Looking Back, Looking Forward 7/6/11 Joel Packer, CEF Executive Director:

The Committee for Education Funding (CEF) is the oldest and largest education coalition. We represent over 85 national organizations and institutions from PreK through graduate education – including SSWAA. For more information: Follow us on Twitter: 2

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4 Rising K-12 Enrollments Source: CEF based on NCES Projections of Education Statistics to 2019

5 Rising Higher Education Enrollments Source: CEF based on NCES Projections of Education Statistics to 2019

Unemployment Linked to Educational Attainment 6 Source: CEF based on BLS data

Median Earnings and Tax Payments of Full-Time Year-Round Workers Ages 25 and Older, by Education Level, 2008 Sources: The College Board, Education Pays 2010, Figure 1.1; U.S. Census Bureau, 2009; Internal Revenue Service, 2008; Davis et al., 2009; calculations by the authors.

8 Source: January 2011 New York Times/CBS News Poll If you had to choose one, which of the following domestic programs would you be willing to reduce in order to cut government spending?

9 Source: March 2011 Bloomberg News National Poll Please tell me if you would favor or oppose substantial changes to the program.

National Commission on Fiscal Responsibility and Reform: …we must invest in education, infrastructure, and high-value research and development to help our economy grow, keep us globally competitive, and make it easier for businesses to create jobs. 10

Federal Reserve Chairman Bernanke:Cost-effective K-12 and post-secondary schooling are crucial to building a better workforce... Research increasingly has shown the benefits of early childhood education and efforts to promote the lifelong acquisition of skills for both individuals and the economy as a whole. The payoffs of early childhood programs can be especially high. 11

Over six months late 12

In February 2010, President Obamas FY 11 budget proposed a $3.5 billion (+7.6%) increase for the Department of Education. In 2010, the previous Congress failed to pass any of the required 12 Appropriations bills. 13

Enacted in December Froze all FY 11 education funding at FY 10 levels. Provided $5.7 billion for Pell shortfall to maintain $5,550 maximum award. Expired on March 4,

On February 19, the House passed HR 1, a CR for the remainder of FY 11. It cut ED programs by $11.55 billion or 16.1%! 15

60 programs eliminated, including literacy, school libraries, school leadership, Promise Neighborhoods, education technology grants, math/science partnerships, Arts Education, parent information centers, school counseling, mental health integration, alcohol abuse reduction, tech-prep, SEOG, LEAP. 16

13 more cut, including Pell, Title I, School Improvement Grants, after school, teacher quality state grants, aid for minority-serving institutions. Head Start cut by $1.1 billion (-15%). IDEA frozen. 17

Negotiated final bill cuts education by $1.3 billion. Program increases – Presidents priorities: Race to The Top = $700 million with $500 million for Early Learning Challenge Fund. Investing in Innovation = $150 million Promise Neighborhoods = +$20 million (total of $30 million) Head Start (in HHS) = $+340 million

Selected program cuts and eliminations: All programs cut by 0.2% Striving Readers = -$200 million (eliminated) Even Start = -$66.5 million (eliminated) Literacy Through School Libraries = -$19.1 million (eliminated) Teacher Quality State Grants = -$480 million (-16.3%) Education technology state grants = -$100 million (eliminated)

School Counseling = -$2.6 million (-4.7%) Civic education = -$33.8 million (-97%) Javits gifted and talented = -$7.5 million (eliminated) Career and technical education = -$140 million (-11%)

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23 Source: Coalition on Human Needs

24 Source: Coalition on Human Needs

Set low funding caps for discretionary programs in annual spending (appropriations) bills. House FY 12 allocation for Labor-HHS-ED = cut of 11.6% below FY 11 and 3.9% below FY

Source: CEF based on CBO data 26

Restructure mandatory programs (programs that dont need annual appropriations) E.g., block grant Medicaid, Food Stamps (passes costs on to states, reduces individual protections) 27

Change budget rules (e.g., global spending cap, balanced budget amendment, spendingonly enforcement). Hold mustpass bill to increase debt ceiling hostage to demand deep program cuts & budget rule changes. 28

Eliminate authorizations HR 1891 reported by Education and the Workforce Committee eliminates 42 programs from ESEA including school leadership, school counseling, alcohol abuse reduction and high school graduation initiative. Would cut $412 million below FY

House-Passed FY 12 V. President's FY 12 Budget 30

Would cut Education 18.7% ! Would move us backwards on: closing achievement gaps increasing achievement increasing high graduation, college attendance and college completion rates 31

Compared to Final FY 11 CR: Increases Education by $9.1 billion (+13.3%) Not counting Pell, increase = $3.4 billion (+7.5%) 32

In billions

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Increases for Administration priorities: o Race to the Top = +$201 million (+28.9%) o Early Learning Challenge Fund =+$150 million (+100.4%) o Promise Neighborhoods = +$120 million (+400%) 35

Other ESEA program increases: o Title I = $300 million for new rewards program o School Turnaround Grants = +$65.4 million (+12.2%) o 21st Century Community Learning Centers = +$112 million (+9.7%) o Magnet Schools = +$10 million (+10%) 36

37 Proposes to consolidate 38 existing programs into nine new funding streams All but one would be competitive grants Consolidations contingent on ESEA reauthorization Education Technology State Grants is eliminated ESEA Funding 37

o English Language State grants o Rural Education o Indian Education 38 o Migrant Education o Neglected/Delinquent o Education for Homeless o Impact Aid Programs Frozen

New Authority Consolidated Programs (programs in red were eliminated in final FY 11 CR or previously not funded) Effective Teachers and Leaders Ready to Teach Teacher Quality State Grants Teacher and Leader Innovation Fund Advanced Credentialing Teacher Incentive Fund Teacher and Leader Pathways School Leadership Teach for America Teacher Quality Partnership Teachers for a Competitive Tomorrow Transition to Teaching 39

New AuthorityConsolidated Programs Effective Teaching and Learning: Literacy Striving Readers Even Start Literacy through School Libraries National Writing Project Reading is Fundamental Ready-to-Learn Television Effective Teaching and Learning: Science, Technology, Engineering, and Mathematics Mathematics and Science Partnerships 40

New AuthorityConsolidated Programs Effective Teaching and Learning for a Well- Rounded Education Teaching American History Academies for American History and Civics Civic Education Close-Up Fellowships Excellence in Economic Education Foreign Language Assistance Arts in Education College Pathways and Accelerated Learning Advanced Placement High School Graduation Initiative Javits Gifted and Talented Education 41

New AuthorityConsolidated Programs Successful, Safe, and Healthy Students Alcohol Abuse Reduction Safe and Drug-Free Schools and Communities National Activities Elementary and Secondary School Counseling Physical Education Foundations for Learning Mental Health Integration in Schools 42

New AuthorityConsolidated Programs Expanding Educational Options Charter Schools Grants Credit Enhancement for Charter School Facilities Voluntary Public School Choice Parental Information and Resource Centers Smaller Learning Communities 43

IDEA State Grants = +$223 million (+1.9%) o Federal share of special ed costs would fall to 16.5% o Federal Share per student = $1,765 44

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Career and Technical Education state grants would be further cut to $1 billion ($123 million cut, -10.9%) 46

Pell maximum award of $5,550 maintained Total Pell funding = $41.2 billion 47

The Ryan Plan 48

FY 12 Budget Resolution passed the House on 4/15 by a vote of Party line vote (except four Republicans voted no). Assumes all of the education cuts and program eliminations contained in HR 1. 49

Further reduces funding for education and related programs, resulting in a cut of $17.7 billion (-18.7 percent) in FY The cuts grow to more than 25 percent over time and total $250 billion over ten years. Cuts the Pell grant maximum award to $3,040 (-45%). 50

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Final FY 11 ED funding is $96 billion below FY 09 level with ARRA(-60%)! 52

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Source: CEF based on BLS seasonally adjusted employment data

How small will the box be? 56

Debt Ceiling increase/deficit deal Need to raise debt ceiling $2.4 trillion through end of Republicans want deficit reduction package of at least equal amount. Republicans say no to any revenues. Debt Ceiling will be reached by August 2. Default would cut federal spending by 44%!

Balanced Budget Constitutional Amendment House Judiciary reported H.J. Res. 1 Needs 2/3rds majority. All 47 Senate Republicans cosponsored S.J. Res. 23 Senate floor next week? Both versions cap spending at 18% of GDP and require supermajorities for any revenue increases. Could result in cuts to domestic discretionary programs of 70%!

Cut, Cap, Balance HR 2560 House floor tomorrow Cuts discretionary spending in FY 12 by same amount as House-passed Budget Sets global spending caps Require deeper cuts than House budget starting in FY 13 Raises debt limit only if BBA passed

FY 12 Appropriations bills House Labor-HHS-ED Subcommittee markup 7/26; full committee 8/2; House floor week of 9/19 Will require very deep cuts HR 1891 – ESEA Repeals bill House floor in before August recess?

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