aVol. 8, No. 3

April 1999

Table of
Contents

Left

Previous
Story

Next
Story

Low Budgets and Flexibility
Characterize Federal Education Policy
 for the Millennium Year

After a $3.6 billion increase in federal education funding for the current fiscal year, the budget figures from the Congress and the Clinton Administration for the millennium fiscal year range from modest to paltry.  Additionally, with the substantive work on the reauthorization of the Elementary and Secondary Education Act (ESEA) yet to begin, Congress has spent much of its post-impeachment attention on an arguably symbolic Education Flexibility bill.

The Administration unfortunately set the initial budget bar unusually low for fiscal year 2000 by requesting only a $1.2 billion increase in education funding.  The Senate, which had considered sizable increases in education over the next five years, barely exceeded the Administration's budget plan for the overall discretionary education, training and social services function.  The House of Representatives came in below the Administration's overall budget function by $2 billion.  Although each house of Congress recommended increases in elementary and secondary education, existing budget rules cannot ensure that result.  In fact, the budget rules are elastic enough, for example, to allow for spending increases available for education to be allotted to health or job training.

Many budget watchers believe that another end-of-year budget stalemate between the Congress and the Administration is on the horizon.  The 1997 Balanced Budget Agreement, established before the federal budget deficit disappeared, locked-in unrealistically low spending limits that neither the Administration nor the congressional leadership are politically willing to exceed.  In order to stay within these spending ``caps," federal discretionary spending levels will have to be cut by $10 to $25 billion, depending upon which figures are used.  In short, the federal government cannot be operated under the Balanced Budget Agreement while increasing priority functions like defense, education and health research.  The ``Save Social Security First" mantra also has straitjacketed both the Congress and the Administration from using the ten year $2.5 trillion federal surplus for priorities like education.

When funding is tight, either real or imagined, someone always redirects the debate to ``flexibility."  Such flexibility movements have arisen under the banner of program consolidation, shared revenue, block grants, and now waivers.  At the request of the nation's governors, both the Administration and the congressional leadership have embraced the concept of state-based waivers of federal requirements in education – so called ``Ed Flex."  The bill has lukewarm support and even some opposition to its operational details among education interest groups.  Ironically, the Ed Flex legislation provides further flexibility in the most flexible federal education programs, and provides no flexibility in the most heavily regulated federal education program – Individuals with Disabilities Education Act (IDEA).

In fact, a controversial amendment relating not to IDEA program flexibility but to IDEA program funding has stalled the Ed Flex bill.  Sen. Trent Lott (R-Miss.), the Senate majority leader, added a provision to the bill which would allow any school district to use the new $1.2 billion Class-Size Reduction grants for IDEA funding instead.  Since the operational costs of special education continue to proliferate, this option to spend the new Class-Size Reduction funding on special education programs is arguably attractive.  Yet upon further consideration, a federal funding ``shell game" seems to appear.  Rather than funding a number of high priority national educational needs on their own merits, such as special education for disabled children, education for disadvantaged children, class-size reduction, etc., the Lott option would present school districts with a Hobson's choice of short-changing additional class-size reduction in order to cover federally-mandated special education costs. 

The Council of  the Great City Schools has yet to find anything to celebrate as the nation prepares to enter the millennium year.   Washington is presenting our schools with symbolism instead of substance, flexibility instead of funding, and budgetary excuses instead of financial support – not much different from most other years--so far.


Council of the Great City Schools
1301 Pennsylvania Avenue, N.W., Suite 702
Washington, D.C.  20004
(202) 393-2427 (phone)
(202) 393-2400 (fax)