FY 2015 Budget: Overview of Research and Higher Education

Caps, Cuts, Sequesters, Shutdowns and Squeezes FEDERAL EDUCATION FUNDINGJoel Packer, Executive Director The Committee for Education FundingJpacker@cef.org

Committee For Education FundingThe Committee for Education Funding (CEF) is the oldest and largest education coalition.We represent 114 national organizations and institutions from PreK through graduate education including CEC.For more information: www.cef.orgFollow us on Twitter: www.twitter.com/edfunding 2Trench Warfare!Since January 2011 Republicans and Democrats have had multiple battles over the budget and deficit.Republicans are opposed to revenue increases.Liberal Democrats are opposed to entitlement cuts.Education and other nondefense programs have borne the brunt of the cuts.3

Fiscal Year 2014 Outlays

4Source: CEF based on OMB data44$1.5 BILLION IN CUTSFISCAL YEARS 2011/20125Final FY 11/12 AppropriationsFY 2011 cut ED (other than Pell) by $1.2 billion.K12: Teacher Quality grants cut 16%, Career/Tech grants cut 11%, ED tech eliminated.Only 0.2% cut to IDEA state grantsFY 2012 total ED funding cut by $233 million.All programs cut by 0.189% across-the-board cut.

6Pell/Student Aid Cuts EnactedBoth FY 11 and FY 12 maintained the Pell maximum award of $5,550.Maintaining Pell maximum was paid for with a variety of restrictions and limitations on student loans and Pell.Pell grants have been cut by $53 billion.145,000 students have lost their Pell grant.Interest subsidies on graduate loans eliminated = $18.1 billion cut.

7LARGEST EDUCATION CUTS EVER!FISCAL YEAR 20138

Sequestration = Largest Education Cuts Ever!FY 13 = fixed percentage across-the-board (ATB) cuts.NDD cut was 5% = $2.5 billion from ED.IDEA state grants cut =$620 millionPell grants exempt from across-the-board cuts.Head Start in HHS cut $401 million.Final ED non-Pell grant funding now lower than in FY 04.

FY 14-21 no longer ATB cut; further lowers discretionary caps.Squeezes education $; Pell no longer exempt.

9FY 13 Impact of Sequestration

1010PARTIAL SEQUESTER REPLACEMENTFISCAL YEAR 201411Budget DealHouse Budget Chair Ryan and Senate Budget Chair Murray in December agreed to the Bipartisan Budget Act: Partially replaced the sequester cuts to discretionary programs for FY 2014 and FY 2015.Paid for by extending mandatory sequester cuts into FY 2022 and FY 2023 and other small mandatory cuts and user fees.

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FY 2014 OmnibusBased on BBA, in January Congress passed Consolidated Appropriations Act of 2014.In aggregate only restores 2/3rds of ED sequester cuts.Big winner was preschool:Head Start: sequester cut fully restored plus $100 millionEarly Head Start-Child Care Partnerships: $500 million New preschool Race To The Top: $250 million.

1313FY 2014 OmnibusPrograms frozen at sequester levels:SIGHigh School Graduation InitiativeRural EducationIndian EducationPromise NeighborhoodsInvesting in InnovationIDEA Preschool grants

1414FY 2014 Omnibus: IncreasesTitle I (+4.5%)Impact Aid (+5.3%)Teacher Quality Grants (+0.5%)After school (+5.3%)ELL Grants (+4.3%)IDEA State Grants (+4.5%)IDEA infants and families (+4.5%)Career/technical ED state grants (+5.0%)GEAR UP (+5.3%)TRIO (+5.3%)SEOG (+5.3%)Work-Study (+5.3%)First in the WorldNew $75 million

15Education Department Funding16In billionsFREEZE OR LESS

FISCAL YEAR 1517

FY 2015 CapsFY 15 NDD cap only increases by 0.1%.FY 16 NDD cap only increases above FY 15 by 0.1%.President's Budget adheres to Ryan-Murray cap of $1.014 trillion.Proposes $56 billion Opportunity, Growth and Security initiative.50% defense/50% NDD; paid for with $28 billion in mandatory cuts and $28 billion in revenues.Includes funds for Early Head Start-Child Care partnerships ($800 million), Preschool Development Grants ($250 million), ConnectEDucators ($300 million), Promise Neighborhoods ($200 million)18

NDD Cap LevelsBudget Authority in Billions

Source: CEF Calculations based on CBO and OMB data1919Fiscal Year 2015 Budget RequestPresented by the US Department of Education. More information at www.ed.gov. 2021

FY 15 Education BudgetED receives $1.3 billion (+1.9%) increase - largest of any nonsecurity agency!Excluding Pell, EDs total is $45.8 billion, a 3% increase.Increases mostly for new programsK12 programs frozen:Title IIDEA State GrantsIDEA preschool grantsIDEA National activitiesSIG

22FY 15 Education BudgetMore K12 and related programs frozen:Migrant/Delinquent EdState assessment grantsRural EducationIndian education21st Century Community Learning CentersCharter school grantsMagnet SchoolsEnglish Language Acquisition grantsCareer and technical education State grantsAdult Education State grantsRegional Education Labs

23FY 15 Education BudgetPreK and K12 Discretionary programs increased:Early Head Start-Child Care Partnerships =+$150 million (+30%) (HHS)Preschool Development grants = +$250 million (+100%)Promise Neighborhoods = +$43 million (+76%)Race to the Top Equity and Opportunity (new) = $300 milliondesigned to drive meaningful changes in how States and LEAs identify and close persistent educational opportunity and achievement gaps Investing in Innovation = +$23.4 million (+16.5%)STEM Innovation = +$170 million (+114%)High School Redesign (new) = $150 millionpromote the whole school transformation of the high school experience in order to provide students with challenging and relevant academic and career-related learning experiences that prepare them to transition to postsecondary education and careers

24FY 15 Education BudgetK12 Discretionary programs increased:ConnectEDucators (new) = $200 millioncompetitive funds to LEAs and LEA consortia to support educators use of technology and data to personalize learning and to provide better CCR-aligned instruction.Teacher Incentive Fund = +$31.2 million (+10.8%)School Leadership = +$9.2 million (+35.9%)IDEA Results Driven Accountability Incentive Grants (new) = $100 millioncompetitive grants to States to implement State Systemic Implementation Plans to improve results for children with disabilities ages birth through 21.IDEA Grants for infants and families = +$3.3 million (+0.8%)

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26302(b) AllocationsHouse 302(b) allocation for Labor-HHS-ED is $1.1 billion below FY 2014 (-0.7%)Senate allocation is a freeze at FY 2014Both subcommittees have to deal with extra $1.4 billion needed for Unaccompanied Alien Children and $270 million for non-profit student loan servicers.House and Senate Labor-HHS-Education Appropriations Subcommittee and full committee markupsSenate: Subcommittee tomorrow, full committee on ThursdayHouse: by end of June?CR likely until lame duck27

Ryan FY 2015 Budget Slashes Non Defense DiscretionarySource: CEF Calculations based on CBO and OMB data and Ryan BudgetIn billions of $28Chart167612495852513309579223

Fiscal Year 12Department of Education 2%Defense17%Nondefense discretionary (minus education)14%

Sheet1Fiscal Year 12Education67Discretionary Defense612non-defense discretionary (other than education495Social Security852Medicare513Medicaid309Other Mandatory579Interest2233650

Chart1-2478-727-65-124-620-87-86-15-42-401

In millionsColumn1

Sheet1Column1Total Dep't. of ED-2478Title I-727Impact Aid-65Teacher Quality-124IDEA Grants-620Career, Tech, Adult-87Student Aid-86GEAR UP-15TRIO-42Head Start-401