[Congressional Record (Bound Edition), Volume 149 (2003), Part 21]
[Senate]
[Pages 28876-28879]
[From the U.S. Government Publishing Office, www.gpo.gov]




                        CBO ESTIMATE ON S. 1248

  Mr. GREGG. Mr. President, on November 3, 2003, I filed Report 108-185 
to accompany S. 1248, a bill to reauthorize the Individuals with 
Disabilities Education Act, and for other purposes. At the time the 
report was filed, the estimates by the Congressional Budget Office were 
not available. I ask unanimous consent that a complete copy of the CBO 
estimate be printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                                    U.S. Congress,


                                  Congressional Budget Office,

                                    Washington, DC, July 11, 2003.
     Hon. Judd Gregg,
     Chairman, Committee on Health, Education, Labor, and 
         Pensions, U.S. Senate, Washington, DC.
       Dear Mr. Chairman: The Congressional Budget Office has 
     prepared the enclosed cost estimate for S. 1248, the 
     Individuals with Disabilities Education Improvement Act of 
     2003.
       If you wish further details on this estimate, we will be 
     pleased to provide them. The CBO staff contact is Donna Wong.
           Sincerely,
                                              Douglas Holtz-Eakin,
                                                         Director.
       Enclosure.
     S. 1248--Individuals with Disabilities Education Improvement 
         Act of 2003
       Summary: S. 1248 would reauthorize the Individuals with 
     Disabilities Education Act (IDEA) through 2009. The bill also 
     would amend two programs that are permanently authorized by 
     IDEA, create four new programs, and amend the Rehabilitation 
     Act of 1973.
       CBO estimates that the bill would authorize additional 
     appropriations of $841 million in 2004, for a total of about 
     $10.2 billion in that year (including the two programs that 
     are permanently authorized). CBO estimates that the new 
     authorizations under S. 1248 would total about $5.3 billion 
     over the 2004-2009 period, assuming that annual levels are 
     adjusted for inflation. CBO estimates that appropriations of 
     those authorized levels would result in additional outlays of 
     $4.0 billion over the 2004-2009 period.
       Enacting S. 1248 would affect direct spending. CBO 
     estimates that the new state grants for rehabilitation 
     services for students with disabilities would increase 
     mandatory outlays by $139 million in 2004 and $1.8 billion 
     over the 2004-2013 period.
       S. 1248 contains no intergovernmental or private-sector 
     mandates as defined by the Unfunded Mandates Reform Act 
     (UMRA). Any requirements on states or educational 
     institutions would be conditions for receiving federal 
     grants; the bill would authorize more than $4 billion over 
     the 2004-2009 period in additional funding for such grants.
       Estimated cost to the Federal Government: The estimated 
     budgetary impact of S. 1248 is shown in Table 1. The costs of 
     this legislation fall within budget function 500 (education, 
     training, employment, and social services).

[[Page 28877]]



                  TABLE 1.--ESTIMATED BUDGETARY EFFECTS OF S. 1248, THE INDIVIDUALS WITH DISABILITIES EDUCATION IMPROVEMENT ACT OF 2003
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                        By fiscal year, in millions of dollars--
                                                              ------------------------------------------------------------------------------------------
                                                                   2003         2004         2005         2006         2007         2008         2009
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                            SPENDING SUBJECT TO APPROPRIATION
 
Baseline Spending Under Current Law:
    Estimated Authorization Level\1\.........................        9,434        9,323        9,506        9,708        9,910       10,130       10,350
    Estimated Outlays........................................        8,152        9,484        9,580        9,595        9,755        9,963       10,180
Proposed Changes:
    Estimated Authorization Level............................            0          841          857          875          893          913          933
    Estimated Outlays........................................            0           17          547          809          868          886          905
Spending Under S. 1248:
    Estimated Authorization Level............................        9,434       10,164       10,364       10,583       10,803       11,042       11,282
    Estimated Outlays........................................        8,152        9,501       10,127       10,404        10623       10,849       11,086
 
                                                                     DIRECT SPENDING
 
Baseline Spending Under Current Law:\2\
    Estimated Budget Authority...............................        2,533        2,587        2,645        2,706        2,772        2,840        2,911
    Estimated Outlays........................................        2,515        2,569        2,626        2,686        2,750        2,818        2,888
Proposed Changes:
    Estimated Budget Authority...............................            0          198          205          212          220          228          236
    Estimated Outlays........................................            0          139          197          210          218          225          233
Spending Under S. 1248:
    Estimated Budget Authority...............................        2,533        2,785        2,850        2,918        2,992        3,068        3,147
    Estimated Outlays........................................        2,515        2,708        2,823        2,896        2,968        3,043        3,121
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\The 2003 level is the amount appropriated for that year for all IDEA programs. The 2004-2009 levels are the baseline amounts for the Grants to States
  and the Preschool state grants programs, which are permanently authorized under IDEA. The 2004 level includes an advance appropriation of $5.7 billion
  in the Grants to States program.
\2\Projected spending is CBO's baseline for state grants for rehabilitation services and handicapped research.
 
Note.--Components may not sum to totals because of rounding.

       Basis of estimate: S. 1248 would reauthorize the 
     Individuals with Disabilities Education Act through 2009. All 
     IDEA programs were authorized in 2003 by the General 
     Education Provisions Act (GEPA), and the two largest 
     programs--Grants to States and Preschool state grants--are 
     permanently authorized. S. 1248 would amend those two 
     programs, create four new programs, and amend the 
     Rehabilitation Act of 1973.
       Most programs authorized under IDEA would be reauthorized 
     at such sums as may be necessary for 2004 through 2009. For 
     existing programs, the estimated authorization level is the 
     2003 appropriated amount inflated (i.e., a baseline 
     projection). For new programs, if amounts are not specified, 
     the estimated authorization level is CBO's projection of what 
     it would cost to implement the new program. If funding is 
     specified, CBO's estimate for authorized levels is the 
     authorized amount for 2004 with that amount inflated in later 
     years. As noted above, funding for the Grants to States and 
     Preschool state grants programs is already permanently 
     authorized at such sums as may be necessary, so the estimate 
     assumes that funding would continue at the baseline level.
       State grants for rehabilitation services are classified as 
     mandatory or direct spending under the Budget Enforcement Act 
     of 1990. Although the specific authorization for the grants 
     expired in 2002, automatic one-year extensions under the 
     Rehabilitation Act of 1973 and GEPA authorize the grants 
     through 2004. Under section 257 of the Balanced Budget and 
     Emergency Deficit Control Act, CBO is required to assume a 
     permanent continuation of the program for baseline purposes. 
     The estimated costs for the bill's authorization of state 
     grants for students with disabilities are projected to 
     increase with inflation and with the number of students with 
     disabilities ages 14 to 21.
       The current-law levels for 2003 shown in tables 1 and 2 are 
     the amounts appropriated that year for all programs. Amounts 
     authorized under current law for years 2004 through 2009 are 
     CBO's baseline projections for the two programs that are 
     permanently authorized and include an advance appropriation 
     of $5.7 billion in 2004 for the Grants to States program.
       CBO estimates that S. 1248 would authorize additional 
     appropriations of $841 million in 2004 and additional funding 
     of $5.3 billion over the 2004-2009 period assuming that 
     ``such sums'' amounts are adjusted for inflation. If the 
     authorized amounts are appropriated, outlays would increase 
     by $17 million in the first year and by $4.0 billion over the 
     six-year period. In addition, if S. 1248 were enacted, CBO 
     estimates that direct spending (for the new state grants for 
     rehabilitation services) would increase by $139 million in 
     2004 and by $1.8 billion over the 2004-2013 period.
     Spending subject to appropriation
       Table 2 presents CBO's estimates of spending subject to 
     appropriation with inflation adjustments for the various 
     components of each title under S. 1248. The estimated outlays 
     reflect historical rates of spending for the affected 
     programs or for similar programs.

       TABLE 2.--DETAILED EFFECTS OF S. 1248, THE INDIVIDUALS WITH DISABILITIES EDUCATION IMPROVEMENT ACT OF 2003, WITH ADJUSTMENTS FOR INFLATION
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                        By fiscal year, in millions of dollars--
                                                              ------------------------------------------------------------------------------------------
                                                                   2003         2004         2005         2006         2007         2008         2009
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                            SPENDING SUBJECT TO APPROPRIATION
 
IDEA Spending Under Current Law:
    Budget Authority/Authorization Level\1\..................        9,434        9,323        9,506        9,708        9,910       10,130       10,350
    Estimated Outlays........................................        8,152        9,484        9,580        9,595        9,755        9,963       10,180
Proposed Changes:
    Title I: Amendments to the Individuals with Disabilities
     Education Act:
        Infants and Toddlers State Grants:
            Estimated Authorization Level....................            0          442          450          460          469          480          490
            Estimated Outlays................................            0            9          287          425          456          466          476
        State Professional Development Grants and Personnel
         Preparation:
            Estimated Authorization Level....................            0           52           53           54           56           57           58
            Estimated Outlays................................            0            1           34           50           54           55           56
        Personnel Development:
            Estimated Authorization Level....................            0           93           95           97           99          102          104
            Estimated Outlays................................            0            2           61           90           97           99          101
        Technology Development, Demonstration and
         Utilization; Media Services:
            Estimated Authorization Level....................            0           39           39           40           41           42           43
            Estimated Outlays................................            0            1           25           37           40           41           42
        Access of Instructional Materials:
            Estimated Authorization Level....................            0            5            5            5            5            5            6
            Estimated Outlays................................            0            *            3            5            5            5            5
        Parent Training and Information Centers, Community
         Parent Resource Centers, and other activities:
            Estimated Authorization Level....................            0           81           82           84           86           88           90
            Estimated Outlays................................            0            2           53           78           83           85           87
        Interim Alternative Education Settings, Behavioral
         Supports and Whole School Interventions:
            Estimated Authorization Level....................            0           50           51           52           53           54           56
            Estimated Outlays................................            0            1           33           48           52           53           54
    Title III: National Center for Special Education
     Research:
        Estimated Authorization Level........................            0           79           80           82           83           85           87
        Estimated Outlays....................................            0            2           51           76           81           83           85
    Title IV: Commission on Universal Design and the
     Accessibility of Curriculum and Instructional Materials:
        Estimated Authorization Level........................            0            1            1            0            0            0            0
        Estimated Outlays....................................            0            1            1            *            0            0            0
Total Proposed Changes:
    Estimated Authorization Level............................            0          841          857          875          893          913          933

[[Page 28878]]

 
    Estimated Outlays........................................            0           17          547          809          868          886          905
Total Discretionary Spending Under S. 1248:
    Estimated Authorization Level............................        9,434       10,164       10,364       10,583       10,803       11,042       11,282
    Estimated Outlays........................................        8,152        9,501       10,127       10,404       10,623       10,849       11,086
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\The 2003 level is the amount appropriated for that year for all IDEA programs. The 2004 through 2009 levels are the baseline amounts for the Grants
  to States and the Preschool state grants programs which are permanently authorized under IDEA. The 2004 level includes an advance appropriation of
  $5.7 billion for the Grants to States program.
 
Notes. Components may not sum to totals because of rounding. *= Less than $500,000.

       Title I: Amendments to the Individuals with Disabilities 
     Education Act. Title I of the bill would amend programs 
     authorized under the IDEA. CBO estimates that this title's 
     additional IDEA authorizations would total $762 million in 
     2004 and $4.8 billion over the 2004-2009 period. We estimate 
     that the resulting outlays would be about $15 million in 2004 
     and $3.7 billion over the 2004-2009 period.
       Grants to States. S. 1248 would authorize such sums as may 
     be necessary for the Grants to States program. Because the 
     program is already permanently authorized at such sums, we 
     assume that funding would continue to be authorized at the 
     current baseline level.
       The state grant program provides formula grants to states 
     to assist them in covering the excess costs of providing 
     special education services to children with disabilities. 
     Funding for this program currently is provided on an 
     academic-year basis through appropriations in two separate 
     fiscal years: a forward-funded appropriation which is 
     available July 1 of the current fiscal year, and an advance 
     appropriation available October 1 of the next fiscal year. 
     Although the program has been funded by two separate 
     appropriations since 2001, funding does not need to be 
     authorized separately because all of the funds for an 
     academic year could be provided in one appropriation. The 
     program is funded at just under $8.9 billion in academic year 
     2003-2004 ($3.2 billion in 2003 and $5.7 billion in 2004).
       Preschool State Grants. S. 1248 would authorize such sums 
     as may be necessary for the Preschool grants program. The 
     Preschool state grants program is already permanently 
     authorized at such sums as may be necessary so the bill would 
     not change current authorizations for this program. The 
     Preschool program provides additional grants to states for 
     providing special education services to children with ages 3 
     through 5. The program is funded at 4387 million in 2003.
       Infants and Toddlers with Disabilities. S. 1248 would 
     reauthorize the infants and toddlers state grant program at 
     such sums as may be necessary in years 2004 through 2009. The 
     infants and toddlers program provides funds to states for 
     early intervention and identification activities. The program 
     is funded at $434 million in 2003 and CBO estimates that the 
     authorization for 2004 would be about $442 million under S. 
     1248. Assuming annual adjustments for inflation, we estimate 
     a six-year total authorization of $2.8 billion.
       State Professional Development Grants. The bill would 
     authorize such sums as may be necessary for years 2004 
     through 2009 for state professional development grants. The 
     state professional development grant program provides grants 
     to states to help them improve their systems for professional 
     development and providing special education services. Funds 
     can be used for personnel preparation, in-service training, 
     and other activities. Grants are distributed on a competitive 
     basis in years that the appropriation is less than $100 
     million and would be distributed partly based on a formula if 
     the appropriation exceeds that amount. The current state 
     improvement program is funded at $51 million in 2003 and CBO 
     estimates that the bill would authorize the appropriation of 
     $52 million for 2004 and $330 million over the next six 
     years.
       Personnel Development to Improve Services and Results for 
     Children with Disabilities. The bill would authorize such 
     sums as may be necessary in years 2004 through 2009 for 
     competitive awards to institutions of higher education and 
     other organizations to fund programs that help address needs 
     for highly qualified personnel in special education, and 
     other activities. Comparable activities are funded at $92 
     million in 2003 and CBO estimates that the bill would 
     authorize funding of $93 million for 2004 and $590 million 
     over the 2004-2009 period.
       Technology Development, Demonstration and Utilization, and 
     Media Services. S. 1248 would authorize such sums as may be 
     necessary for programs that provide funds for activities that 
     increase access to the classroom for children with 
     disabilities. These programs focus on services for 
     individuals who are deaf or blind such as video and closed 
     captioned television. Comparable activities are funded at $38 
     million in 2003 and CBO estimates that the authorization 
     would be $39 million of 2004 and $244 million over the 2004-
     2009 period.
       Access of Instructional Materials. S. 1248 would create a 
     National Instructional Materials Access center to coordinate 
     the acquisition and distribution of materials for the blind. 
     The center would collect electronic files by book publishers 
     and catalogue, store and distribute the electronic files to 
     authorized entities free of charge. The department would 
     award a contract to a nonprofit organization to administer 
     the center. The bill would permanently authorize funding at 
     such sums as may be necessary and based on discussions with 
     Congressional staff and the Department of Education on the 
     intent and scope of the center, CBO estimates that the annual 
     cost to create and operate the center would be between $5 
     million and $6 million over the next six years.
       Parent Training and Information Centers, Community Parent 
     Resource Centers, Technical Assistance for Parent Training 
     and Information Centers, Technical Assistance and 
     Demonstration, Dissemination of Information, and 
     Implementation of Scientifically Based Research. The bill 
     would authorize such sums as may be necessary in years 2004 
     through 2009 for parent training and information centers, 
     community parent resource centers, technical assistance, and 
     activities that support scientifically based research. The 
     regional centers provide information, training, and referral 
     services to parents of children with disabilities. Comparable 
     activities are funded at $79 million in 2003 and CBO 
     estimates that the bill would authorize funding of $81 
     million for 2004 and $511 million over the 2004-2009 period.
       Interim Alternative Educational Settings, Behavioral 
     Support, and Whole School Interventions. S. 1248 would create 
     a new competitive grant program to provide grants to 
     organizations to establish practices related to student 
     behavior. Practices could include early screening efforts, 
     training for school staff on positive behavioral 
     interventions, and on-site counseling services. The bill 
     would authorize $50 million in 2004 and such sums as may be 
     necessary for the next five years. Assuming adjustments for 
     inflation, we estimate that the bill would authorize the 
     appropriation of $316 million for this purpose over the 2004-
     2009 period.
       Title III: National Center for Special Education Research. 
     Title III of the bill would create a National Center for 
     Special Education Research within the Institute of Education 
     Sciences and authorize such sums as may be necessary for each 
     of the fiscal years 2004 through 2009. The new center would 
     replace the current special education research and innovation 
     program and would conduct research and evaluation related to 
     the needs of children with disabilities. The current research 
     program is funded at $77 million in 2003 and CBO estimates 
     that the authorization would be about $79 million in 2004 and 
     $496 million over the 2004-2009 period. Resulting outlays 
     would be about $2 million in 2004 and $377 million over the 
     2004-2009 period.
       Title IV: Commission on Universal Design and the 
     Accessibility of Curriculum and Instructional Materials. 
     Title IV of the bill would establish a commission to study, 
     evaluate, and make recommendations to the Congress and the 
     Secretary of Education on design and accessibility of 
     curriculum for children with disabilities. The bill would 
     authorize $750,000 for 2004 and such sums as may be necessary 
     for 2005 for the Commission. CBO estimates that the resulting 
     outlays would be less than $1 million in 2004 and about $1.5 
     million over the 2004-2009 period.
     Direct spending
       Table 3 displays the changes in direct spending over the 
     2003-2013 period. S. 1248 would have no impact on 
     governmental receipts (i.e., revenues).

                                           TABLE 3.--ESTIMATED DIRECT SPENDING AND REVENUE EFFECTS OF S. 1248
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                    By fiscal year, in millions of dollars--
                                                      --------------------------------------------------------------------------------------------------
                                                         2003     2004     2005     2006     2007     2008     2009     2010     2011     2012     2013
--------------------------------------------------------------------------------------------------------------------------------------------------------
Changes in outlays...................................        0      139      197      210      218      225      233      241      249       75        8

[[Page 28879]]

 
Changes in receipts..................................                                            Not applicable
--------------------------------------------------------------------------------------------------------------------------------------------------------

       Title II of the bill expands the scope of the 
     Rehabilitation Act of 1973 to cover certain services provided 
     to students with disabilities for ages 14 through 21 designed 
     to prepare the students for post-secondary education or 
     employment. These services may include but are not limited to 
     needs assessment, counseling, and training. The bill would 
     directly authorize these grants through 2009, but automatic 
     one-year extensions under the Rehabilitation Act and under 
     the General Education Provisions Act would authorize the 
     grants through 2011.
       State grants for vocational rehabilitation services have 
     been classified as direct spending under the Budget 
     Enforcement Act of 1990. S. 1248 creates separate funding for 
     services to be provided to students with disabilities, but 
     there are strong linkages between the delivery of services 
     under the two authorizations. In CBO's view, the delivery of 
     services to the students and nonstudents constitutes a single 
     program for which the funding is mandatory.
       CBO estimates that the services authorized by title II 
     would cost about $1.8 billion over the 2004-2013 period. The 
     potential costs of the expansions could be significantly 
     higher or lower than CBO currently estimates, as caseloads 
     and types of services that would be delivered are highly 
     uncertain at this time.
       CBO's estimate assumes that 2.0 million to 2.2 million 
     disabled students per year would be in the age range 
     recovered by S. 1248. CBO assumes that, as under the existing 
     program, the students would be screened to determine as to 
     whether they are likely to benefit from receiving the 
     proposed services. This screening would mean that a 
     significant portion--perhaps 25 percent to 30 percent--would 
     receive few or no services. Of those deemed likely to 
     benefit, CBO assumes an annual cost of $171 per student in 
     2004 rising to around $200 by 2009. This average cost figure 
     is based on program data for 1999, and reflects the 
     assumption that many students would not need services each 
     year and that, for a significant portion of the services, the 
     services would be largely needs assessment including advice 
     about postsecondary educational opportunities. For the 
     purposes of this estimate, CBO assumes that states will 
     supply the necessary matching funds (21.3 percent of the 
     total spending) costing them $54 million in 2004 rising to 
     $64 million in 2009.
       Intergovernmental and private-sector impact: The provisions 
     of IDEA apply to states and educational institutions as 
     recipients of federal grants. Consequently, any requirements 
     that would be created or extended by S. 1248, would be 
     conditions of federal aid and not intergovernmental or 
     private-sector mandates as defined by UMRA. (Any mandate for 
     the provision of special education results from other federal 
     statutes). Under current law, states are receiving about $8.9 
     billion in academic year 2003 from IDEA, which CBO estimates 
     equals about 18 percent of the average per pupil expenditure 
     for all children. Title I would authorize $3 billion for 
     state professional development grants and infant and toddler 
     programs over the 2004-2009 period. Over the same time 
     period, title II would make available an additional $1 
     billion to states for programs directed at 14 to 21-year-
     olds. Other sections of the bill would authorize additional 
     grants--some of which would be available to state and local 
     entities. Any costs to match such funds or administer 
     programs would be voluntary.
       Previous CBO estimate: On April 28, 2003, CBO transmitted a 
     cost estimate for H.R. 1350, the Improving Results for 
     Children with Disabilities Act of 2003, as ordered reported 
     by the House Committee on Education and the Workforce on 
     April 10, 2003. H.R. 1350 would authorize different amounts 
     of funding for most programs, would not create new programs, 
     and would not amend the Rehabilitation Act of 1973.
       Estimate prepared by: Federal Costs: Titles I, II, and IV: 
     Donna Wong (226-2820) and Title II: Deborah Kalcevic and Paul 
     Cullinan (226-2820). Impact on State, Local, and Tribal 
     Governments: Sarah Puro (225-3320). Impact on the Private 
     Sector: Nabeel Alsalam (226-2666).
       Estimated approved by: Peter H. Fontaine, Deputy Assistant 
     Director for Budget Analysis.

                          ____________________