The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
DEPARTMENT OF EDUCATION Federal Funds 87.00 Total outlays (gross) ................................................. 271 691 730 89.00 90.00 OFFICE OF ELEMENTARY AND SECONDARY EDUCATION Net budget authority and outlays: Budget authority ............................................................ Outlays ........................................................................... 530 271 691 691 1,245 730 General and special funds: EDUCATION REFORM For carrying out activities authorized by titles III and IV of the Goals 2000: Educate America Act, øand¿ the School-to-Work Opportunities Act, and section 3132 of the Elementary and Secondary Education Act of 1965, ø$691,000,000¿ $1,245,000,000, of which ø$476,000,000¿ $603,500,000 for the Goals 2000ø: Educate America¿ Act and $200,000,000 for the School-to-Work Opportunities Act shall become available on July 1, ø1997¿ 1998, and remain available through September 30, ø1998¿ 1999: Provided, That none of the funds appropriated under this heading shall be obligated or expended to carry out section 304(a)(2)(A) of the Goals 2000ø: Educate America¿ Act, except that no more than $1,500,000 may be used to carry out activities under section 314(a)(2) of that Act: Provided further, That section 315(a)(2) of the Goals 2000 Act shall not apply: Provided further, That up to one-half of one percent of the amount available under section 3132 shall be set aside for the outlying areas, to be distributed on the basis of their relative need as determined by the Secretary in accordance with the purposes of the program: Provided further, That if any State educational agency does not apply for a grant under section 3132, that State’s allotment under section 3131 shall be reserved by the Secretary for grants to local educational agencies in that State that apply directly to the Secretary according to the terms and conditions published by the Secretary in the Federal Register. (Department of Education Appropriations Act, 1997.) Program and Financing (in millions of dollars) Identification code 91–0500–0–1–501 Obligations by program activity: Goals 2000: 00.01 State and local education systemic improvement 00.02 Parental assistance ................................................... 00.91 01.01 02.01 10.00 1996 actual 1998 est. 673 15 605 15 Total goals 2000 ................................................... 331 688 School-to-work opportunities ......................................... 149 332 Technology Literacy Challenge Fund ............................. ................... ................... 620 200 425 Total obligations ........................................................ Budgetary resources available for obligation: Unobligated balance available, start of year: Uninvested balance ................................................... 22.00 New budget authority (gross) ........................................ 22.21 Unobligated balance transferred to other accounts 22.22 Unobligated balance transferred from other accounts 321 10 1997 est. 480 1,020 1,245 21.40 265 329 ................... 530 691 1,245 –2 ................... ................... 16 ................... ................... Note.—Includes $425 million in budget authority in 1998 for activities previously financed through the Department of Education, Office of Educational Research and Improvement, Education Research, Statistics, and Improvement account. The comparable amount for 1997 is $200 million and zero in 1996, since the program was first funded in 1997. Funds help States and localities undertake comprehensive education reform, create State and local systems of schoolto-work transition for students, and implement educational technology plans. Goals 2000: State and local education systemic improvement.—State grants support State and local education improvement efforts to help all students reach challenging academic standards. At least 90 percent of the funds are provided to local educational agencies. Funds also support evaluation of educational reform efforts. Parental assistance.—Centers in 42 States would continue to help provide parents with knowledge and skills they need to participate effectively in their children’s education. School-to-Work Opportunities.—School-to-work programs are jointly administered by the Departments of Education and Labor. An identical amount is provided for the Department of Labor to support these activities. Competitive, 5year grants are awarded to States that have completed and are ready to implement their school-to-work plans. Thirtyseven States are currently in their first, second, or third year of these grants. Requested funds would enable all States to participate fully. Direct grants are also provided to local partnerships serving young people who live in urban and rural areas characterized by high-poverty, as well as partnerships that serve Indian youth. These funds also support a national evaluation, research, and development activities to provide national leadership and analysis of school-to-work opportunities initiatives. Technology Literacy Challenge Fund.—All States will receive the second year of 5-year grants as part of the President’s plan to provide States and school districts with $2 billion over 5 years for computers, connections, training, and software, in order to achieve the President’s four goals for fully integrating technology into schools. Object Classification (in millions of dollars) 1996 actual Identification code 91–0500–0–1–501 23.90 23.95 24.40 Total budgetary resources available for obligation New obligations ............................................................. Unobligated balance available, end of year: Uninvested balance ................................................... New budget authority (gross), detail: 40.00 Appropriation .................................................................. Change in unpaid obligations: Unpaid obligations, start of year: Obligated balance: Appropriation ............................................................. 73.10 New obligations ............................................................. 73.20 Total outlays (gross) ...................................................... 73.40 Adjustments in expired accounts .................................. 74.40 Unpaid obligations, end of year: Obligated balance: Appropriation ............................................................. 809 –480 1,020 –1,020 1,245 –1,245 1998 est. 530 691 1,245 Advisory and assistance services .................................. Other services ................................................................ Purchases of goods and services from Government accounts .................................................................... Grants, subsidies, and contributions ............................ 2 3 2 6 4 6 41.0 329 ................... ................... 25.1 25.2 25.3 1997 est. 1 474 1 1,011 1 1,234 99.9 Total obligations ........................................................ 480 1,020 1,245 72.40 86.90 86.93 Outlays (gross), detail: Outlays from new current authority .............................. Outlays from current balances ...................................... 322 532 861 480 1,020 1,245 –271 –691 –730 1 ................... ................... 532 861 1,376 7 264 83 608 149 581 EDUCATION FOR THE DISADVANTAGED For carrying out title I of the Elementary and Secondary Education Act of 1965, and section 418A of the Higher Education Act, ø$7,698,469,000¿ $8,077,266,000, of which ø$6,380,114,000¿ $6,755,165,000 shall become available on July 1, ø1997¿ 1998, and shall remain available through September 30, ø1998¿ 1999, and of which $1,298,386,000 shall become available on October 1, ø1997¿ 1998 and shall remain available through September 30, ø1998¿ 1999, for academic year ø1997–1998¿ 1998–1999: Provided, That 415 416 OFFICE OF ELEMENTARY AND SECONDARY EDUCATION—Continued Federal Funds—Continued THE BUDGET FOR FISCAL YEAR 1998 Offsets: Against gross budget authority and outlays: 88.00 Offsetting collections (cash) from: Federal sources General and special funds—Continued EDUCATION FOR THE DISADVANTAGED—Continued ø$6,194,850,000¿ $6,191,350,000 shall be available for basic grants under section 1124: Provided further, That up to ø$3,500,000¿ $4,000,000 of these funds shall be available to the Secretary on October 1, ø1996¿ 1997, to obtain updated local-educational-agency-level census poverty data from the Bureau of the Census: Provided further, That $999,249,000 shall be available for concentration grants under section 1124(A), $350,000,000 shall be available for targeted grants under section 1125, øand $7,000,000¿ $10,000,000 shall be available for evaluations under section 1501, and not more than $7,500,000 shall be reserved for section 1308, of which not more than $3,000,000 shall be reserved for section 1308(d). (Department of Education Appropriations Act, 1997.) Program and Financing (in millions of dollars) Identification code 91–0900–0–1–501 1996 actual 1997 est. 1998 est. Obligations by program activity: Direct program: Grants to local educational agencies: 00.01 Basic grants ......................................................... 4,835 6,181 6,191 00.02 Concentration grants ............................................ 547 941 999 00.03 Targeted grants .................................................... ................... ................... 350 00.04 Set-aside for BIA/outlying areas .......................... 5 85 ................... 00.05 Capital expenses ....................................................... 44 41 41 00.06 Even start .................................................................. 103 104 108 00.07 State agency programs ............................................. 346 349 360 00.08 State school improvement ......................................... ................... ................... 8 00.09 Evaluation .................................................................. 3 7 10 00.10 Migrant education projects ....................................... 9 9 10 00.91 01.01 Total direct program ............................................. Reimbursable program .................................................. 5,892 1 7,717 8,077 14 ................... 10.00 Total obligations ........................................................ 5,893 7,731 Budgetary resources available for obligation: Unobligated balance available, start of year: Uninvested balance ................................................... 22.00 New budget authority (gross) ........................................ 22.10 Resources available from recoveries of prior year obligations ....................................................................... 17 5,911 41 ................... 7,690 8,077 8,077 21.40 23.90 23.95 24.40 Total budgetary resources available for obligation New obligations ............................................................. Unobligated balance available, end of year: Uninvested balance ................................................... New budget authority (gross), detail: Current: 40.00 Appropriation ............................................................. 41.00 Transferred to other accounts ................................... 43.00 61.00 65.00 68.00 70.00 7 ................... ................... 5,935 –5,893 7,731 –7,731 8,077 –8,077 41 ................... ................... 5,930 6,400 6,779 –34 ................... ................... Appropriation (total) ............................................. 5,896 6,400 6,779 Permanent: Transferred to other accounts ................................... ................... –8 ................... Advance appropriation (definite) .............................. ................... 1,298 1,298 Spending authority from offsetting collections: Offsetting collections (cash) ..................................... 15 ................... ................... Total new budget authority (gross) .......................... Change in unpaid obligations: Unpaid obligations, start of year: Obligated balance: Appropriation ............................................................. 73.10 New obligations ............................................................. 73.20 Total outlays (gross) ...................................................... 73.40 Adjustments in expired accounts .................................. 73.45 Adjustments in unexpired accounts .............................. 74.40 Unpaid obligations, end of year: Obligated balance: Appropriation ............................................................. 5,911 7,690 8,077 72.40 86.90 86.93 86.97 86.98 87.00 7,900 6,721 7,217 5,893 7,731 8,077 –7,034 –7,235 –7,476 –31 ................... ................... –7 ................... ................... 6,721 7,217 7,818 Outlays (gross), detail: Outlays from new current authority .............................. 330 Outlays from current balances ...................................... 6,695 Outlays from new permanent authority ......................... ................... Outlays from permanent balances ................................ 9 768 5,421 1,032 14 813 5,390 1,038 235 7,235 7,476 Total outlays (gross) ................................................. 7,034 89.00 90.00 Net budget authority and outlays: Budget authority ............................................................ Outlays ........................................................................... –15 ................... ................... 5,896 7,020 7,690 7,235 8,077 7,476 Grants to local educational agencies.—Funds will be allocated through the Basic, Concentration, and Targeted grant formulas for local programs that stress the achievement of challenging State education standards, support schoolwide improvement, integrate Title I assessment and curriculum with State systemic reforms, and target funds to high-poverty schools. Up to $4.0 million in Basic Grant funds will be used to continue work needed to obtain updated poverty data at the local educational agency level from the Bureau of the Census, for use in allocating Title I funds beginning in 1999, as required by the statute. Capital expenses.—Funds are provided by formula to States to support capital costs incurred by local educational agencies that are associated with providing educational services to eligible children attending non-public schools. State agency migrant program.—Funds are provided by formula to States for educational services to children of migratory farmworkers and fishers. Funds and services are concentrated on children who have moved within the past 36 months. State agency neglected and delinquent program.—Funds are provided by formula to States for educational services to children and youth under age 21 in State neglected, delinquent, or adult correction facilities. Services help institutionalized youth achieve the same challenging standards established for students in local public schools. State school improvement.—Funds are provided by formula to States to be used for technical assistance, incentives, and other strategies to assist schools and districts to implement Title I programs that help children meet challenging State education standards. Evaluation.—Funds support national activities to evaluate Title I programs and ongoing longitudinal studies of the program’s effectiveness in helping schools and children achieve to challenging State education standards. Migrant education projects.—Funds support grants to institutions of higher education and other non-profit agencies that assist migrant students to earn a high school equivalency certificate or to complete their first year of college. Reimbursable program.—Amounts in this activity consist of funds appropriated in other accounts for consolidated grants to the insular areas. Object Classification (in millions of dollars) 1996 actual Identification code 91–0900–0–1–501 1997 est. 1998 est. 25.1 25.2 41.0 Direct obligations: Advisory and assistance services ............................. Other services ............................................................ Grants, subsidies, and contributions ........................ 6 3 5,883 8 6 7,703 99.0 99.0 Subtotal, direct obligations .................................. Reimbursable obligations .............................................. 5,892 1 7,717 8,077 14 ................... 99.9 Total obligations ........................................................ 5,893 7,731 11 6 8,060 8,077 IMPACT AID For carrying out programs of financial assistance to federally affected schools authorized by title VIII of the Elementary and Secondary Education Act of 1965, ø$730,000,000¿, $658,000,000, of which ø$615,500,000¿ $584,000,000 shall be for basic support payments under section 8003(b), $40,000,000 shall be for payments for children with disabilities under section 8003(d), ø$52,000,000¿ $20,000,000, to remain available until expended, shall be for payments under OFFICE OF ELEMENTARY AND SECONDARY EDUCATION—Continued Federal Funds—Continued DEPARTMENT OF EDUCATION section 8003(f), ø$5,000,000¿ $4,000,000 shall be for construction under section 8007, and $10,000,000, to remain available until expended, shall be for facilities maintenance activities under section 8008 ø$17,500,000 shall be for Federal property payments under section 8002¿: Provided, That payments and eligibility under section 8003 shall be based only on federally connected children described in sections 8003(a)(1)(B) and 8003(a)(1)(C): Provided further, That notwithstanding the provisions of section 8003(b)(1)(B), any local educational agency that received a payment based on federally connected children described in sections 8003(a)(1)(B) and 8003(a)(1)(C) for fiscal year 1997 shall be eligible to receive a payment under sections 8003(b) and 8003(d) for fiscal year 1998: Provided further, That notwithstanding the provisions of section 8003(b)(1)(C), the maximum amount of the basic support payment shall be determined by multiplying each local educational agency’s weighted student units for federally connected children described in sections 8003(a)(1)(B) and 8003(a)(1)(C) by the factor described under section 8003(b)(1)(C)(iv): Provided further, That notwithstanding the provisions of section 8003(b)(2), if funds provided are insufficient to pay each local educational agency the full amount of its payment calculated under section 8003(b)(1)(C), then payments shall be ratably reduced: Provided further, That none of the funds provided shall be used for payments under section 8003(e). (Department of Education Appropriations Act, 1997.) Program and Financing (in millions of dollars) Identification code 91–0102–0–1–501 Obligations by program activity: Payments for federally connected children: 00.01 Basic support payments ........................................... 00.02 Supplemental payments for children with disabilities ....................................................................... 00.03 Payments for heavily impacted districts .................. 1996 actual 1997 est. 1998 est. 582 615 584 40 41 40 101 663 756 6 12 13 22 16 18 3 4 1 27 1 ................... 644 10 4 ................... ................... ................... ................... children living on Indian lands and military dependents living on Federal property. Basic support payments.—Payments would be made on behalf of approximately 330,000 federally connected children enrolled in nearly 1,000 school districts across the country. The request would provide an average payment of $1,770 for each of these federally connected children. Supplemental payments for children with disabilities.—Payments would be made for additional assistance to school districts educating federally connected children with disabilities. Approximately 31,000 such children are enrolled in school districts across the country. The request would provide approximately $1,300 in additional assistance for the education of each of these children. Payments for heavily impacted districts.—Increased payments would be provided for certain heavily impacted school districts, including school districts whose boundaries are the same as a military base, and school districts that enroll high proportions of federally connected children and meet certain fiscal requirements. Facilities maintenance.—Funds would be used to provide emergency repairs for school facilities that are owned by the Department of Education and to facilitate the transfer of the facilities to local educational agencies. Construction.—Formula-based payments for capital improvements would be made to school districts that meet the statutory eligibility criteria. 40 20 00.91 01.01 02.01 03.01 04.01 05.01 06.01 Subtotal, payments for federally connected children Facilities maintenance ................................................... Construction ................................................................... Payments for Federal property ....................................... Payments for section 3(d)(2)(B) .................................... Disaster assistance ....................................................... Construction (P.L. 81–815) ........................................... 10.00 Total obligations ........................................................ 703 839 Budgetary resources available for obligation: Unobligated balance available, start of year: Uninvested balance ................................................... 22.00 New budget authority (gross) ........................................ 22.10 Resources available from recoveries of prior year obligations ....................................................................... 105 693 109 ................... 730 658 Object Classification (in millions of dollars) Identification code 91–0102–0–1–501 40.00 Total budgetary resources available for obligation New obligations ............................................................. Unobligated balance available, end of year: Uninvested balance ................................................... New budget authority (gross), detail: Appropriation .................................................................. Change in unpaid obligations: 72.40 Unpaid obligations, start of year: Obligated balance: Appropriation ............................................................. 73.10 New obligations ............................................................. 73.20 Total outlays (gross) ...................................................... 73.40 Adjustments in expired accounts .................................. 73.45 Adjustments in unexpired accounts .............................. 74.40 Unpaid obligations, end of year: Obligated balance: Appropriation ............................................................. Outlays (gross), detail: 86.90 Outlays from new current authority .............................. 86.93 Outlays from current balances ...................................... 1996 actual 1997 est. 1998 est. 32.0 41.0 Land and structures ...................................................... Grants, subsidies, and contributions ............................ 6 697 12 827 10 648 99.9 Total obligations ........................................................ 703 839 658 SCHOOL CONSTRUCTION 658 (Legislative proposal, subject to PAYGO) 21.40 23.90 23.95 24.40 417 Program and Financing (in millions of dollars) Identification code 91–0010–4–1–501 14 ................... ................... 1996 actual 1997 est. 1998 est. 658 –658 10.00 Obligations by program activity: Total obligations (object class 41.0) ............................ ................... ................... 5,000 109 ................... ................... 22.00 23.95 Budgetary resources available for obligation: New budget authority (gross) ........................................ ................... ................... New obligations ............................................................. ................... ................... 5,000 –5,000 40.00 New budget authority (gross), detail: Appropriation .................................................................. ................... ................... 5,000 812 –703 693 839 –839 730 658 373 320 258 703 839 658 –952 –901 –701 210 ................... ................... –14 ................... ................... 320 258 73.10 73.20 74.40 215 Change in unpaid obligations: New obligations ............................................................. ................... ................... Total outlays (gross) ...................................................... ................... ................... Unpaid obligations, end of year: Obligated balance: Appropriation ............................................................. ................... ................... 5,000 –1,250 3,750 86.90 531 421 599 302 Outlays (gross), detail: Outlays from new current authority .............................. ................... ................... 1,250 89.00 90.00 Net budget authority and outlays: Budget authority ............................................................ ................... ................... Outlays ........................................................................... ................... ................... 5,000 1,250 532 169 87.00 Total outlays (gross) ................................................. 952 901 701 89.00 90.00 Net budget authority and outlays: Budget authority ............................................................ Outlays ........................................................................... 693 952 730 901 658 701 Funds help to pay the operating costs of local educational agencies that are affected by Federal activities. Payments would be made to local educational agencies that educate School construction.—Under legislation that the Administration is submitting to the Congress in 1997, funds would provide Federal interest subsidies, or similar assistance, to States and localities to stimulate public elementary and secondary school construction and renovation. The legislation would create a one-time mandatory appropriation of $5 billion. 418 OFFICE OF ELEMENTARY AND SECONDARY EDUCATION—Continued Federal Funds—Continued THE BUDGET FOR FISCAL YEAR 1998 90.00 General and special funds—Continued SCHOOL IMPROVEMENT PROGRAMS For carrying out school improvement activities authorized by titles II, IVø–A–1¿, V–A and B, øVI¿, IX, X and XIII of the Elementary and Secondary Education Act of 1965; the Stewart B. McKinney Homeless Assistance Act; and the Civil Rights Act of 1964; ø$1,425,631,000¿ $1,299,222,000, of which ø$1,202,478,000¿ $977,000,000 shall become available on July 1, ø1997¿ 1998, and remain available through September 30, ø1998¿ 1999: Provided, That of the amount appropriated, ø$310,000,000¿ $360,000,000 shall be for Eisenhower professional development State grants under title IIB of the Elementary and Secondary Education Act; $100,000,000 shall be for charter schools under title X, part C of such Act; and ø$310,000,000 shall be for innovative education program strategies State grants under title VI-A.¿ $750,000 shall be for an evaluation of comprehensive regional assistance centers under title XIII of such Act: Provided further, That funds under titles II–B and IV–A–1 shall be used only for programs that are consistent with principles of effectiveness to be published in the Federal Register by the Secretary of Education. (Department of Education Appropriations Act, 1997.) Program and Financing (in millions of dollars) Identification code 91–1000–0–1–501 1996 actual 1997 est. 1998 est. Obligations by program activity: Professional development and program innovation: 00.01 Eisenhower professional development State grants 273 311 360 00.02 Innovative education program strategies State grants .................................................................... 275 310 ................... Safe and drug-free schools and communities: 00.03 State grants .............................................................. 438 558 590 00.04 National programs ..................................................... 25 ................... 30 00.05 Inexpensive book distribution ........................................ 10 10 12 00.06 Arts in education ........................................................... 9 9 10 00.07 Magnet schools assistance ........................................... 95 95 95 00.08 Education for homeless children and youth ................. 23 25 27 00.09 Women’s educational equity .......................................... ................... 2 4 00.10 Training and advisory services ...................................... 7 7 14 00.11 Ellender fellowships ....................................................... 2 2 ................... 00.12 Education for Native Hawaiians .................................... 12 15 15 00.13 Alaska Native education equity ..................................... ................... 8 8 00.14 Foreign language assistance ......................................... 10 ................... ................... 00.15 Charter schools .............................................................. 18 51 100 00.16 Comprehensive regional assistance centers ................. 22 26 34 10.00 Total obligations ........................................................ 1,219 1,429 1,299 Budgetary resources available for obligation: Unobligated balance available, start of year: Uninvested balance ................................................... 22.00 New budget authority (gross) ........................................ 5 1,218 4 ................... 1,426 1,299 21.40 23.90 23.95 24.40 Total budgetary resources available for obligation New obligations ............................................................. Unobligated balance available, end of year: Uninvested balance ................................................... 1,223 –1,219 1,430 –1,429 1,299 –1,299 4 ................... ................... 40.00 41.00 New budget authority (gross), detail: Appropriation .................................................................. Transferred to other accounts ....................................... 43.00 Appropriation (total) .................................................. 1,218 1,426 1,299 70.00 Total new budget authority (gross) .......................... 1,218 1,426 1,299 Change in unpaid obligations: Unpaid obligations, start of year: Obligated balance: Appropriation ............................................................. 73.10 New obligations ............................................................. 73.20 Total outlays (gross) ...................................................... 73.40 Adjustments in expired accounts .................................. 74.40 Unpaid obligations, end of year: Obligated balance: Appropriation ............................................................. 1,224 1,426 1,299 –6 ................... ................... 72.40 1,761 1,693 1,606 1,219 1,429 1,299 –1,246 –1,516 –1,396 –41 ................... ................... 1,693 1,606 1,509 86.90 86.93 Outlays (gross), detail: Outlays from new current authority .............................. Outlays from current balances ...................................... 51 1,195 171 1,345 156 1,240 87.00 Total outlays (gross) ................................................. 1,246 1,516 Net budget authority and outlays: Budget authority ............................................................ 1,218 1,426 1,299 1,246 1,516 1,396 Eisenhower professional development State grants.—Formula grants are provided to States, local districts, and institutions of higher education to support intensive, high-quality professional development in the core academic subject areas. Safe and drug-free schools and communities.— State grants.—Formula grants are made to States and Outlying Areas to assist in combatting school violence and drug use by the Nation’s children and youth. National programs.—Funds support activities to promote safe and disciplined academic environments and prevent the illegal use of drugs and violence among students at all educational levels. Such activities may include training, demonstrations, direct services to school districts with severe drug and violence problems, program evaluation, and development and dissemination of information and materials. Other programs.— Inexpensive book distribution.—Funds support reading motivation activities, including the distribution of free books to children. Arts in education.—Funds support Federal leadership activities in arts education as well as the education activities of the Kennedy Center and Very Special Arts. Magnet schools assistance.—Grants are made to local educational agencies to establish and operate magnet school programs that are part of approved desegregation plans. Education for homeless children and youth.—Funds are provided to States, Outlying Areas, and the Bureau of Indian Affairs to provide educational and support services that enable homeless children and youth to enroll in, attend, and achieve success in school. Women’s educational equity.—Funds support implementation of gender-equity practices at schools and colleges, as well as the development and dissemination of educational materials that promote educational equity for women and girls. Training and advisory services.—Grants are made to regional desegregation assistance centers and State Educational Agencies that provide technical assistance to school districts in desegregating public schools and developing effective methods of coping with special educational problems associated with desegregation. Education for Native Hawaiians.—Grants provide supplemental education services to Native Hawaiians in the areas of family-based education, special education, gifted and talented education, higher education, curriculum development, teacher training and recruitment, and community-based learning. Alaska Native education equity.—Grants provide supplemental education services to Alaska Natives in the areas of educational planning, curriculum development, teacher training, teacher recruitment, student enrichment, and home-based instruction for pre-school children. Charter schools.—The President is proposing a significant increase in this program to support innovative education reform and public school choice. Grants are awarded to State educational agencies and charter schools to support the design and initial implementation of model charter schools. These schools are created by teachers, parents, and members of the community, and are exempt from certain local, State, and Federal regulations. Comprehensive regional assistance centers.—Funds are provided for 15 comprehensive regional technical assistance centers that provide services to States, local educational agencies, schools, and other recipients of Federal education funds to improve elementary and secondary education programs. 1,396 89.00 Outlays ........................................................................... Object Classification (in millions of dollars) Identification code 91–1000–0–1–501 24.0 Printing and reproduction .............................................. 1996 actual 1 1997 est. 1998 est. 1 1 OFFICE OF ELEMENTARY AND SECONDARY EDUCATION—Continued Federal Funds—Continued DEPARTMENT OF EDUCATION 419 25.1 25.2 25.5 41.0 Advisory and assistance services .................................. Other services ................................................................ Research and development contracts ........................... Grants, subsidies, and contributions ............................ 2 14 1 1,201 2 17 1 1,408 2 20 1 1,275 73.20 74.40 99.9 Total obligations ........................................................ 1,219 1,429 1,299 86.93 Outlays (gross), detail: Outlays from current balances ...................................... 89.00 90.00 Net budget authority and outlays: Budget authority ............................................................ ................... ................... ................... Outlays ........................................................................... 1 4 4 AMERICA READS CHALLENGE (Legislative proposal, subject to PAYGO) Total outlays (gross) ...................................................... Unpaid obligations, end of year: Obligated balance: Appropriation ............................................................. –1 –4 –4 1 3 3 1 4 4 Program and Financing (in millions of dollars) Identification code 91–0011–4–1–501 1996 actual 1997 est. 1998 est. 00.01 00.02 Obligations by program activity: America’s Reading Corps .............................................. ................... ................... Parents as first teachers grants ................................... ................... ................... 200 60 10.00 Total obligations (object class 41.0) ........................ ................... ................... 260 22.00 23.95 Budgetary resources available for obligation: New budget authority (gross) ........................................ ................... ................... New obligations ............................................................. ................... ................... 260 –260 40.00 New budget authority (gross), detail: Appropriation .................................................................. ................... ................... 260 73.10 73.20 74.40 Change in unpaid obligations: New obligations ............................................................. ................... ................... Total outlays (gross) ...................................................... ................... ................... Unpaid obligations, end of year: Obligated balance: Appropriation ............................................................. ................... ................... Funds made available under this account were reappropriated by the Supplemental Appropriations Act, 1987 (Public Law 100–71) from funds enjoined in United States of America v. Board of Education of the City of Chicago. The funds were reappropriated for the specific purpose of settling this case. The funds are used by the Chicago Board of Education to implement Project CANAL (Creating A New Approach to Learning), the project approved by the court to support the Board’s desegregation efforts. The Department of Education provides these funds to the Chicago Board of Education in annual increments upon receipt and approval of an annual plan for Project CANAL activities. 260 –31 229 86.90 Outlays (gross), detail: Outlays from new current authority .............................. ................... ................... 31 89.00 90.00 Net budget authority and outlays: Budget authority ............................................................ ................... ................... Outlays ........................................................................... ................... ................... INDIAN EDUCATION For necessary expenses to carry out, to the extent not otherwise provided, title IX, part A of the Elementary and Secondary Education Act of 1965, as amended, and section 215 of the Department of Education Organization Act, ø$61,000,000¿ $62,600,000. (Department of the Interior and Related Agencies Appropriations Act, 1997.) 260 31 Program and Financing (in millions of dollars) Identification code 91–0101–0–1–501 America’s Reading Corps.—The President has proposed a new initiative to work with families and communities in a national reading effort that will enlist a million trained and supervised reading tutors, most of whom will participate in after-school, weekend, and summer reading programs, to assist in teaching at least three million children to read independently and well by the end of the third grade. Department of Education funding for the America’s Reading Corps will pay primarily for reading specialists and materials to train tutors while tutor recruitment efforts will be the focus of additional funds requested in the budget for the Corporation for National and Community Service. Parents as First Teachers grants.—Funds will be made available to national and regional groups, as well as local communities and organizations, to support effective, proven literacy efforts that help parents to help their children become successful readers by the end of third grade. 00.01 00.02 00.03 Obligations by program activity: Grants to local educational agencies ........................... Fellowships ..................................................................... Federal Administration ................................................... 10.00 Total obligations ........................................................ Budgetary resources available for obligation: Unobligated balance available, start of year: Uninvested balance ................................................... 22.00 New budget authority (gross) ........................................ 1996 actual 1997 est. 1998 est. 50 58 60 1 ................... ................... 2 3 3 53 61 63 21.40 23.90 23.95 24.40 40.00 1 ................... ................... 52 61 63 Total budgetary resources available for obligation 53 61 63 New obligations ............................................................. –53 –61 –63 Unobligated balance available, end of year: Uninvested balance ................................................... ................... ................... ................... New budget authority (gross), detail: Appropriation .................................................................. Change in unpaid obligations: Unpaid obligations, start of year: Obligated balance: Appropriation ............................................................. 73.10 New obligations ............................................................. 73.20 Total outlays (gross) ...................................................... 73.40 Adjustments in expired accounts .................................. 74.40 Unpaid obligations, end of year: Obligated balance: Appropriation ............................................................. 52 61 63 72.40 CHICAGO LITIGATION SETTLEMENT Program and Financing (in millions of dollars) Identification code 91–0220–0–1–501 10.00 Obligations by program activity: Total obligations (object class 41.0) ............................ Budgetary resources available for obligation: Unobligated balance available, start of year: Uninvested balance ................................................... 23.95 New obligations ............................................................. 24.40 Unobligated balance available, end of year: Uninvested balance ................................................... 1996 actual 1997 est. 1998 est. 66 60 62 5 4 10 –1 9 –5 86.90 86.93 Outlays (gross), detail: Outlays from new current authority .............................. Outlays from current balances ...................................... 2 75 9 58 10 51 87.00 1 Total outlays (gross) ................................................. 77 67 61 Net budget authority and outlays: Budget authority ............................................................ Outlays ........................................................................... 52 77 61 67 63 61 4 –4 21.40 Change in unpaid obligations: Unpaid obligations, start of year: Obligated balance: Appropriation ............................................................. 73.10 New obligations ............................................................. 93 66 60 53 61 63 –77 –67 –61 –3 ................... ................... 9 4 ................... 89.00 90.00 2 1 1 5 The Indian Education program (Title IX, Part A of the Elementary and Secondary Education Act) supports the efforts of local educational agencies and tribal schools to im- 72.40 3 4 420 OFFICE OF ELEMENTARY AND SECONDARY EDUCATION—Continued Federal Funds—Continued THE BUDGET FOR FISCAL YEAR 1998 General and special funds—Continued INDIAN EDUCATION—Continued prove teaching and learning for the Nation’s American Indian and Alaska Native children. Grants to local educational agencies.—Formula grants support local educational agencies in their efforts to reform elementary and secondary school programs that serve Indian students, with the goal of ensuring that such programs are based on challenging State standards that are used for all students. In 1996, 1,219 formula grants were made to local educational agencies and certain tribal schools enrolling approximately 422,500 Indian students. Federal administration.—Funds support the administrative expenses of the Office of Indian Education and the National Advisory Council on Indian Education. Object Classification (in millions of dollars) 1996 actual Identification code 91–0101–0–1–501 11.1 41.0 99.5 99.9 1997 est. Personnel compensation: Full-time permanent ............. 2 Grants, subsidies, and contributions ............................ 51 Below reporting threshold .............................................. ................... Total obligations ........................................................ 1998 est. 2 58 1 61 53 2 60 1 63 Personnel Summary 1996 actual Identification code 91–0101–0–1–501 1001 Total compensable workyears: Full-time equivalent employment ............................................................... 1997 est. 30 1998 est. 24 24 OFFICE OF BILINGUAL EDUCATION AND MINORITY LANGUAGES AFFAIRS Federal Funds General and special funds: BILINGUAL AND IMMIGRANT EDUCATION For carrying out, to the extent not otherwise provided, bilingual, foreign language and immigrant education activities authorized by parts A and C and section 7203 of title VII of the Elementary and Secondary Education Act, without regard to section 7103(b), ø$261,700,000¿ $354,000,000, of which ø$100,000,000¿ $150,000,000 shall be for immigrant education programs authorized by part C: Provided, That State educational agencies may use all, or any part of, their part C allocation for competitive grants to local educational agencies: Provided further, That the Department of Education should only support instructional programs which ensure that students completely master English in a timely fashion (a period of three to five years) while meeting rigorous achievement standards in the academic content areas. (Department of Education Appropriations Act, 1997.) Program and Financing (in millions of dollars) Identification code 91–1300–0–1–501 1996 actual 1997 est. 1998 est. Obligations by program activity: 00.01 Instructional services ..................................................... 117 157 00.02 Support services ............................................................ 10 ................... 00.03 Training grants .............................................................. 1 ................... 00.04 Foreign Language Assistance ........................................ ................... 5 00.05 Immigrant education ..................................................... 50 100 160 14 25 5 150 10.00 Total obligations ........................................................ 178 262 354 22.00 23.95 Budgetary resources available for obligation: New budget authority (gross) ........................................ New obligations ............................................................. 178 –178 262 –262 354 –354 40.00 New budget authority (gross), detail: Appropriation .................................................................. 178 262 354 Change in unpaid obligations: Unpaid obligations, start of year: Obligated balance: Appropriation ............................................................. 266 241 278 72.40 73.10 73.20 73.40 74.40 New obligations ............................................................. Total outlays (gross) ...................................................... Adjustments in expired accounts .................................. Unpaid obligations, end of year: Obligated balance: Appropriation ............................................................. 178 262 354 –185 –225 –276 –18 ................... ................... 241 278 356 86.90 86.93 Outlays (gross), detail: Outlays from new current authority .............................. Outlays from current balances ...................................... 4 181 31 194 42 234 87.00 Total outlays (gross) ................................................. 185 225 276 89.00 90.00 Net budget authority and outlays: Budget authority ............................................................ Outlays ........................................................................... 178 185 262 225 354 276 Bilingual education.—These programs provide assistance to local educational agencies and other entities to develop and enhance their capacity to provide high-quality instructional programs to children and youth of limited English proficiency. Programs are designed to teach English and to assist these students in achieving the same challenging State content and performance standards expected of all children and youth. Aid is also given to train educational personnel to serve limited English proficient children, to build State capacity to improve educational services for these children, and for information dissemination, studies, and evaluations. Foreign language assistance.—The foreign language assistance program provides competitive grants to State and local educational agencies to improve the quality of foreign language instruction for elementary and secondary school students. Immigrant education.—The immigrant education program provides grants to school districts to help finance educational services for immigrant students. Participation is limited to districts with 500 immigrant students or districts in which immigrant children represent at least 3 percent of the enrollment. Awards are made to State educational agencies, which make subgrants to eligible local educational agencies. Appropriation language permits States to distribute these funds on either a formula or discretionary grant basis. Object Classification (in millions of dollars) 1996 actual Identification code 91–1300–0–1–501 25.2 41.0 Other services ................................................................ Grants, subsidies, and contributions ............................ 99.9 Total obligations ........................................................ 1997 est. 1998 est. 2 ................... 176 262 6 348 178 354 262 OFFICE OF SPECIAL EDUCATION AND REHABILITATIVE SERVICES Federal Funds General and special funds: SPECIAL EDUCATION øFor carrying out parts B, C, D, E, F, G, and H and section 610(j)(2)(C) of the Individuals with Disabilities Education Act, $4,036,000,000, of which $3,783,685,000 shall become available for obligation on July 1, 1997, and shall remain available through September 30, 1998: Provided, That the Republic of the Marshall Islands, the Federated States of Micronesia, and the Republic of Palau shall continue to be eligible to receive funds under the Individuals with Disabilities Education Act consistent with the provisions of Public Law 104–134: Provided further, That the entities that received competitive awards for direct services to children under section 611 of the Individuals with Disabilities Education Act in accordance with the competition required in Public Law 104–134 shall continue to be funded, without competition, in the same amounts as under Public Law 104–134.¿ (Department of Education Appropriations Act, 1997.) OFFICE OF SPECIAL EDUCATION AND REHABILITATIVE SERVICES—Continued Federal Funds—Continued DEPARTMENT OF EDUCATION Program and Financing (in millions of dollars) 1996 actual Identification code 91–0300–0–1–501 1997 est. 1998 est. Obligations by program activity: State grants: 00.01 Grants to States ........................................................ 00.02 Preschool grants ........................................................ 00.03 Grants for infants and families ................................ 2,349 366 429 3,119 ................... 361 ................... 505 ................... 00.91 3,145 3,985 ................... 01.01 01.02 01.03 01.04 01.05 01.06 01.07 01.08 01.09 01.10 01.11 01.12 01.13 01.14 01.15 Subtotal, State grants .......................................... Special purpose funds: Deaf-blindness .......................................................... Serious emotional disturbance .................................. Severe disabilities ..................................................... Early childhood education ......................................... Secondary and transitional services ......................... Postsecondary education ........................................... Innovation and development ..................................... Media and captioning services ................................. Technology applications ............................................ Special studies .......................................................... Personnel development .............................................. Parent training .......................................................... Clearinghouses .......................................................... Regional resource centers ......................................... Architectural barriers removal .................................. 13 13 4 4 10 10 25 25 24 24 9 9 14 16 19 20 10 10 4 4 91 93 14 16 2 2 7 7 1 ................... ................... ................... ................... ................... ................... ................... ................... ................... ................... ................... ................... ................... ................... ................... ................... 421 When new authorizing legislation is enacted, resources will be requested for the Special Education account. See the ‘‘Legislative proposal, not subject to PAYGO’’ schedule for additional details. Program measures under the current program include: Number of children served on December 1 of fiscal year: Ages 3 through 21 .................................................................. Ages 3 through 5 .................................................................... Birth through 2 ....................................................................... Educational Environment Children ages 3 through 21 provided special education in: Regular classrooms with or without resource rooms ............. Separate classes ..................................................................... Separate schools ..................................................................... Residential facilities ............................................................... 1995 actual 1996 actual 1997 est. 5,439,626 524,458 165,253 5,628,577 549,154 174,288 5,798,000 577,000 184,000 1991–1992 actual 1992–1993 actual 1993–1994 actual 3,397,326 1,160,943 219,055 40,893 3,563,883 1,219,867 204,764 40,466 3,746,481 1,232,312 192,112 37,299 100,742 30,839 4,337 51,489 41,961 103,801 34,732 5,096 NA NA 113,945 23,948 4,594 76,608 42,460 Status of Exiting Students Graduated with a diploma .......................................................... Graduated through certification .................................................. Reached maximum age ............................................................... Dropped out of school ................................................................. Status unknown ........................................................................... NA—Not available due to changes in data collection form. Object Classification (in millions of dollars) 01.91 Subtotal, Special purpose funds .......................... 246 252 ................... 10.00 Total obligations ........................................................ 3,390 4,238 ................... 25.2 25.5 41.0 Other services ................................................................ Research and development contracts ........................... Grants, subsidies, and contributions ............................ 8 1 3,381 8 ................... 1 ................... 4,229 ................... 339 3,245 202 ................... 4,036 ................... 99.9 Total obligations ........................................................ 3,390 4,238 ................... Budgetary resources available for obligation: Unobligated balance available, start of year: Uninvested balance ................................................... 22.00 New budget authority (gross) ........................................ 22.10 Resources available from recoveries of prior year obligations ....................................................................... 22.30 Unobligated balance expiring ........................................ 21.40 23.90 23.95 24.40 Total budgetary resources available for obligation New obligations ............................................................. Unobligated balance available, end of year: Uninvested balance ................................................... New budget authority (gross), detail: 40.00 Appropriation .................................................................. Change in unpaid obligations: Unpaid obligations, start of year: Obligated balance: Appropriation ............................................................. 73.10 New obligations ............................................................. 73.20 Total outlays (gross) ...................................................... 73.40 Adjustments in expired accounts .................................. 73.45 Adjustments in unexpired accounts .............................. 74.40 Unpaid obligations, end of year: Obligated balance: Appropriation ............................................................. 1997 est. 1998 est. SPECIAL EDUCATION 8 ................... ................... –1 ................... ................... 3,592 –3,390 4,238 ................... –4,238 ................... 202 ................... ................... (Legislative proposal, not subject to PAYGO) Program and Financing (in millions of dollars) Identification code 91–0300–2–1–501 1996 actual 1997 est. 1998 est. 4,036 ................... 3,952 4,055 4,867 3,390 4,238 ................... –3,222 –3,426 –3,332 –57 ................... ................... –8 ................... ................... Obligations by program activity: State grants: 00.01 Grants to States ........................................................ ................... ................... 00.02 Preschool grants ........................................................ ................... ................... 00.03 Grants for infants and families ................................ ................... ................... 3,249 375 324 00.91 3,245 72.40 3,948 4,867 ................... ................... 122 3,100 404 ................... 3,022 3,332 87.00 Total outlays (gross) ................................................. 3,222 3,426 89.00 90.00 Net budget authority and outlays: Budget authority ............................................................ Outlays ........................................................................... 3,245 3,222 4,036 ................... 3,426 3,332 3,332 Summary of Budget Authority and Outlays [In millions of dollars] Enacted/requested: 1996 actual 1997 est. 1998 est. Budget Authority ..................................................................... 3,245 4,036 .................... Outlays .................................................................................... 3,222 3,426 3,332 Legislative proposal, not subject to PAYGO: Budget Authority ..................................................................... .................... .................... 4,210 Outlays .................................................................................... .................... .................... 421 4,036 3,426 ................... ................... ................... ................... 100 35 82 16 ................... ................... 30 Subtotal, Program support and improvement ...... ................... ................... 262 10.00 Total obligations ........................................................ ................... ................... 4,210 22.00 23.95 Budgetary resources available for obligation: New budget authority (gross) ........................................ ................... ................... New obligations ............................................................. ................... ................... 4,210 –4,210 40.00 New budget authority (gross), detail: Appropriation .................................................................. ................... ................... 4,210 1,535 Outlays (gross), detail: Outlays from new current authority .............................. Outlays from current balances ...................................... 3,245 3,222 01.01 01.02 01.03 01.04 01.05 Subtotal, State grants .......................................... Program support and improvement: Research to practice ................................................. State improvement .................................................... Professional development .......................................... Parent training and information ............................... Technology development and educational media services ................................................................. 01.91 4,055 86.90 86.93 Total: Budget Authority ..................................................................... Outlays .................................................................................... 1996 actual Identification code 91–0300–0–1–501 4,210 3,753 The administration will propose legislation authorizing programs under the Individuals with Disabilities Education Act. 73.10 73.20 74.40 ................... ................... ................... ................... Change in unpaid obligations: New obligations ............................................................. ................... ................... Total outlays (gross) ...................................................... ................... ................... Unpaid obligations, end of year: Obligated balance: Appropriation ............................................................. ................... ................... 4,210 –421 3,789 86.90 Outlays (gross), detail: Outlays from new current authority .............................. ................... ................... 421 89.00 90.00 Net budget authority and outlays: Budget authority ............................................................ ................... ................... Outlays ........................................................................... ................... ................... 4,210 421 The resources in this schedule are proposed for later transmittal under proposed legislation to authorize programs under the Individuals with Disabilities Education Act. 422 OFFICE OF SPECIAL EDUCATION AND REHABILITATIVE SERVICES—Continued Federal Funds—Continued THE BUDGET FOR FISCAL YEAR 1998 23.90 23.95 24.40 General and special funds—Continued SPECIAL EDUCATION—Continued State grants.— Grants to States.—Formula grants are provided to States to assist them in providing special education and related services to children with disabilities ages 3 through 21. The 1998 estimate of these children is 5,906,000. Preschool Grants.—Formula grants provide additional funds to States to further assist them in providing special education and related services to children with disabilities ages 3 through 5 served under the Grants to States program. The 1998 estimate of these children is 600,000. Grants for infants and families.—Formula grants are provided to assist States to continue to implement statewide systems of coordinated, comprehensive, multi-disciplinary interagency programs to provide early intervention services to children with disabilities, birth through age 2 years and their families. Program support and improvement.—These funds support a variety of research, demonstration, training, technical assistance, systems change, and other activities. The Department is in the process of developing performance indicators that will provide information on the impact of special education and early intervention on improving results for children with disabilities. Object Classification (in millions of dollars) 1996 actual Identification code 91–0300–2–1–501 1997 est. 1998 est. 25.2 25.5 41.0 Other services ................................................................ ................... ................... Research and development contracts ........................... ................... ................... Grants, subsidies, and contributions ............................ ................... ................... 8 1 4,201 99.9 Total obligations ........................................................ ................... ................... 4,210 REHABILITATION SERVICES AND DISABILITY RESEARCH For carrying out, to the extent not otherwise provided, øthe Rehabilitation Act of 1973,¿ the Technology-Related Assistance for Individuals with Disabilities Act, øand the Helen Keller National Center Act, as amended, $2,509,447,000¿ $36,109,000. (Department of Education Appropriations Act, 1997.) Program and Financing (in millions of dollars) Identification code 91–0301–0–1–506 Obligations by program activity: Direct program: 00.01 Vocational rehabilitation State grants ...................... 00.02 Client assistance State grants ................................. 00.03 Training ..................................................................... 00.04 Special demonstration programs .............................. 00.05 Migratory workers ...................................................... 00.06 Recreational programs .............................................. 00.07 Protection and advocacy ........................................... 00.08 Projects with industry ............................................... 00.09 Supported employment State grants ........................ 00.10 Independent living ..................................................... 00.11 Program improvement ............................................... 00.12 Evaluation .................................................................. 00.13 Helen Keller National Center ..................................... 00.14 National Institute on Disability and Rehabilitation Research ............................................................... 00.15 Assistive technology .................................................. 00.16 1996 Paralympics Games ......................................... 1996 actual 2,114 10 40 26 1 3 7 22 38 73 1 2 7 1997 est. 2,176 10 40 20 2 3 8 22 38 75 2 2 7 1998 est. ................... ................... ................... ................... ................... ................... ................... ................... ................... ................... ................... ................... ................... 70 70 ................... 36 36 36 7 ................... ................... 00.91 01.01 Total direct program ............................................. Reimbursable program .................................................. 2,457 2,511 36 2 ................... ................... 10.00 Total obligations ........................................................ 2,459 2,511 Budgetary resources available for obligation: Unobligated balance available, start of year: Uninvested balance ................................................... 22.00 New budget authority (gross) ........................................ 2 2,458 1 ................... 2,509 36 36 21.40 Total budgetary resources available for obligation New obligations ............................................................. Unobligated balance available, end of year: Uninvested balance ................................................... New budget authority (gross), detail: Current: 40.00 Appropriation ............................................................. Permanent: 68.00 Spending authority from offsetting collections: Offsetting collections (cash) ..................................... 70.00 Total new budget authority (gross) .......................... Change in unpaid obligations: Unpaid obligations, start of year: Obligated balance: Appropriation ............................................................. 73.10 New obligations ............................................................. 73.20 Total outlays (gross) ...................................................... 73.40 Adjustments in expired accounts .................................. 74.40 Unpaid obligations, end of year: Obligated balance: Appropriation ............................................................. 2,460 –2,459 2,510 –2,511 36 –36 1 ................... ................... 2,456 2,509 36 2 ................... ................... 2,458 2,509 36 72.40 86.90 86.93 86.97 Outlays (gross), detail: Outlays from new current authority .............................. Outlays from current balances ...................................... Outlays from new permanent authority ......................... 87.00 Total outlays (gross) ................................................. Offsets: Against gross budget authority and outlays: 88.00 Offsetting collections (cash) from: Federal sources 89.00 90.00 Net budget authority and outlays: Budget authority ............................................................ Outlays ........................................................................... 922 951 760 2,459 2,511 36 –2,413 –2,702 –665 –18 ................... ................... 951 760 131 1,617 1,932 28 794 770 637 2 ................... ................... 2,413 2,702 665 –2 ................... ................... 2,456 2,410 2,509 2,702 36 665 Summary of Budget Authority and Outlays [In millions of dollars] Enacted/requested: 1996 actual 1997 est. Budget Authority ..................................................................... 2,456 2,509 Outlays .................................................................................... 2,411 2,702 Legislative proposal, not subject to PAYGO: Budget Authority ..................................................................... .................... .................... Outlays .................................................................................... .................... .................... Total: Budget Authority ..................................................................... Outlays .................................................................................... 2,456 2,411 2,509 2,702 1998 est. 36 665 2,547 1,961 2,583 2,626 The administration will propose legislation authorizing programs under the Rehabilitation Act and the Helen Keller National Center Act. When new legislation is enacted, resources for the affected programs will be requested. See the ‘‘Legislative proposal, not subject to PAYGO’’ schedule for additional details. Programs and activities under the current laws are described below. Vocational rehabilitation State grants.—The basic State grant program provides Federal matching funds to State vocational rehabilitation (VR) agencies to assist individuals with physical or mental impairments to become gainfully employed. Services provided include vocational evaluation, counseling, mental and physical restoration, education, vocational training, work adjustment, job placement, and post-employment services. Priority is given to serving those with the most severe disabilities. As a result of the 1992 amendments to the Rehabilitation Act, the eligibility rate (applicants determined eligible for the VR program as a percent of all eligibility determinations) rose from 56.5 percent in 1992 to 76.5 percent in 1996. Half of the State VR agencies (41 of 82) could not serve all individuals determined to be eligible for the program. Of those individuals whose cases were closed in 1996 after receiving VR services, about 60 percent achieved an employment outcome and an estimated 86 percent of these individuals entered the competitive labor market or became self-employed. OFFICE OF SPECIAL EDUCATION AND REHABILITATIVE SERVICES—Continued Federal Funds—Continued DEPARTMENT OF EDUCATION The table below presents national estimates of the number of eligible individuals in the VR system (individuals being served and eligible individuals awaiting service) and estimates of the number of individuals who achieved an employment outcome under the program. ESTIMATES OF ELIGIBLE INDIVIDUALS AND INDIVIDUALS REHABILITATED 1995 actual Eligible individuals in the VR system ........................................................... Severe disabilities, percent ....................................................................... Individuals achieving employment outcomes ................................................ Severe disabilities, percent ....................................................................... 1,250,314 75.2 209,509 76.0 1996 preliminary 1,254,100 75.5 209,500 77.3 Client assistance State grants.—Formula grants are made to States to provide assistance in informing and advising clients and applicants of benefits available under the Rehabilitation Act and, if requested, to pursue legal or administrative remedies to ensure the protection of the rights of individuals with disabilities. Training.—Grants are made to States and public or nonprofit agencies and organizations, including institutions of higher education, to increase the number of skilled personnel available for employment in the field of rehabilitation. Special demonstration programs.—Grants are made to develop innovative methods and comprehensive service programs to assist individuals with disabilities to achieve satisfactory vocational outcomes. Supported employment projects, which provide grants to expand or improve the provision of supported employment services to individuals with the most severe disabilities, are included under this activity. Migratory workers.—Grants are made to State VR agencies and other nonprofit or local agencies to provide comprehensive vocational rehabilitation services to migrant or seasonal farm workers with disabilities. Recreational programs.—Grants are made to provide individuals with disabilities with recreation and related activities to aid in their employment, mobility, independence, socialization, and community integration. Protection and advocacy of individual rights.—Formula grants are made to State protection and advocacy systems to protect the legal and human rights of individuals with disabilities. Projects with industry.—Grants are made to a variety of public and private organizations, including State VR agencies, community rehabilitation programs, and labor organizations to provide training in work settings to prepare individuals with disabilities for employment and career advancement in the competitive labor market. Supported employment State grants.—Formula grants are made to assist States in developing programs with public and nonprofit organizations to provide supported employment services for individuals with the most severe disabilities who require on-going support services to enter or retain competitive employment. Independent living.—Grants are awarded to States and nonprofit agencies for services designed to enable individuals with significant disabilities to live and function more independently. Program Improvement.—Funds are used to promote broadbased planning and coordination, improve accountability, and enhance the Department’s ability to address critical areas of national significance in achieving the purposes of the Rehabilitation Act. Examples of program improvement activities include technical assistance activities of national scope, and the development of an effective data management and reporting system, including program performance measures. Evaluation.—Studies are conducted to evaluate the impact and effectiveness of various programs authorized under the Rehabilitation Act. The Department is conducting a multiyear national longitudinal study of the Vocational rehabilitation State grants program. 423 Helen Keller National Center for Deaf-Blind Youths and Adults.—The Center provides services to deaf-blind youths and adults and provides training and technical assistance to professional and allied personnel at its national headquarters center and through its regional representatives and affiliate agencies. National Institute on Disability and Rehabilitation Research.—The Institute carries out a comprehensive and coordinated program of rehabilitation research and related activities. Through grants and contracts, it supports research and training centers, rehabilitation engineering centers, research and demonstration projects, information dissemination and utilization projects, and training activities. Assistive technology.—Grants are made to States to support systems change and advocacy activities designed to develop and implement consumer-responsive comprehensive statewide programs of technology-related assistance for individuals with disabilities. Object Classification (in millions of dollars) 1996 actual Identification code 91–0301–0–1–506 25.1 25.2 25.3 25.5 41.0 Advisory and assistance services .................................. Other services ................................................................ Purchases of goods and services from Government accounts .................................................................... Research and development contracts ........................... Grants, subsidies, and contributions ............................ 1997 est. 1998 est. 5 2 7 1 2 ................... 1 1 2,448 1 ................... 1 ................... 2,500 35 99.0 Subtotal, direct obligations .................................. 2,457 2,511 36 99.9 Total obligations ........................................................ 2,459 2,511 36 REHABILITATION SERVICES AND DISABILITY RESEARCH (Legislative proposal, not subject to PAYGO) Program and Financing (in millions of dollars) 1996 actual 1997 est. ................... ................... ................... ................... ................... ................... ................... ................... ................... ................... ................... ................... ................... ................... ................... ................... ................... ................... ................... ................... ................... ................... ................... ................... ................... ................... 2,247 11 40 17 2 3 8 22 38 76 4 1 7 ................... ................... 71 10.00 Total obligations ........................................................ ................... ................... 2,547 22.00 23.95 Budgetary resources available for obligation: New budget authority (gross) ........................................ ................... ................... New obligations ............................................................. ................... ................... 2,547 –2,547 40.00 New budget authority (gross), detail: Appropriation .................................................................. ................... ................... 2,547 Identification code 91–0301–2–1–506 Obligations by program activity: Direct program: 00.01 Vocational rehabilitation State grants ...................... 00.02 Client assistance State grants ................................. 00.03 Training ..................................................................... 00.04 Special demonstration programs .............................. 00.05 Migratory workers ...................................................... 00.06 Recreational programs .............................................. 00.07 Protection and advocacy ........................................... 00.08 Projects with industry ............................................... 00.09 Supported employment State grants ........................ 00.10 Independent living ..................................................... 00.11 Program improvement ............................................... 00.12 Evaluation .................................................................. 00.13 Helen Keller National Center ..................................... 00.14 National Institute on Disability and Rehabilitation Research ............................................................... 73.10 73.20 74.40 Change in unpaid obligations: New obligations ............................................................. ................... ................... Total outlays (gross) ...................................................... ................... ................... Unpaid obligations, end of year: Obligated balance: Appropriation ............................................................. ................... ................... 1998 est. 2,547 –1,961 587 86.90 Outlays (gross), detail: Outlays from new current authority .............................. ................... ................... 1,961 89.00 90.00 Net budget authority and outlays: Budget authority ............................................................ ................... ................... Outlays ........................................................................... ................... ................... 2,547 1,961 424 OFFICE OF SPECIAL EDUCATION AND REHABILITATIVE SERVICES—Continued Federal Funds—Continued THE BUDGET FOR FISCAL YEAR 1998 General and special funds—Continued REHABILITATION SERVICES AND Institute may at its discretion use funds for the endowment program as authorized under section 207. (Department of Education Appropriations Act, 1997.) DISABILITY RESEARCH—Continued The administration is currently preparing a legislative proposal to reauthorize the expiring Rehabilitation Act and the Helen Keller National Center Act. The resources in this schedule are distributed under current law for illustrative purposes. The distribution of resources is subject to change pending the enactment of new authorizing legislation. 1996 actual 25.1 25.2 25.3 25.5 41.0 99.9 Advisory and assistance services .................................. Other services ................................................................ Purchases of goods and services from Government accounts .................................................................... Research and development contracts ........................... Grants, subsidies, and contributions ............................ 1997 est. 1998 est. ................... ................... ................... ................... 6 2 ................... ................... ................... ................... ................... ................... 1 1 2,537 Total obligations ........................................................ ................... ................... 2,547 SPECIAL INSTITUTIONS FOR Identification code 91–0601–0–1–502 1996 actual 1997 est. 1998 est. 10.00 Obligations by program activity: Total obligations (object class 41.0) ............................ 42 43 43 22.00 23.95 Object Classification (in millions of dollars) Identification code 91–0301–2–1–506 Program and Financing (in millions of dollars) Budgetary resources available for obligation: New budget authority (gross) ........................................ New obligations ............................................................. 42 –42 43 –43 43 –43 40.00 New budget authority (gross), detail: Appropriation .................................................................. 42 43 43 Change in unpaid obligations: Unpaid obligations, start of year: Obligated balance: Appropriation ............................................................. ................... ................... 73.10 New obligations ............................................................. 42 43 73.20 Total outlays (gross) ...................................................... –42 –40 74.40 Unpaid obligations, end of year: Obligated balance: Appropriation ............................................................. ................... 3 3 43 –43 72.40 PERSONS WITH DISABILITIES Outlays (gross), detail: Outlays from new current authority .............................. 42 40 Outlays from current balances ...................................... ................... ................... 2 AMERICAN PRINTING HOUSE FOR THE BLIND 86.90 86.93 For carrying out the Act of March 3, 1879, as amended (20 U.S.C. 101 et seq.), $6,680,000. (Department of Education Appropriations Act, 1997.) 87.00 Total outlays (gross) ................................................. 42 40 43 Program and Financing (in millions of dollars) 89.00 90.00 Net budget authority and outlays: Budget authority ............................................................ Outlays ........................................................................... 42 42 43 40 43 43 Identification code 91–0600–0–1–501 1996 actual 1997 est. 40 3 1998 est. 10.00 Obligations by program activity: Total obligations (object class 41.0) ............................ 7 7 7 22.00 23.95 Budgetary resources available for obligation: New budget authority (gross) ........................................ New obligations ............................................................. 7 –7 7 –7 7 –7 40.00 New budget authority (gross), detail: Appropriation .................................................................. 7 7 This residential center provides postsecondary technical and professional education for people who are deaf to prepare them for employment, provides training, and conducts applied research into employment related aspects of deafness. In 1996, Federal appropriations represented 81.8 percent of the Institute’s operating budget. The Institute may also use appropriated funds for the Endowment Grant program. 7 Change in unpaid obligations: Unpaid obligations, start of year: Obligated balance: Appropriation ............................................................. 73.10 New obligations ............................................................. 73.20 Total outlays (gross) ...................................................... 74.40 Unpaid obligations, end of year: Obligated balance: Appropriation ............................................................. GALLAUDET UNIVERSITY 72.40 1 7 –5 2 ................... 7 7 –9 –7 2 ................... ................... For the Kendall Demonstration Elementary School, the Model Secondary School for the Deaf, and the partial support of Gallaudet University under titles I and II of the Education of the Deaf Act of 1986 (20 U.S.C. 4301 et seq.), $79,182,000: Provided, That from the amount available, the University may at its discretion use funds for the endowment program as authorized under section 207. (Department of Education Appropriations Act, 1997.) 86.90 86.93 Outlays (gross), detail: Outlays from new current authority .............................. Outlays from current balances ...................................... 4 1 7 7 2 ................... 87.00 Total outlays (gross) ................................................. 5 9 7 Identification code 91–0602–0–1–502 89.00 90.00 Net budget authority and outlays: Budget authority ............................................................ Outlays ........................................................................... 7 5 7 9 7 7 01.01 02.01 03.01 04.01 The Federal appropriation supports the production of free educational materials for students below the college level who are blind, research related to developing and improving products, and advisory services to consumer organizations on the availability and use of materials. In 1996, the portion of the Federal appropriation allocated to educational materials represented approximately 40 percent of the Printing House’s total sales. The full appropriation represented approximately 34 percent of the Printing House’s total budget. Program and Financing (in millions of dollars) 1996 actual 1997 est. 1998 est. Obligations by program activity: University programs ....................................................... 53 ................... ................... Pre-college programs ..................................................... 24 ................... ................... Endowment grant ........................................................... 1 ................... ................... Consolidated Account .................................................... ................... 79 79 10.00 Total obligations (object class 41.0) ........................ 78 79 79 22.00 23.95 Budgetary resources available for obligation: New budget authority (gross) ........................................ New obligations ............................................................. 78 –78 79 –79 79 –79 40.00 New budget authority (gross), detail: Appropriation .................................................................. 78 79 79 3 78 –79 2 79 –76 5 79 –79 2 5 5 Change in unpaid obligations: Unpaid obligations, start of year: Obligated balance: Appropriation ............................................................. 73.10 New obligations ............................................................. 73.20 Total outlays (gross) ...................................................... 74.40 Unpaid obligations, end of year: Obligated balance: Appropriation ............................................................. 72.40 NATIONAL TECHNICAL INSTITUTE FOR THE DEAF For the National Technical Institute for the Deaf under titles I and II of the Education of the Deaf Act of 1986 (20 U.S.C. 4301 et seq.), $43,041,000: Provided, That from the amount available, the OFFICE OF VOCATIONAL AND ADULT EDUCATION Federal Funds DEPARTMENT OF EDUCATION 86.90 86.93 Outlays (gross), detail: Outlays from new current authority .............................. Outlays from current balances ...................................... 77 2 74 2 74 5 87.00 Total outlays (gross) ................................................. 79 76 79 89.00 90.00 Net budget authority and outlays: Budget authority ............................................................ Outlays ........................................................................... 78 79 79 76 79 79 This institution provides undergraduate and continuing education programs for persons who are deaf, and graduate programs related to deafness for students who are deaf and students who are hearing. The University also conducts basic and applied research and provides public service programs for persons who are deaf and persons who work with them. Gallaudet operates two elementary and secondary education programs on the main campus of the University. The Kendall Demonstration Elementary School serves students who are deaf from infancy through age 15, and the Model Secondary School for the Deaf serves students who are deaf of high school age. Both schools also develop and disseminate information on effective educational techniques and strategies for teachers and professionals working with students who are deaf or hard of hearing. In 1996, the Federal appropriation represented 63.6 percent of the University’s operating budget, excluding Federal financial aid, vocational rehabilitation, and competitive grants, and 96.9 percent of the operating budgets of the related elementary and secondary schools. The University may also use appropriated funds for the Endowment Grant program. 01.01 01.02 425 Tech-prep education ............................................. Tribally controlled postsecondary vocational institutions .......................................................... National programs: Research ........................................................... National Occupational Information Coordinating Committee ............................................. 100 100 105 3 3 3 7 18 20 02.00 03.01 Total, annual appropriation ............................. Permanent appropriation ...................................... 1,087 7 1,151 7 1,172 7 04.00 1,094 1,158 1,179 05.01 05.02 05.03 05.04 05.05 Total, vocational education .............................. Adult education: State programs ..................................................... Evaluation and technical assistance ................... National Institute for Literacy .............................. Workplace literacy partnerships ........................... Literacy programs for prisoners ........................... 05.91 Total, adult education .......................................... 272 370 394 10.00 Total obligations ........................................................ 1,366 1,528 1,573 Budgetary resources available for obligation: Unobligated balance available, start of year: Uninvested balance ................................................... 22.00 New budget authority (gross) ........................................ 53 1,347 34 ................... 1,494 1,573 01.03 01.04 4 ................... ................... 246 344 382 3 8 6 5 9 6 13 ................... ................... 5 9 ................... 21.40 23.90 23.95 24.40 Total budgetary resources available for obligation New obligations ............................................................. Unobligated balance available, end of year: Uninvested balance ................................................... 1,400 –1,366 1,528 –1,528 1,573 –1,573 34 ................... ................... 1,340 1,487 1,566 7 7 7 70.00 OFFICE OF VOCATIONAL AND ADULT EDUCATION New budget authority (gross), detail: Current: 40.00 Appropriation ............................................................. Permanent: 60.00 Appropriation ............................................................. 1,347 1,494 1,573 Total new budget authority (gross) .......................... Change in unpaid obligations: Unpaid obligations, start of year: Obligated balance: Appropriation ............................................................. 73.10 New obligations ............................................................. 73.20 Total outlays (gross) ...................................................... 73.40 Adjustments in expired accounts .................................. 74.40 Unpaid obligations, end of year: Obligated balance: Appropriation ............................................................. 72.40 Federal Funds General and special funds: VOCATIONAL AND ADULT EDUCATION For carrying out, to the extent not otherwise provided, the Carl D. Perkins Vocational and Applied Technology Education Actø,¿ and the Adult Education Actø, and the National Literacy Act of 1991¿, ø$1,486,531,000, of which $4,500,000 shall be for the National Institute for Literacy; and¿ $1,565,966,000, of which ø$1,483,612,000¿ $1,563,047,000 shall become available on July 1, ø1997¿ 1998 and shall remain available through September 30, ø1998¿ 1999; and of which $6,000,000 from amounts available under the Adult Education Act shall be for the National Institute for Literacy under section 384(c): Provided, That, of the amounts made available for title II of the Carl D. Perkins Vocational and Applied Technology Education Act, ø$4,500,000¿ $20,497,000 shall be used by the Secretary for national programs under title IV, without regard to section 451: øProvided further, That, in addition, the Secretary may reserve up to $9,000,000 under section 101(a)(1)(A) of the Carl D. Perkins Vocational and Applied Technology Education Act, without regard to section 451:¿ Provided further, That the Secretary may reserve up to ø$5,000,000¿ $6,000,000 under section 313(d) of the Adult Education Act for activities carried out under section 383 of that Act: Provided further, That no funds shall be awarded to a State Council under section 112(f) of the Carl D. Perkins Vocational and Applied Technology Education Act, and no State shall be required to operate such a Council. (Department of Education Appropriations Act, 1997.) 1996 actual 1997 est. 1,584 1,663 Outlays (gross), detail: Outlays from new current authority .............................. 67 Outlays from current balances ...................................... 1,274 Outlays from new permanent authority ......................... ................... Outlays from permanent balances ................................ 7 179 1,410 1 8 189 1,298 1 6 87.00 Total outlays (gross) ................................................. 1,348 1,598 1,494 89.00 90.00 Net budget authority and outlays: Budget authority ............................................................ Outlays ........................................................................... 1,347 1,348 1,494 1,598 1,573 1,494 Summary of Budget Authority and Outlays [In millions of dollars] 1996 actual 1997 est. 1998 est. Enacted/requested: Budget Authority ..................................................................... 1,347 1,494 Outlays .................................................................................... 1,348 1,598 Legislative proposal, subject to PAYGO: Budget Authority ..................................................................... .................... .................... Outlays .................................................................................... .................... .................... 1,347 1,348 1,494 1,598 1,573 1,494 –7 –1 1,566 1,493 1998 est. Budget authority for vocational and adult education includes the following amounts: Obligations by program activity: Vocational education: Annual appropriations: Basic grants: 00.01 Basic State grants ........................................... 00.02 Indian and Hawaiian natives set-aside .......... 00.03 Territorial set-aside .......................................... 956 15 2 998 30 2 1,026 16 2 00.91 973 1,030 1,044 Subtotal, basic grants ................................. 1,654 Total: Budget Authority ..................................................................... Outlays .................................................................................... Program and Financing (in millions of dollars) Identification code 91–0400–0–1–501 86.90 86.93 86.97 86.98 1,639 1,654 1,584 1,366 1,528 1,573 –1,348 –1,598 –1,494 –3 ................... ................... [In millions of dollars] 1996 actual 1. Vocational education: a. Basic grants .................................................................. b. Tech-prep education ...................................................... c. Tribally controlled postsecondary vocational institutions ............................................................................... 1997 est. 1998 est. 973 100 1,016 100 1,044 105 3 3 3 426 OFFICE OF VOCATIONAL AND ADULT EDUCATION—Continued Federal Funds—Continued THE BUDGET FOR FISCAL YEAR 1998 General and special funds—Continued Change in unpaid obligations: Unpaid obligations, start of year: Obligated balance: Appropriation ............................................................. 73.10 New obligations ............................................................. 73.20 Total outlays (gross) ...................................................... 74.40 Unpaid obligations, end of year: Obligated balance: Appropriation ............................................................. 72.40 VOCATIONAL AND ADULT EDUCATION—Continued 1996 actual d. National programs ......................................................... e. Permanent appropriation ............................................... 2. Adult education: a. State programs .............................................................. b. Evaluation and technical assistance ............................ c. National Institute for Literacy ....................................... d. Literacy programs for prisoners .................................... 247 3 5 5 Total ...................................................................... 1997 est. 5 7 13 7 1,348 1998 est. 20 0 340 382 5 6 4 6 5 .................... 1,494 1,566 Vocational and adult education.—In fiscal year 1996, the Administration proposed to restructure Federal workforce-related education and training programs, including those under the Carl D. Perkins Vocational and Applied Technology Education Act, the Adult Education Act, and the National Literacy Act. During the 104th Congress, both the House and Senate passed bills that streamlined the Federal investment in Vocational and Adult Education. However, the 104th Congress adjourned without reconciling differences between the House and Senate bills. Absent new authorizing legislation, Congress extended the authority of the Perkins Act, the Adult Education Act, and the National Literacy Act through the 1997 appropriations act. The fiscal year 1998 budget estimate reflects funding under current law; however, the Administration will propose new legislation for Vocational and Adult Education early in the 105th Congress. Consistent with the earlier proposals, State formula grant programs for vocational education and for adult education would be streamlined and consolidated. In addition, national activities for both vocational and adult education would support State efforts through research, development, technical assistance, and evaluation. Object Classification (in millions of dollars) 1996 actual Identification code 91–0400–0–1–501 1997 est. 1998 est. 11.1 25.1 25.2 25.5 41.0 Personnel compensation: Full-time permanent ............. Advisory and assistance services .................................. Other services ................................................................ Research and development contracts ........................... Grants, subsidies, and contributions ............................ 1 2 2 1 1,359 1 2 2 2 1,520 1 2 2 2 1,565 99.0 99.5 Subtotal, direct obligations .................................. Below reporting threshold .............................................. 1,365 1 1,527 1 1,572 1 99.9 Total obligations ........................................................ 1,366 1,528 1,573 Personnel Summary 1996 actual Identification code 91–0400–0–1–501 1001 Total compensable workyears: Full-time equivalent employment ............................................................... VOCATIONAL AND 1997 est. 13 10 1998 est. 10 ................... ................... –6 86.97 Outlays (gross), detail: Outlays from new permanent authority ......................... ................... ................... –1 89.00 90.00 Net budget authority and outlays: Budget authority ............................................................ ................... ................... Outlays ........................................................................... ................... ................... –7 –1 The Smith-Hughes Act authorizes a permanent appropriation for four vocational education activities: Basic Grants, the Indian and Hawaiian Natives set-aside, the Territorial set-aside, and National Programs. The permanent appropriation is proposed for repeal, and an equivalent level of funding will be included in the Administration’s proposal to reauthorize and restructure the Carl D. Perkins Vocational and Applied Technology Education Act. OFFICE OF POSTSECONDARY EDUCATION Federal Funds General and special funds: STUDENT FINANCIAL ASSISTANCE For carrying out subparts 1ø, 3, and 4¿ and 3, of part A, part C and part E of title IV of the Higher Education Act of 1965, as amended, ø$7,560,407,000¿ $9,263,407,000, which shall remain available through September 30, ø1998¿ 1999. The maximum Pell Grant for which a student shall be eligible during award year ø1997–1998¿ 1998–1999 shall be ø$2,700¿ $3,000: Provided, That notwithstanding section 401(g) of the Act, if the Secretary determines, prior to publication of the payment schedule for such award year, that the amount included within this appropriation for Pell Grant awards in such award year, and any funds available from the fiscal year ø1996¿ 1997 appropriation for Pell Grant awards, are insufficient to satisfy fully all such awards for which students are eligible, as calculated under section 401(b) of the Act, the amount paid for each such award shall be reduced by either a fixed or variable percentage, or by a fixed dollar amount, as determined in accordance with a schedule of reductions established by the Secretary for this purpose: Provided further, That notwithstanding section 476(b)(1)(A)(iv) of the Act, the income protection allowance for independent students without dependents other than a spouse shall be determined using the table appearing in section 477(b)(4) (or a successor table prescribed by the Secretary under section 478(b)), except that the income protection allowance for single students shall be equal to the amount specified in that table for a family size of two with one family member in college, minus the amount in the table for each additional family member. (Department of Education Appropriations Act, 1997.) Program and Financing (in millions of dollars) ADULT EDUCATION Identification code 91–0200–0–1–502 (Legislative proposal, subject to PAYGO) Program and Financing (in millions of dollars) Identification code 91–0400–4–1–501 1996 actual ................... ................... ................... ................... ................... –7 ................... ................... 1 1997 est. 1998 est. –7 01.91 10.00 Total obligations (object class 41.0) ........................ ................... ................... –7 02.01 –7 7 02.02 02.03 02.04 02.91 –7 1998 est. 4,284 2,249 450 Obligations by program activity: Permanent appropriation ............................................... ................... ................... New budget authority (gross), detail: 60.00 Appropriation .................................................................. ................... ................... 1997 est. Obligations by program activity: Pell grants: 01.01 Current academic year program ............................... 2,522 3,670 01.02 Prior academic year program .................................... 2,404 3,611 01.03 Independent Student Formula Modification .............. ................... ................... 03.01 Budgetary resources available for obligation: 22.00 New budget authority (gross) ........................................ ................... ................... 23.95 New obligations ............................................................. ................... ................... 1996 actual 03.01 Subtotal, Pell grants ............................................. Campus-based aid: Supplemental educational opportunity grants (SEOG) ................................................................... Work-study ................................................................. Perkins loans: Federal capital contributions ............ Perkins loans: Teacher cancellations ........................ 4,926 7,281 6,983 587 619 95 23 587 832 159 20 583 857 158 30 Subtotal, Campus-based activities ...................... Campus-based aid: State Student Incentive Grants ................................. 1,324 1,597 1,628 32 50 ................... OFFICE OF POSTSECONDARY EDUCATION—Continued Federal Funds—Continued DEPARTMENT OF EDUCATION 10.00 Total obligations (object class 41.0) ........................ Budgetary resources available for obligation: Unobligated balance available, start of year: Uninvested balance ................................................... 22.00 New budget authority (gross) ........................................ 22.10 Resources available from recoveries of prior year obligations ....................................................................... 22.30 Unobligated balance expiring ........................................ 6,282 8,928 8,611 3,561 6,258 3,617 7,560 2,249 9,263 21.40 23.90 23.95 24.40 40.00 Total budgetary resources available for obligation New obligations ............................................................. Unobligated balance available, end of year: Uninvested balance ................................................... New budget authority (gross), detail: Appropriation .................................................................. Change in unpaid obligations: Unpaid obligations, start of year: Obligated balance: Appropriation ............................................................. 73.10 New obligations ............................................................. 73.20 Total outlays (gross) ...................................................... 73.40 Adjustments in expired accounts .................................. 73.45 Adjustments in unexpired accounts .............................. 74.40 Unpaid obligations, end of year: Obligated balance: Appropriation ............................................................. 87 ................... ................... –8 ................... ................... 9,898 –6,282 11,177 –8,928 11,512 –8,611 3,617 2,249 2,901 6,258 7,560 9,263 72.40 3,363 2,665 3,994 6,282 8,928 8,611 –6,862 –7,599 –8,165 –31 ................... ................... –87 ................... ................... 2,665 3,994 4,440 86.90 86.93 86.98 Outlays (gross), detail: Outlays from new current authority .............................. Outlays from current balances ...................................... Outlays from permanent balances ................................ 87.00 Total outlays (gross) ................................................. 6,862 7,599 8,165 89.00 90.00 Net budget authority and outlays: Budget authority ............................................................ Outlays ........................................................................... 6,258 6,862 7,560 7,599 9,263 8,165 886 1,458 2,084 5,973 6,141 6,081 3 ................... ................... Status of Direct Loans (in millions of dollars) Identification code 91–0200–0–1–502 Cumulative balance of direct loans outstanding: Outstanding, start of year ............................................. Repayments: Repayments and prepayments ................. Write-offs for default: 1263 Direct loans ............................................................... 1264 Other adjustments, net ............................................. 1210 1251 1290 Outstanding, end of year .......................................... 1996 actual 1997 est. 1998 est. 187 –31 207 –31 223 –31 –5 56 –8 56 –8 56 207 223 240 1 Includes in all years institutional matching share of defaulted notes assigned from institutions to the Education Department. Federal Pell Grants.—Undergraduate students establish eligibility for these grants under award and need determination rules set out in the authorizing statute and the annual appropriation act. The maximum award for FY 1998 would be $3,000. The Department plans to transmit a legislative proposal later to modify the student aid need analysis provisions of the Higher Education Act of 1965 in order to increase the income protection allowance for single independent students and independent students without dependents other than a spouse. With this change, the law will provide income protection for these students at the same level as for independent students with dependents and parents of dependent students. This change will increase the eligibility of such students for Pell Grants and other need-based student aid. Federal Work-Study.—Federal grants are awarded by formula to qualifying institutions, which develop and provide part-time jobs for eligible undergraduate and graduate students with demonstrated need. Federal grants in most cases pay 75 percent of a student’s hourly earnings, with the remainder paid by the employer. Hourly earnings must not be less than the Federal minimum wage. The President proposes to continue the policy of annual increases in Work-Study funding so that by FY 2000 one million students a year will be able to work their way through 427 college under the program. FY 1998 is the second year of this policy. Institutions are currently required to spend at least 5 percent of their Work-Study allocation to pay students working in community service jobs. The President has encouraged participating institutions to use at least one-half of their WorkStudy funding increases (over the FY 1996 Work-Study allocation level) for community service activities. As part of the America Reads Challenge, the President has also called upon Work-Study recipients to earn their awards by working as reading tutors for kindergarten and elementary school students. The Department recently amended its regulations to waive the required 25 percent employer funding match for students working as reading tutors. Federal Supplemental Educational Opportunity Grants.— Federal funds are awarded by formula to qualifying institutions, which use these funds at their discretion to award grants to undergraduate students, with priority for Pell Grant recipients and others with exceptional need. The Federal share of such grants may not exceed 75 percent of the total grant. Perkins Loan Program.—Schools award loans from revolving funds, composed of Federal Capital Contributions, collections on prior year loans, and Federal payments for loan cancellations granted in exchange for specified types of teaching, military or public service. Perkins Loans—Cancellations.—Under the Perkins Loan (formerly national direct student loan (NDSL)) cancellation program, institutional revolving funds are reimbursed for indebtedness cancelled as a result of a borrower engaging in certain public service occupations. The Higher Education Amendments of 1992 broadened statutory cancellations in the Perkins Loan program. This has resulted in a progressive increase in the usage of cancellations provisions by Perkins Loan borrowers in recent years. Reauthorization of the Higher Education Act.—The Department is currently developing proposals for reauthorization of the Higher Education Act. The Department’s proposal will build on the accomplishments of the past four years and incorporate the following principles: (1) improve access to postsecondary education; (2) support effective education through high standards and high student achievement; (3) simplify program delivery and ensure accountability for taxpayer funds; and (4) improve outreach to potential students and linkages to employment and elementary/secondary education programs. Gatekeeping in Student Financial Assistance Programs.— The Federal student aid programs will make available more than $47 billion in grant, loan, and work-study assistance to about 8.1 million students in the academic year 1998– 99. The Department of Education, together with States and accrediting agencies, works to ensure that institutions of higher education participating in the Federal student aid programs meet a basic standard of quality in the education and training of their students, and that these institutions are administratively capable and financially responsible. Since 1993, the Department has terminated the participation of more than 381 institutions that have violated the Federal regulations. During 1997, it will complete its recertification of all institutions currently eligible to participate in the student financial assistance programs. The Department has also developed a risk analysis system that better enables it to identify institutions with potentially serious problems, and is currently pilot-testing the system for nationwide implementation. Furthermore, the Department has provided regulatory relief to institutions that have demonstrated outstanding administration of federal programs and strong financial responsibility. This relief will result in less frequent recertification, less fre- 428 OFFICE OF POSTSECONDARY EDUCATION—Continued Federal Funds—Continued THE BUDGET FOR FISCAL YEAR 1998 General and special funds—Continued STUDENT FINANCIAL ASSISTANCE—Continued quent submission of compliance audits, and exemption from certain regulatory requirements. The Department helps students make better decisions by requiring schools to provide important information about their education programs. It enforces long-standing statutory requirements for institutions to inform prospective students of educational programs, college costs, and financial aid. The following tables display student aid funds available, the number of aid awards, average awards, and the unduplicated count of students receiving awards, based on current law and legislation proposed for later transmittal. The tables include aid under the Federal Family Education Loan (FFEL) program, formerly the Guaranteed Student Loan (GSL) program, the William D. Ford Direct Loan (DL) Program, as well as under programs in this account. The tables include the effects of matching funds wherever applicable. Perkins loan amounts also reflect available capital in institutional revolving funds, including loan collection and loan cancellation receipts. FFEL and DL amounts reflect the capital actually loaned, not the Federal costs of those loans. AID FUNDS AVAILABLE FOR POSTSECONDARY EDUCATION AND TRAINING [In millions of dollars] 1996 actual Pell grants ................................................................................... Student loans: Guaranteed student loans: Stafford loans ..................................................................... Unsubsidized Stafford loans .............................................. PLUS ................................................................................... Direct student loans: Stafford loans ..................................................................... Unsubsidized Stafford loans .............................................. PLUS ................................................................................... Consolidation: FFEL .................................................................................... Direct Loans ....................................................................... 1997 est. 1998 est. 5,642 6,209 7,786 9,792 5,489 1,430 9,880 5,540 1,545 9,642 5,531 1,600 5,028 2,529 799 5,830 3,083 1,025 6,958 3,765 1,314 4,266 803 4,214 2,589 4,389 3,340 Student loans, subtotal ............................................. Work-study ................................................................................... Supplemental educational opportunity grants ............................ Perkins loans ............................................................................... State student incentive grants ................................................... 30,136 760 738 943 63 33,706 1,007 738 1,058 100 36,540 1,036 738 1,087 0 Total aid available .................................................... 38,282 42,818 47,186 Student loans: Guaranteed student loans: Stafford loans ..................................................................... Unsubsidized Stafford loans .............................................. PLUS ................................................................................... Direct student loans: Stafford loans ..................................................................... Unsubsidized Stafford loans .............................................. PLUS ................................................................................... Consolidation: FFEL .................................................................................... Direct Loans ....................................................................... Work-study ................................................................................... Supplemental educational opportunity grants ............................ Perkins loans ............................................................................... State student incentive grants ................................................... 3,411 3,598 5,788 3,669 3,821 6,437 3,820 4,009 6,909 3,242 3,262 5,623 3,198 3,242 5,534 3,236 3,312 5,726 15,160 9,716 1,065 745 1,342 600 13,816 12,042 1,065 745 1,342 600 14,250 11,517 1,065 745 1,342 600 NUMBER OF STUDENTS AIDED [In thousands] 1996 actual Unduplicated student count ........................................................ 7,238 1997 est. 7,607 1998 est. 8,057 The following table displays institutional administrative costs paid from program funds. ADMINISTRATIVE PAYMENTS TO INSTITUTIONS [In millions of dollars] 1996 actual Pell grants ................................................................................... Work-study ................................................................................... Supplemental educational opportunity grants ............................ Perkins loans ............................................................................... Direct student loans .................................................................... 18 47 30 38 8 1997 est. 18 64 30 42 0 1998 est. 20 66 30 43 0 The following table displays the status of defaulted Perkins loans held by the Department and by institutions. DEFAULTED PERKINS LOANS [In millions of dollars] NUMBER OF AID AWARDS Outstanding defaulted loans, beginning of year: Assigned defaulted loans 1 ..................................................... Unassigned defaulted loans 2 ................................................. New defaulted loans ................................................................... Collections on assigned loans .................................................... Collections on unassigned loans ................................................ Write-offs for assigned loans ..................................................... Write-offs for unassigned loans ................................................. 1996 actual 187 760 172 –31 –87 –5 –13 207 776 175 –31 –90 –8 –13 223 793 177 –31 –92 –8 –13 Outstanding defaulted loans, end of year .................................. 983 1,016 1,049 1997 est. 1998 est. 1 Permanently assigned to the Federal Government for collection. Does not include the following amounts in loans made to institutions to establish Perkins revolving funds: $94 thousand in 1996, $94 thousand in 1997, and $94 thousand in 1998. These amounts are recorded as outstanding loans in the ‘‘Status of Direct Loans’’ schedule. 2 Unassigned loans at institutions. [In thousands] 1996 actual Pell grants ................................................................................... Student loans: Guaranteed student loans: Stafford loans ..................................................................... Unsubsidized Stafford loans .............................................. PLUS ................................................................................... Direct student loans: Stafford loans ..................................................................... Unsubsidized Stafford loans .............................................. PLUS ................................................................................... Consolidation: FFEL .................................................................................... Direct Loans ....................................................................... 1997 est. 1998 est. 3,601 3,661 4,009 2,871 1,525 247 2,693 1,450 240 2,524 1,380 232 1,551 775 142 1,823 951 185 2,150 1,137 230 281 83 305 215 308 290 Student loans, subtotal ............................................. Work-study .............................................................................. Supplemental educational opportunity grants ....................... Perkins loans .......................................................................... State student incentive grants ............................................... 7,476 713 991 703 105 7,862 945 991 788 167 8,250 973 991 810 0 Total awards .............................................................. 13,588 14,414 15,034 AVERAGE AID AWARDS [In whole dollars] 1996 actual Pell grants ................................................................................... 1,567 1997 est. 1,696 1998 est. 1,942 HIGHER EDUCATION For carrying out, to the extent not otherwise provided, øparts A and B of¿ title III, without regard to section 360(a)(1)(B)(ii), titles IV, V, VI, VII, and IX, and part A and subpart 1 of part B of title Xø, and title XI¿ of the Higher Education Act of 1965, as amended, part G of title XV of Public Law ø102–423¿ 102–325 and the Mutual Educational and Cultural Exchange Act of 1961; ø$879,054,000¿ $903,292,000, of which ø$15,673,000¿ $13,700,000 for interest subsidies under title VII of the Higher Education Actø, as amended,¿ shall remain available until expended: Provided, That funds available for part D of title IX of the Higher Education Act shall be available to fund noncompeting continuation awards for academic year ø1997–1998¿ 1998–1999 for fellowships awarded originally under part øB¿ C of title IX of said Act, under the terms and conditions of part øB: Provided further, That $5,931,000 of the funds available for part D of title IX of the Higher Education Act shall be available to fund new and noncompeting continuation awards for academic year 1997–1998 for fellowships awarded under part C of title IX of said Act, under the terms and conditions of part C: Provided further, That notwithstanding sections 419D, 419E, and 419H of the Higher Education Act, as amended, scholarships made under title IV, part A, subpart 6 shall be prorated to maintain the same number of new scholarships in fiscal year 1997 as in fiscal year 1996: Provided further, That $3,000,000, to remain available until expended, shall be for the George H.W. Bush fellowship program, OFFICE OF POSTSECONDARY EDUCATION—Continued Federal Funds—Continued DEPARTMENT OF EDUCATION if authorized by April 1, 1997: Provided further, That $3,000,000, to remain available until expended, shall be for the Edmund S. Muskie Foundation to establish an endowment fund to provide income to support such foundation on a continuing basis, if authorized by April 1, 1997: Provided further, That $3,000,000, to remain available until expended, shall be for the Claiborne Pell Institute for International Relations and Public Policy at Salve Regina University in Newport, Rhode Island, if authorized by April 1, 1997: Provided further, That $1,000,000, to remain available until expended, shall be for the Calvin Coolidge Memorial Foundation, if authorized by April 1, 1997: Provided further, That, of the amounts made available under title X, part A of the Higher Education Act, $2,000,000 shall be awarded to the Pennsylvania Educational Telecommunications Exchange Network.¿ C: Provided further, That funds available for part C of title III of the Higher Education Act shall be available only for awards to recipients that are title III, part B institutions, as defined in section 322(2) of said Act. (Department of Education Appropriations Act, 1997.) Program and Financing (in millions of dollars) Identification code 91–0201–0–1–502 1996 actual 1997 est. 1998 est. Obligations by program activity: Aid for institutional development: 00.01 Strengthening historically Black colleges and universities ................................................................. 00.02 Strengthening institutions ......................................... 00.03 Strengthening Hispanic serving institutions ............ 00.04 Endowment challenge grants .................................... 129 55 11 7 129 55 11 8 133 55 12 2 00.91 202 203 202 01.01 01.02 01.03 01.91 02.01 02.02 02.03 02.04 Subtotal, aid for institutional development ......... Other aid for institutions: Program development ................................................ Interest subsidy grants ............................................. Special grants ........................................................... 93 17 8 94 87 20 14 8 ................... Subtotal, other aid for institutions ...................... 118 122 Aid for students: Federal TRIO programs .............................................. 463 500 Advanced placement fees ......................................... ................... ................... Scholarships .............................................................. 32 33 Graduate fellowships ................................................. 31 33 101 525 6 39 30 02.91 Subtotal, aid for students .................................... 526 566 600 10.00 Total obligations ........................................................ 846 891 903 20 837 12 ................... 879 903 Budgetary resources available for obligation: Unobligated balance available, start of year: Uninvested balance ................................................... 22.00 New budget authority (gross) ........................................ 22.10 Resources available from recoveries of prior year obligations ....................................................................... 22.30 Unobligated balance expiring ........................................ 21.40 23.90 23.95 24.40 40.00 Total budgetary resources available for obligation New obligations ............................................................. Unobligated balance available, end of year: Uninvested balance ................................................... New budget authority (gross), detail: Appropriation .................................................................. Change in unpaid obligations: Unpaid obligations, start of year: Obligated balance: Appropriation ............................................................. 73.10 New obligations ............................................................. 73.20 Total outlays (gross) ...................................................... 73.40 Adjustments in expired accounts .................................. 73.45 Adjustments in unexpired accounts .............................. 74.40 Unpaid obligations, end of year: Obligated balance: Appropriation ............................................................. 2 ................... ................... –2 ................... ................... 857 –846 891 –891 903 –903 12 ................... ................... 837 879 903 72.40 974 942 953 846 891 903 –846 –880 –881 –29 ................... ................... –2 ................... ................... 942 953 975 86.90 86.93 Outlays (gross), detail: Outlays from new current authority .............................. Outlays from current balances ...................................... 76 770 123 757 119 762 87.00 Total outlays (gross) ................................................. 846 880 881 89.00 90.00 Net budget authority and outlays: Budget authority ............................................................ Outlays ........................................................................... 837 847 879 880 903 881 429 Summary of Budget Authority and Outlays [In millions of dollars] 1996 actual 1997 est. Enacted/requested: Budget Authority ..................................................................... 837 879 Outlays .................................................................................... 846 880 Legislative proposal, not subject to PAYGO: Budget Authority ..................................................................... .................... .................... Outlays .................................................................................... .................... .................... Total: Budget Authority ..................................................................... Outlays .................................................................................... 837 846 879 880 1998 est. 903 881 132 16 1,035 897 Aid for institutional development.— Strengthening historically Black colleges and universities.—Funds support grants to help historically Black undergraduate and graduate institutions equalize educational opportunity and strengthen their management and fiscal operations so that they may eventually become self-sufficient. Strengthening institutions.—Funds support planning and development grants for improving academic programs and financial management at schools that enroll high proportions of disadvantaged students and have low per-student expenditures. Strengthening Hispanic-serving institutions.—Funds support Hispanic-serving institutions to enable them to improve and expand their capacity to serve Hispanic and lowincome students. Endowment challenge grants.—Funds support endowment challenge grants for historically Black colleges and universities to enable such institutions to establish or increase institutional endowment funds. Other aid for institutions.— Program development.—Funds support: the Fund for the Improvement of Postsecondary Education (FIPSE), to address problems and encourage improvements in postsecondary education; the minority science improvement program, to improve science education at predominantly minority institutions; international education and foreign language study programs, to help strengthen American education in foreign languages and area and international studies and to provide research and study opportunities in foreign countries for American graduate students, faculty members, and teachers of foreign languages; and minority teacher recruitment, to encourage minorities to enter teaching careers. Interest subsidy grants.—Funds meet mandatory interest subsidy costs of construction loan commitments made prior to 1974. Aid for students.— Federal TRIO programs.—Funds support: academic, counseling and outreach services to help individuals from disadvantaged backgrounds enter and complete college; the student support services program to assist postsecondary students from disadvantaged backgrounds who need academic support to complete successfully their education; the McNair postbaccalaureate program, to provide support to disadvantaged groups underrepresented in graduate education; and staff training, to provide training opportunities for staff employed in or preparing for employment in TRIO programs. Funds also support the continuation of an evaluation of the TRIO programs. Advanced placement fees.—Funds support State efforts to pay for the Advanced Placement test fees of low-income students to help students obtain college credit for high school courses. Scholarships.—Funds support: Byrd honors scholarships for outstanding students who show promise of continued excellence. Graduate fellowships.—Funds support graduate assistance to provide fellowships to financially needy graduate students who are studying in areas of national need, and 430 OFFICE OF POSTSECONDARY EDUCATION—Continued Federal Funds—Continued THE BUDGET FOR FISCAL YEAR 1998 00.04 00.05 00.06 General and special funds—Continued HIGHER EDUCATION—Continued to students of superior ability completing graduate-level education. Object Classification (in millions of dollars) 1996 actual Identification code 91–0201–0–1–502 25.1 25.3 10.00 Howard University Hospital ............................................ 29 29 29 Construction ................................................................... 1 ................... ................... Undistributed ................................................................. ................... 167 167 Total obligations (object class 41.0) ........................ Budgetary resources available for obligation: Unobligated balance available, start of year: Uninvested balance ................................................... 22.00 New budget authority (gross) ........................................ 22.10 Resources available from recoveries of prior year obligations ....................................................................... 187 196 196 21.40 1997 est. 1998 est. 1 1 1 25.7 41.0 99.5 Advisory and assistance services .................................. Purchases of goods and services from Government accounts .................................................................... Operation and maintenance of equipment ................... Grants, subsidies, and contributions ............................ Below reporting threshold .............................................. 1 1 842 1 1 1 887 1 1 1 899 1 99.9 Total obligations ........................................................ 846 891 903 23.90 23.95 24.40 40.00 HIGHER EDUCATION (Proposed for later transmittal, not subject to PAYGO) 4 ................... ................... 182 196 196 1 ................... ................... Total budgetary resources available for obligation 187 196 196 New obligations ............................................................. –187 –196 –196 Unobligated balance available, end of year: Uninvested balance ................................................... ................... ................... ................... New budget authority (gross), detail: Appropriation .................................................................. Change in unpaid obligations: Unpaid obligations, start of year: Obligated balance: Appropriation ............................................................. 73.10 New obligations ............................................................. 73.20 Total outlays (gross) ...................................................... 73.40 Adjustments in expired accounts .................................. 73.45 Adjustments in unexpired accounts .............................. 74.40 Unpaid obligations, end of year: Obligated balance: Appropriation ............................................................. 182 196 196 72.40 Program and Financing (in millions of dollars) 1996 actual Identification code 91–0201–2–1–502 1997 est. 1998 est. Obligations by program activity: Total obligations (object class 41.0) ............................ ................... ................... 132 Budgetary resources available for obligation: 22.00 New budget authority (gross) ........................................ ................... ................... 23.95 New obligations ............................................................. ................... ................... 132 –132 New budget authority (gross), detail: Appropriation .................................................................. ................... ................... 132 10.00 40.00 73.10 73.20 74.40 Change in unpaid obligations: New obligations ............................................................. ................... ................... Total outlays (gross) ...................................................... ................... ................... Unpaid obligations, end of year: Obligated balance: Appropriation ............................................................. ................... ................... 132 –16 116 86.90 Outlays (gross), detail: Outlays from new current authority .............................. ................... ................... 16 89.00 90.00 Net budget authority and outlays: Budget authority ............................................................ ................... ................... Outlays ........................................................................... ................... ................... 132 16 Presidential Honors Scholarships.—The President is proposing a new program to reward the best and brightest of our nation’s high school students. The program would provide $1,000 merit-based scholarship awards to the top 5 percent of graduating students from every secondary school in the country. Awards would be used by students to offset the cost of attending any postsecondary education institution. This program would encourage and reward individual academic excellence and achievement in high school, and promote college attendance by graduating seniors. 14 9 13 187 196 196 –194 –192 –196 3 ................... ................... –1 ................... ................... 9 13 13 86.90 86.93 Outlays (gross), detail: Outlays from new current authority .............................. Outlays from current balances ...................................... 179 15 184 8 184 12 87.00 Total outlays (gross) ................................................. 194 192 196 89.00 90.00 Net budget authority and outlays: Budget authority ............................................................ Outlays ........................................................................... 182 194 196 192 196 196 Howard University is a private, nonprofit educational institution consisting of 16 schools and colleges. Federal funds are used to provide partial support for university programs as well as for the teaching hospital facilities. In 1996, direct Federal appropriations for the academic and research programs represented 65 percent of the university’s educational and general expenditures. Credit accounts: FEDERAL DIRECT STUDENT LOAN PROGRAM ACCOUNT Program and Financing (in millions of dollars) Identification code 91–0243–0–1–502 1996 actual 1997 est. 1998 est. Identification code 91–0603–0–1–502 Obligations by program activity: 00.01 Academic program ......................................................... 00.02 Endowment program ...................................................... 00.03 Research ........................................................................ 1996 actual 1997 est. 1998 est. 152 ................... ................... 4 ................... ................... 1 ................... ................... 240 435 413 491 645 750 Total obligations ........................................................ 675 904 1,395 22.00 22.40 Budgetary resources available for obligation: New budget authority (gross) ........................................ Capital transfer to general fund ................................... 23.90 23.95 Total budgetary resources available for obligation New obligations ............................................................. 675 –675 904 –904 1,395 –1,395 60.00 60.05 Program and Financing (in millions of dollars) Subtotal, subsidy cost ............................................... Student loan administrative expenses .......................... 10.00 HOWARD UNIVERSITY Obligations by program activity: Direct loan subsidy ........................................................ Reestimates of subsidy ................................................. 02.91 07.09 For partial support of Howard University (20 U.S.C. 121 et seq.), $196,000,000ø: Provided, That from the amount available, the University may at its discretion use funds for the endowment program as authorized under¿, of which not less than $3,530,000, of which $3,530,000 shall remain available until expended, shall be for a matching endowment grant pursuant to the Howard University Endowment Act (Public Law 98–480). (Department of Education Appropriations Act, 1997.) 02.01 02.02 New budget authority (gross), detail: Appropriation .................................................................. Appropriation (indefinite) ............................................... 436 244 491 109 750 645 Appropriation (total) .................................................. 680 Spending authority from offsetting collections: Offsetting collections (cash) .............................................. ................... 600 1,395 63.00 68.00 70.00 Total new budget authority (gross) .......................... 237 413 645 3 ................... ................... 680 904 1,395 –5 ................... ................... 680 304 ................... 904 1,395 OFFICE OF POSTSECONDARY EDUCATION—Continued Federal Funds—Continued DEPARTMENT OF EDUCATION Change in unpaid obligations: Unpaid obligations, start of year: Obligated balance: Appropriation ............................................................. 73.10 New obligations ............................................................. 73.20 Total outlays (gross) ...................................................... 73.40 Adjustments in expired accounts .................................. 74.40 Unpaid obligations, end of year: Obligated balance: Appropriation ............................................................. 72.40 465 220 408 675 904 1,395 –595 –716 –1,126 –326 ................... ................... 220 408 677 86.97 86.98 Outlays (gross), detail: Outlays from new permanent authority ......................... Outlays from permanent balances ................................ 472 123 549 167 813 313 87.00 Total outlays (gross) ................................................. 595 716 1,126 Offsets: Against gross budget authority and outlays: 88.00 Offsetting collections (cash) from: Federal sources ................... 89.00 90.00 Net budget authority and outlays: Budget authority ............................................................ Outlays ........................................................................... 680 595 –304 ................... 600 412 1,395 1,126 Summary of Budget Authority and Outlays [In millions of dollars] 1996 actual 1997 est. Enacted/requested: Budget Authority ..................................................................... 680 600 Outlays .................................................................................... 595 412 Legislative proposal, subject to PAYGO: Budget Authority ..................................................................... .................... .................... Outlays .................................................................................... .................... .................... Total: Budget Authority ..................................................................... Outlays .................................................................................... 680 595 600 412 1998 est. 1,395 1,126 –112 –56 1,283 1,070 Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in millions of dollars) Identification code 91–0243–0–1–502 Direct loan levels supportable by subsidy budget authority: 1150 Stafford .......................................................................... 1150 Unsubsidized Stafford .................................................... 1150 PLUS ............................................................................... 1150 Consolidated .................................................................. 1159 Total direct loan levels ............................................. Direct loan subsidy (in percent): 1320 Stafford .......................................................................... 1320 Unsubsidized Stafford .................................................... 1320 PLUS ............................................................................... 1320 Consolidated .................................................................. 1329 Weighted average subsidy rate ................................. Direct loan subsidy budget authority: 1330 Stafford .......................................................................... 1330 Unsubsidized Stafford .................................................... 1330 PLUS ............................................................................... 1330 Consolidated .................................................................. 1330 Downward reestimate .................................................... 1339 Total subsidy budget authority ................................. Direct loan subsidy outlays: 1340 Stafford .......................................................................... 1340 Unsubsidized Stafford .................................................... 1340 PLUS ............................................................................... 1340 Consolidated .................................................................. 1340 Downward reestimate .................................................... 1996 actual 1997 est. 1998 est. 5,587 2,869 972 869 6,427 3,475 1,265 2,622 7,671 4,246 1,626 3,386 10,297 13,789 16,929 12.51 –12.97 –8.09 –0.83 13.39 –9.77 –6.62 –0.94 13.65 –6.93 –6.34 –0.14 2.34 2.99 3.81 699 –372 –79 –7 3 860 1,047 –339 –294 –84 –103 –25 –5 –304 ................... 244 570 –313 –45 –15 3 108 645 661 881 –274 –276 –60 –76 –24 –5 –304 ................... 1349 Total subsidy outlays ................................................ 200 –1 524 3510 3590 Student loan administrative expense data: Budget authority ............................................................ Outlays ........................................................................... 436 395 491 413 750 602 The Federal Government operates two major student loan programs: the Federal Family Education Loan (FFEL) program—formerly the Guaranteed Student Loan (GSL) program—and the William D. Ford Federal Direct Loan (Direct Loan) program. The President is committed to allowing individual institutions to choose which of these two programs best meets their needs and the needs of their students. 431 This summary section outlines the structure of these two programs, highlights their differences and similarities, and provides text tables displaying program cost data; loan volume, subsidy, default, and interest rates; and other descriptive information. As part of his fiscal year 1998 budget, the President is proposing a number of changes for the Direct Loan and FFEL programs. These changes are discussed as part of this program description. From its inception in 1965 through 1996, the FFEL program has provided over $217 billion in loans to postsecondary students and their parents. Since beginning on July 1, 1994, the Direct Loan program has provided over $15 billion in loans to students and parents. Taken together, the FFEL and Direct Loan programs will make over $32 billion available in FY 1997. Because funding for these two programs is provided on a permanent indefinite basis, for budget purposes they are considered separately from other Federal student financial assistance programs. The FFEL and Direct Loan programs should be viewed in combination with these other programs, however, and with Perkins Loans in particular, as part of the overall Federal effort to ensure access to higher education. Loan capital in the FFEL program is provided by private lenders. State and private nonprofit guaranty agencies act as agents of the Federal government, providing a variety of services including payment of default claims, collection of some defaulted loans, default avoidance activities, and counseling to schools and students. These agencies also provide various other services to lenders. The Government provides substantial payments to these guaranty agencies. The Government also pays interest subsidies to lenders for certain borrowers, as well as most costs associated with loan defaults and other write-offs. The Direct Loan program was created by the Student Loan Reform Act (SLRA) of 1993. Under this program, the Federal Government provides loan funds to postsecondary institutions directly or through an alternative originator. Direct Loans offer a streamlined system that is simpler for student and parent borrowers, less prone to waste and abuse, and less expensive for the Federal taxpayer than the FFEL program. The program also offers flexible repayment options that allow borrowers to consider lower-paying careers, such as public service, without fear of default. The Direct Loan program began operation in academic year 1994–1995 with 7 percent of overall loan volume. The program grew to 32 percent of overall volume in academic year 1995–1996, and is expected to account for 36 percent in academic year 1996–1997. All eligible institutions are free to participate in either the Direct Loan or FFEL program. The Direct Loan and FFEL programs share many basic elements. Each program offers four types of loans: Stafford, Unsubsidized Stafford, PLUS for parents, and Consolidation. Evidence of financial need is required for a student to receive a subsidized Stafford loan. The other three loan programs are available to borrowers at all income levels. Loans can be used only to meet qualified educational expenses. For new Stafford Loans, the interest rate equals the 91day Treasury bill rate plus 2.5 percent during in-school, grace, and deferment periods, and the 91-day Treasury bill plus 3.1 percent at all other times, with a cap of 8.25 percent. These rates are adjusted annually. Interest payments for these loans are fully subsidized by the Government while a student is in school and during grace and deferment periods. Unsubsidized Stafford loans carry the same interest rate as Stafford loans, but have no interest subsidy. For PLUS loans, the interest rate equals the 52-week Treasury bill rate plus 3.1 percent, with a cap of 9 percent and no interest subsidy. Beginning July 1, 1998, the interest rate for new Stafford and Unsubsidized Stafford loans will equal the Department’s 432 OFFICE OF POSTSECONDARY EDUCATION—Continued Federal Funds—Continued Credit accounts—Continued FEDERAL DIRECT STUDENT LOAN PROGRAM ACCOUNT—Continued borrowing rate—currently the 10–20-year bond rate—plus 1 percentage point, with a cap of 8.25 percent. This rate, adjusted annually, will apply throughout the life of the loan. In order to standardize interest subsidy payments across the FFEL and Direct Loan programs and reduce interest paid by students on unsubsidized loans, the President is proposing that, beginning on October 1, 1998, the interest subsidy rate for new Stafford and interest rate for new Unsubsidized Stafford loans equal the Department’s borrowing rate during inschool, grace, and deferment periods. Consolidation loans allow borrowers to combine loans made under Title IV of the Higher Education Act—FFEL, Direct Loans, and Perkins Loans—as well as some loans made under the Public Health Service Act. Under FFEL, the interest rate for loans made on or after July 1, 1994, equals the weighted average of the interest rate on the loans consolidated, rounded upward to the nearest whole percent. Lenders may choose to offer a lower rate. Direct Consolidation loans made up of underlying Stafford and Unsubsidized Stafford loans carry the variable Stafford interest rate; Direct Consolidation loan made up of underlying PLUS loans carry the variable PLUS interest rate. The President is proposing that interest rates for new FFEL Consolidation loans be calculated in the same way as is currently done for Direct Consolidation loans. The President is also proposing to allow borrowers whose FFEL Consolidation Loans include underlying Stafford Loans to maintain interest subsidy benefits associated with the Stafford portions of their loans. Direct Consolidation Loan borrowers already retain these benefits. Origination/insurance fees for each loan type are essentially the same across the two programs. Direct Loan borrowers are charged an origination fee equal to 4 percent of principal, which partially offsets Federal program operation costs. FFEL borrowers pay an origination fee to the Government equal to 3 percent of principal, and are also liable for a guaranty agency insurance premium of up to 1 percent of principal. Guaranty agencies have the option of waiving this premium. In addition, FFEL lenders have the option of paying some or all of a borrower’s original fee for Stafford Loan borrowers. The President is proposing to eliminate the 1 percent guaranty agency insurance premium, reduce the Direct Loan origination fee from 4 percent to 3 percent, and further reduce fees for Stafford borrowers in both programs to 2 percent. The President is also proposing that FFEL lenders be required to offer any benefits involving the partial or complete payment of borrower origination fees to all eligible borrowers. Loan limits are also identical across the two programs. The President has proposed a $15,000 annual limit on borrowing for an individual student under the PLUS loan program. (There is currently no limit on borrowing under this program.) In addition to these common elements, the Direct Loan and FFEL programs each have a number of unique provisions. Borrowers under Direct Loans may choose from among five repayment plans including income-contingent repayment (‘‘pay-as-you-can’’), under which annual repayment amounts vary based on the income of the borrower and the amount borrowed and payments can be made over 25 years. Borrowers may switch between repayment plans at any time. (Income-contingent repayment is not available to Direct PLUS borrowers). The President is proposing to require FFEL lenders to offer four of these plans—standard, graduated, extended, and alternative—under the same terms and conditions available under Direct Loans. The President has determined that income-contingent repayment as offered through Direct Loans—under THE BUDGET FOR FISCAL YEAR 1998 which the Department has access to income data provided by the Internal Revenue Service—would not be feasible for private lenders to administer. In addition, the President is proposing to clarify current law that loan amounts forgiven after 25 years under the income-contingent repayment plan are not treated as income for tax purposes. In the FFEL program, lenders may receive a quarterly interest subsidy, called a special allowance, from the Government to ensure a guaranteed rate of return on their loans. Special allowance payments vary by loan type, are determined quarterly, and are based on current borrower interest rates and market-yield formulas. For recent Stafford and Unsubsidized Stafford loans, for example, the Federal Government must pay lenders a special allowance if the average 91-day Treasury bill rate for a given quarter plus 3.1 percent—or 2.5 percent during in-school, grace, or deferment periods—is higher than the current interest rate charged borrowers. The President is proposing to reset the interest rate for special allowance payments on new loans on an annual basis, as is done with borrower interest rates, rather than quarterly as is done under current law. The President is proposing a number of changes to address serious structural problems with the FFEL default prevention system. Under the current system, lenders are insured by the government against default loss on 98 percent of the principle and accrued interest on all FFEL loans. The President proposes increasing this 2-percent risk-sharing to 5 percent. Supplemental pre-claims assistance payments to guaranty agencies, which have proven ineffective in achieving their intended goal of enhancing agency default prevention activities, would be eliminated. As a more effective means of accomplishing this goal, the President is proposing that lenders make payments to guaranty agencies only on delinquent loans that have been brought current as a result of guaranty agency efforts. Guaranty agencies currently retain 27 percent of all collections on defaulted loans, a portion of which covers agency collection costs. In order to standardize payments for default collection activities across the student loan programs, the President is proposing to reduce guaranty agency default retention to 18.5 percent of the amount collected, the amount paid on loans collected by the Department of Education. The President is proposing a number of changes in the guaranty agency system. The U.S. General Accounting Office and Federal courts have acknowledged that the Federal government is the actual guarantor of the loans. The State and non-profit intermediaries in the FFEL program act as agents of the Federal government; there are no non-Federal funds at risk. Guaranty agencies are not independent guarantors, but are in fact administrators of the Federal guarantee. The Administration proposes to end a system in which the guaranty agencies hold Federal funds from which they pay default claims. Instead, direct Federal payments will cover default claims. Guaranty agencies therefore no longer need to hold Federal funds in reserve, making possible the return of $2.5 billion in reserve funds over five years. In addition, the President is proposing to periodically recertify guaranty agency agreements, which will be revised to include specific, publicly released performance indicators. Among other things, these revised agreements will require that agencies be audited annually using a methodology that samples loans held in agency systems, and that guaranty agencies submit timely, accurate, and consistent data to the Department, including data for the National Student Loan Data System. The Secretary of Education will have the authority to terminate agreements based on agency performance, and to award contracts for services currently performed by guaranty agencies. In order to ensure the uninterrupted availability of aid funds for students and parents, Congress provided permanent OFFICE OF POSTSECONDARY EDUCATION—Continued Federal Funds—Continued DEPARTMENT OF EDUCATION funding to support student aid administration and expenses. These funds support Department personnel and contractors for Direct Loan origination and servicing, payments to guaranty agencies, as well as certain costs associated with activities common to Direct Loans, FFEL and other student assistance programs, such as application printing and processing. The President believes that the current services level of this permanent appropriation could be reduced. Discretionary funds requested for the FFEL program support additional Department personnel and administrative activities associated with operating the program. Performance indicators are being developed on a broad spectrum of policy objectives in both the Direct Loan and FFEL programs. These indicators will measure program efficiency, Federal costs, and financial management, as well as borrower and institutional satisfaction. The following tables display performance indicators and program data; including projected overall Direct Loan and FFEL costs; loan volume, number of loans, and average loan amount; descriptive data, and program activity under the President’s budget and legislative request. Summary of Loans Available (net commitments in millions of dollars) 1 1996 actual FFEL: Stafford ................................................................................... Unsubsidized Stafford ............................................................. PLUS ........................................................................................ 1996 actual Budget Authority: FFEL: Liquidating 1 ............................................................................ Program 2 ................................................................................ Reestimate of Prior Year Cost 2 .............................................. 1997 est. 1998 est. 1,152,916 (14,544) (493,553) 2,937,780 2,631,163 2,068,274 595,000 (2,530,592) ................... 9,642 5,531 1,600 Total, FFEL ..................................................................... Direct Loans: Stafford ................................................................................... Unsubsidized Stafford ............................................................. PLUS ........................................................................................ 16,711 16,965 16,774 5,028 2,529 799 5,830 3,083 1,025 6,958 3,765 1,314 Total, Direct Loans ............................................................. Consolidation Loans: FFEL ......................................................................................... Direct Loans ............................................................................ 8,357 9,938 12,037 4,266 803 4,214 2,589 4,389 3,340 Subtotal, Consolidation Loans ........................................... Total, All Loans .................................................................. 5,069 30,137 6,803 33,706 7,729 36,540 1 Net commitments equal gross commitments minus loan cancellations. Number of Loans (In thousands) FFEL: Stafford ................................................................................... Unsubsidized Stafford ............................................................. PLUS ........................................................................................ 2,524 1,380 232 Total, FFEL .......................................................................... Direct Loans: Stafford ................................................................................... Unsubsidized Stafford ............................................................. PLUS ........................................................................................ 4,643 4,383 4,136 1,551 775 142 1,823 951 185 2,150 1,137 230 Total, Direct Loans ............................................................. Consolidation Loans: FFEL ......................................................................................... Direct Loans ............................................................................ 2,468 2,959 3,516 281 83 305 215 308 290 Subtotal, Consolidation Loans ........................................... Total, All Loans .................................................................. 364 7,476 520 7,862 598 8,250 250,928 133,685 756,105 13,305 (7,208) 29,950 (24,692) 9,667 (4,760) Subtotal, Consolidation Loans ........................................... Administration: FFEL 3 ...................................................................................... Student Aid 4 ........................................................................... 6,097 5,258 4,907 29,977 435,652 46,482 491,000 47,688 532,000 465,629 5,408,350 537,482 762,452 579,688 2,915,421 FFEL: Stafford ................................................................................... Unsubsidized Stafford ............................................................. PLUS ........................................................................................ 615,609 7,266 (413,615) 2,398,610 2,483,035 2,078,153 595,000 (2,530,592) ................... Weighted Average, FFEL ................................................. Direct Loans: Stafford ................................................................................... Unsubsidized Stafford ............................................................. PLUS ........................................................................................ Subtotal, Administration .................................................... Total, FFEL and Direct Loans ................................................. Outlays: FFEL: Liquidating 1 ............................................................................ Program 2 ................................................................................ Reestimate of Prior Year Costs 2 ............................................ 437,338 756,105 (303,653) ................... Subtotal, FFEL 2 .................................................................. Direct Loans: Program 2 ................................................................................ Reestimate of Prior Year Costs 2 ............................................ 3,609,219 Subtotal, Direct Loans 2 ..................................................... Consolidation Loans: FFEL ......................................................................................... Direct Loans ............................................................................ 214,863 23,286 586,154 13,207 (14,771) 29,613 (23,839) 9,560 (4,696) 212,165 2,698 (40,291) 1,664,538 326,939 586,154 (303,653) ................... Subtotal, Consolidation Loans ........................................... Administration: FFEL 3 ...................................................................................... Student Aid 4 ........................................................................... (1,564) 5,774 4,864 41,530 394,669 41,264 413,650 45,812 489,096 Subtotal, Administration .................................................... Total, FFEL and Direct Loans ................................................. 436,199 4,258,717 454,922 443,691 534,908 2,790,464 1 Liquidating account reflects loans made prior to 1992. FY 1997 and 1998 estimates reflect net transfers to the general account. 2 Because these figures do not include totals for consolidation loans, they do not correspond with totals shown in account-specific schedules. 3 Reflects 4 Supports 1998 est. 2,693 1,450 240 Subtotal, Direct Loans 2 ..................................................... Consolidation Loans: FFEL ......................................................................................... Direct Loans ............................................................................ 248,230 2,698 1997 est. 2,871 1,525 247 4,685,696 1,574,721 1998 est. 9,880 5,540 1,545 Subtotal, FFEL 2 .................................................................. Direct Loans: Program 2 ................................................................................ Reestimate of Prior Year Cost 2 .............................................. 86,027 1997 est. 9,792 5,489 1,430 1996 actual Funding Levels (In thousands of dollars) 433 Average Loan Size (in whole dollars) 1996 actual 1997 est. 1998 est. 3,411 3,598 5,788 3,669 3,821 6,437 3,820 4,009 6,909 3,599 3,871 4,056 3,242 3,262 5,823 3,198 3,242 5,534 3,236 3,312 5,726 Weighted Average, Direct Loans .................................... Consolidation Loans: FFEL ......................................................................................... Direct Loans ............................................................................ 3,388 3,359 3,423 15,180 9,716 13,816 12,042 14,250 11,517 Subtotal, Consolidation Loans ........................................... Weighted Average, All Loans ......................................... 13,923 4,031 13,083 4,287 12,925 4,429 Composition of Consolidation Loans 1996 actual Net commitments (in millions of dollars): FFEL: Standard consolidations ......................................................... Consolidations from Default ................................................... 1997 est. 1998 est. 3,815 451 3,784 430 3,940 449 Subtotal, FFEL ................................................................ Direct Loans: Standard consolidations ......................................................... Consolidations from Default ................................................... 4,266 4,214 4,389 513 290 2,270 319 2,989 351 Subtotal, Direct Loans ................................................... Total: Standard consolidations ......................................................... 803 2,589 3,340 4,328 6,054 6,929 annual discretionary appropriation. administrative expense allowance payments to FFEL guaranty agencies, as well as a range of administrative activities, such as application printing, mailing, and processing, that are common to all Federal student financial assistance programs. 434 OFFICE OF POSTSECONDARY EDUCATION—Continued Federal Funds—Continued THE BUDGET FOR FISCAL YEAR 1998 Internal Revenue Service Tax Refund Offsets ........................ ................... ................... ................... Credit accounts—Continued FEDERAL DIRECT STUDENT LOAN PROGRAM ACCOUNT—Continued Composition of Consolidation Loans—Continued 1996 actual Total, Direct Loans 2 ...................................................... 1997 est. 1998 est. 741 749 806 Total, Consolidated Loans ............................................. 5,069 6,803 7,729 1997 est. 1998 est. 19.55 7.56 3.83 19.38 7.47 3.70 15.10 6.63 3.32 14.22 14.01 11.15 14.25 –8.98 –6.53 13.39 –9.77 –6.62 14.65 –6.43 –5.84 5.00 3.92 5.58 0.78 0.27 0.70 –0.94 0.22 –0.14 0.70 0.08 0.06 18.00 17.55 9.56 17.70 17.22 9.28 17.67 17.19 9.16 Weighted Average, FFEL ..................................................... Direct Loans: Stafford ................................................................................... Unsubsidized Stafford ............................................................. PLUS ........................................................................................ 17.13 16.78 16.70 17.22 16.76 8.51 17.46 17.06 8.69 17.32 17.02 8.68 Weighted Average, Direct Loans ........................................ Consolidation Loans: FFEL ......................................................................................... Direct Loans ............................................................................ 16.25 16.43 16.28 10.50 10.50 10.50 10.50 10.50 10.50 Weighted Average, FFEL ..................................................... Direct Loans: Stafford ................................................................................... Unsubsidized Stafford ............................................................. PLUS ........................................................................................ Weighted Average, Direct Loans ........................................ Consolidation Loans: FFEL ......................................................................................... Direct Loans ............................................................................ Weighted Average, Consolidation Loans ............................ Default Rates (in percent) 2 ...................................................... FFEL: Stafford ................................................................................... Unsubsidized Stafford ............................................................. PLUS ........................................................................................ Weighted Average, Consolidation Loans ............................ 10.50 10.50 10.50 Borrower Interest Rates (in percent) ....................................... FFEL: 8.25 8.21 7.11 Stafford3 .................................................................................. 8.25 8.21 7.11 Unsubsidized Stafford3 ........................................................... 3 ...................................................................................... 8.60 8.62 8.21 PLUS Direct Loans 3 .................................................................................. 8.25 8.21 7.11 Stafford 8.25 8.21 7.11 Unsubsidized Stafford3 ........................................................... 3 ...................................................................................... 8.60 8.62 8.21 PLUS Consolidation Loans: 4 ....................................................................................... ................... ................... ................... FFEL Direct Loans 4 ......................................................................... ................... ................... ................... Federal Borrowing Rate for Direct Loans (in percent) ........... 6.64 6.35 6.11 1 Subsidy rates represent the Federal portion of non-administrative costs—principally interest subsidies and defaults—associated with each borrowed dollar. For example, a $1,000 loan with Federal subsidy costs of $100 would have a subsidy rate of 10 percent. 2 Default rates displayed in this table, which reflect projected defaults over the life of a loan cohort, are used in developing program cost estimates. The Department uses other rates based on defaults occurring in the first two years of repayment to determine institutional eligibility to participate in Federal loan programs. These three-year rates tend to be lower than those included in this table. 3 Rates shown for FY 1998 are those in effect beginning July 1, 1998. 4 Under current law, interest rates under the FFEL Consolidation Loan program reflect a weighted average of the rates of the loans consolidated, rounded upward to the nearest whole percentage. For the Direct Loan Consolidation program, loans consolidated from the Stafford and Unsubsidized Stafford Loan program are charged the Stafford Loan interest rate. Loans consolidated from the PLUS Loan program are charged the PLUS interest rate. Composition of Default Collections (In thousands of dollars) 1996 actual 7,292 1 These figures show total collections by guaranty agencies. Actual Federal revenues resulting from these collections are lower than the amount shown because agencies retain 27 percent of the amount collected. 2 These figures include collections on Consolidations Loans, which have very low default rates. For FY 1996, Consolidation Loan-related collections totaled $26,555,135 for FFEL and $4,437 for Direct Loans. Projected Participation in Repayment Plans 1 (in thousands of dollars) Summary of Subsidy Rates, Default Rates, Interest Rates, and Discount Rates 1996 actual 2,190 Total, FFEL and Direct Loans ...................................................... (2,614,008) (2,077,009) (2,174,122) Consolidations from Default ................................................... Subsidy Rates (in percent) 1 FFEL: Stafford ................................................................................... Unsubsidized Stafford ............................................................. PLUS ........................................................................................ 28 1997 est. 1998 est. FFEL: Collections by Guaranty Agencies 1 ........................................ (1,291,999) (1,027,653) (1,078,173) Collections by Department of Education ................................ (808,253) (642,883) (674,487) Internal Revenue Service Tax Refund Offsets ........................ (513,785) (408,663) (428,753) Total, FFEL2 .................................................................... (2,614,036) (2,079,199) (2,181,414) Direct Loans: Collections by Department of Education ................................ 28 2,190 7,292 1996 cohort FFEL:1 Standard: Percent of Loan Volume:2 Stafford ................................................................. Unsubsidized Stafford ........................................... PLUS ...................................................................... Consolidation ........................................................ Subsidy Rate (in percent):3 Stafford ................................................................. Unsubsidized Stafford ........................................... PLUS ...................................................................... Consolidation ........................................................ Graduated:3 Percent of Loan Volume:2 Stafford ................................................................. Unsubsidized Stafford ........................................... PLUS ...................................................................... Consolidation ........................................................ Subsidy Rate (in percent):3 Stafford ................................................................. Unsubsidized Stafford ........................................... PLUS ...................................................................... Consolidation ........................................................ Extended:3 Percent of Loan Volume:2 Stafford ................................................................. Unsubsidized Stafford ........................................... PLUS ...................................................................... Consolidation ........................................................ Subsidy Rate (in percent):3 Stafford ................................................................. Unsubsidized Stafford ........................................... PLUS ...................................................................... Consolidation ........................................................ Direct Loan:3 Standard: Percent of Loan Volume:2 Stafford ................................................................. Unsubsidized Stafford ........................................... PLUS ...................................................................... Consolidation ........................................................ Subsidy Rate (in percent):3 Stafford ................................................................. Unsubsidized Stafford ........................................... PLUS ...................................................................... Consilidation ......................................................... Graduated:3 Percent of Loan Volume:2 Stafford ................................................................. Unsubsidized Stafford ........................................... PLUS ...................................................................... Consolidation ........................................................ Subsidy Rate (in percent):3 Stafford ................................................................. Unsubsidized Stafford ........................................... PLUS ...................................................................... Consolidation ........................................................ Extended:3 Percent of Loan Volume:3 Stafford ................................................................. Unsubsidized Stafford ........................................... PLUS ...................................................................... Consolidation ........................................................ Subsidy Rate (in percent):3 Stafford ................................................................. Unsubsidized Stafford ........................................... PLUS ...................................................................... Consolidation ........................................................ Income-Contingent: Percent of Loan Volume:2 Stafford ................................................................. Unsubsidized Stafford ........................................... Consolidation ........................................................ Subsidy Rate (in percent):3 Stafford ................................................................. 1997 cohort 1998 cohort 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 64.88 64.88 80.68 69.59 19.55 7.56 3.83 0.78 19.38 7.47 3.70 0.70 15.33 7.04 3.54 0.30 ................... ................... ................... ................... ................... ................... ................... ................... 28.73 28.73 14.00 17.38 ................... ................... ................... ................... ................... ................... ................... ................... 14.66 5.85 2.38 0.04 ................... ................... ................... ................... ................... ................... ................... ................... 6.39 6.39 5.32 13.03 ................... ................... ................... ................... ................... ................... ................... ................... 14.70 6.01 2.41 0.06 57.79 57.79 80.68 18.62 57.79 57.79 80.68 18.62 57.79 57.79 80.68 18.62 15.37 –9.45 –5.79 2.10 14.92 –9.90 –5.77 1.79 16.30 –6.32 –4.97 4.57 28.73 28.73 14.00 17.38 28.73 28.73 14.00 17.38 28.73 28.73 14.00 17.38 13.12 –12.21 –9.92 –0.35 11.86 –13.22 –10.52 –1.09 13.47 –9.20 –9.79 2.99 6.39 6.39 5.32 13.03 6.39 6.39 5.32 13.03 6.39 6.39 5.32 13.03 13.57 –11.54 –8.86 0.33 12.41 –12.40 –9.30 –0.28 14.03 –8.55 –8.55 3.31 7.09 7.09 50.97 7.09 7.09 50.97 7.09 7.09 50.97 10.26 7.96 6.62 OFFICE OF POSTSECONDARY EDUCATION—Continued Federal Funds—Continued DEPARTMENT OF EDUCATION Unsubsidized Stafford ........................................... Consolidation ........................................................ 10.18 –0.21 7.71 –2.06 5.80 –3.81 1 No data is included for the Alternative repayment plan under either FFEL or Direct Loans. Borrowers are not expected to participate in this plan due to the flexibility available under the other options. For FFEL, no data is included for income-sensitive repayment. This option, which has been available for a number of years, has never made up more than a tiny portion of overall loan volume. For Direct Loans, income-contingent repayment is not available for PLUS borrowers. 2 Percent of Loan Volume represents aggregate data. Individual borrowers may move between plans over time. 3 Maximum terms under the Extended and Graduated repayment plans reflect the following ‘‘classes’’ based on borrowers debt levels. Maximum Percent of Debt Level Term (in Volume years) Within Affected Plans Below $10,000 ........................................ 12 57.57 $10,000–$20,000 ................................... 15 24.28 $20,000–$40,000 ................................... 20 14.56 $40,000–$60,000 ................................... 25 2.22 Above $60,000 ........................................ 30 1.37 Subsidy costs for the FFEL and Direct Loan programs are estimated in accordance with procedures set out in the Credit Reform Act of 1990. Subsidy costs for each loan type are estimated separately and, because costs can vary widely within a program depending on the characteristics of the individual borrower, cost estimates are aggregated from data for homogeneous groups within risk categories. Risk categories for Stafford and Unsubsidized Stafford Loans are based on the type of school attended by the borrower. Since PLUS loan borrowers are all parents, they are assumed to share similar risk profiles and are grouped together in a single category. For Consolidation Loans, risk categories distinguish between standard Consolidation Loans—in which borrowers in repayment consolidate a number of outstanding loans—and loans consolidated out of default. Default rates are a major cause of differences in subsidy between risk categories. The default rates in the following tables reflect estimates of the percent of borrowers who will default over the lifetime of the loans. These estimates are revised annually based on an analysis of default trends prepared each year by an independent auditor. Within each risk group, it is assumed that borrowers choosing similar repayment plans will have similar default rates, regardless of whether they borrow under the FFEL or Direct Loan program. The risk group data below also reflect proposed policy changes and interest rate projections in the President’s 1998 Budget. These factors substantially decrease subsidy rates across years in the FFEL program. Subsidy rates in the Direct Loan program increase over the same period, primarily due to proposals to reduce borrower origination fees. FFEL RISK CATEGORIES: STAFFORD LOANS Subsidy Rate (as a percentage of loan commitments) 1996 actual Risk Categories: Category 1: 4 year college, 1st and 2nd year students Category 2: 4 year college, 3rd and 4th year students Category 3: 2 year college, all students ................................ Category 4: Proprietary school, all students .......................... Category 5: Graduate students .............................................. 25.68 16.17 22.9 21.25 16.9 1997 est. 25.25 15.77 22.51 21.01 16.53 1998 est. 20.39 13.08 20.36 20.12 12.94 Gross Default Rates (in percent) 21.49 15.23 31.18 37.75 10.37 1997 est. 21.14 15.24 31.11 37.72 10.38 1998 est. 21.1 15.35 31.12 37.67 10.39 UNSUBSIDIZED STAFFORD LOANS Subsidy Rate (as a percentage of loan commitments) 1996 actual Risk Categories: Category 1: 4 year college, 1st and 2nd year students Category 2: 4 year college, 3rd and 4th year students Category 3: 2 year college, all students ................................ 18.59 2.86 18.5 2.8 18.3 2.81 Gross Default Rates (in percent) 1996 actual Risk Categories: Category 1: 4 year college, 1st and 2nd year students Category 2: 4 year college, 3rd and 4th year students Category 3: 2 year college, all students ................................ Category 4: Proprietary school, all students .......................... Category 5: Graduate students .............................................. 1997 est. 21.87 15.37 30.96 37.5 10.31 21.41 15.36 30.85 37.48 10.29 1998 est. 21.44 15.47 30.87 37.45 10.31 PLUS LOANS Subsidy Rate (as a percentage of loan commitments) 1996 actual All PLUS Loans ........................................................................ 1997 est. 1998 est. 3.83 3.7 3.32 9.56 9.28 9.16 Gross Default Rates (in percent) All PLUS Loans ........................................................................ DIRECT LOAN RISK CATEGORIES: STAFFORD LOANS Subsidy Rate (as a percentage of loan commitments) 1996 actual Risk Categories: Category 1: 4 year college, 1st and 2nd year students Category 2: 4 year college, 3rd and 4th year students Category 3: 2 year college, all students ................................ Category 4: Proprietary school, all students .......................... Category 5: Graduate students .............................................. 20.51 11.33 18.91 18.24 11.63 1997 est. 19.27 10.33 18.16 17.62 10.52 1998 est. 21.06 12.63 20.39 20.05 12.63 Gross Default Rates (in percent) 1996 actual Risk Categories: Category 1: 4 year college, 1st and 2nd year students Category 2: 4 year college, 3rd and 4th year students Category 3: 2 year college, all students ................................ Category 4: Proprietary school, all students .......................... Category 5: Graduate students .............................................. 22.47 15.12 31.59 37.66 10.37 1997 est. 22.49 15.18 31.62 37.76 10.36 1998 est. 22.2 15.1 31.55 37.8 10.32 UNSUBSIDIZED STAFFORD LOANS Subsidy Rate (as a percentage of loan commitments) 1996 actual Risk Categories: Category 1: 4 year college, 1st and 2nd year students Category 2: 4 year college, 3rd and 4th year students Category 3: 2 year college, all students ................................ Category 4: Proprietary school, all students .......................... Category 5: Graduate students .............................................. –6.8 –8.86 –0.98 2.9 –12.77 1997 est. –7.82 –9.7 –1.49 2.35 –13.76 1998 est. –4.01 –6.05 2.03 5.6 –9.92 Gross Default Rates (in percent) 1996 actual Risk Categories: Category 1: 4 year college, 1st and 2nd year students Category 2: 4 year college, 3rd and 4th year students Category 3: 2 year college, all students ................................ Category 4: Proprietary school, all students .......................... Category 5: Graduate students .............................................. 22.44 15.2 31.17 37.45 10.23 1997 est. 22.58 15.3 31.37 37.52 10.29 1998 est. 22.43 15.23 31.32 37.58 10.26 PLUS LOANS Subsidy Rate (as a percentage of loan commitments) 1996 actual All PLUS Loans ........................................................................ 1997 est. 1998 est. –6.53 –6.62 –5.84 8.51 8.69 8.68 Gross Default Rates (in percent) 1996 actual Risk Categories: Category 1: 4 year college, 1st and 2nd year students Category 2: 4 year college, 3rd and 4th year students Category 3: 2 year college, all students ................................ Category 4: Proprietary school, all students .......................... Category 5: Graduate students .............................................. Category 4: Proprietary school, all students .......................... Category 5: Graduate students .............................................. 435 10.29 6.73 15.6 1997 est. 10.09 6.69 15.46 1998 est. 9.93 6.66 15.35 All PLUS Loans ........................................................................ Summary of Program Costs and Offsets (In thousands of dollars) 1996 actual Interest subsidy costs: FFEL: Interest benefits ................................................................. Special allowance ............................................................... Total FFEL ...................................................................... Direct Loans 1 ..................................................................... Default costs and offsets: Default costs:2 FFEL .................................................................................... 1997 est. 1998 est. 2,522,360 380,186 1,974,346 101,295 1,710,834 47,609 2,902,546 396,626 2,075,641 641,753 1,758,443 918,899 2,573,669 2,874,541 3,006,268 OFFICE OF POSTSECONDARY EDUCATION—Continued Federal Funds—Continued 436 THE BUDGET FOR FISCAL YEAR 1998 Credit accounts—Continued Personnel Summary FEDERAL DIRECT STUDENT LOAN PROGRAM ACCOUNT—Continued Identification code 91–0243–0–1–502 Summary of Program Costs and Offsets (In thousands of dollars)—Continued 1996 actual 1997 est. 1001 526 904 1993 1,110 1994 1,413 1995 1,767 520 520 FEDERAL DIRECT STUDENT LOAN PROGRAM ACCOUNT (Legislative proposal, subject to PAYGO) Program and Financing (in millions of dollars) Identification code 91–0243–4–1–502 1996 actual 1997 est. 1998 est. 392,606 0 91 302 02.01 07.09 Obligations by program activity: Direct loan subsidy ........................................................ ................... ................... Student loan administrative expenses .......................... ................... ................... 106 –218 453,620 4,715 1,176,829 21,155 1,217,459 67,240 10.00 Total obligations ........................................................ ................... ................... –112 222,890 2,679 28,841 261,603 18,798 50,037 260,072 39,337 n.a. 22.00 23.95 Budgetary resources available for obligation: New budget authority (gross) ........................................ ................... ................... New obligations ............................................................. ................... ................... –112 112 30,066 436,000 46,482 491,000 47,688 532,000 60.00 60.05 New budget authority (gross), detail: Appropriation .................................................................. ................... ................... Appropriation (indefinite) ............................................... ................... ................... –218 106 167,040 43,002 14,501 152,752 22,501 7,052 152,143 7,165 9,539 63.00 Appropriation (total) .................................................. ................... ................... –112 70.00 Total new budget authority (gross) .......................... ................... ................... –112 –583,428 –317,550 (105,366) (53,043) (64,301) –502,018 –375,543 (104,740) (27,900) (129,130) –505,558 –447,727 (106,205) (41,292) (162,128) 1996 1 1,900 1997 2 2,100 1998 1, 2 1,660 1 Estimated. 2 Assumes 481 1998 est. 381,487 Guaranty Agency Reserve Fund Levels (in millions of dollars) 1992 1997 est. 493,988 1 This represents net interest costs associated with Direct Loans. 2 Default costs under FFEL reflect claims paid to guaranty agencies. Default costs under Direct Loans reflect non-repayment of defaulted loans. 3 In the budget schedules, Direct Loan collections are displayed net of collection costs. 4 Net default costs equal default claims minus net collections (gross collections minus contract collection costs and guaranty agency retention). 5 Applies to FFEL program only. 6 Includes repayment of agency advances, elimination of excess agency reserves, through direct payments to the Government and reduced reinsurance payments to the agencies, and purchase of rehabilitated loans by the agencies. 7 Supports a number of expenses related to the management of the student assistance programs. The largest of these, administrative expense allowances to guaranty agencies, is shown as a separate line. 8 Administrative Expense Allowances paid from Student Loan administrative funds. 9 Applies to Direct Loans only. These payments are made to Department contractors that provide alternative organization services. They are not made to institutions participating in the Direct Loan program. 1991 1996 actual 1998 est. Direct Loans ....................................................................... 4,743 23,254 74,230 Gross default collections: FFEL .................................................................................... –2,614,037 –2,079,199 –2,181,415 Direct Loans ....................................................................... (28) (2,190) (7,292) Default collection costs: FFEL: Contract collection costs ............................................... 145,148 104,021 101,499 Guaranty agency retention ............................................. 348,840 277,466 291,107 Total, FFEL collect costs ........................................... Direct Loans: Collection costs 3 ........................................................... Net default costs:4 FFEL .................................................................................... Direct Loans ....................................................................... Death, disability, and bankruptcy costs: FFEL .................................................................................... Direct Loans ....................................................................... Other write-offs 5,6 ...................................................................... Administrative Costs: Federal administration: FFEL .................................................................................... Student Aid 7 .................................................................. Guaranty agency administrative payments: Student Aid Management 8 ................................................ Supplemental preclaims assistance 5 .................................... Payments for origination services 9 ........................................ Fees: Borrower origination fees: FFEL .................................................................................... Direct Loans ....................................................................... Lender origination fee 5 ...................................................... Sallie Mae offset fee 5 ........................................................ Consolidated loan holder fees 5 ......................................... Total compensable workyears: Full-time equivalent employment ............................................................... Change in unpaid obligations: Unpaid obligations, start of year: Obligated balance: Appropriation ............................................................. 73.10 New obligations ............................................................. 73.20 Total outlays (gross) ...................................................... 73.40 Adjustments in expired accounts .................................. 73.45 Adjustments in unexpired accounts .............................. 74.40 Unpaid obligations, end of year: Obligated balance: Appropriation ............................................................. 72.40 ................... ................... ................... ................... ................... ................... ................... ................... –112 ................... 56 ................... ................... ................... ................... ................... ................... –56 86.97 Outlays (gross), detail: Outlays from new permanent authority ......................... ................... ................... –56 89.00 90.00 Net budget authority and outlays: Budget authority ............................................................ ................... ................... Outlays ........................................................................... ................... ................... –112 –56 A description of the Administration’s proposed legislation to modify the Direct Loan program is included under the Federal Direct Loan program account. Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in millions of dollars) $731 million returned to the Federal government. Object Classification (in millions of dollars) Identification code 91–0243–4–1–502 Identification code 91–0243–0–1–502 11.1 11.3 11.9 12.1 21.0 23.1 23.3 24.0 25.1 25.2 25.3 25.7 26.0 31.0 32.0 41.0 99.9 Personnel compensation: Full-time permanent .................................................. Other than full-time permanent ............................... 1996 actual 1997 est. 1998 est. 23 1 26 1 26 1 Total personnel compensation .............................. 24 Civilian personnel benefits ............................................ 5 Travel and transportation of persons ............................ 2 Rental payments to GSA ................................................ 5 Communications, utilities, and miscellaneous charges 14 Printing and reproduction .............................................. 7 Advisory and assistance services .................................. 4 Other services ................................................................ 3 Purchases of goods and services from Government accounts .................................................................... 5 Operation and maintenance of equipment ................... 184 Supplies and materials ................................................. ................... Equipment ...................................................................... 1 Land and structures ...................................................... 1 Grants, subsidies, and contributions ............................ 420 27 6 3 5 14 7 2 10 27 7 6 9 29 16 4 18 Total obligations ........................................................ 675 5 8 257 478 1 1 1 2 1 ................... 565 790 904 1,395 1996 actual 1997 est. 1320 1320 1320 Direct loan subsidy (in percent): Stafford .......................................................................... ................... ................... Unsubsidized Stafford .................................................... ................... ................... PLUS ............................................................................... ................... ................... 1329 1998 est. 1.00 0.50 0.50 Weighted average subsidy rate ................................. Direct loan subsidy budget authority: 1330 Stafford .......................................................................... 1330 Unsubsidized Stafford .................................................... 1330 PLUS ............................................................................... ................... ................... 0.63 ................... ................... ................... ................... ................... ................... 77 21 8 1339 ................... ................... 106 ................... ................... ................... ................... ................... ................... 41 12 4 1349 Total subsidy outlays ................................................ ................... ................... 57 3510 3590 Student loan administrative expense data: Budget authority ............................................................ ................... ................... Outlays ........................................................................... ................... ................... –218 –113 Total subsidy budget authority ................................. Direct loan subsidy outlays: 1340 Stafford .......................................................................... 1340 Unsubsidized Stafford .................................................... 1340 PLUS ............................................................................... OFFICE OF POSTSECONDARY EDUCATION—Continued Federal Funds—Continued DEPARTMENT OF EDUCATION Object Classification (in millions of dollars) 1996 actual 1997 est. ................... ................... ................... ................... ................... ................... ................... ................... ................... ................... ................... ................... –3 –4 –13 –8 –2 –8 ................... ................... ................... ................... ................... ................... ................... ................... ................... ................... –3 –175 –1 –1 106 Total obligations ........................................................ ................... ................... –112 Identification code 91–0243–4–1–502 21.0 23.1 23.3 24.0 25.1 25.2 25.3 25.7 26.0 31.0 41.0 99.9 Travel and transportation of persons ............................ Rental payments to GSA ................................................ Communications, utilities, and miscellaneous charges Printing and reproduction .............................................. Advisory and assistance services .................................. Other services ................................................................ Purchases of goods and services from Government accounts .................................................................... Operation and maintenance of equipment ................... Supplies and materials ................................................. Equipment ...................................................................... Grants, subsidies, and contributions ............................ 1998 est. Program and Financing (in millions of dollars) 1996 actual 1997 est. 88.40 88.40 88.40 Unsubsidized Stafford .................................. PLUS ............................................................. Consolidated ................................................ Volume Reestimate ...................................... Interest on uninvested funds ............................... Non-Federal sources: Stafford loans: Repayment of principal, Stafford ................ Interest received on loans, Stafford ............ Fees, Stafford ............................................... Recoveries of defaults, Stafford .................. Unsubsidized Stafford loans: Repayment of principal, Unsubsidized Stafford .......................................................... Interest received on loans, Unsubsidized Stafford .................................................... Fees, Unsubsidized Stafford ........................ Recoveries of defaults, Unsubsidized Stafford .......................................................... PLUS loans: Repayment of principal, PLUS ..................... Interest received on loans, PLUS ................. Fees, PLUS ................................................... Recoveries of defaults, PLUS ....................... Consolidated: Payment of Principal, Consolidated ............ Interest received on loans, Consolidated .... Recoveries of defaults, Consolidated .......... 88.90 Total, offsetting collections (cash) .................. –1,286 –1,667 –2,989 89.00 90.00 Net financing authority and financing disbursements: Financing authority ........................................................ Financing disbursements ............................................... 8,221 8,538 11,903 10,933 14,115 13,271 88.40 88.40 88.40 88.40 88.40 88.40 88.40 88.40 88.40 88.40 88.40 88.40 FEDERAL DIRECT STUDENT LOAN PROGRAM, FINANCING ACCOUNT Identification code 91–4253–0–3–502 88.00 88.00 88.00 88.00 88.25 1998 est. Obligations by program activity: Direct loans: 01.01 Stafford ...................................................................... 01.02 Unsubsidized Stafford ............................................... 01.03 PLUS .......................................................................... 01.04 Consolidated .............................................................. 5,101 2,557 771 832 5,830 3,083 1,025 2,589 6,958 3,765 1,314 3,340 01.91 9,261 12,527 437 332 301 261 62 68 83 7 24 5 –3 ................... ................... –402 ................... ................... –84 –9 –188 ................... –109 –158 –221 –1 –256 –367 –259 –4 –51 –57 –146 –32 –94 –83 –116 –206 –140 ................... –1 –2 –57 –123 –45 –137 –35 –38 ................... ................... –214 –218 –48 –1 –22 –82 –27 –154 ................... ................... –194 –332 –1 15,377 02.01 02.02 02.03 02.04 Subtotal, direct loans obligations ........................ Payment of origination services: Stafford ...................................................................... Unsubsidized Stafford ............................................... PLUS .......................................................................... Consolidated .............................................................. 02.91 04.01 05.01 Subtotal, Payment of origination services ................ 15 Interest payment to Treasury ......................................... 750 Payment of downward reestimate to program account ................... 10.00 Total obligations ........................................................ 7 1 1 4 ................... ................... 1 ................... ................... 3 6 9 10,026 7 10 1,035 1,717 304 ................... 13,873 17,104 Budgetary resources available for obligation: 21.40 Unobligated balance available, start of year: Uninvested balance ................................................... ................... 24 24 22.00 New financing authority (gross) .................................... 9,507 13,570 17,104 22.10 Resources available from recoveries of prior year obligations ....................................................................... 1,825 304 ................... 22.70 Balance of authority to borrow withdrawn .................... –1,282 ................... ................... 23.90 23.95 24.40 Total budgetary resources available for obligation New obligations ............................................................. Unobligated balance available, end of year: Uninvested balance ................................................... New financing authority (gross), detail: 67.15 Authority to borrow (indefinite) ..................................... Spending authority from offsetting collections: 68.00 Offsetting collections (cash) ..................................... 68.47 Portion applied to debt reduction ............................. 68.90 70.00 10,050 –10,026 13,898 –13,873 17,128 –17,104 24 24 Status of Direct Loans (in millions of dollars) Identification code 91–4253–0–3–502 1996 actual 1997 est. 1998 est. STAFFORD Position with respect to appropriations act limitation on obligations: 1111 Limitation on direct loans ............................................. ................... ................... ................... 1131 Direct loan obligations exempt from limitation ............ 5,101 5,830 6,958 1150 Total direct loan obligations ..................................... 5,101 5,830 6,958 Cumulative balance of direct loans outstanding: Outstanding, start of year ............................................. 1,515 6,317 11,753 Disbursements: Direct loan disbursements ................... 4,901 5,549 6,500 Repayments: Repayments and prepayments ................. –84 –109 –261 Adjustments: Capitalized interest ................................. 2 ................... ................... Write-offs for default: 1263 Direct loans ............................................................... ................... ................... ................... 1264 Other adjustments, net ............................................. –17 –4 –10 1210 1231 1251 1261 24 1290 Outstanding, end of year .......................................... 6,317 11,753 17,982 UNSUBSIDIZED STAFFORD Position with respect to appropriations act limitation on obligations: 1131 Direct loan obligations exempt from limitation ............ 2,558 3,083 3,765 1150 2,558 3,083 3,765 9,024 12,140 14,775 1,286 –803 1,667 –237 2,989 –660 Spending authority from offsetting collections (total) ................................................................ 483 1,430 2,329 Total new financing authority (gross) ...................... 9,507 13,570 17,104 1210 1231 1251 1261 2,921 3,890 13,873 17,104 –12,600 –16,260 –304 ................... 1290 Change in unpaid obligations: Unpaid obligations, start of year: Obligated balance: Unpaid obligations .................................................... 73.10 New obligations ............................................................. 73.20 Total financing disbursements (gross) ......................... 73.45 Adjustments in unexpired accounts .............................. 74.90 Unpaid obligations, end of year: Obligated balance: Unpaid obligations .................................................... 87.00 Total financing disbursements (gross) ......................... 72.90 Offsets: Against gross financing authority and financing disbursements: Offsetting collections (cash) from: Federal sources: Payments from subsidy account: 88.00 Stafford ........................................................ 4,545 10,026 –9,824 –1,825 Total direct loan obligations ..................................... Cumulative balance of direct loans outstanding: Outstanding, start of year ............................................. 666 3,063 5,900 Disbursements: Direct loan disbursements ................... 2,459 2,897 3,496 Repayments: Repayments and prepayments ................. –51 –57 –147 Adjustments: Capitalized interest ................................. 14 ................... ................... Write-offs for default: 1263 Direct loans ............................................................... ................... ................... ................... 1264 Other adjustments, net ............................................. –25 –3 –8 –638 3,890 12,600 –780 4,734 16,260 –950 3,063 5,900 9,241 PLUS Position with respect to appropriations act limitation on obligations: 1131 Direct loan obligations exempt from limitation ............ 771 1,025 1,314 1150 2,921 9,824 Outstanding, end of year .......................................... Total direct loan obligations ..................................... 771 1,025 1,314 1210 1231 1251 Cumulative balance of direct loans outstanding: Outstanding, start of year ............................................. Disbursements: Direct loan disbursements ................... Repayments: Repayments and prepayments ................. 216 707 –57 865 943 –124 1,676 1,197 –215 438 OFFICE OF POSTSECONDARY EDUCATION—Continued Federal Funds—Continued THE BUDGET FOR FISCAL YEAR 1998 Credit accounts—Continued FEDERAL DIRECT STUDENT LOAN PROGRAM, FINANCING ACCOUNT— Continued Status of Direct Loans (in millions of dollars)—Continued 1996 actual Identification code 91–4253–0–3–502 1263 1264 1997 est. 22.00 23.95 Budgetary resources available for obligation: New financing authority (gross) .................................... ................... ................... New obligations ............................................................. ................... ................... New financing authority (gross), detail: Authority to borrow (indefinite) ..................................... ................... ................... Spending authority from offsetting collections: 68.00 Offsetting collections (cash) ..................................... ................... ................... 68.47 Portion applied to debt reduction ............................. ................... ................... 67.15 1998 est. Write-offs for default: Direct loans ............................................................... ................... ................... ................... Other adjustments, net ............................................. –1 –8 –14 –95 95 –3 Spending authority from offsetting collections (total) ................................................................ ................... ................... 92 70.00 Total new financing authority (gross) ...................... ................... ................... –3 73.10 73.20 87.00 Change in unpaid obligations: New obligations ............................................................. ................... ................... Total financing disbursements (gross) ......................... ................... ................... Total financing disbursements (gross) ......................... ................... ................... –3 3 –3 Cumulative balance of direct loans outstanding: Outstanding, start of year ............................................. 296 1,320 3,824 Disbursements: Direct loan disbursements ................... 1,033 2,589 3,340 Repayments: Repayments and prepayments ................. –22 –82 –194 Adjustments: Capitalized interest ................................. 13 ................... ................... Write-offs for default: 1263 Direct loans ............................................................... ................... ................... ................... 1264 Other adjustments, net ............................................. ................... –3 –8 Offsets: Against gross financing authority and financing disbursements: Offsetting collections (cash) from: Federal sources: Payments from subsidy account: 88.00 Stafford ........................................................ ................... ................... 88.00 Unsubsidized Stafford .................................. ................... ................... 88.00 PLUS ............................................................. ................... ................... –70 –19 –6 1290 88.90 Total, offsetting collections (cash) .................. ................... ................... –95 89.00 90.00 Net financing authority and financing disbursements: Financing authority ........................................................ ................... ................... Financing disbursements ............................................... ................... ................... –98 –98 1290 Outstanding, end of year .......................................... 865 1,676 2,644 CONSOLIDATED Position with respect to appropriations act limitation on obligations: 1131 Direct loan obligations exempt from limitation ............ 832 2,589 3,340 1150 832 2,589 68.90 –3 3 3,340 Total direct loan obligations ..................................... 1210 1231 1251 1261 Outstanding, end of year .......................................... 1,320 3,824 6,962 Balance Sheet (in millions of dollars) Identification code 91–4253–0–3–502 ASSETS: Federal assets: Fund balances with Treasury ............................................... Net value of assets related to post– 1991 direct loans receivable: Direct loans receivable, gross: 1401 Stafford ........................................... 1401 Unsubsidized Stafford .................... 1401 PLUS ............................................... 1401 Consolidated ................................... Interest receivable: 1402 Interest receivable, Stafford ........... 1402 Interest receivable, Unsub Stafford 1402 Interest receivable, PLUS ............... 1402 Interest receivable, Consolidated ... 1405 Allowance for subsidy cost (–) ........... 1995 actual 1996 actual 4,913 1997 est. 2,921 1998 est. Balance Sheet (in millions of dollars) 1101 1499 Net present value of assets related to direct loans ........................... 1999 Total assets ........................................ LIABILITIES: 2103 Federal liabilities: Debt ........................... 2999 Total liabilities .................................... NET POSITION: 3100 Appropriated capital ................................ 3999 4999 Total net position ................................ Total liabilities and net position ............ 3,890 4,733 Identification code 91–4253–4–3–502 6,310 3,044 861 1,304 11,725 5,885 1,662 3,817 17,882 9,192 2,607 6,945 .................. .................. .................. .................. –553 5 114 8 25 –655 6 138 10 73 –764 7 167 14 94 –1,404 1996 actual 1997 est. ASSETS: Net value of assets related to post– 1991 direct loans receivable: 1405 Allowance for subsidy cost (–) ........... .................. .................. .................. –95 .................. .................. .................. –95 1999 Total assets ........................................ LIABILITIES: 2103 Federal liabilities: Debt ........................... .................. .................. .................. –95 .................. .................. .................. –98 2999 1,558 708 225 310 1995 actual .................. .................. .................. –98 .................. .................. .................. 3 1499 Net present value of assets related to direct loans ........................... 1998 est. 2,248 11,016 22,552 35,504 Total liabilities .................................... NET POSITION: 3100 Appropriated capital ................................ 7,161 13,937 26,442 40,237 3999 Total net position ................................ .................. .................. .................. 3 6,793 12,220 24,413 38,457 4999 Total liabilities and net position ............ .................. .................. .................. –95 6,793 12,220 24,413 38,457 368 1,717 2,029 1,780 368 1,717 2,029 1,780 7,161 13,937 26,442 40,237 As required by the Federal Credit Reform Act of 1990, this non-budgetary account records all cash flows to and from the Government resulting from Direct Loans. The amounts in this account are a means of financing and are not included in the budget totals. FEDERAL DIRECT STUDENT LOAN PROGRAM FINANCING ACCOUNT FEDERAL FAMILY EDUCATION LOAN PROGRAM ACCOUNT For Federal administrative expenses to carry out guaranteed student loans authorized by title IV, part B, of the Higher Education Act, as amended, ø$46,572,000¿ $47,988,000. (Department of Education Appropriations Act, 1997.) Note.—The following tables display the program account which includes the subsidy costs and administrative expenses associated with guaranteed student loan commitments beginning in 1992. Program and Financing (in millions of dollars) Identification code 91–0231–0–1–502 1996 actual 1997 est. 1998 est. (Legislative proposal, subject to PAYGO) Program and Financing (in millions of dollars) Identification code 91–4253–4–3–502 1996 actual 1997 est. 1998 est. 04.01 Obligations by program activity: Interest payment to Treasury ......................................... ................... ................... –3 10.00 Total obligations ........................................................ ................... ................... Obligations by program activity: Guaranteed loan subsidy: 02.01 Stafford ...................................................................... 02.02 Unsubsidized Stafford ............................................... 02.03 PLUS .......................................................................... 02.05 Consolidated .............................................................. 02.07 Upward reestimate (92 cohort) ................................. 02.08 Interest on reestimate ............................................... 2,244 391 44 13 971 72 2,106 1,992 461 448 64 66 30 33 521 ................... 43 ................... 02.91 3,735 3,225 –3 Subtotal, subsidy cost .......................................... 2,539 OFFICE OF POSTSECONDARY EDUCATION—Continued Federal Funds—Continued DEPARTMENT OF EDUCATION 07.01 Administrative expenses: Administrative expenses due to limitations ............. 30 46 48 10.00 Total obligations ........................................................ 3,765 3,271 2,587 4,024 3,271 2,587 Budgetary resources available for obligation: New budget authority (gross) ........................................ Resources available from recoveries of prior year obligations ....................................................................... 22.40 Capital transfer to general fund ................................... 22.00 22.10 23.90 23.95 Total budgetary resources available for obligation New obligations ............................................................. New budget authority (gross), detail: Current: 40.00 Appropriation (Federal Administration) ..................... Permanent: 60.05 Appropriation (indefinite) .......................................... 68.00 Spending authority from offsetting collections: Offsetting collections (cash) ..................................... 70.00 Total new budget authority (gross) .......................... Change in unpaid obligations: Unpaid obligations, start of year: Obligated balance: Appropriation ............................................................. 73.10 New obligations ............................................................. 73.20 Total outlays (gross) ...................................................... 73.45 Adjustments in unexpired accounts .............................. 74.40 Unpaid obligations, end of year: Obligated balance: Appropriation ............................................................. 3,765 –3,765 3,271 –3,271 2,587 –2,587 30 46 48 3,546 471 2,539 448 4,024 2,754 ................... 3,271 2,587 1,002 1,065 1,219 3,765 3,271 2,587 –3,496 –3,117 –2,395 –206 ................... ................... 1,065 1,219 1,411 Outlays (gross), detail: Outlays from new current authority .............................. Outlays from current balances ...................................... Outlays from new permanent authority ......................... Outlays from permanent balances ................................ 25 16 2,694 761 31 10 2,754 322 34 10 1,407 944 87.00 Total outlays (gross) ................................................. 3,496 3,117 2,395 Net budget authority and outlays: Budget authority ............................................................ Outlays ........................................................................... –448 3,576 3,048 –2,754 ................... 517 363 2,587 2,395 [In millions of dollars] Enacted/requested: 1996 actual Budget Authority ..................................................................... 3,576 Outlays .................................................................................... 3,048 Legislative proposal, subject to PAYGO: Budget Authority ..................................................................... .................... Outlays .................................................................................... .................... 3,576 3,048 1997 est. 1998 est. 517 363 2,587 2,395 –340 –340 –461 –263 177 23 2,126 2,132 Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in millions of dollars) Identification code 91–0231–0–1–502 1996 actual 1997 est. 1998 est. Guaranteed loan levels supportable by subsidy budget authority: 2150 Stafford .......................................................................... 2150 Unsubsidized Stafford .................................................... 2150 PLUS ............................................................................... 2150 Consolidated .................................................................. 10,557 6,103 1,591 4,061 10,863 6,176 1,737 4,262 Total subsidy budget authority ................................. Guaranteed loan subsidy outlays: 2340 Stafford .......................................................................... 2340 Unsubsidized Stafford .................................................... 2340 PLUS ............................................................................... 2340 Consolidated .................................................................. 2340 Upward reestimate ......................................................... 2340 Downward reestimate .................................................... 3,546 Total subsidy outlays ................................................ 3,007 322 2,351 3510 3590 Administrative expense data: Budget authority ............................................................ Outlays ........................................................................... 30 41 46 41 48 44 2159 22,312 23,038 22,995 23.26 7.09 3.14 0.33 19.38 7.47 3.70 0.70 18.80 7.27 3.65 0.75 13.23 11.55 11.04 2,455 433 2,106 461 1,992 448 2329 Weighted average subsidy rate ................................. Guaranteed loan subsidy budget authority: 2330 Stafford .......................................................................... 2330 Unsubsidized Stafford .................................................... 471 2,055 311 33 13 1,043 –448 2,539 2,030 1,853 401 407 51 58 30 33 564 ................... –2,754 ................... As required by the Federal Credit Reform Act of 1990, this program account records for this program the subsidy costs associated with Federal Family Education Loans (FFEL), formerly guaranteed student loans (GSL), committed in 1992 and beyond, as well as certain administrative expenses of the program. Administrative expenses include discretionary expenses for salaries, expenses and overhead of employees working directly on the program. Beginning with the 1993 cohort, mandatory administrative costs, specifically contract collection costs and supplemental pre-claims assistance, are included in the FFEL subsidy estimates of each year’s cohort. The subsidy amounts are estimated on a net present value basis. A description of the FFEL program and accompanying tables are included under the Federal Direct Student Loan program account. 1996 actual Identification code 91–0231–0–1–502 11.1 11.3 11.9 12.1 21.0 23.1 23.3 24.0 25.1 25.2 25.3 25.7 41.0 99.9 Personnel compensation: Full-time permanent .................................................. Other than full-time permanent ............................... 1997 est. 1998 est. 15 18 19 1 ................... ................... Total personnel compensation .............................. 16 18 19 Civilian personnel benefits ............................................ 3 4 4 Travel and transportation of persons ............................ 1 1 1 Rental payments to GSA ................................................ 2 2 2 Communications, utilities, and miscellaneous charges 1 5 1 Printing and reproduction .............................................. 1 1 2 Advisory and assistance services .................................. 1 ................... ................... Other services ................................................................ ................... ................... 1 Purchases of goods and services from Government accounts .................................................................... 1 1 1 Operation and maintenance of equipment ................... 4 14 17 Grants, subsidies, and contributions ............................ 3,735 3,225 2,539 Total obligations ........................................................ 3,765 3,271 2,587 Personnel Summary Identification code 91–0231–0–1–502 1001 10,596 6,162 1,799 4,438 Total loan guarantee levels ...................................... Guaranteed loan subsidy (in percent): 2320 Stafford .......................................................................... 2320 Unsubsidized Stafford .................................................... 2320 PLUS ............................................................................... 2320 Consolidated .................................................................. 64 66 30 33 564 ................... –2,754 ................... Object Classification (in millions of dollars) Summary of Budget Authority and Outlays Total: Budget Authority ..................................................................... Outlays .................................................................................... 50 13 1,043 –448 2349 206 ................... ................... –465 ................... ................... 86.90 86.93 86.97 86.98 89.00 90.00 PLUS ............................................................................... Consolidated .................................................................. Upward reestimate ......................................................... Downward reestimate .................................................... 2339 72.40 Offsets: Against gross budget authority and outlays: 88.00 Offsetting collections (cash) from: Federal sources 2330 2330 2330 2330 439 Total compensable workyears: Full-time equivalent employment ............................................................... 1996 actual 1997 est. 330 368 1998 est. 368 FEDERAL FAMILY EDUCATION LOAN PROGRAM ACCOUNT (Legislative proposal, subject to PAYGO) Program and Financing (in millions of dollars) 1996 actual 1997 est. ................... ................... ................... ................... ................... ................... ................... ................... –393 –39 –6 –23 Total obligations (object class 41.0) ........................ ................... ................... –461 Identification code 91–0231–4–1–502 Obligations by program activity: Guaranteed loan subsidy: 02.01 Stafford ...................................................................... 02.02 Unsubsidized Stafford ............................................... 02.03 PLUS .......................................................................... 02.05 Consolidated .............................................................. 10.00 1998 est. 440 OFFICE OF POSTSECONDARY EDUCATION—Continued Federal Funds—Continued THE BUDGET FOR FISCAL YEAR 1998 Credit accounts—Continued Program and Financing (in millions of dollars) FEDERAL FAMILY EDUCATION LOAN PROGRAM ACCOUNT—Continued Program and Financing (in millions of dollars)—Continued Identification code 91–0231–4–1–502 1996 actual 1997 est. Budgetary resources available for obligation: 22.00 New budget authority (gross) ........................................ ................... ................... 23.95 New obligations ............................................................. ................... ................... 60.05 68.00 70.00 New budget authority (gross), detail: Appropriation (indefinite) ............................................... ................... Spending authority from offsetting collections: Offsetting collections (cash) .............................................. ................... –461 461 01.91 340 ................... 02.02 02.03 02.04 02.06 02.07 –461 72.40 86.97 86.98 87.00 ................... ................... ................... ................... ................... –461 ................... ................... 263 –198 324 –263 –324 ................... 03.91 Total outlays (gross) ................................................. ................... ................... Offsets: Against gross budget authority and outlays: 88.00 Offsetting collections (cash) from: Federal sources ................... Net budget authority and outlays: 89.00 Budget authority ............................................................ ................... 90.00 Outlays ........................................................................... ................... –263 1996 actual 1997 est. 1998 est. 0.00 –2.01 ................... –393 ................... –39 ................... –6 ................... –23 –340 ................... –340 10.00 Total subsidy outlays ................................................ ................... 101 149 164 239 2 2 2 199 14 1 1 165 14 1 2 4,475 6,926 4,426 Budgetary resources available for obligation: Unobligated balance available, start of year: Fund balance ...................................................................... 22.00 New financing authority (gross) .................................... 22.10 Resources available from recoveries of prior year obligations ....................................................................... 7,559 5,807 9,146 4,449 6,669 3,880 21.90 23.90 23.95 24.90 –461 ................... –216 ................... –21 ................... –3 ................... –23 –340 ................... –340 FEDERAL FAMILY EDUCATION LOAN PROGRAM, FINANCING ACCOUNT Note.—The financing account includes all cash flows to and from the government from guaranteed student loans committed after 1991. Total budgetary resources available for obligation New obligations ............................................................. Unobligated balance available, end of year: Fund balance ...................................................................... 70.00 256 ................... ................... 13,622 –4,475 13,595 –6,926 10,549 –4,426 9,146 6,669 6,123 6,261 –454 4,775 –326 4,117 –237 Spending authority from offsetting collections (total) ................................................................ 5,807 4,449 3,880 Total new financing authority (gross) ...................... 5,807 4,449 3,880 New financing authority (gross), detail: Spending authority from offsetting collections: 68.00 Offsetting collections (cash) ..................................... 68.47 Portion applied to debt reduction ............................. –263 A description of the administration’s proposed legislation to modify the Federal Family Education Loan program is included under the Federal Direct Student Loan program account. 208 288 50 26 2,340 ................... 414 ................... Total obligations ........................................................ 68.90 2349 Subtotal, PLUS loans ............................................ SLS loans: Default claims ........................................................... Death, disability and bankruptcy claims .................. Supplemental preclaims assistance ......................... Contract collection costs ........................................... Subtotal, Consolidations loans ............................. 123 Interest paid to Treasury ............................................... 83 Payment of downard reestimate to Program account 448 Interest on downward reestimate .................................. ................... ................... ................... ................... ................... ................... ................... Subtotal, Unsubsidized Stafford loans ................. 116 371 565 PLUS loans: Special Allowance ...................................................... 1 ................... ................... Default claims ........................................................... 80 110 121 Death, disability, and bankruptcy claims ................. 19 38 41 Supplemental preclaims assistance ......................... 1 ................... 1 Contract Collection Costs .......................................... ................... 1 1 05.91 07.01 08.01 09.01 –461 –263 2329 ................... Subtotal, Stafford loans ....................................... 3,359 3,179 3,201 Unsubsidized Stafford loans: Special allowance ...................................................... 3 ................... ................... Default claims ........................................................... 105 343 519 Death, disability, and bankruptcy claims ................. 7 26 42 Supplemental preclaims assistance ......................... 1 1 2 Contract collection costs ........................................... ................... 1 2 –340 –340 –3.71 –0.64 –0.33 –0.53 Total subsidy budget authority ................................. Guaranteed loan subsidy outlays: 2340 Stafford .......................................................................... 2340 Unsubsidized Stafford .................................................... 2340 PLUS ............................................................................... 2340 Consolidated .................................................................. 2340 Downward reestimate .................................................... 2,262 1,846 1,698 121 ................... ................... 889 1,256 1,406 77 67 83 9 5 6 1 5 8 05.01 05.03 05.04 05.06 05.07 0.00 0.00 0.00 0.00 2339 1998 est. Subtotal, SLS loans .............................................. 245 215 182 Consolidations loans: Interest benefits ........................................................ 1 ................... ................... Default claims ........................................................... 115 172 241 Death, disability, and bankruptcy claims ................. 6 35 45 Supplemental preclaims assistance ......................... 1 1 1 Contract Collection Costs .......................................... ................... ................... 1 ................... ................... ................... ................... ................... ................... ................... ................... ................... 1997 est. 04.91 Guaranteed loan subsidy (in percent): 2320 Stafford .......................................................................... 2320 Unsubsidized Stafford .................................................... 2320 PLUS ............................................................................... 2320 Consolidated .................................................................. Weighted average subsidy rate ................................. Guaranteed loan subsidy budget authority: 2330 Stafford .......................................................................... 2330 Unsubsidized Stafford .................................................... 2330 PLUS ............................................................................... 2330 Consolidated .................................................................. 2330 Downward reestimate .................................................... 04.03 04.04 04.06 04.07 1996 actual –340 ................... Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in millions of dollars) Identification code 91–0231–4–1–502 02.91 03.02 03.03 03.04 03.05 03.06 ................... ................... Outlays (gross), detail: Outlays from new permanent authority ......................... ................... Outlays from permanent balances ................................ ................... Obligations by program activity: Stafford loans: 01.01 Interest benefits ........................................................ 01.02 Special allowance ...................................................... 01.03 Default claims ........................................................... 01.04 Death, disability, and bankruptcy claims ................. 01.06 Supplemental preclaims assistance ......................... 01.07 Contract collection costs ........................................... –461 –340 Total new budget authority (gross) .......................... ................... ................... Change in unpaid obligations: Unpaid obligations, start of year: Obligated balance: Appropriation ............................................................. 73.10 New obligations ............................................................. 73.20 Total outlays (gross) ...................................................... 74.40 Unpaid obligations, end of year: Obligated balance: Appropriation ............................................................. 1998 est. Identification code 91–4251–0–3–502 Change in unpaid obligations: Unpaid obligations, start of year: Obligated balance: Obligated balance ..................................................... 73.10 New obligations ............................................................. 73.20 Total financing disbursements (gross) ......................... 73.45 Adjustments in unexpired accounts .............................. 74.90 Unpaid obligations, end of year: Obligated balance: Obligated balance ..................................................... 87.00 Total financing disbursements (gross) ......................... 72.90 21 –886 1,039 4,475 6,926 4,426 –5,126 –5,000 –4,800 –256 ................... ................... –886 5,126 1,039 5,000 664 4,800 OFFICE OF POSTSECONDARY EDUCATION—Continued Federal Funds—Continued DEPARTMENT OF EDUCATION Offsets: Against gross financing authority and financing disbursements: Offsetting collections (cash) from: Federal sources: Payment from subsidy account: 88.00 Stafford loans .............................................. 88.00 Unsubsidized Stafford .................................. 88.00 PLUS loans ................................................... 88.00 Consolidated loans ...................................... 88.00 Upward reestimate ....................................... 88.00 Scheduled payments from Liquidating account for noncontractual modifications 88.25 Interest on uninvested funds: Stafford loans ...... Non-Federal sources: Stafford loans: 88.40 Recoveries on defaults ................................ 88.40 Origination fees ........................................... 88.40 Sallie Mae offset fees .................................. 88.40 Other Fees .................................................... 88.40 Recoveries on defaults ................................ Unsubsidized Stafford: 88.40 Origination fees ........................................... 88.40 Other Fees .................................................... 88.40 Recoveries on defaults ................................ PLUS: 88.40 Origination fees ........................................... 88.40 Other Fees .................................................... 88.40 Recoveries on defaults ................................ SLS: 88.40 Other Fees .................................................... 88.40 Recoveries on defaults ................................ 88.40 Origination fees ........................................... Consolidated: 88.40 Consolidated Loan Holders Fee ................... Cumulative balance of guaranteed loans outstanding: Outstanding, start of year ............................................. Disbursements of new guaranteed loans ...................... Repayments and prepayments ...................................... Adjustments: 2261 Terminations for default that result in loans receivable ....................................................................... 2263 Terminations for default that result in claim payments .................................................................... 2210 2231 2251 –2,244 –390 –44 –13 –1,043 –1,915 –1,813 –414 –402 –57 –58 –30 –33 –564 ................... –538 –514 –376 –462 –263 –438 –425 –123 –190 –420 –342 –341 –53 –28 –29 –15 ................... ................... –76 –16 –35 –208 –191 –194 –4 ................... ................... –40 –15 –22 –52 –52 –55 –1 ................... ................... –79 –29 –39 –1 ................... ................... –27 –11 –21 –8 –21 –22 –66 –129 –162 88.90 Total, offsetting collections (cash) .................. –6,261 –4,775 –4,117 89.00 90.00 Net financing authority and financing disbursements: Financing authority ........................................................ Financing disbursements ............................................... –454 –1,134 –326 225 –237 683 441 7,210 4,374 –273 11,180 5,469 –662 15,643 5,536 –1,183 –124 –318 –510 –7 –26 –42 2290 Outstanding, end of year .......................................... 11,180 15,643 19,444 2299 Memorandum: Guaranteed amount of guaranteed loans outstanding, end of year ................................................................ 11,180 15,643 19,444 Addendum: Cumulative balance of defaulted guaranteed loans that result in loans receivable: 2310 Outstanding, start of year ........................................ 45 2331 Disbursements for guaranteed loan claims ............. 124 2351 Repayments of loans receivable ............................... –76 2361 Write-offs of loans receivable ................................... ................... 93 318 –16 –2 393 510 –35 –4 2390 Outstanding, end of year ...................................... 93 393 864 PLUS Position with respect to appropriations act limitation on commitments: 2131 Guaranteed loan commitments exempt from limitation 1,591 1,737 1,799 2150 1,591 1,737 1,799 3,629 1,337 –579 4,261 1,486 –763 4,837 1,578 –962 –107 –109 –123 –19 –38 –41 Total guaranteed loan commitments ........................ Cumulative balance of guaranteed loans outstanding: Outstanding, start of year ............................................. Disbursements of new guaranteed loans ...................... Repayments and prepayments ...................................... Adjustments: 2261 Terminations for default that result in loans receivable ....................................................................... 2263 Terminations for default that result in claim payments .................................................................... 2210 2231 2251 2290 Identification code 91–4251–0–3–502 1996 actual 1997 est. Outstanding, end of year .......................................... 4,261 4,837 5,289 2299 Status of Guaranteed Loans (in millions of dollars) Memorandum: Guaranteed amount of guaranteed loans outstanding, end of year ................................................................ 4,261 4,837 5,289 Addendum: Cumulative balance of defaulted guaranteed loans that result in loans receivable: 2310 Outstanding, start of year ........................................ 174 2331 Disbursements for guaranteed loan claims ............. 107 2351 Repayments of loans receivable ............................... –40 2361 Write-offs of loans receivable ................................... ................... 241 109 –15 –2 333 123 –21 –3 2390 333 432 1998 est. STAFFORD Position with respect to appropriations act limitation on commitments: 2131 Guaranteed loan commitments exempt from limitation 10,557 10,863 10,596 2150 10,557 10,863 10,596 37,830 9,752 –2,076 44,316 9,779 –3,188 49,598 9,738 –4,359 –1,113 –1,242 –1,431 –77 –67 –83 44,316 49,598 53,463 Total guaranteed loan commitments ........................ Cumulative balance of guaranteed loans outstanding: Outstanding, start of year ............................................. Disbursements of new guaranteed loans ...................... Repayments and prepayments ...................................... Adjustments: 2261 Terminations for default that result in loans receivable ....................................................................... 2263 Terminations for default that result in claim payments .................................................................... 2210 2231 2251 2290 Outstanding, end of year .......................................... 44,316 49,598 53,463 Addendum: Cumulative balance of defaulted guaranteed loans that result in loans receivable: 2310 Outstanding, start of year ........................................ 955 2331 Disbursements for guaranteed loan claims ............. 1,113 2351 Repayments of loans receivable ............................... –425 2361 Write-offs of loans receivable ................................... ................... 1,643 1,242 –123 –15 2,747 1,431 –190 –23 2390 2,747 241 SLS Position with respect to appropriations act limitation on commitments: 2111 Limitation on guaranteed loans made by private lenders .............................................................................. ................... ................... ................... 2150 Memorandum: 2299 Guaranteed amount of guaranteed loans outstanding, end of year ................................................................ Outstanding, end of year ...................................... Total guaranteed loan commitments ........................ ................... ................... ................... Cumulative balance of guaranteed loans outstanding: Outstanding, start of year ............................................. Repayments and prepayments ...................................... Adjustments: 2261 Terminations for default that result in loans receivable ....................................................................... 2263 Terminations for default that result in claim payments .................................................................... 2210 2251 3,965 6,061 –454 5,290 –560 4,504 –641 –316 –212 –176 –1 –14 –14 1,643 UNSUBSIDIZED STAFFORD Position with respect to appropriations act limitation on commitments: 2131 Guaranteed loan commitments exempt from limitation 6,102 6,176 6,162 2150 6,102 6,176 6,162 Total guaranteed loan commitments ........................ Outstanding, end of year .......................................... 5,290 4,504 3,673 2299 Outstanding, end of year ...................................... 2290 Memorandum: Guaranteed amount of guaranteed loans outstanding, end of year ................................................................ 5,290 4,504 3,673 Addendum: Cumulative balance of defaulted guaranteed loans that result in loans receivable: 2310 Outstanding, start of year ........................................ 2331 Disbursements for guaranteed loan claims ............. 479 316 715 212 895 176 442 OFFICE OF POSTSECONDARY EDUCATION—Continued Federal Funds—Continued THE BUDGET FOR FISCAL YEAR 1998 Credit accounts—Continued are a means of financing and are not included in the budget totals. FEDERAL FAMILY EDUCATION LOAN PROGRAM, FINANCING ACCOUNT—Continued FEDERAL FAMILY EDUCATION LOAN FINANCING ACCOUNT Status of Guaranteed Loans (in millions of dollars)—Continued 1996 actual Identification code 91–4251–0–3–502 1997 est. (Legislative proposal, subject to PAYGO) 1998 est. 2351 2361 Repayments of loans receivable ............................... Write-offs of loans receivable ................................... –79 –1 –29 –3 –39 –5 2390 Outstanding, end of year ...................................... 715 895 1,027 CONSOLIDATED Position with respect to appropriations act limitation on commitments: 2131 Guaranteed loan commitments exempt from limitation 4,061 4,262 4,438 2150 4,061 4,262 4,438 2,827 4,353 –543 6,501 4,214 –876 9,635 4,389 –1,246 Total guaranteed loan commitments ........................ Cumulative balance of guaranteed loans outstanding: Outstanding, start of year ............................................. Disbursements of new guaranteed loans ...................... Repayments and prepayments ...................................... Adjustments: 2261 Terminations for default that result in loans receivable ....................................................................... 2263 Terminations for default that result in claim payments .................................................................... 2210 2231 2251 2290 Outstanding, end of year .......................................... Memorandum: 2299 Guaranteed amount of guaranteed loans outstanding, end of year ................................................................ Identification code 91–4251–4–3–502 01.91 ................... ................... –56 ................... ................... –2 ................... ................... ................... ................... –1 –1 ................... ................... –2 ................... ................... –1 ................... ................... ................... ................... –1 –1 03.03 03.04 –169 –239 04.06 –7 –35 –45 6,501 9,635 12,494 05.04 05.06 05.91 08.01 Subtotal, Consolidations loans ............................. ................... ................... –2 Payment of downard reestimate to Program account ................... 342 ................... 6,501 9,635 12,494 282 497 125 10.00 342 –63 Budgetary resources available for obligation: Unobligated balance available, start of year: Fund balance ...................................................................... ................... ................... 22.00 New financing authority (gross) .................................... ................... –27 –369 –446 23.90 23.95 24.90 68.00 1995 actual 1996 actual 7,559 9,146 1997 est. 1998 est. 1101 1701 1704 1999 Total obligations ........................................................ ................... 21.90 Balance Sheet (in millions of dollars) Net present value of assets related to defaulted guaranteed loans Net value of assets related to pre–1992 direct loans receivable and acquired defaulted guaranteed loans receivable: Defaulted guaranteed loans, gross .... Defaulted guaranteed loans and interest receivable, net ..................... Subtotal, Stafford loans ....................................... Unsubsidized Stafford loans: Supplemental preclaims assistance ......................... PLUS loans: Default claims ........................................................... Death, disability, and bankruptcy claims ................. –129 2390 1599 1998 est. Subtotal, PLUS loans ............................................ SLS loans: Supplemental preclaims assistance ......................... Consolidations loans: Death, disability, and bankruptcy claims ................. Supplemental preclaims assistance ......................... 282 239 –21 –3 ASSETS: Federal assets: Fund balances with Treasury ............................................... Net value of assets related to post– 1991 acquired defaulted guaranteed loans receivable: 1501 Defaulted guaranteed loans receivable, gross ...................................... 1997 est. –51 –6 1 03.91 125 169 –11 –1 Identification code 91–4251–0–3–502 1996 actual Obligations by program activity: Stafford loans: 01.01 Interest benefits ........................................................ ................... ................... 01.06 Supplemental preclaims assistance ......................... ................... ................... 01.07 Contract collection costs ........................................... ................... ................... 02.06 Addendum: Cumulative balance of defaulted guaranteed loans that result in loans receivable: 2310 Outstanding, start of year ........................................ 23 2331 Disbursements for guaranteed loan claims ............. 129 2351 Repayments of loans receivable ............................... –27 2361 Write-offs of loans receivable ................................... ................... Outstanding, end of year ...................................... Program and Financing (in millions of dollars) 6,303 5,746 1,676 2,817 4,650 6,785 1,676 2,817 4,650 6,785 –3,507 12,151 11,236 9,448 –3,507 12,151 11,236 9,448 Total assets ........................................ LIABILITIES: 2103 Federal liabilities: Debt ........................... 5,728 24,114 22,189 21,979 1,605 1,134 680 354 2999 Total liabilities .................................... NET POSITION: 3100 Appropriated capital ................................ 1,605 1,134 680 354 4,123 22,980 21,509 21,626 3999 Total net position ................................ 4,123 22,980 21,509 21,626 4999 Total liabilities and net position ............ 5,728 24,114 22,189 21,980 –27 –342 –815 63 –369 –752 New financing authority (gross), detail: Spending authority from offsetting collections (gross): Offsetting collections (cash) ..................................... ................... –27 –446 ................... ................... ................... 342 ................... –290 52 –63 2 Change in unpaid obligations: Unpaid obligations, start of year: Obligated balance: Obligated balance ..................................................... 73.10 New obligations ............................................................. 73.20 Total financing disbursements (gross) ......................... 74.90 Unpaid obligations, end of year: Obligated balance: Obligated balance ..................................................... 87.00 Total financing disbursements (gross) ......................... 72.90 ................... ................... 52 290 –9 –2 ................... ................... ................... ................... ................... ................... ................... ................... ................... 27 357 35 5 23 68 ................... ................... ................... ................... ................... ................... ................... ................... ................... ................... –20 –13 –3 –2 –4 Total, offsetting collections (cash) .................. ................... 27 446 Offsets: Against gross financing authority and financing disbursements: Offsetting collections (cash) from: Federal sources: Payment from subsidy account: 88.00 Stafford loans .............................................. 88.00 Unsubsidized Stafford .................................. 88.00 PLUS loans ................................................... 88.00 Consolidated loans ...................................... 88.25 Interest on uninvested funds: Stafford loans ...... Non-Federal sources: Stafford loans: 88.40 Recoveries on defaults ................................ 88.40 Sallie Mae offset fees .................................. 88.40 Recoveries on defaults ................................ 88.40 Recoveries on defaults ................................ 88.40 Recoveries on defaults ................................ 88.90 As required by the Federal Credit Reform Act of 1990, this nonbudgetary account records all cash flows to and from the Government resulting from guaranteed student loans committed in 1992 and beyond. The amounts in this account Total budgetary resources available for obligation ................... New obligations ............................................................. ................... Unobligated balance available, end of year: Fund balance ...................................................................... ................... 89.00 90.00 Net financing authority and financing disbursements: Financing authority ........................................................ ................... ................... ................... Financing disbursements ............................................... ................... 317 444 OFFICE OF POSTSECONDARY EDUCATION—Continued Federal Funds—Continued DEPARTMENT OF EDUCATION Status of Guaranteed Loans (in millions of dollars) Identification code 91–4251–4–3–502 1996 actual 1997 est. 1998 est. STAFFORD Cumulative balance of guaranteed loans outstanding: 2210 Outstanding, start of year ............................................. ................... ................... ................... 2251 Repayments and prepayments ...................................... ................... ................... 3 2290 Outstanding, end of year .......................................... ................... ................... 3 2299 Memorandum: Guaranteed amount of guaranteed loans outstanding, end of year ................................................................ ................... ................... 3 Addendum: Cumulative balance of defaulted guaranteed loans that result in loans receivable: 2310 Outstanding, start of year ........................................ ................... ................... ................... 2351 Repayments of loans receivable ............................... ................... ................... –20 2361 Write-offs of loans receivable ................................... ................... ................... –2 2390 Outstanding, end of year ...................................... ................... ................... Addendum: Cumulative balance of defaulted guaranteed loans that result in loans receivable: 2310 Outstanding, start of year ........................................ ................... ................... ................... 2351 Repayments of loans receivable ............................... ................... ................... –4 2361 Write-offs of loans receivable ................................... ................... ................... –1 2390 2290 Outstanding, end of year .......................................... ................... ................... 2 2299 Memorandum: Guaranteed amount of guaranteed loans outstanding, end of year ................................................................ ................... ................... Outstanding, end of year ...................................... ................... ................... –5 CONSOLIDATED Cumulative balance of guaranteed loans outstanding: 2210 Outstanding, start of year ............................................. ................... ................... ................... 2251 Repayments and prepayments ...................................... ................... ................... 33 2263 Adjustments: Terminations for default that result in claim payments ......................................................... ................... ................... 1 2290 Outstanding, end of year .......................................... ................... ................... 34 2299 Memorandum: Guaranteed amount of guaranteed loans outstanding, end of year ................................................................ ................... ................... 34 Balance Sheet (in millions of dollars) –22 UNSUBSIDIZED STAFFORD Cumulative balance of guaranteed loans outstanding: 2210 Outstanding, start of year ............................................. ................... ................... ................... 2251 Repayments and prepayments ...................................... ................... ................... 2 443 Identification code 91–4251–4–3–502 ASSETS: 1101 Federal assets: Fund balances with Treasury ............................................... Net value of assets related to post– 1991 acquired defaulted guaranteed loans receivable: 1501 Defaulted guaranteed loans receivable, gross ...................................... 1995 actual 1996 actual 1997 est. 1998 est. .................. .................. –369 –752 .................. .................. .................. –34 .................. .................. .................. –34 2 1599 Net present value of assets related to defaulted guaranteed loans Addendum: Cumulative balance of defaulted guaranteed loans that result in loans receivable: 2310 Outstanding, start of year ........................................ ................... ................... ................... 2351 Repayments of loans receivable ............................... ................... ................... –3 2361 Write-offs of loans receivable ................................... ................... ................... –1 Total assets ........................................ NET POSITION: 3100 Appropriated capital ................................ .................. .................. –369 –786 .................. .................. –369 –786 3999 Total net position ................................ .................. .................. –369 –786 2390 4999 Total liabilities and net position ............ .................. .................. –369 –786 Outstanding, end of year ...................................... ................... ................... –4 PLUS Cumulative balance of guaranteed loans outstanding: 2210 Outstanding, start of year ............................................. ................... ................... ................... 2251 Repayments and prepayments ...................................... ................... ................... 10 2263 Adjustments: Terminations for default that result in claim payments ......................................................... ................... ................... 1 2290 Outstanding, end of year .......................................... ................... ................... 2299 Memorandum: Guaranteed amount of guaranteed loans outstanding, end of year ................................................................ ................... ................... 1999 FEDERAL FAMILY EDUCATION LOAN LIQUIDATING ACCOUNT Note.—The following tables display the liquidating account, which includes all cash flows to and from the Government from guaranteed student loan commitments prior to 1992. 11 Program and Financing (in millions of dollars) Identification code 91–0230–0–1–502 11 1996 actual 1997 est. 1998 est. Addendum: Cumulative balance of defaulted guaranteed loans that result in loans receivable: 2310 Outstanding, start of year ........................................ ................... ................... ................... 2351 Repayments of loans receivable ............................... ................... ................... –1 2361 Write-offs of loans receivable ................................... ................... ................... –2 Obligations by program activity: Stafford loans: 01.01 Interest benefits, net of origination fees .................. 01.02 Special allowance net of origination fees ................ 01.03 Default claims ........................................................... 01.04 Death, disability, and bankruptcy claims ................. 01.06 Supplemental preclaims assistance ......................... 01.07 Contract collection costs ........................................... 260 254 1,091 106 28 136 128 101 767 74 14 78 64 48 539 32 7 68 2390 01.91 Subtotal, Stafford loans ....................................... PLUS/SLS loans: Default claims ........................................................... Death, disability, and bankruptcy claims ................. Supplemental preclaims assistance ......................... Contract collection costs ........................................... 1,875 1,162 758 56 5 1 7 30 16 7 4 1 ................... 18 20 Subtotal, PLUS/SLS loans ..................................... Miscellaneous costs: Scheduled payments to finance account for noncontractual modifications ..................................... 69 56 40 538 376 263 Total obligations ........................................................ 2,482 1,594 1,061 2,772 1,608 1,554 Outstanding, end of year ...................................... ................... ................... –3 SLS Position with respect to appropriations act limitation on commitments: 2111 Limitation on guaranteed loans made by private lenders .............................................................................. ................... ................... ................... 2150 Total guaranteed loan commitments ........................ ................... ................... ................... Cumulative balance of guaranteed loans outstanding: 2210 Outstanding, start of year ............................................. ................... ................... ................... 2251 Repayments and prepayments ...................................... ................... ................... 152 2290 Outstanding, end of year .......................................... ................... ................... 2299 Memorandum: Guaranteed amount of guaranteed loans outstanding, end of year ................................................................ ................... ................... 152 02.01 02.02 02.04 02.05 02.91 03.01 10.00 Budgetary resources available for obligation: New budget authority (gross) ........................................ Resources available from recoveries of prior year obligations ....................................................................... 22.40 Capital transfer to general fund ................................... 22.00 22.10 34 ................... ................... –324 –14 –493 152 23.90 Total budgetary resources available for obligation 2,482 1,594 1,061 444 OFFICE OF POSTSECONDARY EDUCATION—Continued Federal Funds—Continued THE BUDGET FOR FISCAL YEAR 1998 Credit accounts—Continued FEDERAL FAMILY EDUCATION LOAN LIQUIDATING ACCOUNT— Continued Program and Financing (in millions of dollars)—Continued Identification code 91–0230–0–1–502 23.95 New obligations ............................................................. 60.05 68.00 New budget authority (gross), detail: Appropriation (indefinite) ............................................... Spending authority from offsetting collections: Offsetting collections (cash) .............................................. 70.00 Total new budget authority (gross) .......................... Change in unpaid obligations: 72.40 Unpaid obligations, start of year: Obligated balance: Appropriation ............................................................. 73.10 New obligations ............................................................. 73.20 Total outlays (gross) ...................................................... 73.45 Adjustments in unexpired accounts .............................. 74.40 Unpaid obligations, end of year: Obligated balance: Appropriation ............................................................. 1996 actual –2,482 1997 est. –1,594 1998 est. –1,061 PLUS/SLS LOANS Cumulative balance of guaranteed loans outstanding: 2210 Outstanding, start of year ............................................. 2251 Repayments and prepayments ...................................... Adjustments: 2261 Terminations for default that result in loans receivable ....................................................................... 2263 Terminations for default that result in claim payments .................................................................... 2264 Other adjustments, net ............................................. 1,619 1,608 1,554 2,772 1,608 48 261 239 2,482 1,594 1,061 –2,234 –1,614 –1,140 –34 ................... ................... 261 239 159 2,186 48 1,353 261 901 239 87.00 Total outlays (gross) ................................................. 2,234 1,614 1,140 –475 –23 –317 –472 –23 –315 –583 –75 –4 –50 –92 –577 –75 –4 –50 –92 –559 –72 –3 –48 –89 –1,619 –1,608 –1,554 89.00 90.00 Net budget authority and outlays: Budget authority ............................................................ Outlays ........................................................................... STAFFORD LOANS Cumulative balance of guaranteed loans outstanding: 2210 Outstanding, start of year ............................................. 2251 Repayments and prepayments ...................................... Adjustments: 2261 Terminations for default that result in loans receivable ....................................................................... 2263 Terminations for default that result in claim payments .................................................................... 2264 Other adjustments, net ............................................. 1,153 ................... ................... 616 6 –414 1996 actual 1997 est. 1998 est. 26,846 –9,110 26,412 –5,002 20,540 –4,536 –1,076 –810 –569 –106 –60 –30 9,858 ................... ................... 2290 Outstanding, end of year .......................................... 26,412 20,540 15,405 2299 Memorandum: Guaranteed amount of guaranteed loans outstanding, end of year ................................................................ 26,412 20,540 15,405 Addendum: Cumulative balance of defaulted guaranteed loans that result in loans receivable: 2310 Outstanding, start of year ........................................ 2331 Disbursements for guaranteed loan claims ............. 2351 Repayments of loans receivable ............................... 2361 Write-offs of loans receivable ................................... 2364 Other adjustments, net ............................................. 2390 Outstanding, end of year ...................................... –33 –18 –5 –7 –3 2,212 ................... ................... 3,914 3,043 1,331 2299 Memorandum: Guaranteed amount of guaranteed loans outstanding, end of year ................................................................ 3,914 3,043 1,331 Addendum: Cumulative balance of defaulted guaranteed loans that result in loans receivable: 2310 Outstanding, start of year ........................................ 2331 Disbursements for guaranteed loan claims ............. 2351 Repayments of loans receivable ............................... 2361 Write-offs of loans receivable ................................... 2364 Other adjustments, net ............................................. 3,166 68 –222 –3 –18 2,991 33 –208 –190 –15 2,611 18 –193 –187 –12 2390 2,991 2,611 2,237 Outstanding, end of year ...................................... 1 Excludes interest and premium collections on insured loans. As required by the Federal Credit Reform Act of 1990, this liquidating account records, for this program, all cash flows to and from the Government resulting from guaranteed student loans committed prior to 1992. This account is shown on a cash basis. All new loan activity in this program in 1992 and beyond is recorded in corresponding program and financing accounts. Object Classification (in millions of dollars) 1996 actual Identification code 91–0230–0–1–502 Status of Guaranteed Loans (in millions of dollars) Identification code 91–0230–0–1–502 –56 Outstanding, end of year .......................................... –456 –23 –304 Total, offsetting collections (cash) .................. 3,043 –1,691 1,554 Outlays (gross), detail: Outlays from new permanent authority ......................... Outlays from permanent balances ................................ 88.90 3,914 –831 2290 1,153 ................... ................... 86.97 86.98 Offsets: Against gross budget authority and outlays: Offsetting collections (cash) from: Non-Federal sources: Stafford loans: 88.40 Federal collections on defaulted loans ....... 88.40 Federal collections on bankruptcies ............ 88.40 Offsets against Federal tax refunds ........... Other collections: 88.40 Reimbursements from guaranty agencies ... 88.40 Federal collections on defaulted loans ....... 88.40 Federal collections on bankruptcies ............ 88.40 Offsets against Federal tax refunds ........... 88.40 Reimbursements from guaranty agencies ... 2,727 –964 1997 est. 1998 est. 25.2 33.0 41.0 42.0 Other services ................................................................ Investments and loans .................................................. Grants, subsidies, and contributions ............................ Insurance claims and indemnities ................................ 142 1,147 1,081 112 96 796 620 82 88 555 382 36 99.9 Total obligations ........................................................ 2,482 1,594 1,061 COLLEGE HOUSING AND ACADEMIC FACILITIES LOANS PROGRAM øFor administrative expenses to carry out the existing direct loan program of college housing and academic facilities loans entered into pursuant to title VII, part C, of the Higher Education Act, as amended, $698,000.¿ For Federal administrative expenses to carry out activities related to facility loans entered into under title VII, part C and section 702 of the Higher Education Act, as amended, $1,069,000. (Department of Education Appropriations Act, 1997.) HISTORICALLY BLACK COLLEGE AND UNIVERSITY CAPITAL FINANCING PROGRAM ACCOUNT The total amount of bonds insured pursuant to section 724 of title VII, part B of the Higher Education Act shall not exceed $357,000,000, and the cost, as defined in section 502 of the Congressional Budget Act of 1974, of such bonds shall not exceed zero. For administrative expenses to carry out the Historically Black College and University Capital Financing Program entered into pursuant to title VII, part B of the Higher Education Act, as amended, $104,000. (Department of Education Appropriations Act, 1997.) Program and Financing (in millions of dollars) Identification code 91–0241–0–1–502 10,013 1,365 –1,395 –11 –104 9,868 810 –1,398 –11 –84 9,185 569 –1,359 –11 –65 9,868 9,185 8,319 1996 actual 1997 est. 1998 est. 00.09 Obligations by program activity: Federal administration ................................................... 1 1 1 10.00 Total obligations ........................................................ 1 1 1 22.00 Budgetary resources available for obligation: New budget authority (gross) ........................................ 1 1 1 OFFICE OF POSTSECONDARY EDUCATION—Continued Federal Funds—Continued DEPARTMENT OF EDUCATION 22.10 Resources available from recoveries of prior year obligations ....................................................................... 2 ................... ................... 23.90 23.95 Total budgetary resources available for obligation New obligations ............................................................. 3 –1 1 –1 1 –1 40.00 New budget authority (gross), detail: Appropriation (Federal administration) ......................... 1 1 1 Change in unpaid obligations: Unpaid obligations, start of year: Obligated balance: Fund balance ............................................................. 73.10 New obligations ............................................................. 73.20 Total outlays (gross) ...................................................... 73.45 Adjustments in unexpired accounts .............................. 74.90 Unpaid obligations, end of year: Obligated balance: Fund balance ............................................................. 72.90 8 5 4 1 1 1 –2 –2 –2 –2 ................... ................... 5 4 4 profit Designated Bonding Authority to guarantee no more than $357,000,000 loan principal plus accrued unpaid interest for taxable bonds. The bonding authority issues the bonds and maintains an escrow account in which 10 percent of each institution’s principal is deposited. This amount is estimated to be sufficient to cover all potential delinquencies and defaults. The first loan was issued in 1996 for $3.5 million, and additional loans are expected in 1997 and 1998. No subsidy appropriations are required. The 1998 budget requests funds for continuing Federal administrative activities only. Object Classification (in millions of dollars) 1996 actual Identification code 91–0241–0–1–502 Outlays (gross), detail: 86.90 Outlays from new current authority .............................. 86.93 Outlays from current balances ...................................... 1 1 1 1 1 1 99.5 87.00 Total outlays (gross) ................................................. 2 2 2 99.9 89.00 90.00 Net budget authority and outlays: Budget authority ............................................................ Outlays ........................................................................... 1 2 1 2 1 2 25.3 Identification code 91–0241–0–1–502 1996 actual 1997 est. 1997 est. 1998 est. Direct obligations: Purchases of goods and services from Government accounts ....................................... ................... ................... 1 Below reporting threshold .............................................. 1 1 ................... Total obligations ........................................................ 1 1 1 Personnel Summary 1996 actual Identification code 91–0241–0–1–502 Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in millions of dollars) 445 1001 Total compensable workyears: Full-time equivalent employment ............................................................... 1997 est. 8 1998 est. 7 9 1998 est. 1340 Direct loan subsidy outlays: Subsidy outlays .............................................................. 1 1 ................... 3510 3590 Administrative expense data: Budget authority ............................................................ Outlays from new authority ........................................... 1 1 1 1 1 1 The College Housing and Academic Facilities Loan (CHAFL) Program account and the Historically Black College and University (HBCU) Capital Financing Program account are consolidated for presentation purposes. The College Housing and Academic Facilities Loans and Historically Black College and University Capital Financing programs will continue to be administered separately. The College Housing and Academic Facilities Loans Program.—The Department began issuing CHAFL facility loans in 1987 and made its last awards in 1993. Prior to 1987, loans were made under two separate loan programs: Higher Education and Facilities Loans (HEFL) and College Housing Loans (CHL). The loans support financing for the reconstruction, renovation, and construction of academic facilities, housing and other postsecondary education facilities for students and faculty. Although the Department no longer makes new loans, the Department continues to be responsible for conducting architectural and engineering reviews before disbursing payments to institutions and servicing the outstanding loans under an agreement with the Federal Reserve Bank. In prior years, funding for CHAFL administration was in this account, and funding for CHL and HEFL administration was split between the Department’s Program Administration account and the liquidating accounts for these two programs. In fiscal year 1998, the Department plans to consolidate funding for administrative activities for CHAFL, HEFL and CHL under a single account. The FY 1998 request includes funding for personnel, loan servicing, and architectural and engineering services. Historically Black College and University Capital Financing Program.—The Historically Black College and University (HBCU) Capital Financing Program provides HBCUs with private capital for capital projects such as repairs, renovation and construction of classrooms, libraries, laboratories, dormitories, instructional equipment, and research instrumentation. The 1994 appropriation granted the Department authority to enter into insurance agreements with a private for- COLLEGE HOUSING AND ACADEMIC FACILITIES LOANS FINANCING ACCOUNT Note.—The financing account includes all cash flows to and from the Government from college housing and academic facilities loans committed after 1991. Program and Financing (in millions of dollars) Identification code 91–4252–0–3–502 1996 actual 1997 est. 1998 est. 00.02 Obligations by program activity: Interest paid to Treasury ............................................... 1 1 1 10.00 Total obligations ........................................................ 1 1 1 22.00 23.95 Budgetary resources available for obligation: New financing authority (gross) .................................... New obligations ............................................................. 1 ................... –1 –1 1 –1 New financing authority (gross), detail: Spending authority from offsetting collections: 68.00 Offsetting collections (cash) ..................................... 68.10 Change in orders on hand from Federal sources 68.15 Adjustment to orders on hand from Federal sources 68.90 70.00 Spending authority from offsetting collections (total) ................................................................ ................... ................... 1 Total new financing authority (gross) ...................... ................... ................... 1 Change in unpaid obligations: Unpaid obligations, start of year: 72.90 Obligated balance: Authority to Borrow .................... 72.95 Obligate balance: Subsidy ........................................ 72.99 73.10 73.20 73.40 2 1 1 –4 –1 ................... 2 ................... ................... 74.90 74.95 Total unpaid obligations, start of year ................ New obligations ............................................................. Total financing disbursements (gross) ......................... Adjustments in expired accounts .................................. Unpaid obligations, end of year: Obligated balance: Obligated balance ..................... Receivables from program account .......................... 74.99 87.00 Total unpaid obligations, end of year .................. Total financing disbursements (gross) ......................... Offsets: Against gross financing authority and financing disbursements: Offsetting collections (cash) from: 88.00 Principal repayments ............................................ 88.25 Interest on uninvested funds ............................... 38 8 22 4 16 3 46 26 19 1 1 1 –9 –8 –4 –12 ................... ................... 22 4 16 3 14 3 26 9 19 8 17 4 –1 ................... ................... –1 ................... ................... 446 OFFICE OF POSTSECONDARY EDUCATION—Continued Federal Funds—Continued THE BUDGET FOR FISCAL YEAR 1998 Credit accounts—Continued COLLEGE HOUSING øCOLLEGE HOUSING LOANS¿ AND ACADEMIC FACILITIES ACCOUNT—Continued LOANS FINANCING Program and Financing (in millions of dollars)—Continued 1996 actual Identification code 91–4252–0–3–502 88.40 1997 est. Interest repayments .............................................. ................... 1998 est. –1 –1 88.90 88.95 88.96 Total, offsetting collections (cash) .................. Change in receivables from program accounts ............ Adjustment to orders on hand from Federal sources –2 –1 –1 4 1 ................... –2 ................... ................... 89.00 90.00 Net financing authority and financing disbursements: Financing authority ........................................................ Financing disbursements ............................................... 1 ................... ................... 7 7 3 øPursuant to title VII, part C of the Higher Education Act, as amended, for necessary expenses of the college housing loans program, the Secretary shall make expenditures and enter into contracts without regard to fiscal year limitation using loan repayments and other resources available to this account. Any unobligated balances becoming available from fixed fees paid into this account pursuant to 12 U.S.C. 1749d, relating to payment of costs for inspections and site visits, shall be available for the operating expenses of this account.¿ (Department of Education Appropriations Act, 1997.) Program and Financing (in millions of dollars) Identification code 91–0242–0–1–502 Status of Direct Loans (in millions of dollars) 10.00 Obligations by program activity: Total obligations (object class 43.0) ............................ 1996 actual 33 Budgetary resources available for obligation: Unobligated balance available, start of year: Uninvested balance ................................................... 41 22.00 New budget authority (gross) ........................................ 36 22.10 Resources available from recoveries of prior year obligations ....................................................................... ................... 22.60 Redemption of debt ....................................................... –3 1997 est. 1998 est. 25 24 41 29 50 27 21.40 1996 actual Identification code 91–4252–0–3–502 1997 est. 1998 est. Position with respect to appropriations act limitation on obligations: 1111 Limitation on direct loans ............................................. ................... ................... ................... 1150 Total direct loan obligations ..................................... ................... ................... ................... 1210 1231 1251 Cumulative balance of direct loans outstanding: Outstanding, start of year ............................................. 6 13 19 Disbursements: Direct loan disbursements ................... 7 6 3 Repayments: Repayments and prepayments ................. ................... ................... ................... 1290 Outstanding, end of year .......................................... 13 19 22 The reestimate of the subsidy from prior year obligations may require the Department to exercise its permanent indefinite authority to borrow funds to cover outstanding Treasury interest expenses due on September 30, 1998. 1995 actual 1996 actual 1997 est. 1998 est. Total budgetary resources available for obligation New obligations ............................................................. Unobligated balance available, end of year: Uninvested balance ................................................... 74 –33 75 –25 74 –24 41 50 51 6 3 3 76 –4 –42 59 –3 –30 59 –3 –32 Spending authority from offsetting collections (total) ................................................................ 30 26 24 Total new budget authority (gross) .......................... 36 29 27 New budget authority (gross), detail: Appropriation (indefinite) ............................................... Spending authority from offsetting collections: 68.00 Offsetting collections (cash) ..................................... 68.27 Capital transfer to general fund .............................. 68.47 Portion applied to debt reduction ............................. 60.05 68.90 70.00 Balance Sheet (in millions of dollars) Identification code 91–4252–0–3–502 23.90 23.95 24.40 10 ................... –5 –3 Change in unpaid obligations: Unpaid obligations, start of year: Obligated balance: Appropriation ............................................................. 43 73.10 New obligations ............................................................. 33 73.20 Total outlays (gross) ...................................................... –30 73.45 Adjustments in unexpired accounts .............................. ................... 74.40 Unpaid obligations, end of year: Obligated balance: Appropriation ............................................................. 46 72.40 ASSETS: Investments in US securities: 1106 Federal assets: Receivables, net ........ Net value of assets related to post– 1991 direct loans receivable: 1401 Direct loans receivable, gross ............ 1402 Interest receivable .............................. 1405 Allowance for subsidy cost (–) ........... 1499 Net present value of assets related to direct loans ........................... 9 8 4 3 5 .................. –2 11 .................. –4 19 1 –1 22 1 .................. 3 7 19 23 86.97 86.98 12 15 23 26 87.00 1 5 1 11 1 20 1 27 Outlays (gross), detail: Outlays from new permanent authority ......................... 30 Outlays from permanent balances ................................ ................... 46 31 25 24 –30 –27 –10 ................... 31 28 23 7 23 4 Total assets ........................................ LIABILITIES: Federal liabilities: 2102 Interest payable .................................. 2103 Debt ..................................................... 2999 Total liabilities .................................... NET POSITION: 3100 Appropriated capital ................................ 6 12 21 28 6 3 2 –2 3999 Total net position ................................ 6 3 2 –2 4999 Total liabilities and net position ............ 12 15 23 Total outlays (gross) ................................................. 30 30 27 Offsets: Against gross budget authority and outlays: Offsetting collections (cash) from: Non-Federal sources: 88.40 Repayments of principal .................................. 88.40 Interest received on loans ................................ –50 –26 –39 –20 –39 –20 88.90 Total, offsetting collections (cash) .................. –76 –59 –59 89.00 90.00 1999 Net budget authority and outlays: Budget authority ............................................................ Outlays ........................................................................... –40 –45 –30 –29 –32 –32 26 COLLEGE HOUSING AND ACADEMIC FACILITIES LOANS LIQUIDATING ACCOUNT øHIGHER EDUCATION FACILITIES LOANS¿ øThe Secretary is hereby authorized to make such expenditures, within the limits of funds available under this heading and in accord with law, and to make such contracts and commitments without regard to fiscal year limitation, as provided by section 104 of the Government Corporation Control Act (31 U.S.C. 9104), as may be necessary in carrying out the program for the current fiscal year.¿ (Department of Education Appropriations Act, 1997.) Status of Direct Loans (in millions of dollars) Identification code 91–0242–0–1–502 1996 actual 1997 est. 1998 est. CHAFL LIQUIDATING Cumulative balance of direct loans outstanding: 1210 Outstanding, start of year ............................................. 1231 Disbursements: Direct loan disbursements ................... 1251 Repayments: Repayments and prepayments ................. 144 152 148 13 ................... ................... –5 –4 –3 1290 152 Outstanding, end of year .......................................... 148 145 OFFICE OF EDUCATIONAL RESEARCH AND IMPROVEMENT Federal Funds DEPARTMENT OF EDUCATION HIGHER EDUCATION FACILITIES LOANS Cumulative balance of direct loans outstanding: 1210 Outstanding, start of year ............................................. 1251 Repayments: Repayments and prepayments ................. 54 –6 48 –6 42 –6 1290 Outstanding, end of year .......................................... 48 42 36 COLLEGE HOUSING LOANS Cumulative balance of direct loans outstanding: 1210 Outstanding, start of year ............................................. 1251 Repayments: Repayments and prepayments ................. 484 –38 446 –31 415 –31 1290 446 415 384 Outstanding, end of year .......................................... The College Housing and Academic Facilities Loans Liquidating Account records all cash flows to and from the Government resulting from direct loans made prior to 1992 to schools and colleges for the reconstruction, renovation, and construction of academic facilities, housing and other postsecondary education facilities. Loans were made under three separate loan programs: Higher Education and Facilities Loans, College Housing Loans, and College Housing and Academic Facilities Loans. In 1998, the Department is consolidating the three loan programs into the CHAFL Liquidating account for budget presentation purposes only. The three individual programs will continue to be administered separately. ø$598,350,000: Provided, That $200,000,000 shall be for section 3132, $56,965,000 shall be for section 3136 and $10,000,000 shall be for section 3141 of the Elementary and Secondary Education Act: Provided further, That notwithstanding any other provision of law, onehalf of one percent of the amount available for section 3132 of the Elementary and Secondary Education Act of 1965, as amended, shall be set aside for the outlying areas to be distributed among the outlying areas on the basis of their relative need as determined by the Secretary in accordance with the purposes of the program: Provided further, That, notwithstanding section 3131(b) of said Act, if any State educational agency does not apply for a grant under section 3132, that State’s allotment under section 3131 shall be reserved by the Secretary for grants to local educational agencies in the State that apply directly to the Secretary according to the terms and conditions announced by the Secretary in the Federal Register: Provided further, That, of the amount available for title III, part B of the Elementary and Secondary Education Act of 1965, as amended, funds shall be awarded to continue the Iowa Communication Network statewide fiber optic demonstration and $2,000,000 shall be awarded to the Southeastern Pennsylvania Consortium for Higher Education for the establishment of local and wide area computer networks to provide instructional resources to students and faculty: Provided further, That none of the funds appropriated in this paragraph may be obligated or expended for the Goals 2000 Community Partnerships Program¿. (Department of Education Appropriations Act, 1997.) Program and Financing (in millions of dollars) Identification code 91–1100–0–1–999 HISTORICALLY BLACK COLLEGE AND UNIVERSITY CAPITAL FINANCING, FINANCING ACCOUNT Status of Guaranteed Loans (in millions of dollars) 1996 actual Identification code 91–4254–0–3–502 1997 est. 1998 est. Position with respect to appropriations act limitation on commitments: 2111 Limitation on guaranteed loans made by private lenders .............................................................................. ................... ................... ................... 2210 2231 2251 Cumulative balance of guaranteed loans outstanding: Outstanding, start of year ............................................. ................... ................... 10 Disbursements of new guaranteed loans ...................... ................... 10 15 Repayments and prepayments ...................................... ................... ................... ................... 2290 Outstanding, end of year .......................................... ................... 2299 Memorandum: Guaranteed amount of guaranteed loans outstanding, end of year ................................................................ ................... 10 10 25 25 Note.—The appropriations language for this program specifies a limitation that applies to direct and guaranteed loans in total. In FY 1997, the Federal Financing Bank (FFB) began purchasing bonds issued by the HBCU Designated Bonding Authority. Under the policies governing Federal credit programs, loan guarantees by the FFB create the equivalent of a Federal direct loan. For budget purposes, all FFB loans shall be treated as direct loans. HBCU bonds are still available for purchase by the private sector, and these will be treated as loan guarantees. The Department expects some future loans may be financed from private sources. OFFICE OF EDUCATIONAL RESEARCH AND IMPROVEMENT Federal Funds General and special funds: EDUCATION RESEARCH, STATISTICS, IMPROVEMENT For carrying out activities authorized by the Educational Research, Development, Dissemination, and Improvement Act of 1994, including part E; the National Education Statistics Act of 1994; section 2102, sections ø3132,¿ 3136 and 3141, parts B, C, and D of title III and parts A, B, and I, øand K¿ and section 10601 of title X, and part C of title XIII of the Elementary and Secondary Education Act of 1965, as amended, and title VI of Public Law 103–227, $510,693,000 1996 actual Obligations by program activity: Direct program: Research, development and dissemination: 00.01 National education research institutes ................ 43 00.02 Regional educational laboratories ........................ 51 00.03 National dissemination activities ......................... 13 00.04 Statistics ................................................................... 46 00.05 Assessment ................................................................ 33 00.06 Eisenhower professional development national activities ................................................................... 18 Educational technology: Technology for education: 00.07 Technology literacy challenge fund .................. ................... 00.08 Technology innovation challenge grants .......... 38 00.09 Regional technology in education consortia 10 00.10 Star schools .......................................................... 23 00.11 Ready to learn television ...................................... 6 00.12 Telecommunications demonstration project for mathematics ..................................................... 1 00.13 Fund for the improvement of education ................... 38 00.14 Javits gifted and talented education ........................ 3 00.15 Eisenhower regional mathematics and science education consortia .................................................... 15 00.16 After-school learning centers .................................... 1 00.17 National writing project ............................................ 3 00.18 Civic education .......................................................... 4 00.19 International education exchange ............................. 5 1997 est. 1998 est. 54 51 19 50 33 62 54 19 66 38 13 30 200 ................... 57 75 10 10 30 26 7 7 1 40 5 2 40 7 15 15 1 50 3 ................... 4 5 5 5 00.91 02.01 Subtotal, direct program ...................................... Reimbursable program .................................................. 10.00 Total obligations ........................................................ 353 598 511 22.00 23.95 Budgetary resources available for obligation: New budget authority (gross) ........................................ New obligations ............................................................. 353 –353 598 –598 511 –511 351 598 511 New budget authority (gross), detail: Current: 40.00 Appropriation ............................................................. Permanent: 68.00 Spending authority from offsetting collections: Offsetting collections (cash) ..................................... 70.00 AND 447 Total new budget authority (gross) .......................... Change in unpaid obligations: Unpaid obligations, start of year: Obligated balance: Appropriation ............................................................. 73.10 New obligations ............................................................. 73.20 Total outlays (gross) ...................................................... 73.40 Adjustments in expired accounts .................................. 74.40 Unpaid obligations, end of year: Obligated balance: Appropriation ............................................................. 351 598 511 2 ................... ................... 2 ................... ................... 353 598 511 72.40 322 358 543 353 598 511 –313 –412 –551 –4 ................... ................... 358 543 503 448 OFFICE OF EDUCATIONAL RESEARCH AND IMPROVEMENT—Continued Federal Funds—Continued THE BUDGET FOR FISCAL YEAR 1998 General and special funds—Continued EDUCATION RESEARCH, STATISTICS, AND IMPROVEMENT—Continued Program and Financing (in millions of dollars)—Continued Identification code 91–1100–0–1–999 1996 actual 1997 est. 1998 est. 86.90 86.93 86.98 Outlays (gross), detail: Outlays from new current authority .............................. Outlays from current balances ...................................... Outlays from permanent balances ................................ 82 229 2 130 129 281 422 1 ................... 87.00 Total outlays (gross) ................................................. 313 412 Offsets: Against gross budget authority and outlays: 88.00 Offsetting collections (cash) from: Federal sources 89.00 90.00 Net budget authority and outlays: Budget authority ............................................................ Outlays ........................................................................... 551 –2 ................... ................... 351 311 598 412 511 551 Note.—Excludes $425 million in budget authority in 1998 for activities transferred to the Office of Elementary and Secondary Education, Education Reform Account. The comparable amount for 1997 was $200 million (included above) and zero in 1996, since the program was first funded in 1997. Research, development, and dissemination.— National research institutes.—Funds support the activities of five research institutes organized to address topics of national concern in education. The institutes carry out comprehensive programs of research and development by funding research centers, field-initiated research studies, and other research projects. Regional educational laboratories.—Ten laboratories provide applied research and development, dissemination, and technical assistance services to address needs in specified regions throughout the country. National dissemination activities.—Funds support information clearinghouses, a national dissemination system, and a national library of education, which serves as a central location within the Federal government for information on education. Statistics.—Funds support the collection of statistics on educational institutions and on individuals to monitor trends in education, and a coordinated program of statistical services to assist States in developing comparable data bases and analyses of the implications of data. Assessment.—Funds support the National Assessment of Educational Progress, which surveys young Americans to provide reliable information about educational attainment in important skill areas. Both national- and State-representative data are collected. Eisenhower professional development national activities.— Funds support activities to promote excellence in teaching. Such activities include strengthening professional standards for teachers, demonstrating ways to engage teachers and other educators in the use of effective teaching and learning strategies, providing support services for both Eisenhower State and Federal program activities, and evaluating these activities. Technology for education.— Technology innovation challenge grants.—Competitive grants are made to consortia of school districts and other partners to improve teaching and learning through the effective use of technologies. Regional technology in education consortia.—Funds support technical assistance in the development and implementation of educational technology. Star schools.—Funds support the acquisition of telecommunications equipment and development of instructional programming for distance learning. Ready to learn television.—Funds support the development of educational programming for preschool and elementary school children and their parents. Telecommunications demonstration project for mathematics.—Funds support a national telecommunications-based demonstration project to improve the teaching of mathematics so that all students are prepared to achieve State content standards. Fund for the improvement of education.—Funds support nationally significant projects to improve the quality of education, assist all students to meet challenging standards, contribute to achievement of the National Education Goals and support the Christa McAuliffe Fellowships. Javits gifted and talented education.—Funds support projects designed to help educators identify and meet the special educational needs of gifted and talented students and, where appropriate, to adapt strategies successful with those students to improve instruction for all students. Eisenhower regional mathematics and science education consortia.—Funds support regional consortia to disseminate exemplary mathematics and science education materials and provide technical assistance to help teachers and administrators implement new teaching methods and assessment tools. After-school learning centers.—Funds support school-based after-school tutoring and other educational and violence prevention services to members of the community. Civic education.—Funds are used to provide an award to the Center for Civic Education to help educate students about the history and principles of the Constitution, including the Bill of Rights. International education exchange.—Funds are used for international exchange programs to help improve civics and economics education in central and eastern European countries, countries that were part of the former Soviet Union, and the United States. Object Classification (in millions of dollars) 1996 actual Identification code 91–1100–0–1–999 1997 est. 1998 est. 1 2 5 46 1 2 5 52 1 1 5 71 25.5 25.7 41.0 Direct obligations: Personnel compensation: Other than full-time permanent .................................................................. Printing and reproduction ......................................... Advisory and assistance services ............................. Other services ............................................................ Purchases of goods and services from Government accounts ................................................................ Research and development contracts ....................... Operation and maintenance of equipment ............... Grants, subsidies, and contributions ........................ 9 55 9 222 9 56 9 462 9 56 9 357 99.0 99.0 99.5 Subtotal, direct obligations .................................. Reimbursable obligations .............................................. Below reporting threshold .............................................. 349 596 509 2 ................... ................... 2 2 2 99.9 Total obligations ........................................................ 11.3 24.0 25.1 25.2 25.3 353 598 511 Personnel Summary 1996 actual Identification code 91–1100–0–1–999 1001 Total compensable workyears: Full-time equivalent employment ............................................................... 11 1997 est. 13 1998 est. 13 LIBRARIES The account for the Office of Library programs, which was formerly shown under the Department of Education, Office of Educational Research and Improvement, is now part of the Institute of Museum and Library Services. DEPARTMENTAL MANAGEMENT Federal Funds DEPARTMENT OF EDUCATION DEPARTMENTAL MANAGEMENT Federal Funds General and special funds: PROGRAM ADMINISTRATION For carrying out, to the extent not otherwise provided, the Department of Education Organization Act, including rental of conference rooms in the District of Columbia and hire of two passenger motor vehicles, ø$327,000,000¿ $341,039,000. (Department of Education Appropriations Act, 1997.) Program and Financing (in millions of dollars) Identification code 91–0800–0–1–503 1996 actual 1997 est. cation agencies and other grant recipients, and preparation of auditable financial statements; ADP services; personnel management; budget formulation and execution; program evaluation; legal services; congressional and public relations; and intergovernmental affairs. Reimbursable program.—Reimbursements to this account include the costs of collecting defaulted Perkins student loans and of providing administrative services to other agencies. Also included in this account are contributions from the public. Activities supported include the Goals 2000 Teachers’ Forum, and the Gifts and Bequests Miscellaneous Fund. No new contributions are currently anticipated for 1998. Object Classification (in millions of dollars) 1998 est. 00.01 01.01 Obligations by program activity: Direct program ............................................................... Reimbursable programs ................................................. 326 6 326 8 341 8 10.00 Total obligations ........................................................ 332 334 349 22.00 22.30 Budgetary resources available for obligation: New budget authority (gross) ........................................ Unobligated balance expiring ........................................ 11.1 11.3 11.5 333 334 349 –1 ................... ................... 23.90 23.95 Total budgetary resources available for obligation New obligations ............................................................. 11.9 12.1 21.0 23.1 23.3 334 –334 349 –349 New budget authority (gross), detail: Current: 40.00 Appropriation ............................................................. 327 40.75 Reduction pursuant to P.L. 104–208 ....................... ................... 327 341 –1 ................... 43.00 68.00 70.00 Appropriation (total) ............................................. Permanent: Spending authority from offsetting collections: Offsetting collections (cash) ..................................... 327 326 341 6 8 8 Total new budget authority (gross) .......................... 333 334 349 Change in unpaid obligations: 72.40 Unpaid obligations, start of year: Obligated balance: Appropriation ............................................................. 73.10 New obligations ............................................................. 73.20 Total outlays (gross) ...................................................... 73.40 Adjustments in expired accounts .................................. 74.40 Unpaid obligations, end of year: Obligated balance: Appropriation ............................................................. 1996 actual Identification code 91–0800–0–1–503 332 –332 24.0 25.1 25.2 25.3 25.4 25.7 26.0 31.0 32.0 99.0 99.0 99.5 183 119 123 332 334 349 –406 –330 –348 10 ................... ................... 119 123 99.9 Direct obligations: Personnel compensation: Full-time permanent ............................................. Other than full-time permanent ........................... Other personnel compensation ............................. 245 78 4 3 253 87 4 4 87.00 406 330 1998 est. 140 11 1 141 11 1 152 30 5 23 152 31 5 22 153 33 5 25 17 8 5 10 16 9 5 9 17 10 5 13 14 1 44 3 13 1 15 1 50 3 5 1 14 1 46 3 13 2 Subtotal, direct obligations .................................. 326 Reimbursable obligations .............................................. 6 Below reporting threshold .............................................. ................... 324 7 3 340 7 2 334 349 Total personnel compensation ......................... Civilian personnel benefits ....................................... Travel and transportation of persons ....................... Rental payments to GSA ........................................... Communications, utilities, and miscellaneous charges ................................................................. Printing and reproduction ......................................... Advisory and assistance services ............................. Other services ............................................................ Purchases of goods and services from Government accounts ................................................................ Operation and maintenance of facilities .................. Operation and maintenance of equipment ............... Supplies and materials ............................................. Equipment ................................................................. Land and structures .................................................. Total obligations ........................................................ 332 Personnel Summary 1996 actual Identification code 91–0800–0–1–503 254 130 3 19 1997 est. 137 13 2 124 Outlays (gross), detail: 86.90 Outlays from new current authority .............................. 86.93 Outlays from current balances ...................................... 86.97 Outlays from new permanent authority ......................... 86.98 Outlays from permanent balances ................................ 348 Total outlays (gross) ................................................. 449 Total compensable workyears: 1001 Full-time equivalent employment .................................. 1005 Full-time equivalent of overtime and holiday hours OFFICE FOR 2,733 3 1997 est. 2,630 3 1998 est. 2,575 3 CIVIL RIGHTS Offsets: Against gross budget authority and outlays: 88.00 Offsetting collections (cash) from: Federal sources –6 –8 –8 Net budget authority and outlays: Budget authority ............................................................ Outlays ........................................................................... For expenses necessary for the Office for Civil Rights, as authorized by section 203 of the Department of Education Organization Act, ø$55,000,000¿ $61,500,000. (Department of Education Appropriations Act, 1997.) 327 400 326 322 341 340 Program and Financing (in millions of dollars) 89.00 90.00 Identification code 91–0700–0–1–751 The Program Administration account includes the direct Federal costs of providing grants and administering elementary and secondary education, bilingual education, higher education, vocational and adult education, and special education programs, programs for persons with disabilities and a portion of the direct Federal costs for administering student financial aid programs. It also supports assessment, statistics, research and improvement activities. In addition, this account includes the cost of providing centralized support and administrative services, overall policy development, and strategic planning for the Department. Included in the centralized activities are rent and mail services; telecommunciations; contractual services; financial management and accounting, including payments to schools, edu- 1996 actual 1997 est. 1998 est. 00.01 Obligations by program activity: Direct program: Civil Rights .......................................... 55 55 62 10.00 Total obligations ........................................................ 55 55 62 22.00 23.95 Budgetary resources available for obligation: New budget authority (gross) ........................................ New obligations ............................................................. 55 –55 55 –55 62 –62 40.00 New budget authority (gross), detail: Appropriation .................................................................. 55 55 62 Change in unpaid obligations: Unpaid obligations, start of year: Obligated balance: Appropriation ............................................................. 73.10 New obligations ............................................................. 28 55 11 55 9 62 72.40 450 DEPARTMENTAL MANAGEMENT—Continued Federal Funds—Continued THE BUDGET FOR FISCAL YEAR 1998 22.00 23.95 Budgetary resources available for obligation: New budget authority (gross) ........................................ New obligations ............................................................. 29 –29 30 –30 32 –32 40.00 New budget authority (gross), detail: Appropriation .................................................................. 29 30 32 8 29 –31 6 30 –31 5 32 –31 6 5 6 General and special funds—Continued OFFICE FOR CIVIL RIGHTS—Continued Program and Financing (in millions of dollars)—Continued 1996 actual Identification code 91–0700–0–1–751 73.20 74.40 Total outlays (gross) ...................................................... Unpaid obligations, end of year: Obligated balance: Appropriation ............................................................. 1997 est. 1998 est. –72 –57 –60 11 9 11 86.90 86.93 Outlays (gross), detail: Outlays from new current authority .............................. Outlays from current balances ...................................... 48 24 48 9 53 7 87.00 Total outlays (gross) ................................................. 72 57 60 Net budget authority and outlays: 89.00 Budget authority ............................................................ 90.00 Outlays ........................................................................... 55 72 55 57 Change in unpaid obligations: Unpaid obligations, start of year: Obligated balance: Appropriation ............................................................. 73.10 New obligations ............................................................. 73.20 Total outlays (gross) ...................................................... 74.40 Unpaid obligations, end of year: Obligated balance: Appropriation ............................................................. 72.40 86.90 86.93 Outlays (gross), detail: Outlays from new current authority .............................. Outlays from current balances ...................................... 25 6 26 5 27 4 62 60 87.00 Total outlays (gross) ................................................. 31 31 31 The Office for Civil Rights is responsible for ensuring that no person is unlawfully discriminated against on the basis of race, color, national origin, sex, disability, or age in the delivery of services or the provision of benefits in programs or activities of schools and institutions receiving financial assistance from the Department of Education. The authorities under which the Office for Civil Rights operates are title VI of the Civil Rights Act of 1964 (racial and ethnic discrimination), title IX of the Education Amendments of 1972 (sex discrimination), section 504 of the Rehabilitation Act of 1973 (discrimination against individuals with a disability), the Age Discrimination Act of 1975, and the Americans with Disabilities Act of 1990. 89.00 90.00 Net budget authority and outlays: Budget authority ............................................................ Outlays ........................................................................... 29 31 30 31 32 31 The Inspector General is responsible for the quality, coverage, and coordination of audit, investigation, and security functions relating to Federal education activities. The Inspector General has the authority to inquire into all activities of the Department including those performed under Federal education contracts, grants, or other agreements. Under the Chief Financial Officers Act of 1990, the Inspector General is also responsible for internal reviews of the Department’s financial systems and audits of its financial statements. Object Classification (in millions of dollars) Object Classification (in millions of dollars) 1996 actual Identification code 91–0700–0–1–751 11.1 11.3 11.9 12.1 21.0 23.1 23.3 25.2 25.3 25.7 26.0 31.0 99.5 99.9 Personnel compensation: Full-time permanent .................................................. Other than full-time permanent ............................... 38 1 Total personnel compensation .............................. 38 38 Civilian personnel benefits ............................................ 7 7 Travel and transportation of persons ............................ 1 1 Rental payments to GSA ................................................ 4 4 Communications, utilities, and miscellaneous charges 1 1 Other services ................................................................ ................... ................... Purchases of goods and services from Government accounts .................................................................... 1 2 Operation and maintenance of equipment ................... 1 1 Supplies and materials ................................................. ................... ................... Equipment ...................................................................... 1 ................... Below reporting threshold .............................................. 1 1 39 8 1 5 1 1 55 55 1996 actual Identification code 91–1400–0–1–751 1998 est. 37 1 Total obligations ........................................................ 37 1 1997 est. 2 2 1 1 1 11.1 11.5 11.9 12.1 21.0 23.1 25.1 25.3 25.7 99.5 99.9 Personnel compensation: Full-time permanent .................................................. Other personnel compensation .................................. 19 1 Total personnel compensation .............................. 18 19 Civilian personnel benefits ............................................ 4 4 Travel and transportation of persons ............................ 1 1 Rental payments to GSA ................................................ 2 2 Advisory and assistance services .................................. 1 ................... Purchases of goods and services from Government accounts .................................................................... 1 1 Operation and maintenance of equipment ................... ................... ................... Below reporting threshold .............................................. 2 3 20 5 1 2 1 Total obligations ........................................................ 1001 1001 1996 actual Total compensable workyears: Full-time equivalent employment ............................................................... 744 1997 est. 724 29 30 1 1 1 32 Personnel Summary Identification code 91–1400–0–1–751 Identification code 91–0700–0–1–751 1998 est. 18 1 62 Personnel Summary 17 1 1997 est. 1998 est. Total compensable workyears: Full-time equivalent employment ............................................................... 1996 actual 305 1997 est. 1998 est. 317 317 724 HEADQUARTERS RENOVATION Program and Financing (in millions of dollars) OFFICE OF THE INSPECTOR GENERAL For expenses necessary for the Office of the Inspector General, as authorized by Section 212 of the Department of Education Organization Act, ø$30,000,000¿ $32,000,000. (Department of Education Appropriations Act, 1997.) Program and Financing (in millions of dollars) Identification code 91–1400–0–1–751 1996 actual Identification code 91–1500–0–1–503 10.00 Obligations by program activity: Total obligations ............................................................ 1996 actual 1 1997 est. 1998 est. 6 ................... Budgetary resources available for obligation: Unobligated balance available, start of year: Uninvested balance ................................................... ................... 6 ................... 22.00 New budget authority (gross) ........................................ 7 ................... ................... 21.40 1997 est. 1998 est. 00.01 Obligations by program activity: Inspector General ........................................................... 29 30 32 10.00 Total obligations ........................................................ 29 30 32 23.90 23.95 24.40 Total budgetary resources available for obligation New obligations ............................................................. Unobligated balance available, end of year: Uninvested balance ................................................... 7 –1 6 ................... –6 ................... 6 ................... ................... GENERAL PROVISIONS DEPARTMENT OF EDUCATION 40.00 New budget authority (gross), detail: Appropriation .................................................................. 7 ................... ................... Change in unpaid obligations: Unpaid obligations, start of year: Obligated balance: Appropriation ............................................................. ................... 73.10 New obligations ............................................................. 1 73.20 Total outlays (gross) ...................................................... ................... 74.40 Unpaid obligations, end of year: Obligated balance: Appropriation ............................................................. 1 72.40 1 2 6 ................... –5 –2 2 ................... 86.93 Outlays (gross), detail: Outlays from current balances ...................................... ................... 89.00 90.00 Net budget authority and outlays: Budget authority ............................................................ 7 ................... ................... Outlays ........................................................................... ................... 5 2 5 2 This account provides the Department of Education’s portion of funds to renovate its headquarters building, including costs for administrative services, information technology, telecommunications cabling, and systems furniture. The remaining funds required for the renovation, which began in October 1994, will be provided by the General Services Administration. Object Classification (in millions of dollars) 1996 actual Identification code 91–1500–0–1–503 1997 est. 1998 est. 25.2 25.7 31.0 Other services ................................................................ ................... Operation and maintenance of equipment ................... ................... Equipment ...................................................................... ................... 99.0 99.5 Subtotal, direct obligations .................................. ................... 6 ................... Below reporting threshold .............................................. 1 ................... ................... 99.9 Total obligations ........................................................ 1 ................... 2 ................... 3 ................... 1 6 ................... GENERAL FUND RECEIPT ACCOUNTS 1996 actual 1997 est. 1998 est. Offsetting receipts from the public: 91–022100 FFEL Guarantee agency reserve recoveries: Legislative proposal, subject to PAYGO ............................. ................... ................... 91–291500 Repayment of loans, capital contributions, higher education activities, Education .............................. 61 62 731 General Fund Offsetting receipts from the public ..................... 792 61 62 or clustering. The prohibition described in this section does not include the establishment of magnet schools. SEC. 303. No funds appropriated under this Act may be used to prevent the implementation of programs of voluntary prayer and meditation in the public schools. øSEC. 304. Notwithstanding any other provision of law, funds available under section 458 of the Higher Education Act shall not exceed $491,000,000 for fiscal year 1997. The Department of Education shall use $80,000,000 of the amounts provided for payment of administrative cost allowances to guaranty agencies for fiscal year 1996. For fiscal year 1997, the Department of Education shall pay administrative costs to guaranty agencies, calculated on the basis of 0.85 percent of the total principal amount of loans upon which insurance was issued on or after October 1, 1996: Provided, That such administrative costs shall be paid only on the first $8,200,000,000 of the principal amount of loans upon which insurance was issued on or after October 1, 1996 by such guaranty agencies, and shall not exceed a total of $70,000,000. Such payments are to be paid quarterly, and receipt of such funds and uses of such funds shall be in accordance with section 428(f) of the Higher Education Act.¿ øNotwithstanding section 458 of the Higher Education Act, the Secretary may not use funds available under that section or any other section for subsequent fiscal years for administrative expenses of the William D. Ford Direct Loan Program. The Secretary may not require the return of guaranty agency reserve funds during fiscal year 1997, except after consultation with both the Chairmen and ranking members of the House Economic and Educational Opportunities Committee and the Senate Labor and Human Resources Committee. Any reserve funds recovered by the Secretary shall be returned to the Treasury of the United States for purposes of reducing the Federal deficit.¿ øNo funds available to the Secretary may be used for (1) the hiring of advertising agencies or other third parties to provide advertising services for student loan programs prior to January 1, 1997, or (2) payment of administrative fees relating to the William D. Ford Direct Loan Program to institutions of higher education.¿ øSEC. 305. None of the funds appropriated in this Act may be obligated or expended to carry outsection 621(b) of Public Law 101– 589.¿ ø(TRANSFER (in millions of dollars) 61 GENERAL PROVISIONS SEC. 301. No funds appropriated in this Act may be used for the transportation of students or teachers (or for the purchase of equipment for such transportation) in order to overcome racial imbalance in any school or school system, or for the transportation of students or teachers (or for the purchase of equipment for such transportation) in order to carry out a plan of racial desegregation of any school or school system. SEC. 302. None of the funds contained in this Act shall be used to require, directly or indirectly, the transportation of any student to a school other than the school which is nearest the student’s home, except for a student requiring special education, to the school offering such special education, in order to comply with title VI of the Civil Rights Act of 1964. For the purpose of this section an indirect requirement of transportation of students includes the transportation of students to carry out a plan involving the reorganization of the grade structure of schools, the pairing of schools, or the clustering of schools, or any combination of grade restructuring, pairing 451 OF FUNDS)¿ øSEC. 306. Not to exceed 1 percent of any discretionary funds (pursuant to the Balanced Budget and Emergency Deficit Control Act, as amended) which are appropriated for the current fiscal year for the Department of Education in this Act may be transferred between appropriations, but no such appropriation shall be increased by more than 3 percent by any such transfer: Provided, That the Appropriations Committees of both Houses of Congress are notified at least fifteen days in advance of any transfer.¿ øSEC. 307. (a) Section 8003(f)(3)(A)(i) of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7703(f)(3)(A)(i)) is amended—¿ ø(1) in the matter preceding subclause (I), by striking ‘‘The Secretary’’ and all that follows through ‘‘greater of—’’ and inserting the following: ‘‘The Secretary, in conjunction with the local educational agency, shall first determine each of the following:’’;¿ ø(2) in each of subclauses (I) through (III), by striking ‘‘the average’’ each place it appears the first time in each such subclause and inserting ‘‘The average’’;¿ ø(3) in subclause (I), by striking the semicolon and inserting a period;¿ ø(4) in subclause (II), by striking ‘‘: or’’ and inserting a period; and¿ ø(5) by adding at the end the following: ‘‘The local educational agency shall select one of the amounts determined under subclause (I), (II), or (III) for purposes of the remaining computations under this subparagraph.’’.¿ ø(b) The amendments made by subsection (a) shall apply with respect to fiscal years beginning with fiscal year 1995.¿ øSEC. 308. Section 485(e)(9) of the Higher Education Act of 1965 is amended by striking out ‘‘June 30’’ in the second sentence of such section and inserting ‘‘August 30’’.¿ (Department of Education Appropriations Act, 1997.)