aVol. 8, No. 6

September 1999

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Tight Caps Threaten Federal
Education Funding

By Jeff Simering, Director, Legislative Services

.As Congress returns from its August recess, federal lawmakers are faced with finishing its difficult work on FY2000 budget and appropriation issues. Nine appropriations bills have already passed both houses, but the four remaining spending measures—including the always controversial Labor/Health/Education appropriations bill—promise to be far more contentious than the other funding packages. The reason: the tight budget caps set by the White House and congressional leaders during the 1997 balanced budget agreement were set too low to allow programs to be funded even at their current levels. And neither side wants to be accused of being a ``big spender" by breaking the caps.

Recent estimates indicate that the Labor/Health/Education appropriations subcommittee has approximately $16 billion less than what it needs to provide even current year funding levels.  A shortfall of that size could result in education programs being cut by as much as 18 percent. The Title I Program could absorb a $ 1.5 billion cut. The Class Size Reduction Program could be reduced by $216 million. And, the Safe and Drug Free Schools, Educational Technology, and Title VI Innovative Strategies programs could be cut by as much as $101 million, $99 million, and $68 million respectively.

Ironically, these potential cuts are similar in size to those that loomed in the 104th Congress of the mid-1990s, when the annual federal deficit was expected to be around $200 billion. Now, the economy is booming and the annual federal surplus is expected to be over $100 billion.

Appropriations committee leaders in both houses have been clamoring for relief from the 1997 budget restrictions, or for alternative budget resources.  At present, however, little progress has been made in the stalemate as the spending subcommittees are poised to begin their markups after returning from recess. Observers expect another 11th hour budget summit at the end of the session between the Administration and congressional leadership to resolve the impending budget meltdown.

The authorizing committees, in the meantime, are working on rewriting the Elementary and Secondary Education Act (ESEA), but are running out of time before the targeted late October adjournment date. The House committee has split the ESEA bill into segments and is considering each in separate measures. It has already approved a consolidation of teacher professional development programs, Goals 2000, and Class Size Reduction on a generally party-line vote.  There are prospects for greater bipartisanship in late September on the second segment of the ESEA bill, which is expected to include Title I and other special-needs programs. 

The final segment of the ESEA bill, composed of the remaining titles, is expected to be taken up in late October. The Senate committee, meanwhile, is expected to proceed with a single comprehensive ESEA reauthorization bill before adjournment. A conference resolving the differences may not occur until next year.

Finally, the looming veto of the $800 billion tax relief bill will add another issue to an already full education agenda for the waning days of the first session of the 106th Congress: school construction. Both sides of the aisle continue to struggle over a need that nearly everyone believes has to be solved. The fall session promises to be one of the most intense in recent memory.


Council of the Great City Schools
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