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FEDERAL EDUCATION FUNDING

FEDERAL EDUCATION FUNDING. Caps, Cuts, Sequesters, Shutdowns and Squeezes . Joel Packer, Executive Director The Committee for Education Funding Jpacker@cef.org. Committee For Education Funding. The Committee for Education Funding (CEF) is the oldest and largest education coalition.

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FEDERAL EDUCATION FUNDING

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

  2. Committee For Education Funding • The Committee for Education Funding (CEF) is the oldest and largest education coalition. • We represent 113 national organizations and institutions from PreK through graduate education including EIA. • For more information: www.cef.org • Follow us on Twitter: www.twitter.com/edfunding

  3. Trench 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.

  4. Fiscal Year 2012 Outlays

  5. FISCAL YEARS 2011/2012 $1.5 BILLION IN CUTS

  6. Final FY 11 and 12 Appropriations • FY 2011 cut ED (other than Pell) by $1.2 billion. • Teacher Quality grants cut 16%, Career/Tech grants cut 11%, ED tech eliminated, HBCUs/MSIs cut 11%. • FY 2012 total ED funding cut by $233 million. • All programs cut by 0.189% across-the-board cut. • Both FY 11 and FY 12 maintained the Pell maximum award of $5,550. • But paid for by enacting restrictions and other cuts to Pell and student loans. • College students contributed $4.6 billion out of their pockets to deficit reduction.

  7. FISCAL YEAR 2013 LARGEST EDUCATION CUTS EVER!

  8. Caps and Cuts • Budget Control Act in August 2011 set in law discretionary caps for ten years (FY 12-FY 21). • Reduced spending by $900 billion over ten years. • Created Supercommitte to reduce deficit another $1.2 trillion.

  9. Sequestration • Supercommittee failure triggered sequestration. • $1.2 trillion in automatic cuts between FY 13-21; 50% from defense, 50% from nondefense • FY 13 cuts took effect on March 1, 2013. • However, other than Impact Aid and Head Start, education cuts started in 2013-14 school year.

  10. Largest Education Cuts Ever! • FY 13 = fixed percentage across-the-board (ATB) cuts. • NDD cut was 5% = $2.5 billion from ED. • Pell 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 - not ATB cut; further lowers discretionary caps. • Squeezes education $; Pell no longer exempt.

  11. FY 13 Impact of Sequestration 11

  12. FY 14 Budget: Dueling Visions • House Budget by Chairman Ryan (R-WI) passed on party line vote. • Balanced budget in ten years: No new revenue • More than doubled the sequester cuts to nondefense discretionary (NDD) programs. • Senate Budget by Chairman Murray (D-WA) also passed on party line vote. • Repealed sequester. • Increased revenue by $900 billion.

  13. FY 2014 Appropriations • Based on different Budgets, the Appropriations Committees worked from different allocations for NDD: • Senate = $506 billion • House = $414 billion (12% below sequester level!) • House only passed 4 bills, Senate passed none. • Labor-HHS-ED passed Senate Appropriations Committee; House failed to produce a bill.

  14. Government Shutdown! • Different appropriations totals and fight over Obamacare led to a 16 day government shutdown starting on 10/1.

  15. Budget Deal • October 17, 2013 CR/debt deal extended FY 13 CR at post-sequester levels through January 15. • House Budget Chair Ryan and Senate Budget Chair Murray Bipartisan Budget Act passed Congress in December. • 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.

  16. FY 2014 Omnibus • Based on BBA, House and Senate Appropriations Committees on January 13 completed omnibus appropriations bill. • In aggregate restores 2/3rds of ED sequester cuts. • Big winner was preschool programs (Head Start, new preschool Race To The Top).

  17. FY 2014 Omnibus: Increases Career/technical Ed state grants (+5.0%) GEAR UP (+5.3%) TRIO (+5.3%) SEOG (+5.3%) Work-Study (+5.3%) New $75 million First in the World • Title I (+4.5%) • Impact Aid (+5.3%) • After school (+5.3%) • ELL Grants (+4.3%) • IDEA State Grants (+4.5%) • IDEA infants and families (+4.5%)

  18. Education Department Funding In billions

  19. FY 2015 Outlook • Facing a freeze or less for next two years! • FY 15 NDD cap only increases by $583 million (+0.1%). • Same for FY 16. • President’s FY 15 Budget to be released on March 4/March 11.

  20. NDD Cap LevelsBudget Authority in Billions Sources: CEF Calculations based on CBO and OMB data

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