[Congressional Record Volume 145, Number 113 (Wednesday, August 4, 1999)]
[Senate]
[Pages S10230-S10233]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. AKAKA (for himself, Mr. Cochran, Mrs. Murray, Mr. Inouye, 
        and Mr. Kerrey):
  S. 1487. A bill to provide for excellence in economic education, and 
for other purposes; to the Committee on Health, Education, Labor, and 
Pensions.


              Excellence in Economic Education Act of 1999

  Mr. AKAKA. Mr. President, I rise to speak about the Excellence in 
Economic Education Act of 1999, a bill I am introducing today with my 
friends, Senators Cochran, Murray, Inouye, and Kerrey.
  With each passing day, the need for increased economic literacy 
becomes more and more apparent. The rise of Internet commerce, market 
globalization, advances in technology, growth of online investment 
services, and the increase in the number of Americans who invest in the 
stock market serve to highlight the importance of economic literacy for 
citizens of every age and professional background. I am convinced that 
more education about basic economic concepts such as money, personal 
finance, and inflation--starting from a young age--could help people 
make decisions about their financial situation, so that they can better 
prepare for and endure our changing economy.
  We need to help young people better understand economic implications 
of their actions: they can't always get what they want; they need to be 
more responsible with money; and, they are learning fiscal habits now 
that will stay with them for the rest of their lives.
  In addition to teaching our youth how to make good financial 
decisions, we must help them become productive and well-informed 
citizens. It has been shown that a lack of knowledge about fundamental 
economics can have negative effects on our economy and lead to 
divisions and polarization in our communities. Economic education can 
have profound long-term effects for all of us.
  We must educate our country's future workforce about what effects the 
retirements of our ``baby boom generation'' will have on them. 
Currently, Social Security reform is one of the biggest issues that is 
before us. We are working to ensure that Social Security will remain 
solvent well into the next century.
  As we know, the number of people receiving Social Security will surge 
from 44 million now to 75 million in 2020. Even if we achieve a truly 
bipartisan

[[Page S10231]]

solution on Social Security, our young people will still feel the 
impact from this tremendous future demographic shift, and they should 
learn how to prepare themselves for security in retirement. Economic 
education can help them.
  Mr. President, I would like to comment on the results of a basic 
economics test given nationally by the National Council on Economic 
Education, which provides further evidence of the need for increased 
economic education. Taken by 1,010 adults and 1,085 high school 
students, the test's findings are striking:
  (1) half of adults and two-thirds of high school students failed, 
while only six percent of adults and three percent of high school 
students got an ``A'';
  (2) on average, adults received a grade of 57 percent and high school 
students a grade of 48 percent;
  (3) students and adults alike lacked a basic understanding about the 
concepts of money, inflation and scarcity of resources--core economic 
concepts;
  (4) a sizeable number of students--35 percent--admitted that they 
simply do not know what the effect of an increase in interest rates 
would be; and
  (5) only a little more than half of adults, 54 percent, and less than 
one in four students, 23 percent, know that a budget deficit occurs 
when the Federal Government's expenditures exceed its revenues for that 
year.
  However, amid these disappointing results, the study found that 96 
percent believe basic economics should be taught in high school. 
Currently, 38 states have adopted guidelines for teaching economics in 
their schools, but only 13 states require that students take economics 
in order to graduate. Clearly, people see the need for improved 
economic education, and this need exists in many States.
  This brings me to a brief description of what the Excellence in 
Economic Education Act would do. My bill would ensure that a majority 
of total funds appropriated under the Act would be distributed to state 
councils on economic education and economic education centers based at 
universities to support the work that these entities are performing. It 
would support the National Council on Economic Education in economic 
literacy activities that it conducts. It would also fund the creation 
of new councils and centers in states without a council or center.
  The goals of the bill are to increase student knowledge of and 
achievement in economics; strengthen teachers' understanding of and 
ability to teach economics; encourage related research and development, 
dissemination of instructional materials, and replication of best 
practices and programs; help States measure the impact of economic 
education; ensure a strong presence of the nationwide network in every 
State; and leverage and increase private and public support for 
economic education partnerships at all levels.
  Support for economic education is in the Goals 2000: Educate America 
Act which lists economics as a national core subject area.
  My bill encourages the National Council and state councils and 
centers to work with local businesses and private industry as much as 
possible, particularly in obtaining matching funds.
  Mr. President, we need to improve economic literacy for our children, 
just as we need to ensure reading literacy, writing aptitude, math and 
science comprehension, and an understanding of history and the arts. 
Economics is a fundamental, practical building block that should round 
out our children's education. I hope that my colleagues will join me in 
cosponsoring the Excellence in Economic Education Act.
  For more specific details on the grants my bill creates, one-fourth 
of funds would be provided to the National Council, so that the council 
may strengthen and expand its nationwide economic education network, 
support and promote teacher training in coordination with current 
Eisenhower Professional Development activities, support related 
research, and develop and disseminate appropriate materials.

  The remaining funds will be distributed by the National Council to 
state councils or centers, which will work in partnership with the 
private sector, state educational agencies, local educational agencies, 
institutions of higher education or other organizations that promote 
economic development or educational excellence. With this money, 
councils and centers will be able to fund teacher training programs, 
resources to school districts that want to incorporate economics into 
curricula, evaluations of the impact of economic education on students, 
related research, school-based student activities to promote consumer 
and personal finance education and to encourage awareness and student 
achievement in economics, interstate and international student and 
teacher exchanges, and replication of best practices to promote 
economic literacy.
  The National Council runs an International Economics Exchange Program 
which is authorized in the Elementary and Secondary Education Act. This 
program assists with economic education in transition countries of the 
former Soviet Union, and enjoys broad support. My bill would boost the 
domestic component of the National Council's activities.
  In addition, my bill puts increased emphasis on economics by adding 
it to the list of subject areas in Elementary and Secondary Education 
Act programs, such as National Teacher Training Project, Star Schools, 
Magnet Schools, Fund for the Improvement of Education, and Urban and 
Rural Education Assistance.
  We are looking for ways to better educate our young people on how to 
manage their resources, be better workers, make wise investments, and 
prepare for a secure financial future. My bill provides the flexibility 
needed so that this may happen through practical means and make 
economics come alive for students. It is important to start working on 
this now. Before we know it, current eighth graders will have gone 
through high school, possibly college, and entered the workforce.
  One again, I thank Senators Cochran, Inouye, Murray, and Kerrey for 
becoming original cosponsors of this bill, and I urge my colleagues to 
join us in cosponsoring the Excellence in Economic Education Act.
  Mr. President, I ask unanimous consent that a copy of the bill be 
printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1487

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. EXCELLENCE IN ECONOMIC EDUCATION.

       (a) Amendment.--Title X of the Elementary and Secondary 
     Education Act of 1965 (20 U.S.C. 8001 et seq.) is amended by 
     adding at the end the following:

               ``PART L--EXCELLENCE IN ECONOMIC EDUCATION

     ``SEC. 10995. SHORT TITLE; FINDINGS.

       ``(a) Short Title.--This part may be cited as the 
     ``Excellence in Economic Education Act of 1999''.
       ``(b) Findings.--Congress makes the following findings:
       ``(1) The need for economic literacy in the United States 
     has grown exponentially in the 1990's as a result of rapid 
     technological advancements and increasing globalization, 
     giving individuals in the United States more numerous and 
     complex economic and financial choices than ever before as 
     members of the workforce, managers of their families' 
     resources, and voting citizens.
       ``(2) Individuals in the United States lack essential 
     economic knowledge, as demonstrated in a 1998-1999 test 
     conducted by the National Council on Economic Education, a 
     private nonprofit organization. The test results indicated 
     the following:
       ``(A) Students and adults alike lack a basic understanding 
     of core economic concepts such as scarcity of resources and 
     inflation, with less than half of those tested demonstrating 
     knowledge of those basic concepts.
       ``(B) A little more than \1/3\ of those tested realize that 
     society must make choices about how to use resources.
       ``(C) Only \1/3\ of those tested understand that active 
     competition in the marketplace serves to lower prices and 
     improve product quality.
       ``(D) Slightly more than \1/2\ of adults in the United 
     States and less than \1/4\ of students in the United States 
     know that a Federal budget deficit is created when the 
     Federal Government's expenditures exceed its revenues in a 
     year.
       ``(E) Overall, adults received a grade of 57 percent on the 
     test and secondary school students received a grade of 48 
     percent on the test.
       ``(F) Despite those poor results, the test pointed out that 
     individuals in the United States realize the need for 
     understanding basic economic concepts, with 96 percent of 
     adults tested believing that basic economics should be taught 
     in secondary school.
       ``(3) A range of trends points to the need for individuals 
     in the United States to receive a practical economics 
     education that

[[Page S10232]]

     will give the individuals tools to make responsible choices 
     about their limited financial resources, choices which face 
     all people regardless of their financial circumstances. 
     Examples of the trends are the following:
       ``(A) The number of personal bankruptcies in the United 
     States continued to rise and set new records in the 1990's, 
     despite the longest peacetime economic expansion in United 
     States history. One in every 70 United States households 
     filed for bankruptcy in 1998. Rising bankruptcies have an 
     impact on the cost and availability of consumer credit which 
     in turn negatively affect overall economic growth.
       ``(B) Credit card delinquencies in the United States rose 
     to 1.83 percent in 1998, which is a percentage not seen since 
     1992 when the effects of a recession were still strong.
       ``(C) The personal savings rate in the United States over 
     the 5 years ending in 1998 averaged only 4.5 percent. In the 
     first quarter of 1999, the personal savings rate dropped to 
     negative 0.4 percent. A decline in savings rates reduces 
     potential investment and economic growth.
       ``(D) By 2030, the number of older persons in the United 
     States will grow to 70,000,000, more than twice the number of 
     older persons in the United States in 1997. The additional 
     older persons will add significantly to the population of 
     retirees in the United States and require a shift in private 
     and public resources to attend to their specific needs. The 
     needs will have dramatic, long-term economic consequences for 
     younger generations of individuals in the United States 
     workforce who will need to plan well in order to support 
     their families and ensure themselves a secure retirement.
       ``(4) The third National Education Goal puts economics 
     forth as 1 of 9 core content areas in which teaching, 
     learning, and students' mastery of basic and advanced skills 
     must improve.
       ``(5) The National Council on Economic Education presents a 
     compelling case for doing more to meet the need for economic 
     literacy. While an understanding of economics is necessary to 
     help the next generation to think, choose, and function in a 
     changing global economy, economics has too often been 
     neglected in schools.
       ``(6) States' requirements for economic and personal 
     finance education are insufficient as evidenced by the fact 
     that, while 39 States have adopted educational standards 
     (including guidelines or proficiencies) in economics--
       ``(A) only 13 of those States require all students to take 
     a course in economics before graduating from secondary 
     school;
       ``(B) only 25 States administer tests to determine whether 
     students meet the standards; and
       ``(C) only 27 States require that the standards be 
     implemented in schools.
       ``(7) Improved and enhanced national, State, and local 
     economic education efforts, conducted as part of the Campaign 
     for Economic Literacy led by the National Council on Economic 
     Education, will help individuals become informed consumers, 
     conscientious savers, prudent investors, productive workforce 
     members, responsible citizens, and effective participants in 
     the global economy.
       ``(8)(A) Founded in 1949, the National Council on Economic 
     Education is the preeminent economic education organization 
     in the United States, having a nationwide network that 
     supports economic education in the Nation's schools.
       ``(B) This network supports teacher preparedness in 
     economics through--
       ``(i) inservice teacher education;
       ``(ii) classroom-tested materials and appropriate 
     curricula;
       ``(iii) evaluation, assessment, and research on economics 
     education; and
       ``(iv) suggested content standards for economics.
       ``(9) The National Council on Economic Education network 
     includes affiliated State Councils on Economic Education and 
     more than 275 university or college-based Centers for 
     Economic Education. This network represents a unique 
     partnership among leaders in education, business, economics, 
     and labor, the purpose of which is to effectively deliver 
     economic education throughout the United States.
       ``(10) Each year the National Council on Economic Education 
     network trains 120,000 teachers, reaching more than 7,000,000 
     students. By strengthening the Council's nationwide network, 
     the Council can reach more of the Nation's 50,000,000 
     students.
       ``(11) The National Council on Economic Education conducts 
     an international economic education program that provides 
     information on market principles to the world (particularly 
     emerging democracies) through teacher training, materials 
     translation and development, study tours, conferences, and 
     research and evaluation. As a result of those activities, the 
     National Council on Economic Education is helping to support 
     educational reform and build economic education 
     infrastructures in emerging market economies, and reinforcing 
     the national interest of the United States.
       ``(12) Evaluation results of economics education activities 
     support the following conclusions:
       ``(A) Inservice education in economics for teachers 
     contributes significantly to students' gains in economic 
     knowledge.
       ``(B) Secondary school students who have taken economics 
     courses perform significantly better on tests of economic 
     literacy than do their counterparts who have not taken 
     economics.
       ``(C) Economics courses contribute significantly more to 
     gains in economic knowledge than does integration of 
     economics into other subjects.
       ``(13) Through partnerships, the National Council on 
     Economic Education network leverages support for its mission 
     by raising $35,000,000 from the private sector, universities, 
     and States.

     ``SEC. 10996. EXCELLENCE IN ECONOMIC EDUCATION.

       ``(a) Purpose.--The purpose of this part is to promote 
     economic literacy among all United States students in 
     kindergarten through grade 12 by enhancing national 
     leadership in economic education through the strengthening of 
     a nationwide economic education network and the provision of 
     resources to appropriate State and local entities.
       ``(b) Goals.--The goals of this part are--
       ``(1) to increase students' knowledge of and achievement in 
     economics to enable the students to become more productive 
     and informed citizens;
       ``(2) to strengthen teachers' understanding of and 
     competency in economics to enable the teachers to increase 
     student mastery of economic principles and their practical 
     application;
       ``(3) to encourage economic education research and 
     development, to disseminate effective instructional 
     materials, and to promote replication of best practices and 
     exemplary programs that foster economic literacy;
       ``(4) to assist States in measuring the impact of education 
     in economics, which is 1 of 9 national core content areas 
     described in section 306(c) of the Goals 2000: Educate 
     America Act (20 U.S.C. 5886(c));
       ``(5) to extend strong economic education delivery systems 
     to every State; and
       ``(6) to leverage and expand private and public support for 
     economic education partnerships at national, State, and local 
     levels.

     ``SEC. 10997. GRANT PROGRAM AUTHORIZED.

       ``(a) Grants to the National Council on Economic 
     Education.--
       ``(1) In general.--The Secretary is authorized to award a 
     grant to the National Council on Economic Education (referred 
     to in this section as the `grantee'), which is a nonprofit 
     educational organization that has as its primary purpose the 
     improvement of the quality of student understanding of 
     economics through effective teaching of economics in the 
     Nation's classrooms.
       ``(2) Use of grant funds.--
       ``(A) One-quarter.--The grantee shall use \1/4\ of the 
     funds made available through the grant and not reserved under 
     subsection (f) for a fiscal year--
       ``(i) to strengthen and expand the grantee's nationwide 
     network on economic education;
       ``(ii) to support and promote training, of teachers who 
     teach a grade from kindergarten through grade 12, regarding 
     economics, including the dissemination of information on 
     effective practices and research findings regarding the 
     teaching of economics;
       ``(iii) to support research on effective teaching practices 
     and the development of assessment instruments to document 
     student performance;
       ``(iv) to develop and disseminate appropriate materials to 
     foster economic literacy; and
       ``(v) to coordinate activities assisted under this section 
     with activities assisted under title II.
       ``(B) Three-quarters.--The grantee shall use \3/4\ of the 
     funds made available through the grant and not reserved under 
     subsection (f) for a fiscal year to award grants to State 
     economic education councils, or in the case of a State that 
     does not have a State economic education council, a center 
     for economic education (which council or center shall be 
     referred to in this section as a `recipient'). The grantee 
     shall award such a grant to pay for the Federal share of the 
     cost of enabling the recipient to work in partnership with 1 
     or more of the entities described in paragraph (3) for 1 or 
     more of the following purposes:
       ``(i) Collaboratively establishing and conducting teacher 
     training programs that use effective and innovative 
     approaches to the teaching of economics.
       ``(ii) Providing resources to school districts that want to 
     incorporate economics into the curricula of the schools in 
     the districts.
       ``(iii) Conducting evaluations of the impact of economic 
     education on students.
       ``(iv) Conducting economic education research.
       ``(v) Creating and conducting school-based student 
     activities to promote consumer, economic, and personal 
     finance education, such as saving, investing, and 
     entrepreneurial education, and to encourage awareness and 
     student achievement in economics.
       ``(vi) Establishing interstate and international student 
     and teacher exchanges to promote economic literacy.
       ``(vii) Encouraging replication of best practices to 
     encourage economic literacy.
       ``(C) Additional requirements and technical assistance.--
     The grantee shall--
       ``(i) meet such other requirements as the Secretary 
     determines to be necessary to assure compliance with this 
     section; and
       ``(ii) provide such technical assistance as may be 
     necessary to carry out this section.
       ``(3) Partnership entities.--The entities referred to in 
     paragraph (2)(B) are the following:
       ``(A) A private sector entity.
       ``(B) A State educational agency.

[[Page S10233]]

       ``(C) A local educational agency.
       ``(D) An institution of higher education.
       ``(E) Another organization promoting economic development.
       ``(F) Another organization promoting educational 
     excellence.
       ``(4) Administrative costs.--The grantee and each recipient 
     receiving a grant under this section for a fiscal year may 
     use not more than 25 percent of the funds made available 
     through the grant for administrative costs.
       ``(b) Teacher Training Programs.--
       ``(1) In general.--In carrying out the teacher training 
     programs described in subsection (a)(2)(B) a recipient 
     shall--
       ``(A) train teachers who teach a grade from kindergarten 
     through grade 12;
       ``(B) conduct programs taught by qualified teacher trainers 
     who can tap the expertise, knowledge, and experience of 
     classroom teachers, private sector leaders, and other members 
     of the community involved, for the training; and
       ``(C) encourage teachers from disciplines other than 
     economics to participate in such teacher training programs, 
     if the training will promote the economic understanding of 
     their students.
       ``(2) Release time.--Funds made available under this 
     section for the teacher training programs described in 
     subparagraphs (A) and (B) of subsection (a)(2) may be used to 
     pay for release time for teachers and teacher trainers who 
     participate in the training.
       ``(c) Involvement of Business Community.--In carrying out 
     the activities assisted under this part the grantee and 
     recipients are encouraged to--
       ``(1) include interactions with the local business 
     community to the fullest extent possible, to reinforce the 
     connection between economic education and economic 
     development; and
       ``(2) work with private businesses to obtain matching 
     contributions for Federal funds and assist recipients in 
     working toward self-sufficiency.
       ``(d) Federal Share.--
       ``(1) In general.--The Federal share of the cost described 
     in subsection (a)(2)(B) shall be 50 percent. The Federal 
     share of the cost of establishing a State council on economic 
     education or a center for economic education under subsection 
     (f), for 1 fiscal year only, shall be 75 percent.
       ``(2) Non-federal share.--The non-Federal share may be paid 
     in cash or in kind, fairly evaluated, including plant, 
     equipment, or services.
       ``(e) Applications.--
       ``(1) Grantee.--To be eligible to receive a grant under 
     this section, the grantee shall submit to the Secretary an 
     application at such time, in such manner, and accompanied by 
     such information as the Secretary may require.
       ``(2) Recipients.--
       ``(A) In general.--To be eligible to receive a grant under 
     this section, a recipient shall submit an application to the 
     grantee at such time, in such manner, and accompanied by such 
     information as the grantee may require.
       ``(B) Review.--The grantee shall invite the individuals 
     described in subparagraph (C) to review all applications from 
     recipients for a grant under this section and to make 
     recommendations to the grantee regarding the funding of the 
     applications.
       ``(C) Individuals.--The individuals referred to in 
     subparagraph (B) are the following:
       ``(i) Leaders in the fields of economics and education.
       ``(ii) Such other individuals as the grantee determines to 
     be necessary.
       ``(f) Special Rule.--For each State that does not have a 
     recipient in the State, as determined by the grantee, not 
     less than the greater of 1.5 percent or $100,000 of the total 
     amount appropriated under subsection (i), for 1 fiscal year, 
     shall be made available to the State to pay for the Federal 
     share of the cost of establishing a State council on economic 
     education or a center for economic education in partnership 
     with a private sector entity, an institution of higher 
     education, the State educational agency, and other 
     organizations.
       ``(g) Supplement and Not Supplant.--Funds appropriated 
     under this section shall be used to supplement and not 
     supplant other Federal, State, and local funds expended for 
     the purpose described in section 10996(a).
       ``(h) Report.--The Secretary shall prepare and submit to 
     the appropriate committees of Congress a report regarding 
     activities assisted under this section not later than 2 years 
     after the date funds are first appropriated under subsection 
     (i) and every 2 years thereafter.
       ``(i) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this part 
     $10,000,000 for fiscal year 2000, and such sums as may be 
     necessary for each of the 4 succeeding fiscal years.''.
       (b) Related Amendments.--The Elementary and Secondary 
     Education Act of 1965 (20 U.S.C. 6301 et seq.) is amended--
       (1) in section 2103(a)(2)(I) (20 U.S.C. 6623(a)(2)(I)), by 
     inserting ``economics,'' after ``civics and government,'';
       (2) in section 3206(b)(4) (20 U.S.C. 6896(b)(4)), by 
     inserting ``economics,'' after ``history,'';
       (3) in section 5108(b) (20 U.S.C. 7208(b)), by inserting 
     ``economics,'' after ``history,'';
       (4) in section 10101(b)(1)(A)(iii) (20 U.S.C. 
     8001(b)(1)(A)(iii)), by striking ``and social studies'' and 
     inserting ``social studies, and economics,'';
       (5) in section 10963(b)(4) (20 U.S.C. 8283(b)(4))--
       (A) in subparagraph (E), by striking ``and'' after the 
     semicolon;
       (B) in subparagraph (F), by inserting ``and'' after the 
     semicolon; and
       (C) by adding at the end the following:
       ``(G) economic education and other programs designed to 
     enhance economic literacy and personal financial 
     responsibility;''; and
       (6) in section 10974(a)(8)(H) (20 U.S.C. 8294(a)(8)(H)), by 
     striking ``local rural entrepreneurship'' and inserting 
     ``promoting economic literacy, local rural 
     entrepreneurship,''.
                                 ______