------------------------------------------------------------------
Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 44 140 211
86.98 Outlays from mandatory balances... 727 560
--------- --------- ----------
87.00 Total outlays (gross)........... 44 867 771
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 790 850 920
90.00 Outlays........................... 44 867 771
---------------------------------------------------------------------------
Summary of Budget Authority and Outlays
(in millions of dollars)
2006 actual 2007 est. 2008 est.
Enacted/requested:
Budget Authority............ 790 850 920
Outlays..................... 44 867 771
Legislative proposal, subject to
PAYGO:
Budget Authority............ 260
Outlays..................... 72
Total:
Budget Authority............ 790 850 1,180
Outlays..................... 44 867 843
These need-based programs provide grants to U.S citizens who attend
school on a full-time basis. Students receiving grants must be eligible
to receive a Pell Grant and, for second-, third-, and fourth-year
students, must maintain at least a 3.0 grade point average.
Academic Competitiveness Grants (ACG). These grants are awarded to
first-year and second-year students who have completed a rigorous course
of study in high school. Grant levels are $750 for first-year students
and $1,300 for second-year students.
Science and Mathematics Access to Retain Talent (SMART) Grants.
These grants are awarded to third-year and fourth-year students pursuing
a major in mathematics, science, or a foreign language deemed critical
to national security. Grant levels are $4,000 for both third- and
fourth-year students
Taken together with other Federal student aid, grants cannot exceed
a student's cost of attendance. Program funding in excess of the amount
needed to fund grants in a given year can be carried over for use in
subsequent years; if the mandatory funding level is insufficient to fund
program grants, grant levels are reduced.
[[Page 332]]
The Administration's student aid policy proposals, including those
related to the ACG/SMART Grants, are discussed under the Federal Direct
Student Loan Program Account.
Academic Competitiveness/SMART Grant Program
(Legislative proposal, subject to PAYGO)
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0205-4-1-502 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Direct program activity........... 240
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 240
----------------------------------------------------------------------------
Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 260
23.95 Total new obligations............. -240
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 20
----------------------------------------------------------------------------
New budget authority (gross), detail:
Mandatory:
60.00 Appropriation................... 260
----------------------------------------------------------------------------
Change in obligated balances:
73.10 Total new obligations............. 240
73.20 Total outlays (gross)............. -72
--------- --------- ----------
74.40 Obligated balance, end of year.. 168
----------------------------------------------------------------------------
Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 72
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 260
90.00 Outlays........................... 72
---------------------------------------------------------------------------
Perkins Loan Assets
The 2008 Budget proposes to eliminate the Perkins Loan program and
to recall the entire Federal portion of revolving funds held by
participating institutions. This proposal is discussed, as part of a
broader review of student aid policy proposals, under the Federal Direct
Student Loan Program Account. The Perkins Loan account records amounts
recalled from Perkins Loan institutions and subsequent repayments on
outstanding Perkins Loans, as well as reimbursements of institutional
funds to participating schools.
Perkins loan assets
(Legislative proposal, subject to PAYGO)
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0219-4-1-502 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
01.01 Institutional Share of Perkins
Collections..................... 87
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 87
----------------------------------------------------------------------------
Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 87
23.95 Total new obligations............. -87
----------------------------------------------------------------------------
New budget authority (gross), detail:
Mandatory:
Spending authority from
offsetting collections:
69.00 Offsetting collections (cash). 506
69.27 Capital transfer to general
fund........................ -419
--------- --------- ----------
69.90 Spending authority from
offsetting collections
(total mandatory)........... 87
----------------------------------------------------------------------------
Change in obligated balances:
73.10 Total new obligations............. 87
73.20 Total outlays (gross)............. -87
----------------------------------------------------------------------------
Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 87
----------------------------------------------------------------------------
Offsets:
Against gross budget authority and outlays:
88.40 Offsetting collections (cash)
from: Non-Federal sources..... -506
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. -419
90.00 Outlays........................... -419
---------------------------------------------------------------------------
Status of Direct Loans (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0219-4-1-502 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........
1251 Repayments: Repayments and
prepayments..................... -506
Write-offs for default:
1263 Direct loans.................... -54
1264 Other adjustments, net.......... 8,000
--------- --------- ----------
1290 Outstanding, end of year........ 7,440
---------------------------------------------------------------------------
Student Aid Administration
For Federal administrative expenses 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, $708,216,000, which
shall remain available until expended.
Note.--A regular 2007 appropriation for this account had not been
enacted at the time the budget was prepared; therefore, this account is
operating under a continuing resolution (P.L. 109-289, Division B, as
amended). The amounts included for 2007 in this budget reflect the
levels provided by the continuing resolution.
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0202-0-1-502 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Student aid administration........ 119 718 708
--------- --------- ----------
10.00 Total new obligations........... 119 718 708
----------------------------------------------------------------------------
Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 119 718 708
23.95 Total new obligations............. -119 -718 -708
----------------------------------------------------------------------------
New budget authority (gross), detail:
Discretionary:
40.00 Appropriation................... 120 718 708
40.35 Appropriation permanently
reduced....................... -1
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 119 718 708
----------------------------------------------------------------------------
Change in obligated balances:
72.40 Obligated balance, start of year.. 36 45 324
73.10 Total new obligations............. 119 718 708
73.20 Total outlays (gross)............. -110 -439 -622
--------- --------- ----------
74.40 Obligated balance, end of year.. 45 324 410
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 82 409 406
86.93 Outlays from discretionary
balances........................ 28 30 216
--------- --------- ----------
87.00 Total outlays (gross)........... 110 439 622
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 119 718 708
90.00 Outlays........................... 110 439 622
---------------------------------------------------------------------------
The Department of Education manages Federal student aid programs
that will provide $127.3 billion in Federal student aid grants and loans
to 11.1 million students and parents in 2008. Primary responsibility for
administering these programs lies with the Office of Postsecondary
Education and
[[Page 333]]
the performance-based Federal Student Aid (FSA), which are both overseen
by the Office of the Under Secretary. FSA was created by Congress in
1998 with a mandate to improve service to students and other student aid
program participants, reduce student aid administration costs, and
improve accountability and program integrity.
Prior to 2007, student aid administrative activities were funded
from two main sources: (1) funds appropriated on a permanent basis under
section 458 of the Higher Education Act (which included an amount--$220
million in 2006--for account maintenance fee payments to Federal Family
Education Loan guaranty agencies); and (2) a discretionary appropriation
partially supporting student aid administrative activities. Under the
Higher Education Reconciliation Act of 2005, student aid administrative
funds for 2007 and subsequent years are funded from a single
discretionary account. (Account maintenance fees payments for these
years are paid from the FFEL Program Account.)
The Budget for 2008 includes $708 million for student aid
administration. Most of these funds support systems maintained by
private contractors to process student aid applications; provide and
track aid awards to students, parents, and schools; and service the
over-$100 billion portfolio of William D. Ford Direct Student Loans.
Consistent with Section 484(q) of the Higher Education Act and
Section 6103(c) of the Internal Revenue Code, the Department of
Education and the Internal Revenue Service intend to implement a process
to verify students' (and their parents') income, tax and certain
household information appearing on their income tax return that they
provided as part of their application for Federal student aid. This
process is part of ongoing efforts to ensure students receive the
correct amount of Federal student aid, and is a key component of the
Administration's efforts to reduce erroneous payments government-wide.
Object Classification (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0202-0-1-502 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Direct obligations:
Personnel compensation:
11.1 Full-time permanent............. 42 104 108
11.3 Other than full-time permanent.. 2
11.5 Other personnel compensation.... 1 2 2
--------- --------- ----------
11.9 Total personnel compensation.. 45 106 110
12.1 Civilian personnel benefits....... 12 27 29
21.0 Travel and transportation of
persons......................... 4 4
23.1 Rental payments to GSA............ 5 15 14
23.3 Communications, utilities, and
miscellaneous charges........... 4 7 7
24.0 Printing and reproduction......... 2 7 8
25.1 Advisory and assistance services.. 3 3
25.2 Other services.................... 1 35 37
25.3 Other purchases of goods and
services from Government
accounts........................ 6 13 13
25.7 Operation and maintenance of
equipment....................... 43 496 480
26.0 Supplies and materials............ 1 1
31.0 Equipment......................... 1 2 1
32.0 Land and structures............... 2 1
--------- --------- ----------
99.9 Total new obligations........... 119 718 708
---------------------------------------------------------------------------
Employment Summary
----------------------------------------------------------------------------
Identification code 91-0202-0-1-502 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Direct:
1001 Civilian full-time equivalent
employment...................... 505 1,132 1,132
---------------------------------------------------------------------------
Federal Student Loan Reserve Fund
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-4257-0-3-502 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
01.02 Obligations, non-federal.......... 5,385 6,198 6,812
--------- --------- ----------
10.00 Total new obligations (object
class 42.0)................... 5,385 6,198 6,812
----------------------------------------------------------------------------
Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 888 579 747
22.00 New budget authority (gross)...... 5,356 6,461 7,099
22.40 Capital transfer to general fund.. -280 -95
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 5,964 6,945 7,846
23.95 Total new obligations............. -5,385 -6,198 -6,812
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 579 747 1,034
----------------------------------------------------------------------------
New budget authority (gross), detail:
Mandatory:
69.00 Spending authority from
offsetting collections:
Offsetting collections (cash). 5,356 6,461 7,099
----------------------------------------------------------------------------
Change in obligated balances:
73.10 Total new obligations............. 5,385 6,198 6,812
73.20 Total outlays (gross)............. -5,386 -6,198 -6,812
----------------------------------------------------------------------------
Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 5,210 5,854 6,419
86.98 Outlays from mandatory balances... 176 344 393
--------- --------- ----------
87.00 Total outlays (gross)........... 5,386 6,198 6,812
----------------------------------------------------------------------------
Offsets:
Against gross budget authority and outlays:
Offsetting collections (cash)
from:
88.00 Federal sources............... -5,210 -5,854 -6,419
88.40 Non-Federal sources........... -146 -607 -680
--------- --------- ----------
88.90 Total, offsetting collections
(cash)...................... -5,356 -6,461 -7,099
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays........................... 30 -263 -287
---------------------------------------------------------------------------
Summary of Budget Authority and Outlays
(in millions of dollars)
2006 actual 2007 est. 2008 est.
Enacted/requested:
Budget Authority............
Outlays..................... 30 -263 -287
Legislative proposal, subject to
PAYGO:
Budget Authority............
Outlays..................... -5
Total:
Budget Authority............
Outlays..................... 30 -263 -292
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 avert defaults. The Federal Government
reimburses these reserves for default claim payments.
The following schedule reflects the balances in these guaranty
agency funds. During 2007, OMB, Treasury and the Department plan to
review the budgetary and financial presentation of these funds in the
context of relevant laws and guidance.
Balance Sheet (in millions of dollars)
-----------------------------------------------------------------------------------------------
Identification code 91-4257-0-
3-502
2005 actual
2006 actual
-----------------------------------------------------------------------------------------------
ASSETS:
1101
Federal assets: Fund balances with Treasury
1,040
579
1999
Total assets
1,040
579
NET POSITION:
3300
Cumulative results of operations
1,040
579
3999
Total net position
1,040
579
4999
Total liabilities and net position
1,040
579
-----------------------------------------------------------------------------------------------
[[Page 334]]
Federal Student Loan Reserve Fund
(Legislative proposal, subject to PAYGO)
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-4257-4-3-502 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
01.02 Obligations, non-federal.......... -133
--------- --------- ----------
10.00 Total new obligations (object
class 42.0)................... -133
----------------------------------------------------------------------------
Budgetary resources available for obligation:
22.00 New budget authority (gross)...... -128
23.95 Total new obligations............. 133
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 5
----------------------------------------------------------------------------
New budget authority (gross), detail:
Mandatory:
69.00 Spending authority from
offsetting collections:
Offsetting collections (cash). -128
----------------------------------------------------------------------------
Change in obligated balances:
73.10 Total new obligations............. -133
73.20 Total outlays (gross)............. 133
----------------------------------------------------------------------------
Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... -128
86.98 Outlays from mandatory balances... -5
--------- --------- ----------
87.00 Total outlays (gross)........... -133
----------------------------------------------------------------------------
Offsets:
Against gross budget authority and outlays:
88.00 Offsetting collections (cash)
from: Federal sources......... 128
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays........................... -5
---------------------------------------------------------------------------
Federal Direct Student Loan Program Program Account
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0243-0-1-502 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Direct Loan Subsidy............... 1,807 474 500
00.03 Subsidy modification, upward...... 7
00.05 Upward Reestimate................. 3,327 3,614
00.06 Interest on Upward Reestimate..... 1,573 1,088
00.09 Administrative expenses........... 828
--------- --------- ----------
10.00 Total new obligations........... 7,542 5,176 500
----------------------------------------------------------------------------
Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 27 28 28
22.00 New budget authority (gross)...... 7,534 5,176 500
22.10 Resources available from
recoveries of prior year
obligations..................... 9
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 7,570 5,204 528
23.95 Total new obligations............. -7,542 -5,176 -500
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 28 28 28
----------------------------------------------------------------------------
New budget authority (gross), detail:
Discretionary:
40.00 Appropriation................... 600
Mandatory:
60.00 Appropriation -federal
administration................ 220
60.00 Appropriation (indefinite)--loan
subsidy....................... 1,807 474 500
60.00 Appropriation--upward
modification.................. 7
60.00 Appropriation (indefinite)--
Upward reestimate............. 4,900 4,702
--------- --------- ----------
62.50 Appropriation (total
mandatory).................. 6,934 5,176 500
Spending authority from
offsetting collections:
69.00 Offsetting collections
(cash)--negative subsidy....
69.00 Offsetting collections
(cash)--downward reestimate. 501
69.00 Offsetting collections
(cash)--downward reestimate,
interest.................... 22
69.00 Offsetting collections
(cash)--admin...............
69.27 Capital transfer to general
fund........................ -523
--------- --------- ----------
69.90 Spending authority from
offsetting collections
(total mandatory)...........
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 7,534 5,176 500
----------------------------------------------------------------------------
Change in obligated balances:
72.40 Obligated balance, start of year.. 361 517 164
73.10 Total new obligations............. 7,542 5,176 500
73.20 Total outlays (gross)............. -7,365 -5,529 -525
73.40 Adjustments in expired accounts
(net)........................... -12
73.45 Recoveries of prior year
obligations..................... -9
--------- --------- ----------
74.40 Obligated balance, end of year.. 517 164 139
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 288
86.93 Outlays from discretionary
balances........................ 296 234 65
86.97 Outlays from new mandatory
authority....................... 6,759 5,112 413
86.98 Outlays from mandatory balances... 22 183 47
--------- --------- ----------
87.00 Total outlays (gross)........... 7,365 5,529 525
----------------------------------------------------------------------------
Offsets:
Against gross budget authority and outlays:
88.00 Offsetting collections (cash)
from: Federal sources......... -523
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 7,011 5,176 500
90.00 Outlays........................... 6,842 5,529 525
---------------------------------------------------------------------------
Summary of Budget Authority and Outlays
(in millions of dollars)
2006 actual 2007 est. 2008 est.
Enacted/requested:
Budget Authority............ 7,011 5,176 500
Outlays..................... 6,842 5,529 525
Legislative proposal, subject to
PAYGO:
Budget Authority............ 9
Outlays..................... 6
Total:
Budget Authority............ 7,011 5,176 509
Outlays..................... 6,842 5,529 531
Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0243-0-1-502 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Direct loan levels supportable by subsidy
budget authority:
115001Stafford.......................... 6,174 6,557 6,975
115002Unsubsidized Stafford............. 5,497 5,812 6,226
115003PLUS.............................. 2,416 2,606 2,888
115004Consolidation..................... 22,218 4,528 5,014
--------- --------- ----------
115999Total direct loan levels.......... 36,305 19,503 21,103
Direct loan subsidy (in percent):
132001Stafford.......................... 10.65 11.06 11.56
132002Unsubsidized Stafford............. -7.56 -7.60 -7.12
132003PLUS.............................. -6.05 -4.91 -4.90
132004Consolidation..................... 7.70 7.04 5.56
--------- --------- ----------
132999Weighted average subsidy rate..... 4.98 2.43 2.37
Direct loan subsidy budget authority:
133001Stafford.......................... 658 725 806
133002Unsubsidized Stafford............. -416 -442 -443
133003PLUS.............................. -146 -128 -142
133004Consolidation..................... 1,711 319 279
--------- --------- ----------
133999Total subsidy budget authority.... 1,807 474 500
Direct loan subsidy outlays:
134001Stafford.......................... 553 630 710
134002Unsubsidized Stafford............. -343 -382 -394
134003PLUS.............................. -118 -129 -130
134004Consolidation..................... 1,695 321 275
--------- --------- ----------
134999Total subsidy outlays............. 1,787 440 461
Direct loan upward reestimates:
135001Stafford.......................... 1,785 382
135002Unsubsidized Stafford............. 129 732
135003PLUS.............................. 33 166
[[Page 335]]
135004Consolidation..................... 3,124 3,571
--------- --------- ----------
135999Total upward reestimate budget
authority....................... 5,071 4,851
Direct loan downward reestimates:
137001Stafford.......................... -51 -157
137002Unsubsidized Stafford............. -245 -45
137003PLUS.............................. -76 -61
137004Consolidation..................... -322 -870
--------- --------- ----------
137999Total downward reestimate budget
authority....................... -694 -1,133
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The Federal Government operates two major student loan programs: the
Federal Family Education Loan (FFEL) program and the William D. Ford
Federal Direct Loan (Direct Loan) program. For 2008, 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. This section also
concludes with a comprehensive discussion of the Administration's policy
proposals for the Federal student financial aid programs.
From its inception in 1965 through 2006, the FFEL program has
provided $636 billion in loans to postsecondary students and their
parents. Since July 1, 1994, the Direct Loan program has provided $176
billion in new and consolidation loans to students and parents. Taken
together, the FFEL and Direct Loan programs will make nearly $67 billion
in new loans available in 2007. 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 expand 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. The Direct Loan program began
operation in academic year 1994-1995 with 7 percent of overall loan
volume and is expected to account for 20 percent in academic year 2008-
2009. 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, 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.
For Stafford Loans made on or after July 1, 2006, the borrower
interest rate is fixed at 6.8 percent. For most loans made immediately
prior to July 1, 2006, the borrower interest rate 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 most PLUS loans made
prior to July 1, 2006, 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 fixed borrower interest rate on PLUS loans made on
or after July 1, 2006, is 7.9 percent for Direct Loans and 8.5 percent
for FFEL.
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. For periods when the borrower interest rate exceeds the
special allowance rate on loans made on or after April 1, 2006, lenders
remit the difference to the government.
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. The Higher Education Reconciliation
Act of 2005 eliminated the practice of in-school loan consolidation and
revised the circumstances under which a FFEL borrower could obtain a
Direct Consolidation Loan.
FFEL borrowers pay an origination fee to the Government equal to 3
percent of principal, and are also liable for a guaranty agency
insurance premium of up to 1 percent of principal. Guaranty agencies
have the option of waiving this premium and FFEL lenders have the option
of paying some or all of a borrower's origination fee for Stafford Loan
borrowers. Direct Loan borrowers are charged an origination fee equal to
3 percent of principal. The Higher Education Reconciliation Act of 2005
includes phased reductions that eliminate FFEL origination fees by July
1, 2010, and lowers Direct Loan fees to 1 percent by the same date; the
Act also requires guaranty agencies to collect the insurance premium.
Borrowers in both programs may be offered financial incentives to
encourage prompt repayment.
Loan limits are also identical across the two programs. 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; this benefit is increased to $17,500 for mathematics,
science, and special education teachers considered highly qualified
under criteria established in the No Child Left Behind Act of 2001.
Borrowers under Direct Loans may choose from among five repayment
plans including income-contingent repayment (``pay-as-you-can''), under
which annual repayment amounts vary based on the income of the borrower
and the amount borrowed, and payments can be made over 25 years.
Borrowers may switch between repayment plans at any time. (Income-
contingent repayment is not available to Direct PLUS borrowers).
FFEL borrowers may choose from among four repayment plans. Repayment
periods under standard, graduated, and income-sensitive repayment may
not exceed 10 years. An ex
[[Page 336]]
tended repayment plan of up to 25 years is available for new borrowers
with outstanding loans totalling more than $30,000. FFEL borrowers may
change repayment plans annually.
Student Aid Policy Proposals. There is a broad national consensus,
highlighted in the recent report of the Secretary of Education's
Commission on the Future of Higher Education, that rapidly rising
college costs are a growing barrier to higher education for many
students and families. The President proposes a package of reforms to
address this problem by substantially increasing need-based grant and
loan assistance, streamlining Federal student aid programs to make them
simpler for students and parents to negotiate and schools to administer,
and restructuring the student loan programs to increase efficiency and
eliminate excessive or unnecessary subsidies. These proposals will raise
the maximum Pell Grant to $5,400 over five years, expand the Academic
Competitiveness/SMART Grant program, and increase student loan limits.
This comprehensive package of proposals is budget neutral.
Federal Pell Grants. The centerpiece of the Administration's budget
and reauthorization proposal is designed to address the financial need
of low-income students pursuing a postsecondary education. The
Administration proposes to assist these students by investing $19.8
billion in new mandatory funding for the Pell Grant program from 2008-
2017. These funds would be used to increase the maximum grant award by
$550 in 2008 and $200 a year for the next four years, to $5,400 in award
year 2012-13. The Administration proposes to fund this proposal through
mandatory savings generated by other student aid policy proposals. The
cost of operating the Pell Grant program at the current maximum award
level of $4,050, together with program changes discussed below, would
continue to be funded through discretionary appropriations. While Pell
Grants have been very successful in ensuring access to postsecondary
education for low-income students, the Administration is proposing
several changes to increase the program's effectiveness and improve its
overall operation. Pell Grants would be made available year-round at
eligible two- and four-year degree granting institutions, giving
students a more convenient option for accelerating their studies and
promptly completing their educations. As a further incentive for timely
completion, Pell Grant eligibility would be limited to the equivalent of
16 semesters. Lastly, the Administration proposes to eliminate the Pell
Grant award rule related to tuition sensitivity. This rule limits the
amount of support that students with greatest need receive while
attending low-cost institutions.
Academic Competitiveness/SMART Grants. Currently, needy students who
have completed a rigorous program of study in high school and meet other
eligibility criteria are eligible for Academic Competitiveness Grants
(ACG) of up to $750 and $1,300 in their first and second years of
college, respectively. The Administration proposes to increase these
amounts by 50 percent, to $1,125 and $1,950, at a mandatory cost of $260
million in 2008 and $1.0 billion over 2008-2012. Congress provided that
ACG/SMART sunsets at the academic year 2010-11 (June 30, 2011). The
Administration is dedicated to continue providing grants to students
served by these programs. Program evaluations and PART assessments of
these new programs, which only began operation on July 1, 2006, are
needed to inform how best to serve these students going forward from
2010-11.
Campus-Based Programs. The Secretary of Education's Commission on
the Future of Higher Education found that the Federal student aid
programs were needlessly complex and duplicative. Accordingly, the
Administration proposes eliminating the duplicative and poorly allocated
Supplemental Educational Opportunity Grant (SEOG) and Perkins Loan
programs. No funds are included for the Leveraging Educational
Assistance Partnership program. The Administration believes it would be
most effective to consolidate Federal grant efforts in the more
equitably distributed and far larger Pell Grant program.
The Federal portion of Perkins Loan revolving funds held by
participating institutions would also be recalled. With the number of
Perkins Loan institutions declining from 3,338 in academic year 1983-84
to 1,315 in 2004-05 and with less than 3 percent of students enrolled in
postsecondary education receiving Perkins Loans each year, the
Administration also believes the federal share of funds held by this
small group of institutions would better serve students if invested in
Pell Grants. Institutions would retain their own contributions into
Perkins Loan revolving funds. Recalling the federal portion of the
Perkins Loan funds, less amounts needed to support statutory loan
forgiveness benefits, will provide $3.2 billion in savings. These
savings would help offset the cost of increases in need-based aid and
higher loan limits which are available to eligible students regardless
of the institutions they attend.
The 2008 Budget includes $980 million for Work-Study, which would
generate $1.2 billion in new aid to over 880,000 students.
Student Loans. The student loan programs currently provide subsidies
that are higher than needed to ensure lender participation in the FFEL
program, and that loans are available to all eligible students under the
current structure, while exposing lenders and other intermediaries to
minimal financial risk. Operational efficiencies that have benefited
these participants have not been matched by comparable reductions in
Federal subsidies. The 2008 Budget includes a comprehensive package of
proposals to make student loan programs more efficient, cost-effective
vehicles for helping students finance their postsecondary educations.
Savings generated from these proposals would in large part be reinvested
in benefits for students in the Pell Grant, ACG/SMART Grant, and student
loan programs. To help students meet rising higher education costs, the
Administration is proposing to increase annual subsidized loan limits by
$2,000 for third- and fourth-year students, as well as increases in
overall aggregate loan limits. The Administration also proposes to
standardize PLUS Loan interest rates, which were inadvertantly set at
different levels for FFEL and Direct Loans in the Higher Education
Reconciliation Act of 2005, at a fixed rate of 8.3 percent.
The Administration proposes to reduce lender interest subsidy
payments by 50 basis points and increase the lender origination fee paid
on new consolidation loans to 1 percent from .5 percent; both these
changes would recapture excess earnings resulting from the basic program
structure. To encourage lenders to continue to strengthen default
prevention efforts and in recognition of the strong repayment record
associated with student loans today, the Administration proposes to
reduce the amount of loan principal insured against default from 97
percent to 95 percent, as well as reduce the amount insured for lenders
identified as exceptional performers from 99 percent to 97 percent.
Proposals affecting lenders will reduce Federal costs by $14.9 billion
over 2008-2012.
The Administration expects guaranty agencies to operate more
efficiently in the future; to better capture the benefits of this
increased efficiency, the basis for agency account maintenance fee
payments would be shifted from the balance of loans guaranteed to a
cost-per-unit formula. The Administration would also reduce the amount
guaranty agencies may retain from collections on most defaulted loans
from 23 percent to 16 percent, roughly the average paid by the
Department of Education to private collection agents. Overall, changes
to the guaranty agency system would reduce Federal costs by a combined
$3.9 billion over 2008-2012.
[[Page 337]]
In total, the Administration proposes redirecting $18.8 billion from
the loan programs to grant aid for needy students over the same period.
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 assuming passage of the President's budget and
legislative request.
Funding Levels
(in thousands of dollars)
2006 2007 2008
Program Cost:
FFEL:
Liquidating\1\ ............. (553,562) (747,495) (690,939)
Program:
Regular................... 4,629,364 4,452,007 4,444,345
Consolidation............. 12,644,425 1,408,255 (582,961)
Net Reestimate of Prior
Year Costs.............. 9,084,333 (3,159,611) 0
Net Modification\2\ ...... 1,709,540 0 2,804,433
------------------------------------
Subtotal, Program....... 28,067,662 2,700,651 1,056,951
------------------------------------
Total FFEL.................27,514,100 1,953,156 366,012
Direct Loans:
Program:
Regular................... 95,790 155,452 222,001
Consolidation............. 1,710,786 318,770 287,248
Net Reestimate of Prior
Year Costs.............. 4,377,453 3,717,563 0
Net Modification\2\ ...... 7,291 0 0
------------------------------------
Total, Direct Loans..... 6,191,320 4,157,808 509,249
Total, FFEL and Direct
Loans................. 33,705,420 6,144,941 875,261
Program Cost Outlays:
FFEL:
Liquidating\1\ ............. (825,314) (747,495) (690,939)
Program:
Regular................... 3,876,499 3,862,234 3,849,169
Consolidation............. 12,461,466 1,444,229 (575,839)
Net Reestimate of Prior
Year Costs.............. 9,084,333 (3,159,611) 0
Net Modification\2\ ...... 1,709,540 0 (2,804,433)
------------------------------------
Subtotal, Program....... 27,131,838 2,146,852 468,897
------------------------------------
Total, FFEL................26,306,524 1,399,357 (222,042)
Direct Loans:
Program:
Regular................... 92,105 119,513 183,029
Consolidation............. 1,695,374 320,732 283,359
Net Reestimate of Prior
Year Costs.............. 4,377,453 3,717,563 0
Net Modification\2\ ...... 7,291 0 0
------------------------------------
Total, Direct Loans..... 6,172,223 4,791,479 466,388
Total, FFEL and Direct
Loans................. 32,478,747 5,557,165 244,346
\1\ Liquidating account reflects loans made prior to 1992.
\2\ Reflects the cost or savings associated with policy changes,
including those contained in the Higher Education Reconciliation Act of
2006, that would affect the terms of existing loans.
Summary of Loans Available
(net commitments in millions of dollars)\1\
2006 actual 2007 est. 2008 est.
FFEL:
Stafford.................... 19,856 21,410 23,722
Unsubsidized Stafford....... 20,068 21,785 23,913
PLUS........................ 7,383 9,208 10,210
------------------------------------
Subtotal.................. 47,307 52,402 57,845
Consolidation............... 72,010 26,853 31,882
------------------------------------
Total, FFEL............... 119,316 79,255 89,727
Direct Loans:
Stafford.................... 5,604 5,944 6,637
Unsubsidized Stafford....... 4,784 5,159 5,650
PLUS........................ 2,288 2,493 2,763
------------------------------------
Subtotal.................. 12,677 13,596 15,050
Consolidation............... 19,347 4,466 4,996
------------------------------------
Total, Direct Loans....... 32,024 18,062 20,046
Total, All Loans.......... 151,340 97,317 109,773
\1\ Net commitments equal gross commitments minus loan cancellations.
Number of Loans
(in thousands)
2006 actual 2007 est. 2008 est.
FFEL:
Stafford.................... 5,706 5,913 6,090
Unsubsidized Stafford....... 4,585 4,786 4,976
PLUS........................ 691 797 840
------------------------------------
Subtotal.................. 10,982 11,496 11,906
Consolidation............... 2,622 992 1,137
------------------------------------
Total, FFEL............... 13,604 12,487 13,043
Direct Loans:
Stafford.................... 1,513 1,503 1,547
Unsubsidized Stafford....... 1,091 1,094 1,133
PLUS........................ 237 242 255
------------------------------------
Subtotal.................. 2,841 2,839 2,935
Consolidation............... 756 200 220
------------------------------------
Total, Direct Loans....... 3,596 3,040 3,155
Total, All Loans.......... 17,200 15,527 16,198
Average Loan Size (in whole dollars)
2006 actual 2007 est. 2008 est.
FFEL:
Stafford.................... 3,480 3,621 3,895
Unsubsidized Stafford....... 4.377 4,552 4,806
PLUS........................ 10,678 11,557 12,152
------------------------------------
Weighted Average, without
Consolidations.......... 4,308 4,558 4,858
------------------------------------
Consolidation............... 27,465 27,075 28,040
------------------------------------
Weighted Average, FFEL.... 8,771 6,347 6,879
Direct Loans:
Stafford.................... 3,704 3,954 4,290
Unsubsidized Stafford....... 4,386 4,715 4,987
PLUS........................ 9,675 10,300 10,834
------------------------------------
Weighted Average, without
Consolidations.......... 4,463 4,788 5,128
------------------------------------
Consolidation............... 25,607 22,292 22,673
------------------------------------
Weighted Average, Direct
Loans................... 8,905 5,942 6,353
Weighted Average, All
Loans................... 8,799 6,268 6,777
Summary of Subsidy and Default Rates
2006 actual 2007 est. 2008 est.
Subsidy Rates (in percent)\1\
FFEL:
Stafford.................... 17.99 18.03 17.33
Unsubsidized Stafford....... 0.90 0.01 -0.95
PLUS........................ 0.10 -0.28 -0.55
Consolidation............... 17.07 5.22 -1.82
Weighted Average, FFEL.... 13.12 6.65 3.88
Direct Loans:
Stafford.................... 8.80 11.06 11.46
Unsubsidized Stafford....... -9.07 -7.60 -7.13
PLUS........................ -5.88 -4.91 -5.66
Consolidation............... 4.45 7.04 5.67
Weighted Average, Direct
Loans................... 2.35 2.43 2.35
Default Rates (in percent)\2\
FFEL:
Stafford.................... 12.30 12.45 12.67
Unsubsidized Stafford....... 11.13 11.02 10.92
PLUS........................ 5.20 5.22 5.22
Consolidation............... 13.31 13.87 13.75
Weighted Average, FFEL.... 12.27 11.70 11.74
Direct Loans:
Stafford.................... 12.35 12.73 12.84
Unsubsidized Stafford....... 12.41 12.49 12.40
PLUS........................ 5.49 5.50 5.50
Consolidation............... 13.57 32.90 32.55
Weighted Average, Direct
Loans................... 12.60 16.65 16.62
\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.
FFEL program payments are made to lenders (interest subsidies, loan
defaults and discharges) and guaranty agencies (default collection
costs, administrative services). These pay
[[Page 338]]
ments are partially offset by borrower origination fees and lender fees
for originations and an annual consolidation loan holder fee. In Direct
Loans, cash outflows are primarily payments to Treasury. Cash inflows
include principal and interest payments on outstanding Direct Loans.
The following table shows government payments to and from lenders,
guaranty agencies, and borrowers for specific years, regardless of when
loans were originated. These flows do not reflect long-term costs to the
government, nor the value of outstanding loan assets: these are
reflected in credit reform subsidy estimates. For example, collections
on defaulted FFEL loans due to Consolidation produce a current-year cash
inflow and a long-term cost associated with re-default risk and future
lender interest subsidy payments.
The Federal Credit Reform Act of 1990 accounts for differences in
the amount and timing of cash flows among direct and guaranteed loan
programs to make cost estimates for these programs comparable with each
other and other federal programs.
Selected Program Costs and Offsets
(in thousands of dollars)
2006 actual 2007 est. 2008 est.
FFEL:
Payments to lenders
Interest benefits........... 2,654,526 3,381,876 3,988,301
Special allowance payments.. 7,343,620 7,271,748 6,653,173
Default claims.............. 4,624,153 5,556,555 6,045,496
Loan discharges............. 989,333 1,450,053 1,592,778
Teacher loan forgiveness.... 31,179 24,044 139,734
Administrative payments to
guaranty agencies............. 708,192 1,008,592 846,131
Fees paid to the Department of
Education
Borrower origination fees... (1,301,986) (1,091,978) (870,819)
Lender origination fees..... (561,699) (390,696) (575,235)
Loan holder fees............ (1,848,638) (2,249,586) (2,415,140)
Other Major Transactions
Net default collections..... (3,896,378) (4,653,022) (5,300,446)
Contract collection costs... 135,318 78,828 76,813
Federal administrative costs 227,643 225,101 221,884
Net Cash Flow, FFEL........... 9,105,262 10,611,516 10,402,670
Direct Loans
Loan disbursements to
borrowers................. 32,219,339 17,842,953 19,750,927
Borrower interest payments.. (2,302,134) (2,821,412) (2,932,800)
Borrower principal payments. (30,141,890) (10,596,025) (11,426,266)
Borrower origination fees... (392,799) (409,917) (408,546)
Net default collections..... (750,166) (1,741,039) (1,984,007)
Contract collection costs... 127,402 150,821 160,004
Federal administrative costs 375,284 355,565 353,161
Net Operating Cash Flows.... (864,964) 2,810,946 3,512,474
Loan capital borrowings from
Teasury................... (32,219,339) (17,872,953) (19,750,927)
Net interest payments to
Treasury.................. 4,579,074 5,596,934 5,981,416
Principal payments to
Treasury.................. 22,775,795 9,613,663 10,379,899
Subtotal Treasury activity.. (4,864,471) (2,662,356) (3,389,612)
Net Cash Flow, Direct Loans... (5,729,434) 148,589 122,862
Details may not sum to total due to rounding.
The following chart compares total FFEL and Direct Loan costs on a
subsidy rate basis: program costs calculated under the Federal Credit
Reform Act of 1990 and comparably projected estimates of Federal
administrative costs, including expenses related to FFEL program
oversight and servicing the Direct Loan portfolio. In 2006, Federal
administrative costs include account maintenance fees payable to
guaranty agencies; under the Higher Education Reconciliation Act of
2005, starting in 2007, these payments are part of FFEL program payments
and will be reflected in the program subsidy rates. As with any long-
term projection, the comparison is based on assumed future interest
rates, borrower characteristics, administrative costs, and other factors
over the life of the loan cohort. To the degree actual conditions differ
from projections, estimated subsidy rates will change.
Student Loan Program Costs: Comparative Analysis Including Program and
Administrative Activities
(expressed as percentages)
2006 actual 2007 est. 2008 est.
FFEL
Program costs:\1\
Interest subsidies........ 14.68 7.21 4.65
Net defaults.............. 0.90 0.60 0.27
Fees...................... -5.83 -4.18 -4.10
Other..................... 3.37 3.03 3.05
------------------------------------
Total................... 13.12 6.65 3.88
Federal administrative costs 0.69 0.37 0.37
------------------------------------
Total................... 13.81 7.02 4.25
Direct Loans
Program costs:\1\
Interest subsidies and
income, net............. -5.02 -5.67 -6.21
Net defaults.............. 2.68 3.46 3.46
Fees...................... -1.31 -2.36 -2.04
Other..................... 6.01 7.01 7.13
------------------------------------
Total................... 2.35 2.43 2.35
Federal administrative costs 1.50 1.50 1.50
------------------------------------
Total adjusted cost..... 3.85 3.93 3.85
\1\ Fees primarily reflect borrower origination fees and, in FFEL,
lender origination and consolidation loan holder fees. Other primarily
reflects loan discharges due to death, disability, or bankruptcy.
Totals may not add due to rounding.
The Federal Credit Reform Act of 1990 requires the cost of existing
loan cohorts to be reestimated to reflect changes in actual and assumed
borrower behavior, interest rates, and other factors. The following
table shows the impact of these reestimates in FFEL and Direct Loans.
Loan Disbursement and Subsidy Costs
Total Subsidy Costs--1992-2007
FFEL Direct Loans
Original Subsidy Costs.................. +$71.6 bil +$0.4 bil
Cumulative Reestimates.................. +$1.2 bil +$10.7 bil
Net Subsidy Costs....................... +$72.8 bil +$11.1 bil
Total Disbursements.................... $627.0 bil $205.6 bil
Changes in interest rate projections are a significant factor in
FFEL and Direct Loan reestimates; recent declines in interest rates
below historical averages have accordingly been a major driver in
changes to program costs. Changes in borrower behavior (notably,
prepayment of loans through consolidation and reduction in defaults)
have also contributed to these reestimates. The average lifetime subsidy
rate for all outstanding FFEL loans after the most recent reestimate is
11.60; the comparable Direct Loan rate is 5.42. For the oldest loan
cohorts, many of the subsidy costs have been expended (e.g., in-school
interest subsidies).
In 2006, the Administration implemented probabilistic scoring for
the FFEL and Direct Loan programs. Before the 2007 Midsession Review,
estimates for both the FFEL and Direct Loan programs were developed
using point estimates of the Budget estimate of future interest rates.
The updated method factors in the probability that interest rate
scenarios may differ from current economic projections. In 2006, the
FFEL program recognized a $1.8 billion upward reestimate to reflect the
new methodology, while the Direct Loan program recognized a $0.2 billion
upward reestimate. Changes to special allowance formulas in the Higher
Education Reconciliation Act of 2005, and other changes to borrower
interest rates, mitigated interest rate risk in future cohorts, negating
the impact of the probabilistic method for those cohorts.
Object Classification (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0243-0-1-502 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Direct obligations:
Personnel compensation:
11.1 Full-time permanent............. 49
11.3 Other than full-time permanent.. 3
[[Page 339]]
11.5 Other personnel compensation.... 1
--------- --------- ----------
11.9 Total personnel compensation.. 53
12.1 Civilian personnel benefits....... 13
21.0 Travel and transportation of
persons......................... 3
23.1 Rental payments to GSA............ 7
23.3 Communications, utilities, and
miscellaneous charges........... 4
24.0 Printing and reproduction......... 6
25.1 Advisory and assistance services.. 5
25.2 Other services.................... 18
25.3 Other purchases of goods and
services from Government
accounts........................ 9
25.6 Training.......................... 3
25.7 Operation and maintenance of
equipment....................... 476
26.0 Supplies and materials............ 1
31.0 Equipment......................... 8
32.0 Land and structures............... 2
41.0 Grants, subsidies, and
contributions................... 6,934 5,176 500
--------- --------- ----------
99.9 Total new obligations........... 7,542 5,176 500
---------------------------------------------------------------------------
Employment Summary
----------------------------------------------------------------------------
Identification code 91-0243-0-1-502 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Direct:
1001 Civilian full-time equivalent
employment...................... 578
---------------------------------------------------------------------------
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 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Direct Loan Subsidy............... 9
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 9
----------------------------------------------------------------------------
Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 9
23.95 Total new obligations............. -9
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year..........
----------------------------------------------------------------------------
New budget authority (gross), detail:
Mandatory:
60.00 Appropriation -federal
administration................
60.00 Appropriation (indefinite)--loan
subsidy....................... 9
60.00 Appropriation--upward
modification..................
60.00 Appropriation (indefinite)--
Upward reestimate.............
--------- --------- ----------
62.50 Appropriation (total
mandatory).................. 9
----------------------------------------------------------------------------
Change in obligated balances:
73.10 Total new obligations............. 9
73.20 Total outlays (gross)............. -6
--------- --------- ----------
74.40 Obligated balance, end of year.. 3
----------------------------------------------------------------------------
Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 6
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 9
90.00 Outlays........................... 6
---------------------------------------------------------------------------
Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0243-4-1-502 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Direct loan levels supportable by subsidy
budget authority:
115001Stafford.......................... 347
115002Unsubsidized Stafford............. 134
115004Consolidation..................... 52
--------- --------- ----------
115999Total direct loan levels.......... 533
Direct loan subsidy (in percent):
132001Stafford.......................... -0.10
132002Unsubsidized Stafford............. -0.01
132003PLUS.............................. -0.76
132004Consolidation..................... 0.11
--------- --------- ----------
132999Weighted average subsidy rate..... -0.02
Direct loan subsidy budget authority:
133001Stafford.......................... 33
133002Unsubsidized Stafford............. -10
133003PLUS.............................. -22
133004Consolidation..................... 8
--------- --------- ----------
133999Total subsidy budget authority.... 9
Direct loan subsidy outlays:
134001Stafford.......................... 15
134002Unsubsidized Stafford............. -5
134003PLUS.............................. -13
134004Consolidation..................... 9
--------- --------- ----------
134999Total subsidy outlays............. 6
---------------------------------------------------------------------------
Federal Direct Student Loan Program Financing Account
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-4253-0-3-502 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Direct Loan Obligations........... 36,305 19,503 21,103
00.02 Interest payment to Treasury...... 6,505 5,597 5,974
--------- --------- ----------
00.91 Direct Program by Activities--
Subtotal (1 level)............ 42,810 25,100 27,077
02.01 Interest rate rebate, Stafford.... 82 86 94
02.02 Interest rate rebate, Unsubsidized
Stafford........................ 70 75 81
02.03 Interest rate rebate, PLUS........ 33 36 40
--------- --------- ----------
02.91 Direct Program by Activities--
Subtotal (1 level)............ 185 197 215
03.01 Consolidation loans-Payment of
Orig. Services.................. 26 10 12
04.01 Payment of contract collections... 127 150 160
08.02 Payment of downward reestimate to
receipt account (fy07).......... 501 940
08.04 Interest on downward reestimate... 22 45
--------- --------- ----------
08.91 Direct Program by Activities--
Subtotal (1 level)............ 523 985
--------- --------- ----------
10.00 Total new obligations........... 43,671 26,442 27,464
----------------------------------------------------------------------------
Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 1,697 6,479
22.00 New financing authority (gross)... 49,593 26,442 27,464
22.10 Resources available from
recoveries of prior year
obligations..................... 3,396 4,015 5,029
22.60 Portion applied to repay debt..... -4,536 -5,926
22.70 Balance of authority to borrow
withdrawn....................... -4,568 -5,029
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 50,150 26,442 27,464
23.95 Total new obligations............. -43,671 -26,442 -27,464
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 6,479
----------------------------------------------------------------------------
New financing authority (gross), detail:
Mandatory:
67.10 Authority to borrow............. 35,073 20,030 20,627
Spending authority from
offsetting collections:
69.00 Offsetting collections (cash). 42,208 20,711 17,205
69.10 Change in uncollected customer
payments from Federal
sources (unexpired)......... -4 17 15
69.47 Portion applied to repay debt. -27,684 -14,316 -10,383
--------- --------- ----------
69.90 Spending authority from
offsetting collections
(total mandatory)........... 14,520 6,412 6,837
--------- --------- ----------
70.00 Total new financing authority
(gross)....................... 49,593 26,442 27,464
----------------------------------------------------------------------------
Change in obligated balances:
72.40 Obligated balance, start of year.. 8,658 9,379 7,174
73.10 Total new obligations............. 43,671 26,442 27,464
73.20 Total financing disbursements
(gross)......................... -39,558 -24,615 -25,610
73.45 Recoveries of prior year
obligations..................... -3,396 -4,015 -5,029
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... 4 -17 -15
--------- --------- ----------
74.40 Obligated balance, end of year.. 9,379 7,174 3,984
----------------------------------------------------------------------------
Outlays (gross), detail:
87.00 Total financing disbursements
(gross)......................... 39,558 24,615 25,610
----------------------------------------------------------------------------
Offsets:
Against gross financing authority and
financing disbursements:
[[Page 340]]
Offsetting collections (cash)
from:
88.00 Direct Loan Subsidy........... -1,788 -440 -461
88.00 Upward reestimate............. -3,327 -3,614
88.00 Upward reestimate, interest... -1,573 -1,088
88.00 Upward Modification........... -7
88.25 Interest on uninvested funds.. -1,926
88.40 Repayment of principal,
Stafford.................... -8,060 -3,495 -3,756
88.40 Interest received on loans,
Stafford.................... -481 -482 -502
88.40 Origination Fees, Stafford.... -175 -168 -159
88.40 Other fees, Stafford.......... -41
88.40 Repayment of principal,
Unsubsidized Stafford....... -6,462 -2,843 -3,211
88.40 Interest received on loans,
Unsubsidized Stafford....... -535 -381 -412
88.40 Origination Fees, Unsubsidized
Stafford.................... -149 -146 -138
88.40 Other fees, Unsubsidized
Stafford.................... -3
88.40 Repayment of principal, PLUS.. -2,384 -1,401 -1,662
88.40 Interest received on loans,
PLUS........................ -265 -286 -340
88.40 Origination Fees, PLUS........ -70 -96 -106
88.40 Other fees, PLUS.............. -4
88.40 Payment of principal,
Consolidation............... -13,638 -4,172 -4,289
88.40 Interest received on loans,
Consolidation............... -1,289 -2,099 -2,169
88.40 Other fees, Consolidation..... -31
--------- --------- ----------
88.90 Total, offsetting collections
(cash)...................... -42,208 -20,711 -17,205
Against gross financing authority only:
88.95 Change in receivables from
program accounts.............. 4 -17 -15
----------------------------------------------------------------------------
Net financing authority and financing
disbursements:
89.00 Financing authority............... 7,389 5,714 10,244
90.00 Financing disbursements........... -2,650 3,904 8,405
---------------------------------------------------------------------------
Status of Direct Loans (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-4253-0-3-502 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
STAFFORD
Position with respect to appropriations act
limitation on obligations:
1111 Limitation on direct loans........
1131 Direct loan obligations exempt
from limitation................. 6,174 6,557 6,975
--------- --------- ----------
1150 Total direct loan obligations... 6,174 6,557 6,975
----------------------------------------------------------------------------
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 24,928 22,524 24,724
1231 Disbursements: Direct loan
disbursements................... 5,509 5,767 6,234
1251 Repayments: Repayments and
prepayments..................... -8,059 -3,495 -3,756
1261 Adjustments: Capitalized interest. 122
1264 Write-offs for default: Other
adjustments, net................ 24 -72 -94
--------- --------- ----------
1290 Outstanding, end of year........ 22,524 24,724 27,108
----------------------------------------------------------------------------
UNSUBSIDIZED STAFFORD
Position with respect to appropriations act
limitation on obligations:
1111 Limitation on direct loans........
1131 Direct loan obligations exempt
from limitation................. 5,497 5,812 6,226
--------- --------- ----------
1150 Total direct loan obligations...
--------- --------- ----------
1150 Total direct loan obligations... 5,497 5,812 6,226
----------------------------------------------------------------------------
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 17,829 16,361 18,746
1231 Disbursements: Direct loan
disbursements................... 4,687 4,987 5,415
1251 Repayments: Repayments and
prepayments..................... -6,461 -2,843 -3,211
1261 Adjustments: Capitalized interest. 288 307 494
1264 Write-offs for default: Other
adjustments, net................ 18 -66 -85
--------- --------- ----------
1290 Outstanding, end of year........ 16,361 18,746 21,359
----------------------------------------------------------------------------
PLUS
Position with respect to appropriations act
limitation on obligations:
1111 Limitation on direct loans........
1131 Direct loan obligations exempt
from limitation................. 2,416 2,606 2,888
--------- --------- ----------
1150 Total direct loan obligations...
--------- --------- ----------
1150 Total direct loan obligations... 2,416 2,606 2,888
----------------------------------------------------------------------------
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 4,922 4,765 5,702
1231 Disbursements: Direct loan
disbursements................... 2,191 2,399 2,658
1251 Repayments: Repayments and
prepayments..................... -2,384 -1,401 -1,662
1261 Adjustments: Capitalized interest. 31 1 7
1264 Write-offs for default: Other
adjustments, net................ 5 -62 -68
--------- --------- ----------
1290 Outstanding, end of year........ 4,765 5,702 6,637
----------------------------------------------------------------------------
CONSOLIDATION
Position with respect to appropriations act
limitation on obligations:
1111 Limitation on direct loans........
1131 Direct loan obligations exempt
from limitation................. 22,218 4,528 5,014
--------- --------- ----------
1150 Total direct loan obligations...
--------- --------- ----------
1150 Total direct loan obligations... 22,218 4,528 5,014
----------------------------------------------------------------------------
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 47,027 53,657 53,709
1231 Disbursements: Direct loan
disbursements................... 19,647 4,523 4,942
1251 Repayments: Repayments and
prepayments..................... -13,638 -4,172 -4,289
1261 Adjustments: Capitalized interest. 563
1264 Write-offs for default: Other
adjustments, net................ 58 -299 -305
--------- --------- ----------
1290 Outstanding, end of year........ 53,657 53,709 54,057
---------------------------------------------------------------------------
The Balance Sheet, above, provides information on program assets,
liabilities, and net position consistent with the audited financial
statements.
Receivables, line 1106, are primarily upward reestimates prepared
for financial statements; an identical offsetting amount is recorded in
the Allowance for Subsidy, line 1405. The value of total Department
assets is unchanged but will be reduced when reestimates developed for
this budget are executed. Differences between reestimates prepared for
financial statements and for this budget result from updated economic
(interest rates) and technical assumptions. Revised assumptions may
significantly change reestimate amounts; differences will be reflected
in subsequent financial statements.
Direct Loans receivable, line 1401 reflects the nominal unpaid
principal balance, including capitalized interest. Interest Receivable,
line 1402, includes only non-capitalized interest. A positive Allowance
for Subsidy, line 1405, indicates the outstanding portfolio (including
the Financial Statements' reestimates) has a negative subsidy,
increasing the portfolio's net present value; the 2004 negative value
represents the reverse.
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.
Balance Sheet (in millions of dollars)
-----------------------------------------------------------------------------------------------
Identification code 91-4253-0-
3-502
2005 actual
2006 actual
-----------------------------------------------------------------------------------------------
ASSETS:
Federal assets:
1101
Fund balances with Treasury
4,913
8,621
Investments in US securities:
1106
Receivables, net
4,150
4,631
Net value of assets related to
post-1991 direct loans
receivable:
1401
Direct loans receivable, gross
94,707
97,307
1402
Interest receivable
3,121
3,702
1405
Allowance for subsidy cost (-)
-2,132
-8,405
1499
Net present value of assets related to direct loans
95,696
92,604
1999
Total assets
104,759
105,856
LIABILITIES:
Federal liabilities:
2101
Accounts payable
388
426
2103
Debt
104,371
105,430
2999
Total liabilities
104,759
105,856
4999
Total liabilities and net position
104,759
105,856
-----------------------------------------------------------------------------------------------
[[Page 341]]
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 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Direct Loan Obligations........... 533
00.02 Interest payment to Treasury...... 7
--------- --------- ----------
00.91 Direct Program by Activities--
Subtotal (1 level)............ 540
02.01 Interest rate rebate, Stafford.... 3
02.02 Interest rate rebate, Unsubsidized
Stafford........................ 1
--------- --------- ----------
02.91 Direct Program by Activities--
Subtotal (1 level)............ 4
--------- --------- ----------
10.00 Total new obligations........... 544
----------------------------------------------------------------------------
Budgetary resources available for obligation:
22.00 New financing authority (gross)... 544
23.95 Total new obligations............. -544
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year..........
----------------------------------------------------------------------------
New financing authority (gross), detail:
Mandatory:
67.10 Authority to borrow............. 525
Spending authority from
offsetting collections:
69.00 Offsetting collections (cash). 13
69.10 Change in uncollected customer
payments from Federal
sources (unexpired)......... 3
69.47 Portion applied to repay debt. 3
--------- --------- ----------
69.90 Spending authority from
offsetting collections
(total mandatory)........... 19
--------- --------- ----------
70.00 Total new financing authority
(gross)....................... 544
----------------------------------------------------------------------------
Change in obligated balances:
73.10 Total new obligations............. 544
73.20 Total financing disbursements
(gross)......................... -294
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... -3
--------- --------- ----------
74.40 Obligated balance, end of year.. 247
----------------------------------------------------------------------------
Outlays (gross), detail:
87.00 Total financing disbursements
(gross)......................... 294
----------------------------------------------------------------------------
Offsets:
Against gross financing authority and
financing disbursements:
Offsetting collections (cash)
from:
88.00 Direct Loan Subsidy........... -6
88.40 Repayment of principal,
Stafford....................
88.40 Interest received on loans,
Stafford....................
88.40 Origination Fees, Stafford.... -4
88.40 Other fees, Stafford..........
88.40 Repayment of principal,
Unsubsidized Stafford.......
88.40 Interest received on loans,
Unsubsidized Stafford.......
88.40 Origination Fees, Unsubsidized
Stafford.................... -1
88.40 Other fees, Unsubsidized
Stafford....................
88.40 Repayment of principal, PLUS..
88.40 Interest received on loans,
PLUS........................
88.40 Origination Fees, PLUS........
88.40 Other fees, PLUS..............
88.40 Payment of principal,
Consolidation............... -1
88.40 Interest received on loans,
Consolidation............... -1
88.40 Other fees, Consolidation.....
--------- --------- ----------
88.90 Total, offsetting collections
(cash)...................... -13
Against gross financing authority only:
88.95 Change in receivables from
program accounts.............. -3
----------------------------------------------------------------------------
Net financing authority and financing
disbursements:
89.00 Financing authority............... 528
90.00 Financing disbursements........... 281
---------------------------------------------------------------------------
Federal Family Education Loan Program Account
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0231-0-1-502 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.02 Guaranteed loan subsidy........... 17,274 5,860 5,078
00.04 Modification subsidy, upward...... 1,724
00.07 Upward reestimate, principal...... 6,998 183
00.08 Upward reestimate, interest....... 2,375 372
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 28,371 6,415 5,078
----------------------------------------------------------------------------
Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 28,371 6,415 5,078
22.10 Resources available from
recoveries of prior year
obligations..................... 632 802 622
22.40 Capital transfer to general fund.. -632 -802 -622
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 28,371 6,415 5,078
23.95 Total new obligations............. -28,371 -6,415 -5,078
----------------------------------------------------------------------------
New budget authority (gross), detail:
Mandatory:
60.00 Appropriation................... 28,371 6,415 5,078
Spending authority from
offsetting collections:
69.00 Offsetting collections
(cash)--downward reestimate. 303
69.00 Offsetting collections (cash).
69.27 Capital transfer to general
fund........................ -303
--------- --------- ----------
69.90 Spending authority from
offsetting collections
(total mandatory)...........
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 28,371 6,415 5,078
----------------------------------------------------------------------------
Change in obligated balances:
72.40 Obligated balance, start of year.. 1,944 2,247 1,999
73.10 Total new obligations............. 28,371 6,415 5,078
73.20 Total outlays (gross)............. -27,435 -5,861 -4,307
73.40 Adjustments in expired accounts
(net)........................... -1
73.45 Recoveries of prior year
obligations..................... -632 -802 -622
--------- --------- ----------
74.40 Obligated balance, end of year.. 2,247 1,999 2,148
----------------------------------------------------------------------------
Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 26,125 4,417 2,931
86.98 Outlays from mandatory balances... 1,310 1,444 1,376
--------- --------- ----------
87.00 Total outlays (gross)........... 27,435 5,861 4,307
----------------------------------------------------------------------------
Offsets:
Against gross budget authority and outlays:
88.00 Offsetting collections (cash)
from: Federal sources......... -303
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 28,068 6,415 5,078
90.00 Outlays........................... 27,132 5,861 4,307
---------------------------------------------------------------------------
Summary of Budget Authority and Outlays
(in millions of dollars)
2006 actual 2007 est. 2008 est.
Enacted/requested:
Budget Authority............ 28,068 6,415 5,078
Outlays..................... 27,132 5,861 4,307
Legislative proposal, subject to
PAYGO:
Budget Authority............ -1,208
Outlays..................... -1,025
Total:
Budget Authority............ 28,068 6,415 3,870
Outlays..................... 27,132 5,861 3,282
Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0231-0-1-502 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Guaranteed loan levels supportable by subsidy
budget authority:
215001Stafford.......................... 22,728 24,840 26,863
215002Unsubsidized Stafford............. 23,702 25,819 28,031
215003PLUS.............................. 7,358 10,425 11,560
215004Consolidation..................... 81,788 26,978 32,014
--------- --------- ----------
[[Page 342]]
215999Total loan guarantee levels....... 135,576 88,062 98,468
Guaranteed loan subsidy (in percent):
232001Stafford.......................... 18.55 18.03 18.14
232002Unsubsidized Stafford............. 1.66 0.01 -0.01
232003PLUS.............................. 0.27 -0.28 0.00
232004Consolidation..................... 15.46 5.22 0.65
--------- --------- ----------
232999Weighted average subsidy rate..... 12.74 6.65 5.16
Guaranteed loan subsidy budget authority:
233001Stafford.......................... 4,216 4,479 4,873
233002Unsubsidized Stafford............. 393 2 -3
233003PLUS.............................. 20 -29
233004Consolidation..................... 12,645 1,408 208
--------- --------- ----------
233999Total subsidy budget authority.... 17,274 5,860 5,078
Guaranteed loan subsidy outlays:
234001Stafford.......................... 3,425 3,755 4,108
234002Unsubsidized Stafford............. 410 116 -1
234003PLUS.............................. 41 -9 -10
234004Consolidation..................... 12,461 1,444 210
--------- --------- ----------
234999Total subsidy outlays............. 16,337 5,306 4,307
Guaranteed loan upward reestimates:
235001Stafford.......................... 1,458 114
235002Unsubsidized Stafford............. 945
235003PLUS.............................. 104
235004Consolidation..................... 7,362 3,350
235005SLS............................... 19 83
--------- --------- ----------
235999Total upward reestimate budget
authority....................... 9,888 3,547
Guaranteed loan downward reestimates:
237001Stafford.......................... -280 -3,669
237002Unsubsidized Stafford............. -94 -2,590
237003PLUS.............................. -44 -252
237004Consolidation..................... -386 -192
237005SLS............................... -4
--------- --------- ----------
237999Total downward reestimate subsidy
budget authority................ -804 -6,707
---------------------------------------------------------------------------
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. 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.
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 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.02 Guaranteed loan subsidy........... -1,217
00.04 Modification, upward.............. 9
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... -1,208
----------------------------------------------------------------------------
Budgetary resources available for obligation:
22.00 New budget authority (gross)...... -1,208
23.95 Total new obligations............. 1,208
----------------------------------------------------------------------------
New budget authority (gross), detail:
Mandatory:
60.00 Appropriation................... -1,208
----------------------------------------------------------------------------
Change in obligated balances:
73.10 Total new obligations............. -1,208
73.20 Total outlays (gross)............. 1,025
--------- --------- ----------
74.40 Obligated balance, end of year.. -183
----------------------------------------------------------------------------
Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... -1,025
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. -1,208
90.00 Outlays........................... -1,025
---------------------------------------------------------------------------
Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0231-4-1-502 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Guaranteed loan levels supportable by subsidy
budget authority:
215001Stafford.......................... 702
215002Unsubsidized Stafford............. 294
215004Consolidation..................... 17
--------- --------- ----------
215999Total loan guarantee levels....... 1,013
Guaranteed loan subsidy (in percent):
232001Stafford.......................... -0.81
232002Unsubsidized Stafford............. -0.94
232003PLUS.............................. -0.55
232004Consolidation..................... -2.47
--------- --------- ----------
232999Weighted average subsidy rate..... -1.28
Guaranteed loan subsidy budget authority:
233001Stafford.......................... -96
233002Unsubsidized Stafford............. -266
233003PLUS.............................. -64
233004Consolidation..................... -791
--------- --------- ----------
233999Total subsidy budget authority.... -1,217
Guaranteed loan subsidy outlays:
234001Stafford.......................... -68
234002Unsubsidized Stafford............. -146
234003PLUS.............................. -34
234004Consolidation..................... -786
--------- --------- ----------
234999Total subsidy outlays............. -1,034
---------------------------------------------------------------------------
Federal Family Education Loan Program Financing Account
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-4251-0-3-502 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
01.01 Default claims.................... 1,600 1,741 1,805
01.02 Special allowance................. 1,094 315 267
01.03 Interest benefits................. 2,014 2,908 3,455
01.04 Death, disability, and bankruptcy
claims.......................... 177 183 197
01.05 Teacher loan forgiveness, other
write-offs...................... 21 13 78
01.07 Contract collection costs......... 36 12 15
01.08 Guaranty Agency Administrative
Fees............................ 76 146 173
01.09 Voluntary flexible agreement
performance fee................. 105 128
--------- --------- ----------
01.91 Subtotal, Stafford loans........ 5,123 5,446 5,990
02.02 Default claims.................... 1,142 1,368 1,462
02.03 Special allowance................. 890 281 246
02.04 Death, disability, and bankruptcy
claims.......................... 151 194 220
02.05 Teacher loan forgiveness, other
write-offs...................... 10 10 61
02.07 Contract collection costs......... 18 3 4
02.08 Guaranty Agency Administrative
Fees............................ 76 137 165
02.09 Voluntary flexible agreement
performance fee................. 69 40
--------- --------- ----------
02.91 Subtotal, Unsubsidized Stafford
loans......................... 2,356 2,033 2,158
03.01 Default claims.................... 144 157 200
03.03 Special allowance................. 53 2 -35
03.04 Death, disability, and bankruptcy
claims.......................... 63 149 173
03.07 Contract Collection Costs......... 3 1 1
03.08 Guaranty Agency Administrative Fee 23 54 66
03.09 Voluntary flexible agreement
performance fee................. 11 6
--------- --------- ----------
03.91 Subtotal, PLUS loans............ 297 369 405
04.03 Default claims.................... 27 18 12
04.04 Death, disability and bankruptcy
claims.......................... 6 1
04.07 Contract collection costs......... 9 3 3
04.08 Voluntary flexible agreement
performance fee................. 3 3
--------- --------- ----------
04.91 Subtotal, SLS loans............. 45 25 15
05.01 Default claims.................... 1,619 2,205 2,611
05.02 Special allowance................. 5,297 6,671 6,206
05.03 Interest benefits................. 633 468 523
[[Page 343]]
05.04 Death, disability, and bankruptcy
claims.......................... 575 906 989
05.05 Teacher loan forgiveness, other
write-offs...................... 9
05.07 Contract collection costs......... 9 4 4
05.08 Voluntary flexible agreement
performance fee................. 150 38
05.10 Guaranty Agency Administrative Fee 262 286
--------- --------- ----------
05.91 Subtotal, Consolidations loans.. 8,292 10,554 10,619
08.02 Payment of downward reestimate to
Prog / receipt account.......... 162 3,582
08.04 Interest on downward reestimate... 127 133
08.05 Downward Modification............. 14
--------- --------- ----------
08.91 Downward Reestimate- Subtotal (1
level)........................ 303 3,715
--------- --------- ----------
10.00 Total new obligations........... 16,416 22,142 19,187
----------------------------------------------------------------------------
Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 21,120 40,011 33,356
22.00 New financing authority (gross)... 35,253 15,487 14,254
22.10 Resources available from
recoveries of prior year
obligations..................... 54
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 56,427 55,498 47,610
23.95 Total new obligations............. -16,416 -22,142 -19,187
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 40,011 33,356 28,423
----------------------------------------------------------------------------
New financing authority (gross), detail:
Mandatory:
60.00 Appropriation................... 105
Spending authority from
offsetting collections:
69.00 Offsetting collections (cash). 35,159 15,487 14,254
69.27 Capital transfer to general
fund........................ -11
--------- --------- ----------
69.90 Spending authority from
offsetting collections
(total mandatory)........... 35,148 15,487 14,254
--------- --------- ----------
70.00 Total new financing authority
(gross)....................... 35,253 15,487 14,254
----------------------------------------------------------------------------
Change in obligated balances:
72.40 Obligated balance, start of year.. 2,071 3,531 4,763
73.10 Total new obligations............. 16,416 22,142 19,187
73.20 Total financing disbursements
(gross)......................... -14,902 -20,910 -19,822
73.45 Recoveries of prior year
obligations..................... -54
--------- --------- ----------
74.40 Obligated balance, end of year.. 3,531 4,763 4,128
----------------------------------------------------------------------------
Outlays (gross), detail:
87.00 Total financing disbursements
(gross)......................... 14,902 20,910 19,822
----------------------------------------------------------------------------
Offsets:
Against gross financing authority and
financing disbursements:
Offsetting collections (cash)
from:
88.00 Stafford loans................ -3,425 -3,755 -4,108
88.00 Unsubsidized Stafford......... -410 -116 1
88.00 PLUS loans.................... -41 9 10
88.00 Consolidated loans............ -12,461 -1,444 -210
88.00 Upward reestimate............. -9,374 -555
88.00 Modification.................. -1,724
88.25 Interest on uninvested funds.. -1,110 -2,143 -1,873
88.40 Stafford recoveries on
defaults.................... -1,146 -1,575 -1,725
88.40 Stafford origination fees..... -661 -554 -445
88.40 Stafford other fees........... -38
88.40 Unsubsidized Stafford
recoveries on default....... -647 -962 -1,125
88.40 Unsubsidized Stafford
origination fees............ -659 -562 -472
88.40 Unsubsidized Stafford other
fees........................ -19
88.40 PLUS recoveries on defaults... -93 -115 -132
88.40 PLUS origination fees......... -206 -231 -203
88.40 PLUS other fees............... -5
88.40 SLS recoveries on defaults.... -64 -77 -70
88.40 SLS other fees................ -2
88.40 Consolidation recoveries on
defaults.................... -866 -1,022 -1,328
88.40 Consolidation origination fees -337 -135 -159
88.40 Consolidation loan holders fee -1,849 -2,250 -2,415
88.40 Consolidation other fees...... -22
--------- --------- ----------
88.90 Total, offsetting collections
(cash)...................... -35,159 -15,487 -14,254
----------------------------------------------------------------------------
Net financing authority and financing
disbursements:
89.00 Financing authority............... 94
90.00 Financing disbursements........... -20,257 5,423 5,568
---------------------------------------------------------------------------
Status of Guaranteed Loans (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-4251-0-3-502 2006 actual 2007 est. 2008 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................. 22,728 24,840 26,863
--------- --------- ----------
2150 Total guaranteed loan
commitments................... 22,728 24,840 26,863
2199 Guaranteed amount of guaranteed
loan commitments................ 22,728 24,591 26,594
----------------------------------------------------------------------------
Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 74,601 59,099 69,611
2231 Disbursements of new guaranteed
loans........................... 19,505 20,729 22,695
2251 Repayments and prepayments........ -33,209 -8,272 -10,528
Adjustments:
2261 Terminations for default that
result in loans receivable.... -1,600 -1,749 -1,826
2263 Terminations for default that
result in claim payments...... -177 -183 -197
2264 Other adjustments, net.......... -21 -13 -78
--------- --------- ----------
2290 Outstanding, end of year........ 59,099 69,611 79,677
----------------------------------------------------------------------------
Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 59,099 68,915 78,880
----------------------------------------------------------------------------
Addendum:
Cumulative balance of defaulted guaranteed
loans that result in loans receivable:
2310 Outstanding, start of year...... 2,454 3,046 3,034
2331 Disbursements for guaranteed
loan claims................... 1,600 1,749 1,826
2351 Repayments of loans receivable.. -1,004 -1,574 -1,725
2361 Write-offs of loans receivable.. -177 -187 -182
2364 Other adjustments, net.......... 173
--------- --------- ----------
2390 Outstanding, end of year...... 3,046 3,034 2,953
----------------------------------------------------------------------------
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................. 23,702 25,819 28,031
--------- --------- ----------
2150 Total guaranteed loan
commitments................... 23,702 25,819 28,031
2199 Guaranteed amount of guaranteed
loan commitments................ 23,702 25,561 27,751
----------------------------------------------------------------------------
Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 59,179 49,928 61,187
2231 Disbursements of new guaranteed
loans........................... 19,563 21,099 23,065
2251 Repayments and prepayments........ -27,511 -8,278 -11,368
Adjustments:
2261 Terminations for default that
result in loans receivable.... -1,142 -1,357 -1,473
2263 Terminations for default that
result in claim payments...... -151 -194 -220
2264 Other adjustments, net.......... -10 -11 -61
--------- --------- ----------
2290 Outstanding, end of year........ 49,928 61,187 71,130
----------------------------------------------------------------------------
Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 49,928 60,575 70,419
----------------------------------------------------------------------------
Addendum:
Cumulative balance of defaulted guaranteed
loans that result in loans receivable:
2310 Outstanding, start of year...... 1,740 2,293 2,513
2331 Disbursements for guaranteed
loan claims................... 1,142 1,357 1,473
2351 Repayments of loans receivable.. -569 -962 -1,125
2361 Write-offs of loans receivable.. -151 -175 -187
2364 Other adjustments, net.......... 131
--------- --------- ----------
2390 Outstanding, end of year...... 2,293 2,513 2,674
----------------------------------------------------------------------------
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................. 7,358 10,425 11,560
--------- --------- ----------
2150 Total guaranteed loan
commitments................... 7,358 10,425 11,560
2199 Guaranteed amount of guaranteed
loan commitments................ 7,358 10,321 11,444
----------------------------------------------------------------------------
Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 14,611 10,469 14,958
[[Page 344]]
2231 Disbursements of new guaranteed
loans........................... 6,753 8,608 9,823
2251 Repayments and prepayments........ -10,687 -3,812 -4,929
Adjustments:
2261 Terminations for default that
result in loans receivable.... -145 -158 -196
2263 Terminations for default that
result in claim payments...... -63 -149 -173
--------- --------- ----------
2290 Outstanding, end of year........ 10,469 14,958 19,483
----------------------------------------------------------------------------
Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 10,469 14,809 19,288
----------------------------------------------------------------------------
Addendum:
Cumulative balance of defaulted guaranteed
loans that result in loans receivable:
2310 Outstanding, start of year...... 291 312 292
2331 Disbursements for guaranteed
loan claims................... 145 158 196
2351 Repayments of loans receivable.. -79 -115 -132
2361 Write-offs of loans receivable.. -63 -63 -63
2364 Other adjustments, net.......... 18
--------- --------- ----------
2390 Outstanding, end of year...... 312 292 293
----------------------------------------------------------------------------
SLS
Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 276 201 143
2251 Repayments and prepayments........ -42 -37 -22
Adjustments:
2261 Terminations for default that
result in loans receivable.... -27 -20 -14
2263 Terminations for default that
result in claim payments...... -6 -1
--------- --------- ----------
2290 Outstanding, end of year........ 201 143 107
----------------------------------------------------------------------------
Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 201 141 106
----------------------------------------------------------------------------
Addendum:
Cumulative balance of defaulted guaranteed
loans that result in loans receivable:
2310 Outstanding, start of year...... 385 375 314
2331 Disbursements for guaranteed
loan claims................... 27 20 14
2351 Repayments of loans receivable.. -53 -76 -70
2361 Write-offs of loans receivable.. -6 -5 -5
2364 Other adjustments, net.......... 22
--------- --------- ----------
2390 Outstanding, end of year...... 375 314 253
----------------------------------------------------------------------------
CONSOLIDATION
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................. 81,788 26,978 32,014
--------- --------- ----------
2150 Total guaranteed loan
commitments................... 81,788 26,978 32,014
2199 Guaranteed amount of guaranteed
loan commitments................ 81,788 26,708 31,693
----------------------------------------------------------------------------
Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 138,457 203,604 213,935
2231 Disbursements of new guaranteed
loans........................... 72,036 27,021 31,845
2251 Repayments and prepayments........ -4,686 -13,630 -15,189
Adjustments:
2261 Terminations for default that
result in loans receivable.... -1,619 -2,154 -2,594
2263 Terminations for default that
result in claim payments...... -575 -906 -989
2264 Other adjustments, net.......... -9
--------- --------- ----------
2290 Outstanding, end of year........ 203,604 213,935 227,008
----------------------------------------------------------------------------
Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 203,604 211,796 224,738
----------------------------------------------------------------------------
Addendum:
Cumulative balance of defaulted guaranteed
loans that result in loans receivable:
2310 Outstanding, start of year...... 3,696 4,237 4,694
2331 Disbursements for guaranteed
loan claims................... 1,619 2,154 2,594
2351 Repayments of loans receivable.. -746 -1,022 -1,329
2361 Write-offs of loans receivable.. -575 -675 -750
2364 Other adjustments, net.......... 243
--------- --------- ----------
2390 Outstanding, end of year...... 4,237 4,694 5,209
---------------------------------------------------------------------------
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.
Balance Sheet (in millions of dollars)
-----------------------------------------------------------------------------------------------
Identification code 91-4251-0-
3-502
2005 actual
2006 actual
-----------------------------------------------------------------------------------------------
ASSETS:
Federal assets:
1101
Fund balances with Treasury
23,191
43,542
Investments in US securities:
1106
Receivables, net
524
551
Net value of assets related to
post-1991 acquired defaulted
guaranteed loans receivable:
1501
Defaulted guaranteed loans receivable, gross
8,566
10,263
1502
Interest receivable
1,691
1,823
1505
Allowance for subsidy cost (-)
-1,711
-2,847
1599
Net present value of assets related to defaulted guaranteed loans
8,546
9,239
1999
Total assets
32,261
53,332
LIABILITIES:
2101
Federal liabilities: Accounts payable
1,761
951
Non-Federal liabilities:
2201
Accounts payable
31
2204
Liabilities for loan guarantees
30,500
52,350
2999
Total liabilities
32,261
53,332
4999
Total liabilities and net position
32,261
53,332
-----------------------------------------------------------------------------------------------
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 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
Stafford loans:
01.01 Default claims, Stafford........ -28
01.02 Special allowance............... -7
01.03 Interest benefits............... 5
01.08 Guaranty Agency Administrative
Fees.......................... 109
--------- --------- ----------
01.91 Subtotal, Stafford loans...... 79
Unsubsidized Stafford loans:
02.02 Default claims, Unsubsidized
Stafford...................... -23
02.03 Special allowance............... -7
02.08 Guaranty Agency Administrative
Fees.......................... 62
--------- --------- ----------
02.91 Subtotal, Unsubsidized
Stafford loans.............. 32
03.01 Default claims, PLUS.............. -3
PLUS loans:
03.09 Guaranty Agency Administrative
Fees, PLUS.................... -7
--------- --------- ----------
03.91 Direct Program by Activities--
Subtotal (1 level).......... -10
Consolidation loans:
05.01 Default claims, Consolidation... -41
05.02 Special allowance............... -19
05.09 Guaranty Agency Administrative
Fees.......................... -203
--------- --------- ----------
05.91 Subtotal, Consolidations loans -263
08.05 Downward Modification............. 2,813
--------- --------- ----------
10.00 Total new obligations........... 2,651
----------------------------------------------------------------------------
Budgetary resources available for obligation:
22.00 New financing authority (gross)... -947
[[Page 345]]
23.95 Total new obligations............. -2,651
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... -3,598
----------------------------------------------------------------------------
New financing authority (gross), detail:
Mandatory:
60.00 Appropriation................... 12
Spending authority from
offsetting collections:
69.00 Offsetting collections (cash). -823
69.27 Capital transfer to general
fund........................ -136
--------- --------- ----------
69.90 Spending authority from
offsetting collections
(total mandatory)........... -959
--------- --------- ----------
70.00 Total new financing authority
(gross)....................... -947
----------------------------------------------------------------------------
Change in obligated balances:
73.10 Total new obligations............. 2,651
73.20 Total financing disbursements
(gross)......................... -2,081
--------- --------- ----------
74.40 Obligated balance, end of year.. 570
----------------------------------------------------------------------------
Outlays (gross), detail:
87.00 Total financing disbursements
(gross)......................... 2,081
----------------------------------------------------------------------------
Offsets:
Against gross financing authority and
financing disbursements:
Offsetting collections (cash)
from:
Payments from program account:
88.00 Stafford loans................ 68
88.00 Unsubsidized Stafford......... 146
88.00 PLUS loans.................... 34
88.00 Consolidated loans............ 786
88.00 Upward reestimate.............
88.00 Modification, Upward.......... -9
88.25 Interest on uninvested funds.. 72
Student Loans: Stafford,
Unsubsidized Stafford,
PLUS, SLS & Consolidation:
88.40 Stafford recoveries on
defaults.................... -40
88.40 Stafford origination fees..... -6
88.40 Unsubsidized Stafford
recoveries on default....... -27
88.40 Unsubsidized Stafford
origination fees............ -3
88.40 PLUS recoveries on defaults... -3
88.40 SLS recoveries on defaults.... -1
88.40 Consolidation recoveries on
defaults.................... -35
88.40 Consolidation origination fees -159
--------- --------- ----------
88.90 Total, offsetting collections
(cash)...................... 823
----------------------------------------------------------------------------
Net financing authority and financing
disbursements:
89.00 Financing authority............... -124
90.00 Financing disbursements........... 2,904
---------------------------------------------------------------------------
Federal Family Education Loan Liquidating Account
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0230-0-1-502 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
01.01 Interest benefits, net of
origination fees................ 8 7 4
01.02 Special allowance net of
origination fees................ 4 2 2
01.03 Default claims.................... 82 59 46
01.04 Death, disability, and bankruptcy
claims.......................... 13 13 10
01.05 Contract collection costs......... 53 47 43
01.06 Voluntary flexible agreements..... 5 4
--------- --------- ----------
01.91 Subtotal, Stafford loans........ 165 132 105
02.01 Default claims.................... 9 8 6
02.02 Death, disability, and bankruptcy
claims.......................... 5 5 4
02.05 Contract collection costs......... 9 9 8
02.06 Special allowance net of
origination fees................ 5
02.07 Voluntary flexible agreements..... 7 1
--------- --------- ----------
02.91 Subtotal, PLUS/SLS loans........ 35 23 18
--------- --------- ----------
10.00 Total new obligations........... 200 155 123
----------------------------------------------------------------------------
Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 339 243
22.00 New budget authority (gross)...... 441 155 123
22.10 Resources available from
recoveries of prior year
obligations..................... 2
22.40 Capital transfer to general fund.. -339 -243
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 443 155 123
23.95 Total new obligations............. -200 -155 -123
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 243
----------------------------------------------------------------------------
New budget authority (gross), detail:
Mandatory:
Spending authority from
offsetting collections:
69.00 Offsetting collections (cash). 995 902 814
69.27 Capital transfer to general
fund........................ -554 -747 -691
--------- --------- ----------
69.90 Spending authority from
offsetting collections
(total mandatory)........... 441 155 123
----------------------------------------------------------------------------
Change in obligated balances:
72.40 Obligated balance, start of year.. 23 51 51
73.10 Total new obligations............. 200 155 123
73.20 Total outlays (gross)............. -170 -155 -123
73.45 Recoveries of prior year
obligations..................... -2
--------- --------- ----------
74.40 Obligated balance, end of year.. 51 51 51
----------------------------------------------------------------------------
Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 170 155 123
----------------------------------------------------------------------------
Offsets:
Against gross budget authority and outlays:
Offsetting collections (cash)
from:
88.40 Fed collections on defaulted
loans, Stafford............. -255 -285 -257
88.40 Federal collections on
bankruptcies, Stafford...... -3 -3 -3
88.40 Offsets against Federal tax
refunds,Stafford............ -245 -215 -194
88.40 Reimbursements from guaranty
agencies, Stafford.......... -316 -231 -208
88.40 Other collections/ fees,
Stafford.................... -53 -27 -25
88.40 Federal collections on
defaulted loans, PLUS/SLS... -55 -66 -60
88.40 Federal collections on
bankruptcies, PLUS/SLS...... -1 -1 -1
88.40 Offsets against Federal tax
refunds, PLUS/SLS........... -19 -16 -14
88.40 Reimbursements from guaranty
agencies, PLUS/SLS.......... -48 -58 -52
--------- --------- ----------
88.90 Total, offsetting collections
(cash)...................... -995 -902 -814
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. -554 -747 -691
90.00 Outlays........................... -825 -747 -691
---------------------------------------------------------------------------
Status of Guaranteed Loans (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0230-0-1-502 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
STAFFORD LOANS
Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 1,276 978 800
2251 Repayments and prepayments........ -203 -100 -41
Adjustments:
2261 Terminations for default that
result in loans receivable.... -82 -65 -50
2263 Terminations for default that
result in claim payments...... -13 -13 -10
--------- --------- ----------
2290 Outstanding, end of year........ 978 800 699
----------------------------------------------------------------------------
Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 978 800 699
----------------------------------------------------------------------------
Addendum:
Cumulative balance of defaulted guaranteed
loans that result in loans receivable:
2310 Outstanding, start of year...... 8,005 7,511 7,113
2331 Disbursements for guaranteed
loan claims................... 82 65 50
2351 Repayments of loans receivable.. -415 -404 -365
2361 Write-offs of loans receivable.. -13 -12 -11
2364 Other adjustments, net.......... -148 -47 -43
--------- --------- ----------
2390 Outstanding, end of year...... 7,511 7,113 6,744
----------------------------------------------------------------------------
PLUS/SLS LOANS
Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 793 648 569
2251 Repayments and prepayments........ -131 -66 -26
Adjustments:
2261 Terminations for default that
result in loans receivable.... -9 -8 -7
[[Page 346]]
2263 Terminations for default that
result in claim payments...... -5 -5 -4
--------- --------- ----------
2290 Outstanding, end of year........ 648 569 532
----------------------------------------------------------------------------
Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 648 569 532
----------------------------------------------------------------------------
Addendum:
Cumulative balance of defaulted guaranteed
loans that result in loans receivable:
2310 Outstanding, start of year...... 1,301 1,220 1,137
2331 Disbursements for guaranteed
loan claims................... 9 8 7
2351 Repayments of loans receivable.. -61 -76 -69
2361 Write-offs of loans receivable.. -5 -4 -4
2364 Other adjustments, net.......... -24 -11 -10
--------- --------- ----------
2390 Outstanding, end of year...... 1,220 1,137 1,061
---------------------------------------------------------------------------
\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.
Balance Sheet (in millions of dollars)
-----------------------------------------------------------------------------------------------
Identification code 91-0230-0-
1-502
2005 actual
2006 actual
-----------------------------------------------------------------------------------------------
ASSETS:
1101
Federal assets: Fund balances with Treasury
362
295
1701
Defaulted guaranteed loans, gross
9,306
8,730
1702
Interest receivable
595
336
1703
Allowance for estimated uncollectible loans and interest (-)
-6,736
-4,718
1704
Defaulted guaranteed loans and interest receivable, net
3,165
4,348
1799
Value of assets related to loan guarantees
3,165
4,348
1999
Total assets
3,527
4,643
LIABILITIES:
2104
Federal liabilities: Resources payable to Treasury
3,412
4,555
Non-Federal liabilities:
2201
Accounts payable
4
-15
2204
Liabilities for loan guarantees
111
103
2999
Total liabilities
3,527
4,643
4999
Total liabilities and net position
3,527
4,643
-----------------------------------------------------------------------------------------------
Object Classification (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0230-0-1-502 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Direct obligations:
25.2 Other services.................... 62 57 51
33.0 Investments and loans............. 91 67 52
41.0 Grants, subsidies, and
contributions................... 29 14 6
42.0 Insurance claims and indemnities.. 18 17 14
--------- --------- ----------
99.9 Total new obligations........... 200 155 123
---------------------------------------------------------------------------
INSTITUTE OF EDUCATION SCIENCES
Federal Funds
Institute of Education Sciences
For carrying out activities authorized by the Education Sciences
Reform Act of 2002, as amended, the National Assessment of Educational
Progress Authorization Act, section 208 of the Educational Technical
Assistance Act of 2002, and section 664 of the Individuals with
Disabilities Education Act, $594,262,000, of which $293,144,000 shall be
available until September 30, 2009.
Note.--A regular 2007 appropriation for this account had not been
enacted at the time the budget was prepared; therefore, this account is
operating under a continuing resolution (P.L. 109-289, Division B, as
amended). The amounts included for 2007 in this budget reflect the
levels provided by the continuing resolution.
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-1100-0-1-503 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Research, development, and
dissemination................... 162 163 163
00.02 Statistics........................ 90 90 119
00.03 Regional educational laboratories. 65 65 65
00.04 Assessment........................ 93 93 116
00.05 Research in special education..... 72 72 72
00.06 Statewide data systems............ 49 49 49
00.07 Special education studies and
evaluations..................... 10 10 10
--------- --------- ----------
01.00 Total direct program............ 541 542 594
09.01 Reimbursable program.............. 2 2 2
--------- --------- ----------
10.00 Total new obligations........... 543 544 596
----------------------------------------------------------------------------
Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 25 2 2
22.00 New budget authority (gross)...... 520 544 596
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 545 546 598
23.95 Total new obligations............. -543 -544 -596
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 2 2 2
----------------------------------------------------------------------------
New budget authority (gross), detail:
Discretionary:
40.00 Appropriation................... 523 542 594
40.35 Appropriation permanently
reduced....................... -5
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 518 542 594
58.00 Spending authority from
offsetting collections:
Offsetting collections (cash). 2 2 2
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 520 544 596
----------------------------------------------------------------------------
Change in obligated balances:
72.40 Obligated balance, start of year.. 621 758 520
73.10 Total new obligations............. 543 544 596
73.20 Total outlays (gross)............. -393 -782 -564
73.40 Adjustments in expired accounts
(net)........................... -13
--------- --------- ----------
74.40 Obligated balance, end of year.. 758 520 552
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 90 139 152
86.93 Outlays from discretionary
balances........................ 303 643 412
--------- --------- ----------
87.00 Total outlays (gross)........... 393 782 564
----------------------------------------------------------------------------
Offsets:
Against gross budget authority and outlays:
88.00 Offsetting collections (cash)
from: Federal sources......... -2 -2 -2
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 518 542 594
90.00 Outlays........................... 391 780 562
---------------------------------------------------------------------------
Research and Statistics:
Research, development, and dissemination.--Funds support the
National Center for Education Research, which oversees a diverse
portfolio of directed research, evaluation studies, research and
development centers, and 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. In 2008, funds will also support a higher
education unit record pilot. The pilot will modify several components of
the Integrated
[[Page 347]]
Postsecondary Education Data System (IPEDS) to implement a privacy-
protected system that would allow interested parties to follow students
as they move from one institution to another, thus allowing better
understanding of student attendance, graduation and transfer rates,
academic outcomes, and the costs of higher education.
Regional educational laboratories.--Funds support a network of 10
regional laboratories that provide expert advice, including training and
technical assistance, to help States and school districts apply proven
research findings in their school improvement efforts. Funds would be
used for the third year of 5-year contracts for the laboratories.
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. In
2008, funds will also support costs of expanding State NAEP to grade 12
in 2009.
Research in special education.--Funds support research 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.
Statewide data systems.--Funds support competitive awards to State
educational agencies to foster the design, development, and
implementation of longitudinal data systems.
Special education studies and evaluations.--Funds support objective
studies, evaluations, and assessments related to the implementation of
the Individuals with Disabilities Education Act 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 91-1100-0-1-503 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Direct obligations:
Personnel compensation:
11.1 Full-time permanent........... 1 1 1
11.3 Other than full-time permanent 1 1 1
--------- --------- ----------
11.9 Total personnel compensation.. 2 2 2
24.0 Printing and reproduction....... 1 1 1
25.1 Advisory and assistance services 4 3 4
25.2 Other services.................. 167 167 194
25.3 Other purchases of goods and
services from Government
accounts...................... 15 15 15
25.5 Research and development
contracts..................... 99 99 99
41.0 Grants, subsidies, and
contributions................. 253 253 277
--------- --------- ----------
99.0 Direct obligations............ 541 540 592
99.0 Reimbursable obligations.......... 2 2 2
99.5 Below reporting threshold......... 2 2
--------- --------- ----------
99.9 Total new obligations........... 543 544 596
---------------------------------------------------------------------------
Employment Summary
----------------------------------------------------------------------------
Identification code 91-1100-0-1-503 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Direct:
1001 Civilian full-time equivalent
employment...................... 13 14 14
---------------------------------------------------------------------------
DEPARTMENTAL MANAGEMENT
Federal 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, $446,934,000, of which $17,303,000, to remain available until
expended, shall be for building alterations and related expenses for the
move of Department staff to the Mary E. Switzer building in Washington,
D.C.
Note.--A regular 2007 appropriation for this account had not been
enacted at the time the budget was prepared; therefore, this account is
operating under a continuing resolution (P.L. 109-289, Division B, as
amended). The amounts included for 2007 in this budget reflect the
levels provided by the continuing resolution.
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0800-0-1-503 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Program administration............ 410 411 447
00.02 Trust Fund........................ 36 24
09.01 Reimbursable program.............. 1 1 1
--------- --------- ----------
10.00 Total new obligations........... 447 436 448
----------------------------------------------------------------------------
Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 24
22.00 New budget authority (gross)...... 472 412 448
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 472 436 448
23.95 Total new obligations............. -447 -436 -448
23.98 Unobligated balance expiring or
withdrawn....................... -1
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 24
----------------------------------------------------------------------------
New budget authority (gross), detail:
Discretionary:
40.00 Appropriation................... 415 411 447
40.35 Appropriation permanently
reduced....................... -4
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 411 411 447
58.00 Spending authority from
offsetting collections:
Offsetting collections (cash). 1 1
Mandatory:
60.00 Appropriation................... 61
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 472 412 448
----------------------------------------------------------------------------
Change in obligated balances:
72.40 Obligated balance, start of year.. 125 144 127
73.10 Total new obligations............. 447 436 448
73.20 Total outlays (gross)............. -422 -453 -429
73.40 Adjustments in expired accounts
(net)........................... -4
74.10 Change in uncollected customer
payments from Federal sources
(expired)....................... -2
--------- --------- ----------
74.40 Obligated balance, end of year.. 144 127 146
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 337 322 338
86.93 Outlays from discretionary
balances........................ 85 71 91
86.98 Outlays from mandatory balances... 60
--------- --------- ----------
87.00 Total outlays (gross)........... 422 453 429
----------------------------------------------------------------------------
Offsets:
Against gross budget authority and outlays:
88.00 Offsetting collections (cash)
from: Federal sources......... -2 -1 -1
Against gross budget authority only:
88.96 Portion of offsetting
collections (cash) credited to
expired accounts.............. 2
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 472 411 447
90.00 Outlays........................... 420 452 428
---------------------------------------------------------------------------
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
[[Page 348]]
of auditable financial statements; information technology services;
personnel management; personnel security; budget formulation and
execution; program evaluation; legal services; congressional and public
relations; and intergovernmental affairs.
Included in this account is the Department of Education's cost to
renovate and upgrade the Mary E. Switzer building in order to
consolidate staff located in various buildings in Washington, D.C.
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. In
2006, this account received a transfer from the Department of State of
$61 million. These funds came from foreign countries in support of the
Department of Education's efforts to assist educational programs and
entities affected by Hurricane Katrina. 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 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Direct obligations:
Personnel compensation:
11.1 Full-time permanent........... 167 193 201
11.3 Other than full-time permanent 30 9 10
11.5 Other personnel compensation.. 4 3 4
--------- --------- ----------
11.9 Total personnel compensation.. 201 205 215
12.1 Civilian personnel benefits..... 49 51 54
13.0 Benefits for former personnel... 1
21.0 Travel and transportation of
persons....................... 5 5 5
23.1 Rental payments to GSA.......... 36 36 38
23.3 Communications, utilities, and
miscellaneous charges......... 11 9 11
24.0 Printing and reproduction....... 3 4 4
25.1 Advisory and assistance services 5 3 2
25.2 Other services.................. 24 19 20
25.3 Other purchases of goods and
services from Government
accounts...................... 20 17 16
25.7 Operation and maintenance of
equipment..................... 44 48 51
26.0 Supplies and materials.......... 2 2 2
31.0 Equipment....................... 9 12 24
32.0 Land and structures............. 1 5
41.0 Grants, subsidies, and
contributions................. 35 24
--------- --------- ----------
99.0 Direct obligations............ 446 435 447
99.0 Reimbursable obligations.......... 1 1 1
--------- --------- ----------
99.9 Total new obligations........... 447 436 448
---------------------------------------------------------------------------
Employment Summary
----------------------------------------------------------------------------
Identification code 91-0800-0-1-503 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Direct:
1001 Civilian full-time equivalent
employment...................... 2,121 2,103 2,113
---------------------------------------------------------------------------
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, $93,771,000.
Note.--A regular 2007 appropriation for this account had not been
enacted at the time the budget was prepared; therefore, this account is
operating under a continuing resolution (P.L. 109-289, Division B, as
amended). The amounts included for 2007 in this budget reflect the
levels provided by the continuing resolution.
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0700-0-1-751 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Civil rights...................... 90 90 94
--------- --------- ----------
10.00 Total new obligations........... 90 90 94
----------------------------------------------------------------------------
Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 91 90 94
23.95 Total new obligations............. -90 -90 -94
----------------------------------------------------------------------------
New budget authority (gross), detail:
Discretionary:
40.00 Appropriation................... 92 90 94
40.35 Appropriation permanently
reduced....................... -1
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 91 90 94
----------------------------------------------------------------------------
Change in obligated balances:
72.40 Obligated balance, start of year.. 22 20 16
73.10 Total new obligations............. 90 90 94
73.20 Total outlays (gross)............. -91 -94 -93
73.40 Adjustments in expired accounts
(net)........................... -1
--------- --------- ----------
74.40 Obligated balance, end of year.. 20 16 17
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 75 77 80
86.93 Outlays from discretionary
balances........................ 16 17 13
--------- --------- ----------
87.00 Total outlays (gross)........... 91 94 93
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 91 90 94
90.00 Outlays........................... 91 94 93
---------------------------------------------------------------------------
The Office for Civil Rights is responsible for ensuring that no
person is unlawfully discriminated against on the basis of race, color,
national origin, sex, disability, or age in the delivery of services or
the provision of benefits in programs or activities of schools and
institutions receiving financial assistance from the Department of
Education. The authorities under which the Office for Civil Rights
operates are Title VI of the Civil Rights Act of 1964 (racial and ethnic
discrimination), Title IX of the Education Amendments of 1972 (sex
discrimination), section 504 of the Rehabilitation Act of 1973
(discrimination against individuals with a disability), the Age
Discrimination Act of 1975, 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 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Direct obligations:
Personnel compensation:
11.1 Full-time permanent............. 51 53 55
11.3 Other than full-time permanent.. 2 2 3
11.5 Other personnel compensation.... 1 1 1
--------- --------- ----------
11.9 Total personnel compensation.. 54 56 59
12.1 Civilian personnel benefits....... 13 14 14
21.0 Travel and transportation of
persons......................... 1 1 1
23.1 Rental payments to GSA............ 7 7 7
23.3 Communications, utilities, and
miscellaneous charges........... 2 1 1
25.2 Other services.................... 4 2 2
25.3 Other purchases of goods and
services from Government
accounts........................ 2 3 3
25.7 Operation and maintenance of
equipment....................... 5 4 5
31.0 Equipment......................... 1 1
--------- --------- ----------
99.0 Direct obligations.............. 88 89 93
99.5 Below reporting threshold......... 2 1 1
--------- --------- ----------
99.9 Total new obligations........... 90 90 94
---------------------------------------------------------------------------
Employment Summary
----------------------------------------------------------------------------
Identification code 91-0700-0-1-751 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Direct:
1001 Civilian full-time equivalent
employment...................... 630 629 629
---------------------------------------------------------------------------
[[Page 349]]
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, $53,239,000.
Note.--A regular 2007 appropriation for this account had not been
enacted at the time the budget was prepared; therefore, this account is
operating under a continuing resolution (P.L. 109-289, Division B, as
amended). The amounts included for 2007 in this budget reflect the
levels provided by the continuing resolution.
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-1400-0-1-751 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Inspector General................. 49 48 53
--------- --------- ----------
10.00 Total new obligations........... 49 48 53
----------------------------------------------------------------------------
Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 49 48 53
23.95 Total new obligations............. -49 -48 -53
----------------------------------------------------------------------------
New budget authority (gross), detail:
Discretionary:
40.00 Appropriation................... 49 48 53
----------------------------------------------------------------------------
Change in obligated balances:
72.40 Obligated balance, start of year.. 11 13 13
73.10 Total new obligations............. 49 48 53
73.20 Total outlays (gross)............. -47 -48 -52
--------- --------- ----------
74.40 Obligated balance, end of year.. 13 13 14
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 41 40 44
86.93 Outlays from discretionary
balances........................ 6 8 8
--------- --------- ----------
87.00 Total outlays (gross)........... 47 48 52
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 49 48 53
90.00 Outlays........................... 47 48 52
---------------------------------------------------------------------------
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 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Direct obligations:
Personnel compensation:
11.1 Full-time permanent............. 23 25 27
11.3 Other than full-time permanent.. 1 1
11.5 Other personnel compensation.... 2
--------- --------- ----------
11.9 Total personnel compensation.. 26 26 27
12.1 Civilian personnel benefits....... 8 8 9
21.0 Travel and transportation of
persons......................... 2 2 2
23.1 Rental payments to GSA............ 4 4 5
23.3 Communications, utilities, and
miscellaneous charges........... 1 1 1
25.1 Advisory and assistance services.. 2 2 3
25.2 Other services.................... 1 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
32.0 Land and structures............... 1
--------- --------- ----------
99.0 Direct obligations.............. 48 48 53
99.5 Below reporting threshold......... 1
--------- --------- ----------
99.9 Total new obligations........... 49 48 53
---------------------------------------------------------------------------
Employment Summary
----------------------------------------------------------------------------
Identification code 91-1400-0-1-751 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Direct:
1001 Civilian full-time equivalent
employment...................... 288 279 293
---------------------------------------------------------------------------
HURRICANE EDUCATION RECOVERY
Federal Funds
Hurricane Education Recovery
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 91-0013-0-1-500 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Programs to restart school
operations...................... 750
00.02 Assistance for homeless children
and youth....................... 5
00.03 Temporary emergency impact aid for
displaced students.............. 878
--------- --------- ----------
00.91 Subtotal, Aid for elementary and
secondary education........... 1,633
01.01 Aid for institutions of higher
education....................... 200
01.02 Aid for recovering institutions... 50
--------- --------- ----------
01.91 Subtotal, Postsecondary
institutional assistance...... 250
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 1,883
----------------------------------------------------------------------------
Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 1,885
23.95 Total new obligations............. -1,883
23.98 Unobligated balance expiring or
withdrawn....................... -2
----------------------------------------------------------------------------
New budget authority (gross), detail:
Discretionary:
40.00 Appropriation................... 1,885
----------------------------------------------------------------------------
Change in obligated balances:
72.40 Obligated balance, start of year.. 743
73.10 Total new obligations............. 1,883
73.20 Total outlays (gross)............. -1,140 -743
--------- --------- ----------
74.40 Obligated balance, end of year.. 743
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 1,140
86.93 Outlays from discretionary
balances........................ 743
--------- --------- ----------
87.00 Total outlays (gross)........... 1,140 743
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 1,885
90.00 Outlays........................... 1,140 743
---------------------------------------------------------------------------
Amounts in this schedule reflect balances that are spending out from
prior-year appropriations.
GENERAL FUND RECEIPT ACCOUNTS
(in millions of dollars)
----------------------------------------------------------------------------
2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Offsetting receipts from the public:
91-143500 General fund proprietary
interest receipts, not otherwise
classified.......................... 18 20 20
91-271810 Federal family education
loan program, negative subsidies.... 2,813
91-271830 Federal family education
loan program, Downward reestimates
of subsidies........................ 3,715
91-278130 Federal direct student loan
program, downward reestimates of
subsidies........................... 985
91-291500 Repayment of loans, capital
contributions, higher education
activities.......................... 51 42 42
91-322000 All other general fund
proprietary receipts including
budget clearing accounts............ 68 47 47
General Fund Offsetting receipts from
the public............................. 137 4,809 2,922
----------------------------------------------------------------------------
[[Page 350]]
Intragovernmental payments:.............
91-388500 Undistributed
intragovernmental payments and
receivables from cancelled accounts. 7 4 4
--------- --------- ----------
General Fund Intragovernmental payments. 7 4 4
---------------------------------------------------------------------------
GENERAL PROVISIONS
Sec. 301. No funds appropriated in this Act may be used for the
transportation of students or teachers (or for the purchase of equipment
for such transportation) in order to overcome racial imbalance in any
school or school system, or for the transportation of students or
teachers (or for the purchase of equipment for such transportation) in
order to carry out a plan of racial desegregation of any school or
school system.
Sec. 302. None of the funds contained in this Act shall be used to
require, directly or indirectly, the transportation of any student to a
school other than the school which is nearest the student's home, except
for a student requiring special education, to the school offering such
special education, in order to comply with title VI of the Civil Rights
Act of 1964. For the purpose of this section an indirect requirement of
transportation of students includes the transportation of students to
carry out a plan involving the reorganization of the grade structure of
schools, the pairing of schools, or the clustering of schools, or any
combination of grade restructuring, pairing or clustering. The
prohibition described in this section does not include the establishment
of magnet schools.
Sec. 303. No funds appropriated in 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.