Full text of Budget of the United States Government - Appendix : Fiscal Year 2002 : Department of Education

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DEPARTMENT OF EDUCATION
OFFICE OF ELEMENTARY AND SECONDARY
EDUCATION
Federal Funds
General and special funds:
EDUCATION

FOR THE

DISADVANTAGED

For carrying out øtitle I of the Elementary and Secondary Education Act of 1965, and¿ section 418A of the Higher Education Act
of 1965, $30,000,000: Provided, That the budget authority (but not
the outlays) for $6,758,300,000 provided under this heading in fiscal
year 2001, to be available as an advance appropriation in fiscal year
2002, and the budget authority (but not the outlays) for $195,000,000
provided under the heading, ‘‘Reading Excellence’’ in fiscal year 2001,
to be available as an advance appropriation in fiscal year 2002, shall
be considered direct spending in fiscal year 2002 for purposes of
the Balanced Budget and Emergency Deficit Control Act of 1990,
as amended, and section 2(a) of Public Law 106–554: Provided further, That under this heading in the Department of Education Appropriations Act, 2001, as enacted by section 1(a)(1) of P.L. 106–554,
to carry out section 1124 of the Elementary and Secondary Education
Act, delete ‘‘$7,332,721,000’’ and insert in lieu thereof,
‘‘$7,237,721,000’’ ø$9,532,621,000, of which $2,731,921,000 shall become available on July 1, 2001, and shall remain available through
September 30, 2002, and of which $6,758,300,000 shall become available on October 1, 2001 and shall remain available through September 30, 2002, for academic year 2001–2002: Provided, That
$7,332,721,000 shall be available for basic grants under section 1124:
Provided further, That $225,000,000 of these funds shall be allocated
among the States in the same proportion as funds are allocated
among the States under section 1122, to carry out section 1116(c):
Provided further, That 100 percent of these funds shall be allocated
by states to local educational agencies for the purposes of carrying
out section 1116(c): Provided further, That all local educational agencies receiving an allocation under the preceding proviso, and all other
local educational agencies that are within a State that receives funds
under part A of title I of the Elementary and Secondary Education
Act of 1965 (other than a local educational agency within a State
receiving a minimum grant under section 1124(d) or 1124A(a)(1)(B)
of such Act), shall provide all students enrolled in a school identified
under section 1116(c) with the option to transfer to another public
school within the local educational agency, including a public charter
school, that has not been identified for school improvement under
section 1116(c), unless such option to transfer is prohibited by State
law, or local law, which includes school board-approved local educational agency policy: Provided further, That if the local educational
agency demonstrates to the satisfaction of the State educational agency that the local educational agency lacks the capacity to provide
all students with the option to transfer to another public school,
and after giving notice to the parents of children affected that it
is not possible, consistent with State and local law, to accommodate
the transfer request of every student, the local educational agency
shall permit as many students as possible (who shall be selected
by the local educational agency on an equitable basis) to transfer
to a public school that has not been identified for school improvement
under section 1116(c): Provided further, That up to $3,500,000 of
these funds shall be available to the Secretary on October 1, 2000,
to obtain updated local educational agency level census poverty data
from the Bureau of the Census: Provided further, That $1,364,000,000
shall be available for concentration grants under section 1124A: Provided further, That grant awards under sections 1124 and 1124A
of title I of the Elementary and Secondary Education Act of 1965
shall be not less than the greater of 100 percent of the amount
each State and local educational agency received under this authority
for fiscal year 2000 or the amount such State and local educational
agency would receive if $6,883,503,000 for Basic Grants and
$1,222,397,000 for Concentration Grants were allocated in accordance
with section 1122(c)(3) of title I: Provided further, That notwithstanding any other provision of law, grant awards under section
1124A of title I of the Elementary and Secondary Education Act

of 1965 shall be made to those local educational agencies that received a Concentration Grant under the Department of Education
Appropriations Act, 2000, but are not eligible to receive such a grant
for fiscal year 2001: Provided further, That the Secretary shall not
take into account the hold harmless provisions in this section in
determining State allocations under any other program administered
by the Secretary in any fiscal year: Provided further, That $8,900,000
shall be available for evaluations under section 1501 and not more
than $8,500,000 shall be reserved for section 1308, of which not
more than $3,000,000 shall be reserved for section 1308(d): Provided
further, That $210,000,000 shall be available under section 1002(g)(2)
to demonstrate effective approaches to comprehensive school reform
to be allocated and expended in accordance with the instructions
relating to this activity in the statement of the managers on the
conference report accompanying Public Law 105–78 and in the statement of the managers on the conference report accompanying Public
Law 105–277: Provided further, That in carrying out this initiative,
the Secretary and the States shall support only approaches that show
the most promise of enabling children served by title I to meet challenging State content standards and challenging State student performance standards based on reliable research and effective practices,
and include an emphasis on basic academics and parental involvement¿. (Department of Education Appropriations Act, 2001, as enacted
by section 1(a)(1) of P.L. 106–554.)
Program and Financing (in millions of dollars)
2000 actual

Identification code 91–0900–0–1–501

2001 est.

2002 est.

Obligations by program activity:
Direct program:
Grants to local educational agencies:
00.01
Basic grants .........................................................
00.02
Concentration grants ............................................
00.03
Capital expenses .......................................................
00.04
Even start ..................................................................
00.05
State agency programs .............................................
00.06
Evaluation ..................................................................
00.07
Demonstrations of comprehensive school reform .....
00.08
Migrant education projects .......................................

6,771
1,147
14
149
397
9
171
22

6,929
1,148
6
255
432
9
211
30

5,408
1,350
...................
...................
...................
...................
...................
30

10.00

Total new obligations ................................................

8,680

9,020

6,788

21.40
22.00
22.10

Budgetary resources available for obligation:
Unobligated balance carried forward, start of year
New budget authority (gross) ........................................
Resources available from recoveries of prior year obligations .......................................................................

16
8,701

41 ...................
8,979
6,788

23.90
23.95
24.40

Total budgetary resources available for obligation
Total new obligations ....................................................
Unobligated balance carried forward, end of year .......

4 ................... ...................
8,721
9,020
6,788
¥8,680
¥9,020
¥6,788
41 ................... ...................

New budget authority (gross), detail:
Discretionary:
40.00
Appropriation .............................................................
2,496
2,774
30
55.00
Advance appropriation ..............................................
6,205
6,205 ...................
Mandatory:
65.00
Advance appropriation .............................................. ................... ...................
6,758
70.00

Total new budget authority (gross) ..........................

8,701

8,979

6,788

Change in unpaid obligations:
Unpaid obligations, start of year:
72.40
Unpaid obligations, start of year ..............................

3,472

3,616

4,165

72.99
73.10
73.20
73.40
73.45
74.40

Obligated balance, start of year ..........................
Total new obligations ....................................................
Total outlays (gross) ......................................................
Adjustments in expired accounts (net) .........................
Recoveries of prior year obligations ..............................
Unpaid obligations, end of year:
Unpaid obligations, end of year ...............................

74.99

Obligated balance, end of year ............................

3,472
3,616
4,165
8,680
9,020
6,788
¥8,529
¥8,471
¥8,846
¥3 ................... ...................
¥4 ................... ...................
3,616

4,165

2,107

3,616

4,165

2,107

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346

OFFICE OF ELEMENTARY AND SECONDARY EDUCATION—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 2002

General and special funds—Continued
EDUCATION

FOR THE

EDUCATION

DISADVANTAGED—Continued

2000 actual

2001 est.

...................
...................
...................
...................
...................
...................
...................
...................
...................

7,238
1,364
459
250
900
75
426
9
260

10.00

2001 est.

Total new obligations ................................................ ................... ...................

10,981

22.00
23.95

Budgetary resources available for obligation:
New budget authority (gross) ........................................ ................... ...................
Total new obligations .................................................... ................... ...................

10,981
¥10,981

10,981
549

New budget authority (gross), detail:
Discretionary:
40.00
Appropriation ............................................................. ................... ...................

10,981

17,769
9,396

73.10
73.20

2002 est.

Outlays (gross), detail:
86.90 Outlays from new discretionary authority .....................
86.93 Outlays from discretionary balances .............................

5,545
2,984

5,441
3,030

5,408
3,439

87.00

Total outlays (gross) .................................................

8,529

8,471

8,846

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

8,701
8,529

8,979
8,471

6,788
8,846

Summary of Budget Authority and Outlays

Identification code 91–0900–2–1–501

Obligations by program activity:
Direct program:
Grants to local educational agencies:
00.01
Basic grants .........................................................
00.02
Concentration grants ............................................
00.03
Targeted Grants ....................................................
00.04
Even start ..................................................................
00.05
Reading first State grants ........................................
00.06
Early reading first .....................................................
00.07
State agency programs .............................................
00.08
Evaluation ..................................................................
00.09
Demonstrations of comprehensive school reform .....

(in millions of dollars)
2000 actual
2001 est.
Enacted/requested:
Budget Authority .....................................................................
8,701
8,979
Outlays ....................................................................................
8,529
8,471
Legislative proposal, not subject to PAYGO:
Budget Authority ..................................................................... .................... ....................
Outlays .................................................................................... .................... ....................

Total:
Budget Authority .....................................................................
Outlays ....................................................................................

DISADVANTAGED

Program and Financing (in millions of dollars)

Program and Financing (in millions of dollars)—Continued
Identification code 91–0900–0–1–501

FOR THE

(Legislative proposal, not subject to PAYGO)

2002 est.

6,788
8,847

2002 est.

8,979
8,471

SUMMARY OF PROGRAM LEVEL

Change in unpaid obligations:
Total new obligations .................................................... ................... ...................
Total outlays (gross) ...................................................... ................... ...................
Unpaid obligations, end of year:
74.40
Unpaid obligations, end of year ............................... ................... ...................

10,432

74.99

8,701
8,529

Obligated balance, end of year ............................ ................... ...................

10,432

86.90

Outlays (gross), detail:
Outlays from new discretionary authority ..................... ................... ...................

549

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................ ................... ...................
Outlays ........................................................................... ................... ...................

10,981
549

(in millions of dollars)
2000–2001
academic
year

2001–2002
academic
year

2002–2003
academic
year

New Budget Authority ..................................................................
Advance appropriation ................................................................

2,496
6,205

2,774
11,011
6,758 ....................

Total program level ........................................................

8,701

9,533

11,011

Change in advance appropriation from the previous year ........ ....................

+553

–6,758

10,981
¥549

Identification code 91–0900–0–1–501

25.1
25.2
25.3

2001 est.

2002 est.

10
9

11 ...................
9 ...................

41.0

Advisory and assistance services ..................................
Other services ................................................................
Purchases of goods and services from Government
accounts ....................................................................
Grants, subsidies, and contributions ............................

5
8,656

6 ...................
8,994
6,788

99.9

Total new obligations ................................................

8,680

9,020

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The resources in this schedule are proposed for later transmittal under proposed legislation to revise and reauthorize
programs currently authorized under the Elementary and Secondary Education Act of 1965.
Grants to local education agencies.—Funds are allocated
through Basic, Concentration, and Targeted Grants formulas
for local programs that provide extra academic support to
help raise the achievement of disadvantaged students eligible
for services. States will annually assess all students in grades
3–8 in at least reading and mathematics. School districts
will use the assessment results to immediately identify, and
provide assistance to, low-performing Title I schools; after
two years of school failure, those schools would be subject
to progressively stronger corrective measures and students
would have the option of attending another public school.
Following three years of poor performance, the program would
provide funds to help students transfer to a higher-performing
public or private school, or to obtain supplemental educational
services.
Even start.—Funds support formula grants to States, which
award grants for local projects to partnerships of local educational agencies and other organizations to operate projects
integrating early childhood education, adult literacy, parenting education, and interactive literacy activities between
parents and their children into ‘‘family literacy’’ programs
for low-income families with children under age seven.
Reading first State grants.—Funds provide assistance to
State and local educational agencies in establishing reading
programs for students in grades K–3 that are grounded in
scientifically based reading research, in order to ensure that
every student can read at grade level or above by the third
grade.

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OFFICE OF ELEMENTARY AND SECONDARY EDUCATION—Continued
Federal Funds—Continued

DEPARTMENT OF EDUCATION

Early reading first.—Funds provide assistance to support
local efforts, through competitive grants, to enhance the
school readiness of young children, particularly those from
low-income families, through scientific, research-based strategies and professional development that are designed to enhance the verbal skills, phonological awareness, letter knowledge, pre-reading skills, and early language development of
children ages three through five.
State agency migrant program.—Funds support formula
grants to States for educational services to children of migratory farmworkers and fishers, with resources and services
focused on children who have moved within the past 36
months.
State agency neglected and delinquent program.—Funds
support formula grants to States for educational services to
children and youth under age 21 in State neglected, delinquent, or adult correction facilities.
Evaluation.—Funds support national activities to evaluate
Title I programs and a national assessment of the program’s
effectiveness in helping States, school districts, and schools
raise the overall achievement of disadvantaged students and
narrow the achievement gap.
Demonstrations of comprehensive school reform.—Funds
support formula grants to States, which in turn award grants
to local educational agencies to help participating schools initiate and implement comprehensive school reforms based on
approaches and methods grounded in reliable research and
practice.
Object Classification (in millions of dollars)
2000 actual

Identification code 91–0900–2–1–501

25.1
25.2
25.3
41.0
99.9

2001 est.

16
14

................... ...................
................... ...................

8
10,943

Total new obligations ................................................ ................... ...................

10,981

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$993,302,000¿ $1,130,500,000, of
which $882,000,000 shall be for basic support payments under section
8003(b), $50,000,000 shall be for payments for children with disabilities under section 8003(d), ø$12,802,000¿ $150,000,000 shall be for
formula grants for construction under section ø8007¿ 8007(a),
$40,500,000 shall be for Federal property payments under section
8002, and $8,000,000, to remain available until expended, shall be
for facilities maintenance under section 8008ø: Provided, That
$6,802,000 of the funds for section 8007 shall be available for the
local educational agencies and in the amounts specified in the statement of the managers on the conference report accompanying this
Act: Provided further, That from the amount appropriated for section
8002, the Secretary shall treat as timely filed, and shall process
for payment, an application for a fiscal year 1999 payment from
Academy School District 20, Colorado, under that section if the Secretary has received that application not later than 30 days after
the enactment of this Act: Provided further, That the Secretary of
Education shall consider the local educational agency serving the
Kadoka School District, 35–1, in South Dakota, eligible for payments
under section 8002 for fiscal year 2001 and each succeeding fiscal
year, with respect to land in Washabaugh and Jackson Counties,
South Dakota, that is owned by the Department of Defense and
used as a bombing range: Provided further, That from the amount
appropriated for section 8002, the Secretary shall first increase the
payment of any local educational agency that was denied funding
or had its payment reduced under that section for fiscal year 1998
due to section 8002(b)(1)(C) to the amount that would have been
made without the limitation of that section: Provided further, That
from the amount appropriated for section 8002, $500,000 shall be

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Program and Financing (in millions of dollars)
2000 actual

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 ..................
00.91
01.01
02.01
03.01
04.01
05.01

Subtotal, payments for federally connected children
Facilities maintenance ...................................................
Construction ...................................................................
Payments for Federal property .......................................
Construction earmarks ...................................................
Old construction (P.L. 81–815) .....................................

10.00

Total new obligations (object class 41.0) ................

21.40
22.00
22.10

23.90
23.95
23.98
24.40

737
50
74

2001 est.

882

2002 est.

882

50
50
5 ...................

861
937
932
6
11
11
7
6
150
32
40
40
3
7 ...................
1 ................... ...................
910

1,001

1,133

24
906

14
993

5
1,130

7 ................... ...................

Total budgetary resources available for obligation
Total new obligations ....................................................
Unobligated balance expiring or withdrawn .................
Unobligated balance carried forward, end of year .......

937
1,007
1,135
¥910
¥1,001
¥1,133
¥15 ................... ...................
14
5
2

New budget authority (gross), detail:
Discretionary:
40.00
Appropriation .............................................................
40.76
Reduction pursuant to P.L. 106–113 .......................

910
993
1,130
¥4 ................... ...................

43.00

Appropriation (total discretionary) ........................

906

993

1,130

Change in unpaid obligations:
Unpaid obligations, start of year:
72.40
Unpaid obligations, start of year ..............................

249

266

128

74.40

08:42 Mar 26, 2001

for subsection 8002(j)¿. (Department of Education Appropriations Act,
2001, as enacted by section 1(a)(1) of P.L. 106–554.)

2002 est.

................... ...................
................... ...................

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72.99
73.10
73.20
73.40
73.45

249
266
128
910
1,001
1,133
¥877
¥1,140
¥1,114
¥9 ................... ...................
¥7 ................... ...................
266

128

148

74.99

Obligated balance, end of year ............................

266

128

148

86.90
86.93

Outlays (gross), detail:
Outlays from new discretionary authority .....................
Outlays from discretionary balances .............................

792
85

887
253

1,011
103

87.00

Total outlays (gross) .................................................

877

1,140

1,114

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

906
877

993
1,140

1,130
1,114

Impact Aid helps to replace the lost local revenue that
would otherwise be available to educate federally connected
children. The presence of certain students living on Federal
property, such as students who are military dependents or
who reside on Indian lands, places a financial burden on
local educational agencies that educate them. The property
on which the children live or their parents work is exempt
from local property taxes, denying local educational agencies
access to the primary source of revenue used by most communities to finance education.
Basic support payments.—Payments will be made on behalf
of approximately 1.2 million federally connected students enrolled in about 1,360 local educational agencies to assist them
in meeting their operation and maintenance costs. Average
per-student payments will be approximately $750.
Payments for Children with Disabilities.—Payments in addition to those provided under the Individuals with Disabilities

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348

OFFICE OF ELEMENTARY AND SECONDARY EDUCATION—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 2002

General and special funds—Continued
IMPACT AID—Continued

Education Act will be provided on behalf of approximately
53,000 federally connected students with disabilities in about
830 local educational agencies. Average per-student payments
will be approximately $940.
Facilities maintenance.—Funds are used to provide emergency repairs for school facilities that serve military dependents and are owned by the Department of Education. Funds
are also used to transfer the facilities to local educational
agencies.
Construction.—Formula payments will be provided to approximately 155 local educational agencies with large proportions of federally connected students. Payments will be made
on behalf of about 135,000 students who are military dependents or who reside on Indian lands.
Payments for Federal Property.—Payments are made to approximately 250 local educational agencies in which real property owned by the Federal Government represents 10 percent
or more of the assessed value of real property in the local
educational agency.
f

SCHOOL IMPROVEMENT PROGRAMS
For carrying out school improvement activities authorized by øtitles
II, IV, V–A and B, VI, IX, X, and XIII¿ title X–C of the Elementary
and Secondary Education Act of 1965 (‘‘ESEA’’); øthe McKinney-Vento
Homeless Assistance Act; and¿ the Civil Rights Act of 1964 and
part B of title VIII of the Higher Education Amendments of 1998,
$229,334,000: Provided, That the budget authority (but not the outlays) for $1,765,000,000 provided under this heading in fiscal year
2001, to be available as an advance appropriation in fiscal year 2002,
shall be considered direct spending in fiscal year 2002 for purposes
of the Balanced Budget and Emergency Deficit Control Act of 1990,
as amended, and section 2(a) of Public Law 106–554; ø$4,872,084,000,
of which $2,403,750,000 shall become available on July 1, 2001, and
remain available through September 30, 2002, and of which
$1,765,000,000 shall become available on October 1, 2001 and shall
remain available through September 30, 2002 for academic year
2001–2002: Provided, That $485,000,000 shall be available for Eisenhower professional development State grants under part B of title
II of the Elementary and Secondary Education Act of 1965: Provided
further, That each local educational agency shall use funds in excess
of the allocation it received under such part for the preceding fiscal
year to improve teacher quality by reducing the percentage of teachers who do not have State certification or are certified through emergency or provisional means; are teaching out of field in some or
all of the subject areas and grade levels in which they teach; or
who lack sufficient content knowledge to teach effectively in the areas
they teach to obtain that knowledge: Provided further, That the local
educational agency may also use such excess funds for: activities
authorized under section 2210 of the Elementary and Secondary Education Act of 1965; mentoring programs for new teachers; providing
opportunities for teachers to attend multi-week institutes, such as
those provided in the summer months, that provide intensive professional development in partnership with local educational agencies;
and carrying out initiatives to promote the retention of highly qualified teachers who have a record of success in helping low-achieving
students improve their academic success: Provided further, That each
State educational agency may use such excess funds to carry out
activities under section 2207 of the Elementary and Secondary Education Act of 1965: Provided further, That each State agency for
higher education may use such excess funds to carry out activities
under section 2211 of the Elementary and Secondary Education Act
of 1965: Provided further, That both State educational agencies and
State agencies for higher education may also use such excess funds
for multi-week institutes, such as those provided in the summer
months, that provide intensive professional development in partnership with local educational agencies; and grants to partnerships of
such entities as local educational agencies, institutions of higher education, and private business, to recruit, and prepare, and provide
professional development to, and help retain, school principals and
superintendents, especially for such individuals who serve, or are
preparing to serve, in high-poverty, low-performing schools and local

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educational agencies: Provided further, That such activities may be
undertaken in consortium with other States: Provided further, That
of the funds appropriated for part B of title II of the Elementary
and Secondary Education Act of 1965, $45,000,000 shall be available
to States and allocated in accordance with section 2202(b) of that
Act (except that the requirements of section 2203 shall not apply):
Provided further, That notwithstanding any other provision of law,
each State shall use the amount made available under the preceding
proviso to support efforts to meet the requirements for State eligibility for the Ed-Flex Partnership Act of 1999 or the requirements
under section 1111 of title I of the Elementary and Secondary Education Act of 1965: Provided further, That $44,000,000 shall be available for national activities under section 2102 of the Elementary
and Secondary Education Act of 1965: Provided further, That of the
amount available in the preceding proviso, $3,000,000 shall be made
available to the Secretary for the Troops-to-Teachers Program for
transfer to the Defense Activity for Non-Traditional Education Support of the Department of Defense: Provided further, That the funds
transferred under the preceding proviso shall be used by the Secretary of Defense to administer the Troops-to-Teachers Program, including the selection of participants in the Program under the Troopsto-Teachers Program Act of 1999 (title XVII of Public Law 106–
65; 20 U.S.C. 9301 et seq.): Provided further, That for purposes of
sections 1702(b) and (c) of the Troops-to-Teachers Program Act of
1999, the Secretary of Education shall be the administering Secretary
and may, at the Secretary’s discretion, carry out the activities under
section 1702(c) of that Act and retain a portion of the funds made
available for the Troops-to-Teachers Program to carry out section
1702(b) and (c) of that Act: Provided further, That of the amount
made available under this heading for national activities under section 2102 of the Elementary and Secondary Education Act of 1965,
the Secretary is authorized to use a portion of such funds to carry
out activities to improve the knowledge and skills of early childhood
educators and caregivers who work in urban or rural communities
with high concentrations of young children living in poverty: Provided
further, That of the amount appropriated, $3,208,000,000 shall be
for title VI of the Elementary and Secondary Education Act of 1965
and to carry out activities under part B of the Individuals with
Disabilities Education Act (20 U.S.C. 1411 et seq.): Provided further,
That of the amount made available for title VI, $1,623,000,000 shall
be available, notwithstanding any other provision of law, in accordance with section 306 of this Act in order to reduce class size, particularly in the early grades, using highly qualified teachers to improve
educational achievement for regular and special needs children: Provided further, That of the amount made available for title VI,
$1,200,000,000 shall be available, notwithstanding any other provision of law, for grants for school repair and renovation, activities
under part B of the Individuals with Disabilities Education Act (20
U.S.C. 1411 et seq.), and technology activities, in accordance with
section 321 of this Act: Provided further, That funds made available
under this heading to carry out section 6301(b) of the Elementary
and Secondary Education Act of 1965 shall be available for education
reform projects that provide same gender schools and classrooms,
consistent with applicable law: Provided further, That of the amount
made available to carry out activities authorized under part C of
title IX of the Elementary and Secondary Education Act of 1965,
$1,000,000 shall be for the Alaska Humanities Forum for operation
of the Rose student exchange program and $1,000,000 shall be for
the Alaska Native Heritage Center to support its program of cultural
education activities: Provided further, That of the amount made available for subpart 2 of part A of title IV of the Elementary and Secondary Education Act of 1965, $10,000,000, to remain available until
expended, shall be for Project School Emergency Response to Violence
to provide education-related services to local educational agencies
in which the learning environment has been disrupted due to a violent or traumatic crisis¿. (Department of Education Appropriations
Act, 2001, as enacted by section 1(a)(1) of P.L. 106–554.)
Program and Financing (in millions of dollars)
2000 actual

Identification code 91–1000–0–1–501

Direct program:
Obligations by program activity:
00.01
Eisenhower professional development State grants
335
00.02
Innovative education program strategies State
grants ....................................................................
80
00.03
Eisenhower professional development national activities ................................................................... ...................
00.04
Class size reduction ..................................................
400

Sfmt 3643

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2001 est.

2002 est.

486 ...................
386

285

41 ...................
1,374
1,150

OFFICE OF ELEMENTARY AND SECONDARY EDUCATION—Continued
Federal Funds—Continued

DEPARTMENT OF EDUCATION
00.05
00.06
00.07
00.08
00.09
00.10
00.11
00.12
00.13
00.14
00.15
00.16
00.17
00.18
00.19

School renovation grants .......................................... ...................
Safe and drug-free schools and communities:
State grants ..........................................................
110
National programs ................................................
162
Inexpensive book distribution ....................................
20
Arts in education .......................................................
12
Magnet schools assistance .......................................
110
Education for homeless children and youth .............
29
Women’s educational equity .....................................
3
Training and advisory services .................................
7
Ellender fellowships ..................................................
2
Education for Native Hawaiians ...............................
23
Alaska Native education equity ................................
13
Charter schools grants ..............................................
145
Advanced placement incentives ................................
15
Comprehensive regional assistance centers .............
28

1,200 ...................
442
205
23
28
110
35
3
7
2
28
15
190
22
28

330
...................
...................
...................
...................
...................
...................
7
...................
...................
...................
200
22
...................

01.00
09.01

Total direct program ......................................................
Reimbursable program ..................................................

1,494
4,625
1,994
57 ................... ...................

10.00

Total new obligations ....................................................

1,551

4,625

4
1,549

6 ...................
4,619
1,994

Budgetary resources available for obligation:
21.40 Unobligated balance carried forward, start of year
22.00 New budget authority (gross) ........................................
22.10 Resources available from recoveries of prior year obligations .......................................................................
23.90
23.95
24.40

Total budgetary resources available for obligation
Total new obligations ....................................................
Unobligated balance carried forward, end of year .......

1,556
4,625
1,994
¥1,551
¥4,625
¥1,994
6 ................... ...................

New budget authority (gross), detail:
Discretionary:
40.00
Appropriation .............................................................
1,512
3,107
229
40.76
Reduction pursuant to P.L. 106–113 .......................
¥20 ................... ...................
41.00
Transferred to other accounts ................................... ...................
¥3 ...................
43.00
55.00
65.00
68.00
70.00

Appropriation (total discretionary) ........................
1,492
3,104
229
Advance appropriation .............................................. ...................
1,515 ...................
Mandatory:
Advance appropriation .............................................. ................... ...................
1,765
Discretionary:
Spending authority from offsetting collections: Offsetting collections (cash) .....................................
57 ................... ...................
Total new budget authority (gross) ..........................

1,549

4,619

1,994

Change in unpaid obligations:
Unpaid obligations, start of year:
72.40
Unpaid obligations, start of year ..............................

3,423

2,380

3,906

72.99
73.10
73.20
73.40
73.45
74.40

74.99

3,423
2,380
3,906
1,551
4,625
1,994
¥2,578
¥3,099
¥3,611
¥12 ................... ...................
¥3 ................... ...................
2,380

3,906

2,289

Obligated balance, end of year ............................

2,380

3,906

2,289

86.90
86.93

Outlays (gross), detail:
Outlays from new discretionary authority .....................
Outlays from discretionary balances .............................

133
2,445

1,319
1,779

1,247
2,364

87.00

Total outlays (gross) .................................................

2,578

3,099

3,611

Offsets:
Against gross budget authority and outlays:
88.00
Offsetting collections (cash) from: Federal sources

Outlays ....................................................................................
2,521
3,098
Legislative proposal, not subject to PAYGO:
Budget Authority ..................................................................... .................... ....................
Outlays .................................................................................... .................... ....................

6,160
308

Total:
Budget Authority .....................................................................
Outlays ....................................................................................

8,154
3,919

2000–2001
Academic
Year

1,492
2,521

3,052
1,515

5,391
6,389
1,765 ....................

Total program level ........................................................

4,567

7,156

6,389

Change in advance appropriation over previous year ................

+1,515

+250

–1,765

The Administration proposes to reverse the misleading
budget practice of using advance appropriations simply to
avoid spending limitations. Accordingly, the amount requested
to be appropriated for 2002 is sufficient to provide normal
funding and no advance appropriation for 2003 is requested.
In order to avoid overstating discretionary budget authority
in 2002, language is proposed to designate the advance appropriation budget authority amount as direct spending.
The Administration is working with Congress to develop
legislation reauthorizing programs included in the Elementary and Secondary Education Act. When new authorizing
legislation is enacted, resources for the affected programs will
be requested. See the ‘‘Legislative proposal, not subject to
PAYGO’’ schedule for additional details.
Training and advisory services.—Funds support grants to
regional equity assistance centers that provide technical assistance to school districts in addressing equity in education
related to issues of race, gender, and national origin.
Charter schools grants.—Funds support grants to State educational agencies and charter schools to support the planning,
design, initial implementation, and dissemination of information regarding 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.
Advanced placement incentives.—Funds support grants to
assist States to pay for advanced placement test fees for lowincome students who are enrolled in advanced placement
classes. In States in which no eligible low-income individual
is required to pay more than a nominal fee to take advanced
placement tests, funds may be used for other purposes to
increase the number of low-income students taking these
tests, such as curriculum development and training of teachers for advanced placement courses.

2000 actual

1,994
3,611

2001 est.
846

Summary of Budget Authority and Outlays
(in millions of dollars)

Jkt 188677

2000 actual

1,492

PO 00000

2001 est.

2002 est.

2001 est.

4,619

Frm 00005

2002 est.

1,994

Fmt 3616

25.5
41.0

Direct obligations:
Printing and reproduction .........................................
Advisory and assistance services .............................
Other services ............................................................
Purchases of goods and services from Government
accounts ................................................................
Research and development contracts .......................
Grants, subsidies, and contributions ........................

1
1
1
1 ................... ...................
1,461
4,590
1,986

99.0
99.0

4,619
3,099

2000 actual
Office of Elementary and Secondary Education, Education Reform .............
453

08:42 Mar 26, 2001

2002–2003
Academic
Year

Object Classification (in millions of dollars)

(In millions of dollars)

VerDate 19-MAR-2001

2001–2002
Academic
Year

New Budget Authority ..................................................................
Advance Appropriation ................................................................

¥57 ................... ...................

Note.—Includes $846 million in budget authority in 2002 for activities previously financed from the Department
of Education:

Enacted/requested:
Budget Authority .....................................................................

4,619
3,098

(in millions of dollars)

Identification code 91–1000–0–1–501

Net budget authority and outlays:
89.00 Budget authority ............................................................
90.00 Outlays ...........................................................................

1,492
2,521

3,611

SUMMARY OF PROGRAM LEVEL

1,994

3 ................... ...................

349

Subtotal, direct obligations ..................................
Reimbursable obligations ..............................................

1,494
4,625
1,994
57 ................... ...................

99.9

Total new obligations ................................................

24.0
25.1
25.2
25.3

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1
3
27

1,551

2 ...................
3
1
29
6

4,625

1,994

350

OFFICE OF ELEMENTARY AND SECONDARY EDUCATION—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 2002

General and special funds—Continued
SCHOOL IMPROVEMENT PROGRAMS
(Legislative proposal, not subject to PAYGO)
Program and Financing (in millions of dollars)
2000 actual

2001 est.

...................
...................
...................
...................
...................
...................
...................
...................
...................
...................
...................
...................
...................
...................

2,600
30
644
846
817
472
320
40
175
110
28
15
28
35

01.00

Total direct program ...................................................... ................... ...................

6,160

10.00

Total new obligations .................................................... ................... ...................

6,160

22.00
23.95

6,160
¥6,160

New budget authority (gross), detail:
Discretionary:
40.00
Appropriation ............................................................. ................... ...................

6,160

Identification code 91–1000–2–1–501

Direct program:
Obligations by program activity:
00.01
State grants for improving teacher quality ..............
00.02
Transition to teaching ...............................................
00.03
Safe and drug free schools ......................................
00.04
21st Century community learning centers ................
00.05
Educational technology State grants ........................
00.06
Choice and innovation State grants .........................
00.07
State assessments ....................................................
00.08
Reform and innovation fund .....................................
00.09
Charter schools homestead fund ..............................
00.10
Magnet schools assistance .......................................
00.11
Education for Native Hawaiians ...............................
00.12
Alaska Native education equity ................................
00.13
Comprehensive regional assistance centers .............
00.14
Education of homeless children and youth ..............

2002 est.

6,160
¥308
5,852

74.99

Obligated balance, end of year ............................ ................... ...................

5,852

86.90

Outlays (gross), detail:
Outlays from new discretionary authority ..................... ................... ...................

308

89.00
90.00

Choice and Innovation State grants.—Funds support formula grants to States to help local educational agencies implement innovative strategies for improving student achievement, including enhancing school choice.
State assessments.—Funds support grants to develop and
implement the new assessments that States would use to
annually test all children in grades 3–8 in reading and mathematics.
Reform and innovation fund.—Funds support projects that
demonstrate and develop innovative approaches in priority
areas of national significance, including school choice and
character education.
Charter schools homestead fund.—Funds support competitive grants to public entities, such as State and local governments, nonprofit entities, and consortia of the two types of
entities, to assist charter schools in acquiring, leasing, and
renovating school facilities.
Magnet schools assistance.—Funds support competitive
grants to local educational agencies to establish and operate
magnet school programs that are part of an approved desegregation plan.
Education for Native Hawaiians.—Funds 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.—Funds 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.
Comprehensive regional assistance centers.—Funds support
comprehensive regional technical assistance centers that provide services to recipients of Federal education funds to improve elementary and secondary education programs.
Education for homeless children and youth.—Funds support
formula grants to States to provide educational and support
services that enable homeless children and youth to enroll
in, attend, and achieve success in school.

6,160
308

The resources in this schedule are proposed for later transmittal under proposed legislation to revise and reauthorize
programs currently authorized under the Elementary and Secondary Education Act of 1965 and the McKinney-Vento Homeless Assistance Act.
State grants for improving teacher quality.—Funds support
formula grants to States to provide professional development
for teachers and administrators and to implement other
teacher-related reforms.
Transition to teaching.—Funds support efforts to recruit
more high-quality teachers, particularly teachers recruited
through the Troops to Teachers program, into high-poverty
local educational agencies.
Safe and drug-free schools.—Funds support formula grants
to States and national activities to provide students with
drug- and violence-prevention programs and to implement
strategies to improve school safety.
21st Century community learning centers.—Funds support
formula grants to States, which award subgrants to centers
providing academic and related services for youth and other
members of the community during after-school, weekend, and
summer hours.
Educational technology State grants.—Funds support formula grants to States, which would target funds to highpoverty and rural schools, to acquire computers, connections,
software, and teacher training to enable schools to integrate
technology effectively into curricula.

VerDate 19-MAR-2001

08:42 Mar 26, 2001

Jkt 188677

PO 00000

Frm 00006

Fmt 3616

Object Classification (in millions of dollars)
2000 actual

Identification code 91–1000–2–1–501

24.0
25.1
25.2
25.3
41.0

Printing and reproduction ..............................................
Advisory and assistance services ..................................
Other services ................................................................
Purchases of goods and services from Government
accounts ....................................................................
Grants, subsidies, and contributions ............................

2001 est.

2002 est.

1
8
7

................... ...................
................... ...................

1
6,143

Total new obligations ................................................ ................... ...................

99.9

................... ...................
................... ...................
................... ...................

6,160

READING EXCELLENCE
øFor necessary expenses to carry out the Reading Excellence Act,
$91,000,000, which shall become available on July 1, 2001 and shall
remain available through September 30, 2002 and $195,000,000
which shall become available on October 1, 2001 and remain available
through September 30, 2002.¿ (Department of Education Appropriations Act, 2001, as enacted by section 1(a)(1) of P.L. 106–554.)
Program and Financing (in millions of dollars)
2000 actual

Identification code 91–0011–0–1–501

2001 est.

2002 est.

00.01

Obligations by program activity:
Reading Excellence ........................................................

302

195

10.00

Total new obligations ................................................

302

195

21.40
22.00

Budgetary resources available for obligation:
Unobligated balance carried forward, start of year
New budget authority (gross) ........................................

27
65

16 ...................
286
195

23.90

Total budgetary resources available for obligation

302

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195

OFFICE OF ELEMENTARY AND SECONDARY EDUCATION—Continued
Federal Funds—Continued

DEPARTMENT OF EDUCATION
23.95
24.40

¥76
¥302
¥195
16 ................... ...................

Total new obligations ....................................................
Unobligated balance carried forward, end of year .......

New budget authority (gross), detail:
Discretionary:
40.00
Appropriation .............................................................
65
91 ...................
55.00
Advance appropriation .............................................. ...................
195 ...................
Mandatory:
65.00
Advance appropriation .............................................. ................... ...................
195
70.00

Total new budget authority (gross) ..........................

286

195

Change in unpaid obligations:
Unpaid obligations, start of year:
72.40
Unpaid obligations, start of year ..............................

233

282

397

233
76
¥27

282
302
¥187

397
195
¥234

74.40

Obligated balance, start of year ..........................
Total new obligations ....................................................
Total outlays (gross) ......................................................
Unpaid obligations, end of year:
Unpaid obligations, end of year ...............................

282

397

358

74.99

Obligated balance, end of year ............................

282

397

358

Outlays (gross), detail:
Outlays from new discretionary authority ..................... ...................
Outlays from discretionary balances .............................
27

24
162

21
212

72.99
73.10
73.20

86.90
86.93
87.00

Total outlays (gross) .................................................

187

234

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

65
27

286
187

195
234

Reading Excellence.—The Administration is working with
Congress to develop legislation reauthorizing programs included in the Elementary and Secondary Education Act. The
Administration anticipates enactment of a new Reading First
initiative supporting early literacy efforts and that the Reading and Literacy Grants program will not be continued. Funds
for the Reading First initiative are requested in fiscal year
2002 under the Education for the Disadvantaged account.
See the ‘‘Legislative proposal, not subject to PAYGO’’ schedule
in the Education for the Disadvantaged account for additional
details.

2000 actual

5
4
67

5 ...................
4 ...................
293
195

99.9

Total new obligations ................................................

302

EDUCATION REFORM
øFor carrying out activities authorized by title IV of the Goals
2000: Educate America Act as in effect prior to September 30, 2000,
and sections 3122, 3132, 3136, and 3141, parts B, C, and D of title
III, and section 10105 and part I of title X of the Elementary and
Secondary Education Act of 1965, $1,880,710,000, of which
$38,000,000 shall be for the Goals 2000: Educate America Act, and
of which $191,950,000 shall be for section 3122: Provided, That up
to one-half of 1 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:
Provided further, That with respect to all funds appropriated to carry
out section 10901 et seq. in this Act, the Secretary shall strongly
encourage applications for grants that are to be submitted jointly
by a local educational agency (or a consortium of local educational
agencies) and a community-based organization that has experience

PO 00000

00.01
00.02
00.91
01.01
01.02
01.03
01.04
01.05
01.06
01.07
01.08
01.09

Obligations by program activity:
21st Century community learning centers ....................
453
Small learning communities .......................................... ...................
Direct Program by Activities—Subtotal (1 level)
Educational technology:
Technology literacy challenge fund ...........................
Technology innovation challenge grants ...................
Regional technology in education consortia .............
National activities:
Teacher training in technology .............................
Community-based technology ...............................
Technology leadership activities ...........................
Star schools ...............................................................
Ready to learn television ..........................................
Telecommunications demonstration project for
mathematics .........................................................

2001 est.

2002 est.

846 ...................
28
97

453

874

425
146
10

450 ...................
136 ...................
10 ...................

75
33
2
51
16

125
65
2
59
16

...................
...................
...................
...................
...................

Frm 00007

9 ...................

Total, Educational technology ...................................
Goals 2000:
State and local education systemic improvement
Parental assistance ...................................................

766

872 ...................

458
33

8 ...................
38 ...................

02.91
03.01

Total, Goals 2000 ......................................................
School-to-work opportunities .........................................

491
81

46 ...................
55 ...................

10.00

Total new obligations ................................................

1,791

Budgetary resources available for obligation:
Unobligated balance carried forward, start of year
New budget authority (gross) ........................................
Unobligated balance transferred to other accounts
Unobligated balance transferred from other accounts

23.90
23.95
24.40

Total budgetary resources available for obligation
Total new obligations ....................................................
Unobligated balance carried forward, end of year .......

01.91

195

Jkt 188677

2000 actual

Identification code 91–0500–0–1–501

2002 est.

Advisory and assistance services ..................................
Other services ................................................................
Grants, subsidies, and contributions ............................

08:42 Mar 26, 2001

Program and Financing (in millions of dollars)

21.40
22.00
22.21
22.22

2001 est.

25.1
25.2
41.0

VerDate 19-MAR-2001

in providing before- and after-school services and all applications
submitted to the Secretary shall contain evidence that the project
contains elements that are designed to assist students in meeting
or exceeding state and local standards in core academic subjects,
as appropriate to the needs of participating children: Provided further, That $125,000,000, which shall become available on July 1,
2001, and remain available through September 30, 2002, shall be
available to support activities under section 10105 of part A of title
X of the Elementary and Secondary Education Act of 1965, of which
up to 6 percent shall become available October 1, 2000, and be available for evaluation, technical assistance, school networking, peer review of applications, and program outreach activities: Provided further, That funds made available to local educational agencies under
this section shall be used only for activities related to establishing
smaller learning communities in high schools: Provided further, That
$46,328,000 of the funds available to carry out section 3136 of the
Elementary and Secondary Education Act of 1965, $8,768,000 of the
funds available to carry out part B of title III of that Act and
$20,614,000 of the funds available to carry out part I of title X
of that Act shall be available for the projects and in the amounts
specified in the statement of the managers on the conference report
accompanying this Act.¿ (Department of Education Appropriations
Act, 2001, as enacted by section 1(a)(1) of P.L. 106–554.)

02.01
02.02

Object Classification (in millions of dollars)
Identification code 91–0011–0–1–501

351

Fmt 3616

1,847

133
63
97
1,765
1,881 ...................
¥48 ................... ...................
4 ................... ...................
1,854
¥1,791
63

1,944
97
¥1,847
¥97
97 ...................

1,768
1,881 ...................
¥3 ................... ...................

43.00

Appropriation (total discretionary) ........................

1,765

1,881 ...................

Change in unpaid obligations:
Unpaid obligations, start of year:
72.40
Unpaid obligations, start of year ..............................

1,847

2,392

72.99
73.10
73.20
73.40
74.40

Obligated balance, start of year ..........................
Total new obligations ....................................................
Total outlays (gross) ......................................................
Adjustments in expired accounts (net) .........................
Unpaid obligations, end of year:
Unpaid obligations, end of year ...............................

74.99

Obligated balance, end of year ............................

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2,277

1,847
2,392
2,277
1,791
1,847
97
¥1,243
¥1,963
¥1,627
¥2 ................... ...................
2,392

2,277

747

2,392

2,277

747

352

OFFICE OF ELEMENTARY AND SECONDARY EDUCATION—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 2002

General and special funds—Continued
EDUCATION REFORM—Continued
Program and Financing (in millions of dollars)—Continued
2000 actual

Identification code 91–0500–0–1–501

2001 est.

2002 est.

86.90
86.93

Outlays (gross), detail:
Outlays from new discretionary authority .....................
Outlays from discretionary balances .............................

136
1,107

188 ...................
1,775
1,627

87.00

Total outlays (gross) .................................................

1,243

1,963

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

1,765
1,243

1,881 ...................
1,963
1,627

1,627

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.
f

Note.—Excludes $846 million in budget authority in 2002 for activities transferred to the School Improvement
Programs account. Comparable amounts for 2000 ($453 million) and 2001 ($846 million) are included above.

The Administration is working with the Congress to develop
legislation reauthorizing programs included in the Elementary and Secondary Education Act. The Administration anticipates that the new legislation would streamline the 21st Century Community Learning Centers program and consolidate
educational technology programs into flexible, performancebased grants to States. Funds for both programs are requested in fiscal year 2002 under the School Improvement
Programs account. See the legislative proposal in the School
Improvement account for additional details.

2000 actual

25.5
41.0

Direct obligations:
Advisory and assistance services .............................
Other services ............................................................
Purchases of goods and services from Government
accounts ................................................................
Research and development contracts .......................
Grants, subsidies, and contributions ........................

99.0
99.5

2001 est.

Subtotal, direct obligations ..................................
1,791
Below reporting threshold .............................................. ...................

25.1
25.2
25.3

99.9

Total new obligations ................................................

5
11

2002 est.

9 ...................
17 ...................

6
8 ...................
10 ................... ...................
1,759
1,812
97
1,846
97
1 ...................

1,791

1,847

øFor expenses necessary to carry out, to the extent not otherwise
provided, title IX, part A of the Elementary and Secondary Education
Act of 1965, as amended, $115,500,000.¿ (Department of Education
Appropriations Act, 2001, as enacted by section 1(a)(1) of P.L. 106–
554.)
Program and Financing (in millions of dollars)
2000 actual

Identification code 91–0101–0–1–501

Obligations by program activity:
Grants to local educational agencies ...........................
Special programs for Indian children ...........................
National activities ..........................................................

62
13
2

93 ...................
20 ...................
3 ...................

Total new obligations ................................................

116 ...................

22.00
23.95

Budgetary resources available for obligation:
New budget authority (gross) ........................................
Total new obligations ....................................................

77
¥77

116 ...................
¥116 ...................

New budget authority (gross), detail:
Discretionary:
40.00
Appropriation .............................................................

116 ...................

Change in unpaid obligations:
Unpaid obligations, start of year:
72.40
Unpaid obligations, start of year ..............................

CHICAGO LITIGATION SETTLEMENT
Program and Financing (in millions of dollars)

74.40

Obligated balance, start of year ..........................
Total new obligations ....................................................
Total outlays (gross) ......................................................
Adjustments in expired accounts (net) .........................
Unpaid obligations, end of year:
Unpaid obligations, end of year ...............................

74.99

1 ...................

2
1 ...................
¥1
¥1 ...................
1 ................... ...................

Obligations by program activity:
Total new obligations (object class 41.0) .....................

21.40
23.95
24.40

Budgetary resources available for obligation:
Unobligated balance carried forward, start of year
Total new obligations ....................................................
Unobligated balance carried forward, end of year .......

Change in unpaid obligations:
Unpaid obligations, start of year:
72.40
Unpaid obligations, start of year ..............................
72.99
73.10
73.20

2001 est.

2002 est.

3
1
¥2

2
1
1 ...................
¥2
¥1

74.40

1 ...................

74.99

Obligated balance, end of year ............................

1 ...................

86.93

Outlays (gross), detail:
Outlays from discretionary balances .............................

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................ ................... ................... ...................
Outlays ...........................................................................
2
2
1

08:42 Mar 26, 2001

Jkt 188677

126

86
95
126
77
116 ...................
¥65
¥84
¥102
¥2 ................... ...................

PO 00000

Frm 00008

126

Obligated balance, end of year ............................

126

86.90
86.93

Outlays (gross), detail:
Outlays from new discretionary authority .....................
Outlays from discretionary balances .............................

2
63

6 ...................
79
102

87.00

Total outlays (gross) .................................................

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

77
65

Obligated balance, start of year ..........................
Total new obligations ....................................................
Total outlays (gross) ......................................................
Unpaid obligations, end of year:
Unpaid obligations, end of year ...............................

VerDate 19-MAR-2001

89.00
90.00

2000 actual

10.00

2002 est.

00.01
00.02
00.03

72.99
73.10
73.20
73.40

Identification code 91–0220–0–1–501

2001 est.

10.00

Object Classification (in millions of dollars)
Identification code 91–0500–0–1–501

INDIAN EDUCATION

Fmt 3616

102

116 ...................
84
102

Summary of Budget Authority and Outlays
(in millions of dollars)

Enacted/requested:
2000 actual
2001 est.
2002 est.
Budget Authority .....................................................................
77
116 ....................
Outlays ....................................................................................
65
85
102
Legislative proposal, not subject to PAYGO:
Budget Authority ..................................................................... .................... ....................
116
Outlays .................................................................................... .................... ....................
6
Total:
Budget Authority .....................................................................
Outlays ....................................................................................

77
65

116
85

116
108

The administration is working with Congress to develop
legislation reauthorizing programs included in the Elemen-

Sfmt 3616

E:\BUDGET\EDU.XXX

pfrm07

PsN: EDU

OFFICE OF BILINGUAL EDUCATION AND MINORITY LANGUAGES AFFAIRS
Federal Funds

DEPARTMENT OF EDUCATION

tary and Secondary Education Act. When new authorizing
legislation is enacted, resources for the affected programs will
be requested. See the ‘‘Legislative proposal, not subject to
PAYGO’’ schedule for additional details.

41.0

Grants, subsidies, and contributions ............................ ................... ...................

113

99.9

Total new obligations ................................................ ................... ...................

116

Object Classification (in millions of dollars)
2000 actual

Identification code 91–0101–0–1–501

25.2
41.0

Other services ................................................................
Grants, subsidies, and contributions ............................

2001 est.

2
75

353

OFFICE OF BILINGUAL EDUCATION AND
MINORITY LANGUAGES AFFAIRS

2002 est.

3 ...................
113 ...................

Federal Funds
General and special funds:

99.9

Total new obligations ................................................

116 ...................

INDIAN EDUCATION
(Legislative proposal, not subject to PAYGO)
Program and Financing (in millions of dollars)
2000 actual

Identification code 91–0101–2–1–501

2001 est.

2002 est.

00.01
00.02
00.03

Obligations by program activity:
Grants to local educational agencies ........................... ................... ...................
Special programs for Indian children ........................... ................... ...................
National activities .......................................................... ................... ...................

93
20
3

10.00

Total new obligations ................................................ ................... ...................

116

22.00
23.95

116
¥116

New budget authority (gross), detail:
Discretionary:
40.00
Appropriation ............................................................. ................... ...................
Change in unpaid obligations:
Total new obligations ....................................................
Total outlays (gross) ......................................................
Adjustments in expired accounts (net) .........................
Unpaid obligations, end of year:
74.40
Unpaid obligations, end of year ...............................
73.10
73.20
73.40

2001 est.

2002 est.

116

10.00

Total new obligations ................................................

406

460 ...................

................... ...................
116
................... ...................
¥6
................... ................... ...................

22.00
23.95

Budgetary resources available for obligation:
New budget authority (gross) ........................................
Total new obligations ....................................................

406
¥406

460 ...................
¥460 ...................

New budget authority (gross), detail:
Discretionary:
40.00
Appropriation .............................................................

406

460 ...................

Change in unpaid obligations:
Unpaid obligations, start of year:
72.40
Unpaid obligations, start of year ..............................

531

566

110

86.90

Outlays (gross), detail:
Outlays from new discretionary authority ..................... ................... ...................

89.00
90.00

116
6

The resources in this schedule are proposed for later transmittal under proposed legislation to revise and reauthorize
programs currently authorized under the Elementary and Secondary Education Act of 1965.
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 assist
participating students in meeting the same academic standards as all other students. In 2000, the Department made
1,168 formula grants to local educational agencies and tribal
schools serving more than 448,000 students.
Special programs for Indian Children.—The Department
makes competitive awards for demonstration projects in early
childhood education, professional development grants, American Indian Teacher Corps grants, and grants for the American Indian Administrator Corps. The professional development awards in this activity are designed to improve the
quality of teachers and administrators in school districts with
concentrations of Indian students.
National activities.—Funds support research, evaluation,
data collection, and related activities.
Object Classification (in millions of dollars)
2000 actual

2001 est.

Other services ................................................................ ................... ...................

Jkt 188677

2000 actual

Identification code 91–1300–0–1–501

180
16
100
14
150

Obligated balance, end of year ............................ ................... ...................

08:42 Mar 26, 2001

Program and Financing (in millions of dollars)

162
14
72
8
150

74.99

VerDate 19-MAR-2001

IMMIGRANT EDUCATION

Obligations by program activity:
Instructional services .....................................................
Support services ............................................................
Training grants ..............................................................
Foreign language assistance .........................................
Immigrant education .....................................................

110

25.2

AND

00.01
00.02
00.03
00.04
00.05

................... ...................

Identification code 91–0101–2–1–501

BILINGUAL

øFor 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 of 1965, $460,000,000: Provided, That State
educational agencies may use all, or any part of, their part C allocation for competitive grants to local educational agencies.¿ (Department of Education Appropriations Act, 2001, as enacted by section
1(a)(1) of P.L. 106–554.)

PO 00000

Frm 00009

2002 est.

Fmt 3616

72.99
73.10
73.20
73.40
74.40

Obligated balance, start of year ..........................
Total new obligations ....................................................
Total outlays (gross) ......................................................
Adjustments in expired accounts (net) .........................
Unpaid obligations, end of year:
Unpaid obligations, end of year ...............................

74.99

...................
...................
...................
...................
...................

578

531
566
578
406
460 ...................
¥363
¥448
¥419
¥8 ................... ...................
566

578

159

Obligated balance, end of year ............................

566

578

159

86.90
86.93

Outlays (gross), detail:
Outlays from new discretionary authority .....................
Outlays from discretionary balances .............................

17
346

23 ...................
425
419

87.00

Total outlays (gross) .................................................

363

448

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

406
363

460 ...................
448
419

419

Summary of Budget Authority and Outlays
(in millions of dollars)

Enacted/requested:
2000 actual
2001 est.
2002 est.
Budget Authority .....................................................................
406
460 ....................
Outlays ....................................................................................
363
448
419
Legislative proposal, not subject to PAYGO:
Budget Authority ..................................................................... .................... ....................
460
Outlays .................................................................................... .................... ....................
23
Total:
Budget Authority .....................................................................
Outlays ....................................................................................

406
363

460
448

460
442

Bilingual and immigrant education.—The Administration
is working with Congress to develop legislation reauthorizing

Sfmt 3616

E:\BUDGET\EDU.XXX

pfrm07

PsN: EDU

354

OFFICE OF BILINGUAL EDUCATION AND MINORITY LANGUAGES AFFAIRS—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 2002

General and special funds—Continued
BILINGUAL

AND

OFFICE OF SPECIAL EDUCATION AND
REHABILITATIVE SERVICES

IMMIGRANT EDUCATION—Continued

programs included in the Elementary and Secondary Education Act. When new authorizing legislation is enacted, resources for the affected programs will be requested. See the
‘‘Legislative proposal, not subject to PAYGO’’ schedule for additional details.
Object Classification (in millions of dollars)
2000 actual

Identification code 91–1300–0–1–501

2001 est.

2002 est.

25.5
41.0

Research and development contracts ...........................
Grants, subsidies, and contributions ............................

5
401

6 ...................
454 ...................

99.9

Total new obligations ................................................

406

460 ...................

BILINGUAL

AND

IMMIGRANT EDUCATION

(Legislation proposal, not subject to PAYGO)
Program and Financing (in millions of dollars)
2000 actual

Identification code 91–1300–2–1–501

2001 est.

2002 est.

Obligations by program activity:
Bilingual and immigrant education State grants (proposed legislation) ...................................................... ................... ...................

460

10.00

Total new obligations (object class 41.0) ................ ................... ...................

460

22.00
23.95

460
¥460

00.06

New budget authority (gross), detail:
Discretionary:
40.00
Appropriation ............................................................. ................... ...................
Change in unpaid obligations:
Total new obligations .................................................... ................... ...................
Total outlays (gross) ...................................................... ................... ...................
Unpaid obligations, end of year:
74.40
Unpaid obligations, end of year ............................... ................... ...................
73.10
73.20

460
¥23
437
437

86.90

Outlays (gross), detail:
Outlays from new discretionary authority ..................... ................... ...................

460
23

The resources in this schedule are proposed for later transmittal under proposed legislation to revise and reauthorize
programs currently authorized under the Elementary and Secondary Education Act of 1965.
Bilingual and immigrant education State grants.—This program would provide formula grants to States based on their
share of the Nation’s limited English proficient and immigrant student population. States would make subgrants to
local educational agencies based on their share of the State’s
limited English proficient and immigrant students. School districts would implement programs designed to assist participating students in learning English within three years and
in meeting State standards in core content areas. States and
local educational agencies would be accountable for demonstrating annual increases in the English proficiency of participating students.

08:42 Mar 26, 2001

Jkt 188677

PO 00000

Frm 00010

For carrying out the Individuals with Disabilities Education Act,
ø$7,439,948,000¿ $8,425,595,000,
of
which
ø$2,090,452,000¿
$8,162,452,000 shall become available for obligation on July 1, ø2001¿
2002, and shall remain available through September 30, ø2002, and
of which $5,072,000,000 shall become available on October 1, 2001
and shall remain available through September 30, 2002, for academic
year 2001–2002¿ 2003: Provided, That ø$9,500,000 shall be for Recording for the Blind and Dyslexic to support the development, production, and circulation of recorded educational materials: Provided
further, That $1,500,000 shall be for the recipient of funds provided
by Public Law 105–78 under section 687(b)(2)(G) of the Act to provide
information on diagnosis, intervention, and teaching strategies for
children with disabilities: Provided further, That $7,353,000 of the
funds for section 672 of the Act shall be available for the projects
and in the amounts specified in the statement of the managers on
the conference report accompanying this Act¿ the budget authority
(but not the outlays) for $5,072,000,000 provided under this heading
in fiscal year 2001, to be available as an advance appropriation in
fiscal year 2002, shall be considered direct spending in fiscal year
2002 for purposes of the Balanced Budget and Emergency Deficit
Control Act of 1990, as amended, and section 2(a) of Public Law
106–554; Provided further, That the amount for section 611(c) of the
Act shall be equal to the amount available for that section under
Public Law 106–554, increased by the rate of inflation as specified
in section 611(f)(1)(B)(ii) of the Act. (Department of Education Appropriations Act, 2001, as enacted by section 1(a)(1) of P.L. 106–554.)

2000 actual

Identification code 91–0300–0–1–501

2001 est.

2002 est.

Fmt 3616

Direct program:
Obligations by program activity:
State grants:
00.01
Grants to States ...................................................
00.02
Preschool grants ...................................................
00.03
Grants for infants and families ...........................

1,171
366
345

5,119
414
480

12,412
390
384

00.91

1,882

6,013

13,186

01.01
01.02
01.03
01.04
01.05
01.06

Subtotal, State grants ......................................
National activities:
State improvement ................................................
Research and innovation ......................................
Technical assistance and dissemination .............
Personnel preparation ...........................................
Parent information centers ...................................
Technology and media services ............................

32
65
46
82
19
36

79
78
53
81
26
39

49
70
53
82
26
32

01.91

Subtotal, National activities ............................

280

356

312

02.00
09.01

460

Obligated balance, end of year ............................ ................... ...................

VerDate 19-MAR-2001

SPECIAL EDUCATION

Program and Financing (in millions of dollars)

74.99

Net budget authority and outlays:
89.00 Budget authority ............................................................ ................... ...................
90.00 Outlays ........................................................................... ................... ...................

Federal Funds
General and special funds:

Total Direct Program ......................................................
Reimbursable program ..................................................

2,162
6,369
13,498
1 ................... ...................

10.00

Total new obligations ....................................................

2,163

6,369

21.40
22.00
22.10

119
2,295

259 ...................
6,110
13,498

23.90
23.95
23.98
24.40

13,498

8 ................... ...................

Total budgetary resources available for obligation
2,422
6,369
13,498
Total new obligations ....................................................
¥2,163
¥6,369
¥13,498
Unobligated balance expiring or withdrawn ................. ................... ................... ...................
Unobligated balance carried forward, end of year .......
259 ................... ...................

New budget authority (gross), detail:
Discretionary:
40.00
Appropriation .............................................................
2,294
2,368
8,426
55.00
Advance appropriation .............................................. ...................
3,742 ...................
Mandatory:
65.00
Advance appropriation .............................................. ................... ...................
5,072
Discretionary:
68.00
Spending authority from offsetting collections: Offsetting collections (cash) .....................................
1 ................... ...................
70.00

Sfmt 3643

Total new budget authority (gross) ..........................

E:\BUDGET\EDU.XXX

pfrm07

PsN: EDU

2,295

6,110

13,498

OFFICE OF SPECIAL EDUCATION AND REHABILITATIVE SERVICES—Continued
Federal Funds—Continued

DEPARTMENT OF EDUCATION
Change in unpaid obligations:
Unpaid obligations, start of year:
72.40
Unpaid obligations, start of year ..............................
72.99
73.10
73.20
73.40
73.45

6,855

4,044

4,598

74.40

6,855
4,044
4,598
2,163
6,369
13,498
¥4,950
¥5,815
¥6,933
¥15 ................... ...................
¥8 ................... ...................
4,044

4,598

Obligated balance, end of year ............................

4,044

4,598

11,163

86.90
86.93

Outlays (gross), detail:
Outlays from new discretionary authority .....................
Outlays from discretionary balances .............................

104
4,846

2,581
3,234

3,466
3,468

87.00

Total outlays (gross) .................................................

4,950

5,815

6,933

The goal of National activities is to link States, school systems, and families to best practices to improve results for
infants, toddlers, and children with disabilities.
Performance data related to these goals include:

11,163

74.99

Offsets:
Against gross budget authority and outlays:
88.00
Offsetting collections (cash) from: Federal sources

¥1 ................... ...................

2,294
4,949

6,110
5,815

13,498
6,933

355

Number of children served in first quarter of fiscal year:
Ages 3 through 21 ..................................................................
Ages 3 through 5 ....................................................................
Birth through 2 .......................................................................
Educational Environment
Percent of children ages 6 through 21 provided special education in:
Regular classrooms ................................................................
Resource rooms .......................................................................
Separate classes .....................................................................
Separate schools .....................................................................
Residential facilities ...............................................................
Home or hospital ....................................................................
Status of Exiting Students
Percent of students with disabilities aged 14–21 leaving
school:
Graduated with a diploma .....................................................
Graduated through certification .............................................
Dropped out of school ............................................................
Reached maximum age and other .........................................

2000 actual

2001 est.

2002 est.

6,270,000
588,944
205,525

6,377,000
600,700
214,800

6,466,000
612,700
244,500

1996–1997
actual

1997–1998
actual

1998–1999
actual

45.7
28.5
21.4
3.1
.7
.6

46.5
29.1
20.4
2.8
.7
.5

47.4
28.4
20.1
2.9
.7
.5

53.5
11.4
32.7
2.4

55.4
11.2
31.0
2.4

57.4
11.2
28.9
2.5

Object Classification (in millions of dollars)
SUMMARY OF PROGRAM LEVEL

2000 actual

Identification code 91–0300–0–1–501

[In millions of dollars]
2000–2001
academic
year

2001–2002
academic
year

2002–2003
academic
year

Current Budget Authority ............................................................
Advance appropriation ................................................................

2,294
3,742

2,368
8,426
5,072 ....................

Total program level ............................................................

6,036

7,440

+3,742

+1,330

–5,072

2002 est.

Other services ................................................................
Grants, subsidies, and contributions ............................

10
2,153

20
6,349

17
13,481

99.9

Total new obligations ................................................

2,163

6,369

13,498

8,426

Change in advance appropriation from the previous year ........

2001 est.

25.2
41.0

REHABILITATION SERVICES

The Administration proposes to reverse the misleading
budget practice of using advance appropriations simply to
avoid spending limitations. Accordingly, the amount requested
to be appropriated for 2002 is sufficient to provide normal
funding and no advance appropriation for 2003 is requested.
In order to avoid overstating discretionary budget authority
in 2002, language is proposed to designate the advance appropriation budget authority amount as direct spending.
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.
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 goal of both of these programs is to improve results
for children with disabilities by assisting State and local
educational agencies to provide children with disabilities
with access to high quality education that will help them
meet challenging standards and prepare them for employment and independent living.
Grants for infants and families.—Formula grants are provided to assist States to implement statewide systems of
coordinated, comprehensive, multi-disciplinary interagency
programs to provide early intervention services to children
with disabilities, birth through age 2, and their families.
The goal of this program is to help States provide a
comprehensive system of early intervention services that
will enhance family and child outcomes.
National activities.—These activities include research, demonstration, personnel preparation, technical assistance, grants
to States to promote systems change, and other activities
to support State efforts to improve results for children with
disabilities under the State grants programs.

VerDate 19-MAR-2001

08:42 Mar 26, 2001

Jkt 188677

PO 00000

Frm 00011

Fmt 3616

AND

DISABILITY RESEARCH

For carrying out, to the extent not otherwise provided, the Rehabilitation Act of 1973, the Assistive Technology Act of 1998, and the
Helen Keller National Center Act, ø$2,805,339,000¿ $2,930,117,000,
of which $60,000,000 shall remain available through September 30,
2003: Provided, That the funds provided for title I of the Assistive
Technology Act of 1998 (‘‘the AT Act’’) shall be allocated notwithstanding section 105(b)(1) of the AT Act: Provided further, That each
State shall be provided $50,000 for activities under section 102 of
the AT Act: Provided further, That ø$15,000,000¿ $40,000,000 shall
be used to support grants for up to three years to States under
title III of the AT Act, of which the Federal share shall not exceed
75 percent in the first year, 50 percent in the second year, and
25 percent in the third year, and that the requirements in section
301(c)(2) and section 302 of that Act shall not apply to such grantsø:
Provided further, That $4,600,000 of the funds for section 303 of
the Rehabilitation Act of 1973 shall be available for the projects
and in the amounts specified in the statement of the managers on
the conference report accompanying this Act: Provided further, That
$400,000 of the funds for title II of the Rehabilitation Act of 1973
shall be for the Cerebral Palsy Research Foundation in Wichita, Kansas for the establishment of a Rehabilitation Research and Training
Center to study and recommend incentives for employers to hire
persons with significant disabilities¿. (Department of Education Appropriations Act, 2001, as enacted by section 1(a)(1) of P.L. 106–
554.)
Program and Financing (in millions of dollars)
2000 actual

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
Demonstration and training programs .....................
00.05
Migrant and seasonal farmworkers ..........................
00.06
Recreational programs ..............................................
00.07
Protection and advocacy of individual rights ...........
00.08
Projects with industry ...............................................
00.09
Supported employment State grants ........................
00.10
Independent living .....................................................
00.11
Program improvement ...............................................

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2,339
11
40
22
2
3
12
22
38
85
2

2001 est.

2,400
12
40
21
2
3
14
22
38
100
2

2002 est.

2,481
12
40
16
2
3
14
22
38
100
1

356

OFFICE OF SPECIAL EDUCATION AND REHABILITATIVE SERVICES—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 2002

General and special funds—Continued
REHABILITATION SERVICES

AND

with disabilities achieving an employment outcome by one
percent over the previous year and to increase the employment outcome rate to 63.2 percent.

DISABILITY RESEARCH—Continued

Program and Financing (in millions of dollars)—Continued
2000 actual

Identification code 91–0301–0–1–506

00.12
00.13
00.14
00.15
00.16

2001 est.

CONSUMER OUTCOMES (CASES CLOSED)

2002 est.

Evaluation ..................................................................
2
2
Helen Keller National Center .....................................
9
9
National Institute on Disability and Rehabilitation
Research ...............................................................
86
100
Assistive technology ..................................................
34
41
Access to Telework Fund ........................................... ................... ...................

1
9
110
61
20

01.00
09.01

Total direct program .................................................
Reimbursable program ..................................................

2,707
2

2,806
2

2,930
2

10.00

Total new obligations ................................................

2,709

2,808

2,932

22.00
23.95

Budgetary resources available for obligation:
New budget authority (gross) ........................................
Total new obligations ....................................................

2,709
¥2,709

2,808
¥2,808

2,932
¥2,932

369
406
449
¥1 ................... ...................

43.00

368

406

449

2,339

2,400

2,481

Total new budget authority (gross) ..........................

2,709

2,808

2,932

Change in unpaid obligations:
Unpaid obligations, start of year:
72.40
Unpaid obligations, start of year ..............................

1,028

977

924

60.00
68.00
70.00

72.99
73.10
73.20
73.40

Appropriation (total discretionary) ........................
Mandatory:
Appropriation .............................................................
Discretionary:
Spending authority from offsetting collections: Offsetting collections (cash) .....................................

74.40

Obligated balance, start of year ..........................
Total new obligations ....................................................
Total outlays (gross) ......................................................
Adjustments in expired accounts (net) .........................
Unpaid obligations, end of year:
Unpaid obligations, end of year ...............................

977

924

964

74.99

Obligated balance, end of year ............................

977

924

964

86.90
86.93
86.97
86.98

Outlays (gross), detail:
Outlays from new discretionary authority .....................
Outlays from discretionary balances .............................
Outlays from new mandatory authority .........................
Outlays from mandatory balances ................................

66
229
1,843
620

285
380
1,680
516

315
122
1,737
718

87.00

Total outlays (gross) .................................................

2,758

2,861

2,892

Offsets:
Against gross budget authority and outlays:
88.00
Offsetting collections (cash) from: Federal sources

¥2

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

2,707
2,755

2,806
2,859

2,930
2,890

89.00
90.00

1,028
977
924
2,709
2,808
2,932
¥2,758
¥2,861
¥2,892
¥2 ................... ...................

Vocational rehabilitation State grants.—The basic State
grants program provides Federal matching funds to State vocational rehabilitation (VR) agencies to assist individuals with
physical or mental impairments to become gainfully employed. Services are tailored to the specific needs of the individual. Priority is given to serving those with the most significant disabilities. Current law requires that between 1.0 percent and 1.5 percent of the funds appropriated for the VR
State grants program be set aside for Grants for Indians
in 2002.
The table below presents national data on selected performance measures for the VR State grants program. The data
are based on the number of individuals whose service records
were closed in fiscal years 1998 (359,877) and 1999 (370,742).
The 2002 target is to increase the number of individuals

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1998 actual

Individuals achieving employment outcomes ................................................
Percent with significant disabilities .........................................................
Employment outcomes as a percent all of individuals receiving services

223,668
82.6%
62.2%

1999 actual

231,714
84.9%
62.5%

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 and
to upgrade the skills of those already employed.
Demonstration and training programs.—Grants are made
for programs that expand and improve the provision of rehabilitation services, or that further the purposes of the Rehabilitation Act.
Migrant and seasonal farmworkers.—Grants are made to
State VR agencies and other nonprofit or local agencies to
provide comprehensive vocational rehabilitation services to
migrant and seasonal farmworkers with disabilities.
Recreational programs.—Grants are made to provide individuals with disabilities with recreational 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 (PWI).—Grants are made to a variety
of public and private organizations to facilitate the establishment of partnerships between rehabilitation service providers
and business and industry in order to create and expand
employment and career advancement opportunities for individuals with disabilities. In 2000, PWI projects placed in competitive employment approximately 61.9 percent (8,104) of the
13,083 individuals with disabilities served by the 99 projects.
The 2002 target for this program is to place 62.2 percent
of the individuals served in competitive employment.
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 significant disabilities
who require on-going support services to enter or retain competitive employment. In 1999, 73 percent of individuals with
a supported employment goal achieved a competitive employment outcome.
Independent living.—Grants are awarded to States and nonprofit agencies to assist individuals with significant disabilities in their achievement of self-determined independent living goals. Grants are also awarded to provide support services
to older blind individuals to increase their ability to care
for their own needs. Performance indicators focus on customer
satisfaction, achievement of individual goals, and broader systemic reforms in the community.
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 goals of the Rehabilitation Act. Examples of program improvement activities include technical assistance, dissemination, and performance
measurement activities.

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OFFICE OF SPECIAL EDUCATION AND REHABILITATIVE SERVICES—Continued
Federal Funds—Continued

DEPARTMENT OF EDUCATION

Evaluation.—Studies are conducted to evaluate the impact
and effectiveness of various programs authorized under the
Rehabilitation Act. The multi-year national longitudinal study
of the Vocational Rehabilitation State grants program is
scheduled for completion in 2001. Expanded study findings
on employment retention will be available in 2002.
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 the conduct
and dissemination of research aimed at improving the lives
of individuals with disabilities. The Institute also promotes
the development and utilization of new technologies to assist
these individuals in achieving greater independence and integration into society.
Assistive technology.—Activities include the Assistive Technology State grant program, protection and advocacy services,
and technical assistance designed to develop and implement
consumer-responsive comprehensive statewide programs of
technology-related assistance for individuals with disabilities.
Grants also are made to States to establish alternative financing programs to increase access to assistive technology for
individuals with disabilities.
Access to telework fund.—Under this new program, Federal
matching funds would be awarded to States to provide loans
for individuals with disabilities to purchase computers and
other equipment so that they can telework from home.
Object Classification (in millions of dollars)
2000 actual

Identification code 91–0301–0–1–506

2001 est.

72.99
73.10
73.20

3
10
¥9

4
12
¥15

1
12
¥12

74.40

Obligated balance, start of year ..........................
Total new obligations ....................................................
Total outlays (gross) ......................................................
Unpaid obligations, end of year:
Unpaid obligations, end of year ...............................

74.99

Obligated balance, end of year ............................

86.90
86.93

Outlays (gross), detail:
Outlays from new discretionary authority .....................
Outlays from discretionary balances .............................

7
3

11
4

11
1

87.00

Total outlays (gross) .................................................

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

10
9

12
15

12
12

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 2000, the portion of the
Federal appropriation allocated to educational materials represented approximately 49.2 percent of the Printing House’s
total sales. The full appropriation represented approximately
37.4 percent of the Printing House’s total budget.
f

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.), ø$53,376,000¿ $52,570,000, of which ø$5,376,000¿ $4,570,000
shall be for construction and shall remain available until expended:
Provided, That from the total amount available, the Institute may
at its discretion use funds for the endowment program as authorized
under section 207. (Department of Education Appropriations Act,
2001, as enacted by section 1(a)(1) of P.L. 106–554.)
Program and Financing (in millions of dollars)

2002 est.

7
2

10
2

25.5
41.0

Direct obligations:
Advisory and assistance services .............................
7
Other services ............................................................
2
Purchases of goods and services from Government
accounts ................................................................ ...................
Research and development contracts .......................
1
Grants, subsidies, and contributions ........................
2,697

1
1
2,795

1
5
2,912

99.0
99.0

Subtotal, direct obligations ..................................
Reimbursable obligations ..............................................

2,707
2

2,806
2

2,930
2

99.9

Total new obligations ................................................

2,709

2,808

2,932

25.1
25.2
25.3

FOR

Obligations by program activity:
Operations ......................................................................
Construction ...................................................................

45
3

48
5

10.00

Total new obligations (object class 41.0) ................

22.00
23.95

Budgetary resources available for obligation:
New budget authority (gross) ........................................
Total new obligations ....................................................

48
¥48

53
¥53

Change in unpaid obligations:
Unpaid obligations, start of year:
Unpaid obligations, start of year ..............................

Obligated balance, start of year ..........................
Total new obligations ....................................................
Total outlays (gross) ......................................................
Unpaid obligations, end of year:
Unpaid obligations, end of year ...............................

1
48
¥44

5
53
¥49

9
53
¥51

74.40

74.99

Program and Financing (in millions of dollars)
2000 actual

Obligations by program activity:
Total new obligations (object class 41.0) .....................

2001 est.

2002 est.

Obligated balance, end of year ............................

86.90
86.93

Outlays (gross), detail:
Outlays from new discretionary authority .....................
Outlays from discretionary balances .............................

46
¥2

46
3

46
5

87.00

Total outlays (gross) .................................................

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

48
44

53
49

53
51

10
¥10

12
¥12

New budget authority (gross), detail:
Discretionary:
40.00
Appropriation .............................................................

Change in unpaid obligations:
Unpaid obligations, start of year:
72.40
Unpaid obligations, start of year ..............................

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72.40
72.99
73.10
73.20

Budgetary resources available for obligation:
22.00 New budget authority (gross) ........................................
23.95 Total new obligations ....................................................

VerDate 19-MAR-2001

2002 est.

00.01
00.02

AMERICAN PRINTING HOUSE FOR THE BLIND

For carrying out the Act of March 3, 1879, as amended (20 U.S.C.
101 et seq.), $12,000,000. (Department of Education Appropriations
Act, 2001, as enacted by section 1(a)(1) of P.L. 106–554.)

10.00

2001 est.

New budget authority (gross), detail:
Discretionary:
40.00
Appropriation .............................................................

PERSONS WITH DISABILITIES

Identification code 91–0600–0–1–501

2000 actual

Identification code 91–0601–0–1–502

SPECIAL INSTITUTIONS

357

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This residential program provides postsecondary technical
and professional education for people who are deaf to prepare

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358

OFFICE OF SPECIAL EDUCATION AND REHABILITATIVE SERVICES—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 2002

General and special funds—Continued
SPECIAL INSTITUTIONS

FOR

PERSONS WITH DISABILITIES—Continued

NATIONAL TECHNICAL INSTITUTE FOR THE DEAF—Continued

them for employment, provides training, and conducts applied
research into employment related aspects of deafness. In
2000, Federal appropriations represented 81 percent of the
Institute’s operating budget. The Institute may use appropriated funds for the Endowment Grant program. The request
also includes funds for the third and final phase of a construction project to renovate the Institute’s dormitories.

In 2000, the Federal appropriation represented 63 percent
of the University’s operating budget, excluding Federal financial aid, vocational rehabilitation, and competitive grants and
contracts, and 97.9 percent of the operating budgets of the
related elementary and secondary schools. The University
may also use appropriated funds for the Endowment Grant
program.
f

OFFICE OF VOCATIONAL AND ADULT
EDUCATION

GALLAUDET UNIVERSITY

Federal Funds

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.), $89,400,000: Provided, That from
the total amount available, the University may at its discretion use
funds for the endowment program as authorized under section 207.
(Department of Education Appropriations Act, 2001, as enacted by
section 1(a)(1) of P.L. 106–554.)
Program and Financing (in millions of dollars)
2000 actual

Identification code 91–0602–0–1–502

2001 est.

2002 est.

00.01
00.02

Obligations by program activity:
Operations ......................................................................
Construction ...................................................................

10.00

Total new obligations (object class 41.0) ................

22.00
23.95

Budgetary resources available for obligation:
New budget authority (gross) ........................................
Total new obligations ....................................................

86
¥86

89
¥89

New budget authority (gross), detail:
Discretionary:
40.00
Appropriation .............................................................

Change in unpaid obligations:
Unpaid obligations, start of year:
72.40
Unpaid obligations, start of year ..............................

3
86
¥81

8
89
¥92

5
89
¥89

74.40

Obligated balance, start of year ..........................
Total new obligations ....................................................
Total outlays (gross) ......................................................
Unpaid obligations, end of year:
Unpaid obligations, end of year ...............................

74.99

Obligated balance, end of year ............................

86.90
86.93

Outlays (gross), detail:
Outlays from new discretionary authority .....................
Outlays from discretionary balances .............................

86
¥5

84
8

84
5

87.00

Total outlays (gross) .................................................

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

86
81

89
92

89
89

72.99
73.10
73.20

83
89
89
3 ................... ...................

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 high school age students who are
deaf. 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.

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General and special funds:
VOCATIONAL

AND

ADULT EDUCATION

For carrying out, to the extent not otherwise provided, the Carl
D. Perkins Vocational and Technical Education Act, the Adult Education and Family Literacy Act, and title VIII–D of the Higher Education Act of 1965, as amended, and Public Law 102–73,
ø$1,825,600,000, of which $1,000,000 shall remain available until
expended, and¿ $1,801,660,000, of which ø$1,028,000,000¿
$1,796,060,000 shall become available on July 1, ø2001¿ 2002 and
shall remain available through September 30, ø2002 and of which
$791,000,000 shall become available on October 1, 2001 and shall
remain available through September 30, 2002¿ 2003: Provided, That
the budget authority (but not the outlays) for $791,000,000 provided
under this heading in fiscal year 2001, to be available as an advance
appropriation in fiscal year 2002, shall be considered direct spending
in fiscal year 2002 for purposes of the Balanced Budget and Emergency Deficit Control Act of 1990, as amended, and section 2(a) of
Public Law 106–554: øof the amounts made available for the Carl
D. Perkins Vocational and Technical Education Act, $5,600,000 shall
be for tribally controlled postsecondary vocational and technical institutions under section 117: Provided further, That $9,000,000 shall
be for carrying out section 118 of such Act: Provided further, That
of the amounts made available for the Carl D. Perkins Vocational
and Technical Education Act, $5,000,000 shall be for demonstration
activities authorized by section 207:¿ Provided further, That of the
amount provided for Adult Education State Grants, $70,000,000 shall
be made available for integrated English literacy and civics education
services to immigrants and other limited English proficient populations: Provided further, That of the amount reserved for integrated
English literacy and civics education, notwithstanding section 211
of the Adult Education and Family Literacy Act, 65 percent shall
be allocated to States based on a State’s absolute need as determined
by calculating each State’s share of a 10-year average of the Immigration and Naturalization Service data for immigrants admitted for
legal permanent residence for the 10 most recent years, and 35 percent allocated to States that experienced growth as measured by
the average of the 3 most recent years for which Immigration and
Naturalization Service data for immigrants admitted for legal permanent residence are available, except that no State shall be allocated
an amount less than $60,000: Provided further, That of the amounts
made available for the Adult Education and Family Literacy Act,
ø$14,000,000¿ $9,500,000 shall be for national leadership activities
under section 243 and ø$6,500,000¿ $6,560,000 shall be for the National Institute for Literacy under section 242: Provided further, That
$22,000,000 shall be for Youth Offender Grants, of which $5,000,000
shall be used in accordance with section 601 of Public Law 102–
73 as that section was in effect prior to the enactment of Public
Law 105–220: Provided further, That of the amounts made available
for title I of the Perkins Act, the Secretary may reserve up to 0.54
percent for incentive grants under section 503 of the Workforce Investment Act, without regard to section 111(a)(1)(C) of the Perkins Act:
Provided further, That of the amounts made available for the Adult
Education and Family Literacy Act, the Secretary may reserve up
to 1.72 percent for incentive grants under section 503 of the Workforce
Investment Act, without regard to section 211(a)(3) of the Adult Education and Family Literacy Act. (Department of Education Appropriations Act, 2001, as enacted by section 1(a)(1) of P.L. 106–554.)

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OFFICE OF VOCATIONAL AND ADULT EDUCATION—Continued
Federal Funds—Continued

DEPARTMENT OF EDUCATION

Advance appropriation .......................................................

Program and Financing (in millions of dollars)
2000 actual

Identification code 91–0400–0–1–501

2001 est.

2002 est.

Obligations by program activity:
Vocational education:
Annual appropriations:
Vocational education:
00.01
Basic grants .....................................................
257
00.02
National programs ............................................
15
00.03
Occupational and employment information .....
8
00.04
Tribally controlled postsecondary vocational
institutions ...................................................
4
00.05
Tech-prep education .........................................
103
00.06
Tech-prep demonstration ...................................... ...................

1,095
1,795
17
17
10 ...................

00.91

387

1,238
538
6
14

791

791 ....................

Subtotal, basic grants ...................................................
1,056
b. National programs ..............................................................
18
c. Occupational & employment information ...........................
9
d. Tribally controlled postsecondary vocational institutions
5
e. Tech-prep education ...........................................................
106
f. Tech-prep demonstration .................................................... ....................
Total, vocational education ...........................................
1,194
2. Adult education:
a. State grants .......................................................................
450
b. National Institute for Literacy ............................................
6
c. National leadership activities ............................................
14

1,100
1,100
18
12
9 ....................
6
6
106
106
5 ....................
1,244
1,224

1,924

443
6
14

359

550
7
14

01.01
01.02
01.03
01.91
02.01
03.01
09.01

Total, Vocational education ..............................
Adult education:
State grants .....................................................
National Institute for Literacy ..........................
National leadership activities ..........................

5
6
106
106
5 ...................

Total, adult education ......................................
463
558
570
State grants for incarcerated youth offenders
14
17
17
Literacy programs for prisoners ........................... ...................
6
5
Reimbursable program ..................................................
2 ................... ...................
866

1,819

2,516

21.40
22.00

Budgetary resources available for obligation:
Unobligated balance carried forward, start of year
New budget authority (gross) ........................................

60
893

86
1,826

93
2,593

23.90
23.95
24.40

Total budgetary resources available for obligation
Total new obligations ....................................................
Unobligated balance carried forward, end of year .......

953
¥866
86

1,911
¥1,819
93

2,686
¥2,516
169

New budget authority (gross), detail:
Discretionary:
40.00
Appropriation .............................................................
891
1,035
1,802
55.00
Advance appropriation .............................................. ...................
791 ...................
Mandatory:
65.00
Advance appropriation .............................................. ................... ...................
791
Discretionary:
68.00
Spending authority from offsetting collections: Offsetting collections (cash) .....................................
2 ................... ...................
Total new budget authority (gross) ..........................

893

1,826

2,593

Change in unpaid obligations:
Unpaid obligations, start of year:
72.40
Unpaid obligations, start of year ..............................

1,939

1,334

1,430

74.40

Obligated balance, start of year ..........................
Total new obligations ....................................................
Total outlays (gross) ......................................................
Adjustments in expired accounts (net) .........................
Unpaid obligations, end of year:
Unpaid obligations, end of year ...............................

74.99

1,939
1,334
1,430
866
1,819
2,516
¥1,465
¥1,723
¥1,774
¥6 ................... ...................
1,334

1,430

2,172

Obligated balance, end of year ............................

1,334

1,430

2,172

86.90
86.93

Outlays (gross), detail:
Outlays from new discretionary authority .....................
Outlays from discretionary balances .............................

34
1,430

646
1,077

645
1,130

87.00

Total outlays (gross) .................................................

1,465

1,723

1,774

Offsets:
Against gross budget authority and outlays:
88.40
Offsetting collections (cash) from: Non-Federal
sources ..................................................................

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

¥2 ................... ...................

891
1,463

1,826
1,723

2,593
1,774

Program levels for activities in this account are as follows:
(in millions of dollars)
2000–2001
academic
year

1. Vocational education:
a. Basic grants:
Annual appropriation ..........................................................

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08:42 Mar 26, 2001

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Total, adult education ...................................................
3. State grants for incarcerated youth offenders .......................
4. Literacy programs for prisoners .............................................

470
14
5

561
17
5

557
17
5

1,683

1,827

1,803

SUMMARY OF PROGRAM LEVEL
(in millions of dollars)
2000–2001
academic
year

265

PO 00000

2001–2002
academic
year

309

Frm 00015

2002–2003
academic
year

1,100

Fmt 3616

New Budget Authority ..................................................................
Advance appropriation ................................................................

891
791

Total program level ............................................................

Total new obligations ................................................

72.99
73.10
73.20
73.40

540
7
10

Total ...............................................................................

10.00

70.00

540
7
14

1,682

Change in advance appropriation from the previous year ........

2001–2002
academic
year

2002–2003
academic
year

1,035
1,802
791 ....................
1,826

1,802

+791 ....................

–791

The Administration proposes to reverse the misleading
budget practice of using advance appropriations simply to
avoid spending limitations. Accordingly, the amount requested
to be appropriated for 2002 is sufficient to provide normal
funding and no advance appropriation for 2003 is requested.
In order to avoid overstating discretionary budget authority
in 2002, language is proposed to designate the advance appropriation budget authority amount as direct spending.
Vocational education.—
Basic grants.—Formula grants provide funds to States
and localities to expand and improve their programs of
vocational education and promote equal opportunity in vocational education programs for historically underserved populations. Funds under the Indian program are awarded to
federally recognized Indian tribes and are in addition to
services provided under other provisions of the Perkins Act.
Funds under the Hawaiian Natives program are awarded
to organizations primarily serving and representing Hawaiian Natives. Funds under the Territorial set-aside support
the expansion and improvement of vocational education programs in American Samoa, Guam, the Northern Marianas,
and the Freely Associated States.
National programs.—Funds are awarded on a competitive
basis for activities that contribute to knowledge of how
to improve vocational education nationally. Activities include two national centers for research and dissemination
in vocational education and a program of discretionary research and development projects.
Tribally controlled postsecondary vocational and technical
institutions.—Grants support the operation and improvement of tribally controlled postsecondary vocational institutions, to ensure continued and expanded educational opportunities for Indian students.
Tech-prep education.—Formula grants to States support
planning and demonstration grants to consortia of local educational agencies and postsecondary institutions to develop
and operate model 4-year programs. Programs begin in high
school and provide students with the mathematical, scientific, communications, and technological skills needed to
earn a 2-year associate degree or a 2-year certificate in
a specific occupational field.
Adult education.—
State programs.—Formula grants are made to States to
help eliminate functional illiteracy among the Nation’s

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360

OFFICE OF VOCATIONAL AND ADULT EDUCATION—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 2002

General and special funds—Continued
VOCATIONAL

AND

ADULT EDUCATION—Continued

adults, to assist adults in obtaining a high school diploma
or its equivalent, and to promote family literacy. A portion
of the funds are reserved for formula grants to States to
provide English literacy and civics education for immigrants
and other limited English proficient adults.
National Institute for Literacy.—Funds support the Institute’s national leadership activities to improve and expand
the Nation’s system for delivery of literacy services.
National leadership activities.—Funds support discretionary activities to evaluate the effectiveness of Federal,
State, and local adult education programs and to test and
demonstrate methods of improving program quality.
State grants for incarcerated youth offenders.—Formula
grants are made to State correctional agencies to assist
and encourage incarcerated youths to acquire functional literacy skills and life and job skills.
Literacy programs for prisoners.—Funds are awarded on
a competitive basis to State and local correctional agencies
to establish and operate programs that reduce recidivism.
Object Classification (in millions of dollars)
2000 actual

Identification code 91–0400–0–1–501

2001 est.

Direct obligations:
Personnel compensation:
Full-time permanent ............................................. ...................
Other than full-time permanent ...........................
1

11.1
11.3
11.9
25.1
25.2
25.3
25.5
41.0

Total personnel compensation .........................
Advisory and assistance services .............................
Other services ............................................................
Purchases of goods and services from Government
accounts ................................................................
Research and development contracts .......................
Grants, subsidies, and contributions ........................

99.0
99.0
99.5

Subtotal, direct obligations ..................................
Reimbursable obligations ..............................................
Below reporting threshold ..............................................

99.9

Total new obligations ................................................

2002 est.

1 ...................
1
1

1
5
3

2
6
3

1
6
3

1
7
845

1
8
1,797

1
8
2,495

1965, of which $5,000,000 shall be used for construction and renovation: Provided further, That $250,000 shall be for the Web-Based
Education Commission to continue activities authorized under part
J of title VIII of the Higher Education Amendments of 1998: Provided
further, That $115,487,000 of the funds for part B of title VII of
the Higher Education Act of 1965 shall be available for the projects
and in the amounts specified in the statement of the managers on
the conference report accompanying this Act: Provided further, That
the funds provided for title II of the Higher Education Act of 1965
shall be allocated notwithstanding section 210 of the Higher Education Act of 1965 and that up to 1.4 percent of the total funds
made available under section 210 of the Higher Education Act of
1965 may be used to carry out the evaluation activities authorized
under section 206(d) of that Act≈ Provided further, That funds for
part B of title VII of the Higher Education Act of 1965 may be
used, at the discretion of the Secretary of Education, to fund continuation awards under title IV, part A, subpart 8 of such Act. (Department of Education Appropriations Act, 2001, as enacted by section
1(a)(1) of P.L. 106–554.)
Program and Financing (in millions of dollars)

Obligations by program activity:
Aid for institutional development:
00.01
Strengthening institutions .........................................
00.02
Strengthening tribally controlled colleges and universities .................................................................
00.03
Strengthening Alaska Native and Native Hawaiianserving institutions ...............................................
00.04
Strengthening historically black colleges and universities .................................................................
00.05
Strengthening historically black graduate institutions ......................................................................
00.06
Minority science and engineering improvement .......
00.91
01.01
01.02

862
1,817
2,514
2 ................... ...................
2
2
2

01.03

866

01.05

1,819

2,516

01.04

01.91

Personnel Summary
2000 actual

Identification code 91–0400–0–1–501

1001

Total compensable workyears: Full-time equivalent
employment ...............................................................

2001 est.

2002 est.

OFFICE OF POSTSECONDARY EDUCATION
Federal Funds
General and special funds:
For carrying out, to the extent not otherwise provided, section
121 and titles II, III, IV, V, VI, and VII of the Higher Education
Act of 1965, as amended, øsection 1543 of the Higher Education
Amendments of 1992 and title VIII of the Higher Education Amendments of 1998,¿ and the Mutual Educational and Cultural Exchange
Act of 1961, ø$1,911,710,000¿ $1,723,223,000, of which ø$10,000,000¿
$5,000,000 for interest subsidies authorized by section 121 of the
Higher Education Act of 1965, shall remain available until expended:
Provided, That $10,000,000, to remain available through September
30, ø2002¿ 2003, shall be available to fund fellowships for academic
year ø2002–2003¿ 2003–2004 under part A, subpart 1 of title VII
of said Act, under the terms and conditions of part A, subpart 1:
Provided further, That ø$3,000,000¿ $1,000,000 is for data collection
and evaluation activities for programs under the Higher Education
Act of 1965, including such activities needed to comply with the
Government Performance and Results Act of 1993: øProvided further,
That $15,000,000 shall be available for tribally controlled colleges
and universities under section 316 of the Higher Education Act of

VerDate 19-MAR-2001

08:42 Mar 26, 2001

02.01
02.02
02.03
02.04
02.05
02.06
02.07
02.08
02.09
02.10
02.91

HIGHER EDUCATION

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2000 actual

Identification code 91–0201–0–1–502

Subtotal, aid for institutional development .........
Other aid for institutions:
Developing Hispanic-serving institutions .................
International education and foreign language studies .........................................................................
Fund for the Improvement of Postsecondary Education ....................................................................
Demonstration projects to ensure quality higher
education for students with disabilities ..............
Interest subsidy grants .............................................

2001 est.

2002 est.

149

185

197

31
8

45
8

48
8

259

332

347

151

5
11

6 ...................
18
5

Subtotal, other aid for institutions ......................
199
322
Assistance for students:
Federal TRIO programs ..............................................
645
730
Gaining early awareness and readiness for undergraduate programs (GEAR UP) .............................
200
295
Byrd honors scholarships ..........................................
40
41
Javits fellowships ......................................................
10
10
Graduate assistance in areas of national need
31
31
Thurgood Marshall legal educational program ......... ...................
4
B. J. Stupak Olympic scholarships ........................... ...................
1
Child care access means parents in school ............
5
25
Learning anytime anywhere partnerships .................
23
30
State grants for incarcerated youth offenders .........
5 ...................

780
227
41
10
31
...................
...................
25
...................
...................

959

03.01
03.02
03.03
03.04

Subtotal, assistance for students ........................
Other Aid:
Teacher quality enhancement ...................................
GPRA data/HEA program evaluation .........................
Underground railroad program ..................................
Community scholarship mobilization ........................

03.91
09.01

Subtotal, Other Aid ...............................................
Reimbursable program ..................................................

104
103
55
8 ................... ...................

10.00

Total new obligations ................................................

1,529

1,924

1,723

21.40
22.00

Budgetary resources available for obligation:
Unobligated balance carried forward, start of year
New budget authority (gross) ........................................

12
1,538

22
1,912

10
1,723

23.90
23.95
24.40

Total budgetary resources available for obligation
Total new obligations ....................................................
Unobligated balance carried forward, end of year .......

1,550
¥1,529
22

1,934
¥1,924
10

1,733
¥1,723
10

New budget authority (gross), detail:
Discretionary:
40.00
Appropriation .............................................................

1,534

1,912

1,723

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1,167

207

1,114

98
98
54
3
3
1
2
2 ...................
1 ................... ...................

OFFICE OF POSTSECONDARY EDUCATION—Continued
Federal Funds—Continued

DEPARTMENT OF EDUCATION
¥4 ................... ...................

40.76

Reduction pursuant to P.L. 106–113 .......................

43.00
68.00

Appropriation (total discretionary) ........................
Spending authority from offsetting collections: Offsetting collections (cash) ..............................................

1,530

Total new budget authority (gross) ..........................

1,538

1,912

Change in unpaid obligations:
Unpaid obligations, start of year:
72.40
Unpaid obligations, start of year ..............................

70.00

1,912

1,723

8 ................... ...................
1,723

1,533

1,963

2,329

1,533
1,529
¥1,098

1,963
1,924
¥1,559

2,329
1,723
¥1,777

74.40

Obligated balance, start of year ..........................
Total new obligations ....................................................
Total outlays (gross) ......................................................
Unpaid obligations, end of year:
Unpaid obligations, end of year ...............................

1,963

2,329

2,275

74.99

Obligated balance, end of year ............................

1,963

2,329

2,275

86.90
86.93

Outlays (gross), detail:
Outlays from new discretionary authority .....................
Outlays from discretionary balances .............................

77
1,022

104
1,455

90
1,687

87.00

Total outlays (gross) .................................................

1,098

1,559

1,777

72.99
73.10
73.20

Offsets:
Against gross budget authority and outlays:
88.40
Offsetting collections (cash) from: Non-Federal
sources ..................................................................

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

¥8 ................... ...................

1,530
1,090

1,912
1,559

1,723
1,777

Aid for institutional development.—
Strengthening institutions.—Funds will 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 tribally controlled colleges and universities.—
Funds will support grants to American Indian tribally controlled colleges and universities with scarce resources to enable them to improve and expand their capacity to serve
Indian students.
Strengthening Alaska Native and Native Hawaiian-serving
institutions.—Funds will support Alaska Native and Native
Hawaiian-serving institutions to enable them to improve and
expand their capacity to serve Alaska Native and Native Hawaiian students.
Strengthening historically black colleges and universities.—
Funds will support grants to help historically black undergraduate institutions to improve and expand their capacity
to serve students, and to strengthen management and fiscal
operations.
Strengthening historically black graduate institutions.—
Funds will support grants to help historically black graduate
institutions to improve and expand their capacity to serve
students, and to strengthen management and fiscal operations.
Minority science and engineering improvement.—Funds will
support grants to predominantly minority institutions to help
them make long-range improvements in science and engineering education and to increase the participation of minorities
in scientific and technological careers.
Other aid for institutions.—
Developing Hispanic-serving institutions.—Funds will support Hispanic-serving institutions to enable them to improve
and expand their capacity to serve students.
International education and foreign language studies programs.—Funds will promote the development and improvement of international and foreign language programs.
Fund for the improvement of postsecondary education.—
Funds will support a broad range of postsecondary reform
and improvement projects, as well as international consortia
programs.

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361

Interest subsidy grants.—Funds will meet mandatory interest subsidy costs of construction loan commitments made
prior to 1974.
Assistance for students.—
Federal TRIO programs.—Funds will support postsecondary
education outreach and student support services through 5
major programs designed to help individuals from disadvantaged backgrounds enter and complete college and graduate
studies.
Gaining early awareness and readiness for undergraduate
programs.—Funds will support early college preparation and
awareness activities at the State and local levels to ensure
that low-income elementary and secondary school students
are prepared for and pursue postsecondary education.
Byrd honors scholarships.—Funds will support merit-based
scholarships to students who have demonstrated outstanding
academic achievement and who show promise of continued
academic excellence for study at an institution of higher education.
Javits fellowships.—Funds will support fellowships to students of superior ability who have financial need and who
are pursuing doctoral degrees in the arts, humanities, and
social sciences.
Graduate assistance in areas of national need.—Funds will
support fellowships to graduate students of superior ability
who have financial need and who are from traditionally
underrepresented backgrounds for study in areas of national need.
Child care access means parents in school.—Funds will support a program designed to bolster the participation of lowincome parents in postsecondary education through the provision of campus-based child care services.
Other aid.—
Teacher quality enhancement.—Funds will support programs that seek to make lasting changes in the ways our
Nation recruits, prepares, licenses, and supports teachers.
GPRA data/HEA program evaluation.—Funds will support
data collection and evaluation activities for programs under
the Higher Education Act of 1965, including such activities
needed to comply with the Government Performance and Results Act of 1993.
Object Classification (in millions of dollars)
2000 actual

Identification code 91–0201–0–1–502

2001 est.

2002 est.

5
6

6
7

5
4

41.0

Direct obligations:
Advisory and assistance services .............................
Other services ............................................................
Purchases of goods and services from Government
accounts ................................................................
Grants, subsidies, and contributions ........................

1
1,508

2
1,909

2
1,712

99.0
99.0
99.5

1,520
1,924
1,723
8 ................... ...................
1 ................... ...................

99.9

Total new obligations ................................................

25.1
25.2
25.3

1,529

1,924

1,723

HOWARD UNIVERSITY
For partial support of Howard University (20 U.S.C. 121 et seq.),
$232,474,000, of which not less than $3,600,000 shall be for a matching endowment grant pursuant to the Howard University Endowment
Act (Public Law 98–480) and shall remain available until expended.
(Department of Education Appropriations Act, 2001, as enacted by
section 1(a)(1) of P.L. 106–554.)
Program and Financing (in millions of dollars)
2000 actual

Identification code 91–0603–0–1–502

00.01
00.02

Obligations by program activity:
General support .............................................................
Howard University Hospital ............................................

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193
30

2001 est.

202
30

2002 est.

202
30

362

OFFICE OF POSTSECONDARY EDUCATION—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 2002

General and special funds—Continued

Program and Financing (in millions of dollars)

HOWARD UNIVERSITY—Continued

2000 actual

Identification code 91–0241–0–1–502

Program and Financing (in millions of dollars)—Continued

2001 est.

2002 est.

00.09

10.00

Total new obligations (object class 41.0) ................

Budgetary resources available for obligation:
21.40 Unobligated balance carried forward, start of year
22.00 New budget authority (gross) ........................................
23.90
23.95
24.40

223

2001 est.

10.00

2000 actual

Identification code 91–0603–0–1–502

Obligations by program activity:
Federal administration ...................................................
Total new obligations (object class 99.5) ................

22.00
23.95

Budgetary resources available for obligation:
New budget authority (gross) ........................................
Total new obligations ....................................................

1
¥1

1
1

2002 est.

232

4 ................... ...................
219
232
232

Total budgetary resources available for obligation
223
232
232
Total new obligations ....................................................
¥223
¥232
¥232
Unobligated balance carried forward, end of year ....... ................... ................... ...................

New budget authority (gross), detail:
Discretionary:
40.00
Appropriation (Federal administration) .....................

Change in unpaid obligations:
Unpaid obligations, start of year:
72.40
Unpaid obligations, start of year .............................. ................... ................... ...................
72.95
Uncollected customer payments from Federal
sources, start of year ...........................................
¥1
¥1
¥1

New budget authority (gross), detail:
Discretionary:
40.00
Appropriation .............................................................

219

232

Change in unpaid obligations:
Unpaid obligations, start of year:
72.40
Unpaid obligations, start of year ..............................

72.99
73.10
73.20

1
223
¥210

14
232
¥232

74.95

74.40

Obligated balance, start of year ..........................
Total new obligations ....................................................
Total outlays (gross) ......................................................
Unpaid obligations, end of year:
Unpaid obligations, end of year ...............................

74.99

Obligated balance, end of year ............................

86.90
86.93

Outlays (gross), detail:
Outlays from new discretionary authority .....................
Outlays from discretionary balances .............................

209
1

218
14

87.00

Total outlays (gross) .................................................

210

232

¥1
1
¥1

¥1

¥1 ...................

74.99

Obligated balance, end of year ............................

¥1

¥1 ...................

86.90

72.99
73.10
73.20

Obligated balance, start of year ..........................
Total new obligations ....................................................
Total outlays (gross) ......................................................
Unpaid obligations, end of year:
Uncollected customer payments from Federal
sources, end of year .............................................

¥1
1
¥1

Outlays (gross), detail:
Outlays from new discretionary authority .....................

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

1
1

232

Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
millions of dollars)
219
210

232
232

Howard University is a private, nonprofit educational institution consisting of 12 schools and colleges. Federal funds
are used to provide partial support for university programs
as well as for the teaching hospital facilities. In 2000, direct
Federal appropriations for general support represented approximately 53 percent of the university’s educational and
general expenditures.

1330

3510
3580
3590

COLLEGE HOUSING

AND

HISTORICALLY BLACK COLLEGE AND UNIVERSITY CAPITAL FINANCING
PROGRAM ACCOUNT
The total amount of bonds insured pursuant to section 344 of title
III, part D of the Higher Education Act of 1965 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 III, part D of the Higher Education Act of 1965, as
amended, $208,000. (Department of Education Appropriations Act,
2001, as enacted by section 1(a)(1) of P.L. 106–554.)
General Fund Credit Receipt Accounts (in millions of dollars)
2000 actual

Identification code 91–0241–0–1–502

Negative subsidies/subsidy reestimates ....................... ...................

VerDate 19-MAR-2001

Direct loan subsidy budget authority:
Subsidy budget authority downward reestimate ........... ...................

2001 est.

2002 est.

¥2 ...................

Total subsidy budget authority ................................. ...................
Direct loan subsidy outlays:
1340 Subsidy outlays downward reestimate .......................... ...................

¥2 ...................

1349

¥2 ...................

1339

Total subsidy outlays ................................................ ...................

¥2 ...................

Administrative expense data:
Budget authority ............................................................
1
1
1
Outlays from balances ...................................................
1
1 ...................
Outlays from new authority ........................................... ................... ................... ...................

ACADEMIC FACILITIES LOANS PROGRAM

For Federal administrative expenses authorized under section 121
of the Higher Education Act of 1965, $762,000 to carry out activities
related to existing facility loans entered into under the Higher Education Act of 1965. (Department of Education Appropriations Act,
2001, as enacted by section 1(a)(1) of P.L. 106–554.)

0101

2000 actual

Identification code 91–0241–0–1–502

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2002 est.

2 ...................

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The College Housing and Academic Facilities Loans Program and the Historically Black College and University Capital Financing Program are administered separately, but are
consolidated for presentation purposes.
College Housing and Academic Facilities Loans Program.—
Funds for this activity pay the Federal costs for administering
the College Housing and Academic Facilities Loans (CHAFL),
College Housing Loans (CHL), and Higher Education Facilities Loans (HEFL) programs. Prior to 1994, these programs
provided financing for the construction, reconstruction, and
renovation of housing, academic, and other educational facilities. Although no new loans have been awarded since fiscal
year 1993, costs for administering the outstanding loans will
remain for at least 30 more years. Agreements exist with
the Department of Health and Human Services to provide
architectural and engineering services and with the Federal
Reserve Bank to provide loan servicing. The 2002 budget
request provides funding for personnel compensation and
other administrative costs. In accordance with the Federal
Credit Reform Act, loan servicing costs for CHL and HEFL
are paid from their respective collections.

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OFFICE OF POSTSECONDARY EDUCATION—Continued
Federal Funds—Continued

DEPARTMENT OF EDUCATION

363

Historically Black College and University Capital Financing
Program.—The Historically Black College and University
(HBCU) Capital Financing Program provides HBCUs with
access to capital financing for the repair, renovation, and
construction of classrooms, libraries, laboratories, dormitories,
instructional equipment, and research instrumentation. The
Higher Education Amendments of 1992 granted the Department authority to enter into insurance agreements with a
private for-profit Designated Bonding Authority to guarantee
no more than $375,000,000 in outstanding principal and unpaid accrued interest combined. The bonding authority issues
the bonds and maintains an escrow account in which 5 percent of each institution’s principal is deposited. This amount
is estimated to be sufficient to cover all potential delinquencies and defaults.
Since the first loan was issued in 1996, a total of 8 loans
for $53 million have been made. Additional loans are expected
in 2001 and 2002. No subsidy appropriations are required.
The 2002 budget provides funds for continuing Federal administrative activities only.

88.40

Principal repayments ........................................

¥1

88.90

Total, offsetting collections (cash) ..................

¥2

1150

Total direct loan obligations ..................................... ................... ................... ...................

Personnel Summary

1210
1231
1251

Cumulative balance of direct loans outstanding:
Outstanding, start of year .............................................
23
26
25
Disbursements: Direct loan disbursements ...................
3 ................... ...................
Repayments: Repayments and prepayments ................. ...................
¥1
¥1

2000 actual

Identification code 91–0241–0–1–502

1001

Total compensable workyears: Full-time equivalent
employment ...............................................................

2001 est.

2002 est.

89.00
90.00

Net financing authority and financing disbursements:
Financing authority ........................................................ ...................
Financing disbursements ...............................................
4

The College Housing and Academic Facilities Loans Financing Account records all cash flows to and from the Government resulting from direct loans made in fiscal years 1992
and 1993.
Status of Direct Loans (in millions of dollars)

2000 actual

Identification code 91–4252–0–3–502

2001 est.

2002 est.

Position with respect to appropriations act limitation
on obligations:
1111 Limitation on direct loans ............................................. ................... ................... ...................

1290
7

2 ...................
1
¥1

Outstanding, end of year ..........................................

Balance Sheet (in millions of dollars)

Identification code 91–4252–0–3–502

ACADEMIC FACILITIES LOANS FINANCING
ACCOUNT

Program and Financing (in millions of dollars)
2000 actual

Identification code 91–4252–0–3–502

Obligations by program activity:
00.02 Interest paid to Treasury ...............................................
2
08.02 Payment of downward reestimate to receipt account ...................
08.04 Payment of interest on downward reestimates to receipt account ............................................................. ...................

2001 est.

2002 est.

1999 actual

2000 actual

22
..................

26
–4

25
–4

24
–3

Total assets ........................................
LIABILITIES:
2103 Federal liabilities: Debt ...........................

Total liabilities ....................................

4999

AND

ASSETS:
Net value of assets related to post–
1991 direct loans receivable:
1401
Direct loans receivable, gross ............
1405
Allowance for subsidy cost (–) ...........

2999

COLLEGE HOUSING

Total liabilities and net position ............

1499

1
1
1 ...................
1 ...................

08.91

Subtotal, Downward reestimate payments ............... ...................
Total new obligations ................................................

1999

2002 est.

2 ...................

10.00

Net present value of assets related
to direct loans ...........................

2001 est.

1
f

Budgetary resources available for obligation:
22.00 New financing authority (gross) ....................................
2
4
2
22.10 Resources available from recoveries of prior year obligations .......................................................................
2 ................... ...................
22.40 Capital transfer to general fund ...................................
¥1 ................... ...................
22.60 Portion applied to repay debt ........................................ ...................
¥1
¥1
22.70 Balance of authority to borrow withdrawn ....................
¥1 ................... ...................
23.90
23.95

Total budgetary resources available for obligation
Total new obligations ....................................................

2
¥2

3
¥3

1
¥1

New financing authority (gross), detail:
Mandatory:
67.15
Authority to borrow (indefinite) ................................. ...................
69.00 Offsetting collections (cash) .........................................
2

2 ...................
2
2

70.00

Total new financing authority (gross) ......................

Change in unpaid obligations:
Unpaid obligations, start of year:
72.40
Unpaid obligations: Borrowing Authority ..................
72.99
73.10
73.20
73.45
87.00

Obligated balance, start of year ..........................
Total new obligations ....................................................
Total financing disbursements (gross) .........................
Recoveries of prior year obligations ..............................
Total financing disbursements (gross) .........................

Offsets:
Against gross financing authority and financing disbursements:
Offsetting collections (cash) from:
Non-Federal sources:
88.40
Interest repayments ..........................................

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6 ................... ...................
6 ................... ...................
2
3
1
¥6
¥3
¥1
¥2 ................... ...................
6
3
1

COLLEGE HOUSING

PO 00000

Frm 00019

2000 actual

Identification code 91–0242–0–1–502

00.01
00.02

Obligations by program activity:
New loan awards ...........................................................
Interest paid to Treasury ...............................................

10.00

Total new obligations ................................................

21.40
22.00
22.60
23.90
23.95
24.40

Total budgetary resources available for obligation
Total new obligations ....................................................
Unobligated balance carried forward, end of year .......

Sfmt 3643

2002 est.

72 ...................
60
50
¥118
¥36

92
14
14
¥20
¥14
¥14
72 ................... ...................

New budget authority (gross), detail:
Mandatory:
60.05
Appropriation (indefinite) .......................................... ...................
69.00 Offsetting collections (cash) .........................................
63
69.27 Capital transfer to general fund ...................................
¥4

7
55
¥2

2
50
¥2

Spending authority from offsetting collections (total
mandatory) ............................................................

Total new budget authority (gross) ..........................

¥1

Fmt 3616

2001 est.

2 ................... ...................
18
14
14

Budgetary resources available for obligation:
Unobligated balance carried forward, start of year
33
New budget authority (gross) ........................................
59
Portion applied to repay debt ........................................ ...................

70.00
¥1

ACADEMIC FACILITIES LOANS LIQUIDATING
ACCOUNT

Program and Financing (in millions of dollars)

69.90

¥1

AND

E:\BUDGET\EDU.XXX

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364

OFFICE OF POSTSECONDARY EDUCATION—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 2002

0131
0132

COLLEGE HOUSING LOANS:
Revenue ...................................................
Expense ....................................................

..................
..................

42
–5

38
–38

35
–35

0135

Net income or loss (–) .......................

..................

0191

Total revenues .........................................

..................

0192

Total expenses .........................................

..................

–20

–60

–50

0195

Total income or loss (–) .........................

..................

–5

..................

0199

Total comprehensive income ...................

..................

–5

..................

General and special funds—Continued
COLLEGE HOUSING

ACADEMIC FACILITIES LOANS LIQUIDATING
ACCOUNT—Continued

AND

Program and Financing (in millions of dollars)—Continued
2000 actual

Identification code 91–0242–0–1–502

Change in unpaid obligations:
Unpaid obligations, start of year:
72.40
Unpaid obligations, start of year ..............................

2001 est.

2002 est.

23
20
¥17

25
14
¥20

19
14
¥15

74.40

Obligated balance, start of year ..........................
Total new obligations ....................................................
Total outlays (gross) ......................................................
Unpaid obligations, end of year:
Unpaid obligations, end of year ...............................

74.99

Obligated balance, end of year ............................

86.98

Outlays (gross), detail:
Outlays from mandatory balances ................................

72.99
73.10
73.20

Balance Sheet (in millions of dollars)
Identification code 91–0242–0–1–502

¥43
¥20

¥38
¥17

¥34
¥16

88.90

Total, offsetting collections (cash) ..................

¥63

¥55

¥50

¥4
¥46

2000 actual

..................
..................

484
7

445
7

412
6

..................

491

452

418

Total assets ........................................
LIABILITIES:
2103 Federal liabilities: Debt ...........................

..................

491

452

418

..................

346

228

191

2999

Total liabilities ....................................

..................

346

228

191

4999

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 ................................

1999 actual

ASSETS:
Net value of assets related to pre–1992
direct loans receivable and acquired defaulted guaranteed loans
receivable:
1601
Direct loans, gross ..............................
1602
Interest receivable ..............................

2001 est.

2002 est.

Total liabilities and net position ............

..................

346

228

191

5 ...................
¥35
¥35

1699

Value of assets related to direct
loans ..........................................

1999

Object Classification (in millions of dollars)

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. This
account includes loans made under the College Housing and
Academic Facilities Loans, College Housing Loans, and Higher Education Facilities Loans programs, which continue to
be administered separately.

2000 actual

43.0
44.0

Interest and dividends ...................................................
Refunds ..........................................................................

99.9

Total new obligations ................................................

2001 est.

2002 est.

18
14
14
2 ................... ...................
20

HISTORICALLY BLACK COLLEGE AND UNIVERSITY CAPITAL FINANCING
DIRECT LOAN FINANCING ACCOUNT

Status of Direct Loans (in millions of dollars)
Identification code 91–0242–0–1–502

2000 actual

Identification code 91–0242–0–1–502

2001 est.

2002 est.

Program and Financing (in millions of dollars)

CHAFL LIQUIDATING
Cumulative balance of direct loans outstanding:
1210 Outstanding, start of year .............................................
1231 Disbursements: Direct loan disbursements ...................
1251 Repayments: Repayments and prepayments .................

148
144
138
4 ................... ...................
¥8
¥6
¥5

1290

144

2000 actual

Identification code 91–4255–0–3–502

2001 est.

2002 est.

HIGHER EDUCATION FACILITIES LOANS
Cumulative balance of direct loans outstanding:
1210 Outstanding, start of year .............................................
1251 Repayments: Repayments and prepayments .................

138

133

Obligations by program activity:
Direct Loan Awards ........................................................
Interest paid to Treasury ...............................................

35
1

30
1

30
2

10.00

Outstanding, end of year ..........................................

00.01
00.02

Total new obligations ................................................

30
¥3

27
¥3

24
¥2

22.00
22.70

Budgetary resources available for obligation:
New financing authority (gross) ....................................
Balance of authority to borrow withdrawn ....................

Outstanding, end of year ..........................................

23.90
23.95

Total budgetary resources available for obligation
Total new obligations ....................................................

36
¥36

32
¥31

33
¥32

COLLEGE HOUSING LOANS
Cumulative balance of direct loans outstanding:
1210 Outstanding, start of year .............................................
1251 Repayments: Repayments and prepayments .................

345
¥32

313
¥30

283
¥27

313

283

256

59
1

30
2

30
3

70.00

Change in unpaid obligations:
Unpaid obligations, start of year:
72.40
Unpaid obligations, start of year .............................. ...................

25
31
¥11

46
32
¥17

46
11

61
17

1290

Outstanding, end of year ..........................................

Statement of Operations (in millions of dollars)
Identification code 91–0242–0–1–502

1999 actual

2000 actual

2001 est.

2002 est.

CHAFL LIQUIDATING:
0111 Revenue ...................................................
0112 Expense ....................................................

..................
..................

16
–12

14
–21

12
–14

0115

74.40

Net income or loss (–) .......................
HIGHER EDUCATION FACILITIES LOANS:
0121 Revenue ...................................................
0122 Expense ....................................................

..................

–7

5
–3

3
–1

0125

..................

PO 00000

74.99
87.00

Obligated balance, end of year ............................
Total financing disbursements (gross) .........................

Jkt 188677

Obligated balance, start of year .......................... ...................
Total new obligations ....................................................
36
Total financing disbursements (gross) .........................
¥11
Unpaid obligations, end of year:
Unpaid obligations: Borrowing Authority ..................
25

–2

..................
..................

72.99
73.10
73.20

Total new financing authority (gross) ......................

Net income or loss (–) .......................

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08:42 Mar 26, 2001

60
32
33
¥24 ................... ...................

Frm 00020

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25
11

OFFICE OF STUDENT FINANCIAL ASSISTANCE
Federal Funds

DEPARTMENT OF EDUCATION
Offsets:
Against gross financing authority and financing disbursements:
Offsetting collections (cash) from:
Non-Federal sources:
88.40
Interest repayments ..........................................
¥1
¥2
88.40
Principal repayments ........................................ ................... ...................

¥2
¥1

88.90

Total, offsetting collections (cash) ..................

¥1

¥2

¥3

89.00
90.00

Net financing authority and financing disbursements:
Financing authority ........................................................
Financing disbursements ...............................................

59
10

30
9

30
14

1150

1210
1231
1251
1290

2001 est.

02.91
03.01
04.01

346
¥311

311
¥281

Cumulative balance of direct loans outstanding:
Outstanding, start of year .............................................
11
21
Disbursements: Direct loan disbursements ...................
10
9
Repayments: Repayments and prepayments ................. ................... ...................

30
15
¥1

Outstanding, end of year ..........................................

1999 actual

Identification code 91–4255–0–3–502

ASSETS:
Net value of assets related to post–
1991 direct loans receivable:
1401
Direct loans receivable, gross ............
Net present value of assets related
to direct loans ...........................

1999

2000 actual

23.90
23.95
24.40

2002 est.

8,657

9,400

636
944
104
30

693
1,014
100
60

691
1,011
100
60

Subtotal, Campus-based activities ......................
1,714
Leveraging educational assistance partnership ...........
40
Loan forgiveness for child care providers ..................... ...................

1,867
55
1

1,862
55
1

12,484

10,580

11,318

4,554
9,375

1,492
10,674

1,586
11,674

281
¥251

2001 est.

10,730

Total new obligations (object class 41.0) ................

2002 est.

Total budgetary resources available for obligation
Total new obligations ....................................................
Unobligated balance carried forward, end of year .......

47 ................... ...................
13,976
¥12,484
1,492

12,166
¥10,580
1,586

13,260
¥11,318
1,942

2001 est.

2002 est.

New budget authority (gross), detail:
Discretionary:
40.00
Appropriation .............................................................
40.15
Appropriation (emergency) ........................................
40.76
Reduction pursuant to P.L. 106–113 .......................

9,435
10,674
11,674
10 ................... ...................
¥70 ................... ...................

43.00

Balance Sheet (in millions of dollars)

1499

Obligations by program activity:
Federal Pell grants:
01.01
Federal Pell grants ....................................................
Campus-based aid:
02.01
Federal supplemental educational opportunity
grants (SEOG) .......................................................
02.02
Federal work-study ....................................................
02.03
Federal Perkins loans: Federal capital contributions
02.05
Federal Perkins loans: Loan cancellations ...............

21.40
22.00
22.10

2000 actual

Total direct loan obligations .....................................

2000 actual

Identification code 91–0200–0–1–502

10.00

Status of Direct Loans (in millions of dollars)

Position with respect to appropriations act limitation
on obligations:
1111 Limitation on direct loans .............................................
1113 Unobligated limitation carried forward .........................

from the fiscal year ø2000¿ 2001 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. (Department of Education Appropriations Act, 2001, as
enacted by section 1(a)(1) of P.L. 106–554.)
Program and Financing (in millions of dollars)

In 1997, the Federal Financing Bank (FFB) began purchasing bonds issued by the HBCU Designated Bonding Authority. Under the policies governing Federal credit programs,
bonds purchased by the FFB and supported by the Department of Education with a letter of credit 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. However, the Department anticipates that all HBCU loans will be financed by the FFB.

Identification code 91–4255–0–3–502

365

Appropriation (total discretionary) ........................

9,375

10,674

11,674

Change in unpaid obligations:
Unpaid obligations, start of year:
72.40
Unpaid obligations, start of year ..............................

3,176

6,476

6,995

72.99
73.10
73.20
73.40
73.45

74.40

74.99

Total assets ........................................
LIABILITIES:
2103 Federal liabilities: Debt ...........................

105

2999

Total liabilities ....................................

105

4999

Total liabilities and net position ............

105

3,176
6,476
6,995
12,484
10,580
11,318
¥9,060
¥10,061
¥11,158
¥76 ................... ...................
¥47 ................... ...................
7,155

Obligated balance, end of year ............................

6,476

6,995

7,155

86.90
86.93

Outlays (gross), detail:
Outlays from new discretionary authority .....................
Outlays from discretionary balances .............................

2,186
6,874

2,302
7,759

2,816
8,342

Total outlays (gross) .................................................

9,060

10,061

11,158

89.00
90.00

OFFICE OF STUDENT FINANCIAL
ASSISTANCE

6,995

87.00

6,476

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

9,375
9,060

10,674
10,061

11,674
11,158

Federal Funds
General and special funds:

Status of Direct Loans (in millions of dollars)

STUDENT FINANCIAL ASSISTANCE
For carrying out subparts 1, 3 and 4 of part A, section 428K,
part C and part E of title IV of the Higher Education Act of 1965,
as amended, ø$10,674,000,000¿ $11,674,000,000, which shall remain
available through September 30, ø2002¿ 2003.
The maximum Pell Grant for which a student shall be eligible
during award year ø2001–2002¿ 2002–2003 shall be ø$3,750¿ $3,850:
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

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2000 actual

Identification code 91–0200–0–1–502

2001 est.

2002 est.

outstanding: 1

1210
1231
1251
1264

Cumulative balance of direct loans
Outstanding, start of year .............................................
Disbursements: Direct loan disbursements ...................
Repayments: Repayments and prepayments .................
Write-offs for default: Other adjustments, net .............

400
25
¥45
14

394
25
¥37
¥5

377
25
¥30
¥8

1290

Outstanding, end of year ..........................................

394

377

364

1 Includes in all years institutional matching share of defaulted notes assigned from institutions to the Education
Department.

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366

OFFICE OF STUDENT FINANCIAL ASSISTANCE—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 2002

General and special funds—Continued
STUDENT FINANCIAL ASSISTANCE—Continued

The Administration’s 2002 budget for the SFA account is
$11.674 billion, an increase of $1 billion, or 9.4 percent, over
the 2001 appropriation, which together with matching funds
(less allowable administrative costs) would provide over 7 million awards totalling more than $12.9 billion in available
aid.
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 appropriations act.
The Administration proposes $9.756 billion, an increase of
$1 billion or 11.4 percent over the 2001 appropriation level,
for the Pell Grant program in 2002, to raise the maximum
award for the 2002–2003 award year to $3,850—the highest
ever and an increase of $100 from the 2001–2002 level of
$3,750. Approximately 4 million students would receive grants
under the program in the 2002–2003 award year.
Recent program data indicate that more people are applying
for Pell Grants, and more of those applying are eligible to
receive aid, than was previously forecast. As a result, the
cost of funding awards for the 2001–2002 award year has
increased by $117 million since 2001 funds were appropriated;
this additional need in 2001 would be funded from the proposed $1 billion increase for 2002. In addition, the 2001 appropriation level was supplemented by $319 million in surplus
funds from prior years to fully fund the maximum award
level of $3,750. No surplus is expected to be available to
supplement 2002 appropriations. Therefore, another $436 million of the proposed $1 billion increase for 2002 is needed
just to maintain the previous year’s funding level, replacing
the $117 million and $319 million used for 2001. The remaining $447 million of the $1 billion would support increasing
the maximum award by $100, to $3,850, for academic year
2002–2003 and would allow for the possibility of further
growth in program costs.
Campus-based programs.—The Federal Supplemental Educational Opportunity Grants, Federal Work-Study, and Federal Perkins Loan programs are called the ‘‘campus-based’’
programs because participating institutions are responsible
for administering the programs on their own campuses. These
programs provide aid administrators with considerable flexibility in the packaging of financial aid awards to best meet
the needs of students.
Federal Supplemental Educational Opportunity Grants
(SEOG).—Federal funds are awarded by formula to qualifying
institutions, which use these funds to award grants to undergraduate students. While institutions have discretion in
awarding these funds, they are required to give priority to
Pell Grant recipients and other students with exceptional
need. The Federal share of such grants may not exceed 75
percent of the total grant. The Administration proposes $691
million for the SEOG program in 2002, the same as the
2001 level. This level of funding would provide approximately
$875 million in available aid to an estimated 1.2 million
needy students.
Federal Work-Study.—Federal funds are awarded by formula to qualifying institutions, which develop and provide
part-time jobs for eligible undergraduate and graduate students with demonstrated need. Hourly earnings under the
program must be at least equal to the Federal minimum
wage. Federal funding in most cases pays 75 percent of a
student’s hourly wages, with the remaining 25 percent paid
by the employer. To continue to provide nearly 1 million students the opportunity to work their way through college, the
Administration proposes $1.011 billion, the same as the 2001
appropriation, for the Work-Study program.

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Perkins Loan Program.—Institutions award low-interest
loans from institutional revolving funds, which are comprised
of Federal Capital Contributions, institutional matching
funds, and student repayments on outstanding loans. The
Administration proposes $100 million in new budget authority
for the Perkins loan program, the same as the 2001 level.
This level of funding would provide $1.1 billion in available
aid to some 695,000 needy undergraduate and graduate students in the 2002–2003 award year.
Perkins Loan Program—Cancellations.—Under the Perkins
Loan cancellation program, institutional revolving funds are
reimbursed for indebtedness canceled as a result of a borrower engaging in certain public service activities, as specified
in the Higher Education Act. Amendments to the Higher Education Act in 1992 and 1998 greatly expanded the number
of borrowers with loans eligible for cancellation. The Administration’s budget proposal for Perkins Loan cancellations is
$60 million, the same as the 2001 level.
Leveraging Educational Assistance Partnership Program.—
Under this program, formerly known as the State Student
Incentive Grant (SSIG) Program, Federal matching funds are
awarded to assist States in providing programs of grants and
work-study assistance to needy students attending qualifying
institutions. When appropriations are $30 million or less,
States must match these Federal funds on at least a dollarfor-dollar basis and comply with statutory maintenance of
effort requirements. State awards to students may not exceed
$5,000 per academic year.
When appropriations exceed $30 million, those funds in
excess of $30 million are reserved for the Special Leveraging
Educational Assistance Partnership (LEAP) Program. Under
Special LEAP, States may use the grant funds for several
new authorized activities including increasing the dollar
amount of LEAP grants to students who demonstrate financial need. The Federal share of the cost of the authorized
activities may not exceed 331⁄3 percent. The Administration
proposes $55 million for LEAP in 2002, the same as the
2001 appropriation.
Loan Forgiveness for Child Care Providers.—Under this
demonstration program, student loan borrowers who have
earned degrees in early childhood education and worked for
two full years as child care providers in low-income communities may have a portion of their loan obligation forgiven.
Additional forgiveness is awarded for each additional consecutive year of service, up to a total of 100 percent of the borrower’s outstanding balance after five full years. Awards are
made on a first-come, first-served basis. The Administration
proposes $1 million for Loan Forgiveness for Child Care Providers in 2002, the same as the 2001 level. Fewer than 300
recipients are expected in either 2001 or 2002.
Funding Tables.—The following tables display student aid
funds available, the number of aid awards, average awards,
and the unduplicated count of recipients from any Federal
student aid program. The tables include the aid from programs in the Student Financial Assistance account, as well
as aid from the Federal Family Education Loan (FFEL) program, and the William D. Ford Federal Direct Loan program.
Loan amounts reflect the capital actually loaned, not the Federal cost of those loans. The data in these tables include
the effects of matching funds wherever applicable.
AID FUNDS AVAILABLE FOR POSTSECONDARY EDUCATION AND TRAINING
(in millions of dollars)
2000 actual

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2001 est.

2002 est.

7,925

9,172

9,562

11,259
9,126
2,326

11,436
9,907
2,560

11,683
10,606
2,821

5,366

5,442

5,575

OFFICE OF STUDENT FINANCIAL ASSISTANCE—Continued
Federal Funds—Continued

DEPARTMENT OF EDUCATION
Unsubsidized Stafford loans ..............................................
PLUS ...................................................................................
Consolidation:
FFEL ....................................................................................
Direct Loans .......................................................................

3,807
1,175

4,129
1,290

4,420
1,419

5,695
5,369

5,948
8,290

6,083
5,307

Student loans, subtotal .............................................
44,124
Work-study ...................................................................................
1,120
Supplemental educational opportunity grants ............................
799
Perkins loans ...............................................................................
1,084
Leveraging educational assistance partnership .........................
90
Loan forgiveness for child care providers .................................. ....................

49,002
1,215
875
1,113
135
1

47,914
1,215
875
1,113
135
1

61,513

60,816

Total aid available ....................................................

55,141

DEFAULTED PERKINS LOANS
(In millions of dollars)

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 .................................................

2000 actual

400
980
185
–45
–102
14
–21

394
1,017
201
–37
–107
–5
–30

377
1,056
263
–30
–113
–8
–43

Outstanding defaulted loans, end of year ..................................

1,411

1,433

1,502

1 Permanently

Note: Detail may not add to totals due to rounding.

2 Unassigned

2002 est.

[In thousands]
2000 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 .......................................................................

2001 est.

FEDERAL STUDENT LOAN RESERVE FUND

2002 est.

3,853

3,969

4,032

3,293
2,244
342

3,345
2,408
366

3,377
2,524
388

1,552
1,010
177

1,535
1,028
183

1,553
1,078
193

298
272

306
419

309
275

Student loans, subtotal .............................................
9,187
Work-study ...................................................................................
912
Supplemental educational opportunity grants ............................
1,087
Perkins loans ...............................................................................
677
Leveraging educational assistance partnership .........................
90
Loan forgiveness for child care providers .................................. ....................

9,589
990
1,190
695
135
*

9,699
990
1,190
695
135
*

16,568

16,741

Program and Financing (in millions of dollars)
2000 actual

Identification code 91–4257–0–3–502

2001 est.

2002 est.

01.02

Obligations by program activity:
Obligations, non-federal ................................................

1,953

3,560

3,903

10.00

Total new obligations ................................................

1,953

3,560

3,903

Budgetary resources available for obligation:
Unobligated balance carried forward, start of year
2,093
2,232
New budget authority (gross) ........................................
2,092
3,657
Capital transfer to general fund ................................... ................... ...................

2,329
3,962
¥1,085

21.40
22.00
22.40

AVERAGE AID AWARDS

Total budgetary resources available for obligation
Total new obligations ....................................................
Unobligated balance carried forward, end of year .......

4,185
¥1,953
2,232

5,889
¥3,560
2,329

5,206
¥3,903
1,303

New budget authority (gross), detail:
Mandatory:
69.00
Offsetting collections (cash) .....................................

2,092

3,657

3,962

73.10
73.20

15,806

Note: Detail may not add to totals due to rounding.
*Fewer than 500 recipients

23.90
23.95
24.40

Change in unpaid obligations:
Total new obligations ....................................................
Total outlays (gross) ......................................................

1,953
¥1,953

3,560
¥3,560

3,903
¥3,903

86.97

Outlays (gross), detail:
Outlays from new mandatory authority .........................

1,953

3,560

3,903

[In whole dollars]
2000 actual

Pell grants ...................................................................................
2,057
Student loans:
Guaranteed student loans:
Stafford loans .....................................................................
3,419
Unsubsidized Stafford loans ..............................................
4,066
PLUS ...................................................................................
6,811
Direct student loans:
Stafford loans .....................................................................
3,457
Unsubsidized Stafford loans ..............................................
3,771
PLUS ...................................................................................
6,643
Consolidation:
FFEL ....................................................................................
19,122
Direct Loans .......................................................................
19,747
Work-study ...................................................................................
1,228
Supplemental educational opportunity grants ............................
735
Perkins loans ...............................................................................
1,600
Leveraging Educational Assistance Partnership .........................
1,000
Loan Forgiveness for Child Care Providers ................................. ....................

2001 est.

2002 est.

2,311

2,371

3,418
4,115
7,002

3,460
4,202
7,276

Offsets:
Against gross budget authority and outlays:
Offsetting collections (cash) from:
88.00
Federal sources .....................................................
88.40
Non-Federal sources .............................................

¥1,646
¥446

¥3,340
¥317

¥3,643
¥319

3,545
4,017
7,056

3,589
4,099
7,335

88.90

¥2,092

¥3,657

¥3,962

19,429
19,785
1,228
735
1,600
1,000
5,000

19,666
19,265
1,228
735
1,600
1,000
5,000

NUMBER OF STUDENTS AIDED
[In thousands]
2000 actual

Unduplicated student count ........................................................

2001 est.

assigned to the Federal Government for collection.
loans at institutions.

NUMBER OF AID AWARDS

Total awards ..............................................................

367

7,778

2001 est.

8,145

2002 est.

8,191

The following table displays institutional administrative
costs paid from program funds.
ADMINISTRATIVE PAYMENTS TO INSTITUTIONS

89.00
90.00

Total, offsetting collections (cash) ..................

The Higher Education Amendments of 1998 clarified that
reserve funds held by public and non-profit guaranty agencies
participating in the Federal Family Education Loan (FFEL)
program are Federal property. These reserves are used to
pay default claims from FFEL lenders and fees to support
agency efforts to successfully avert defaults. The Federal Government reimburses these reserves for default claim payments. In addition, optional borrower guarantee fees are deposited into the reserves (agencies may charge borrowers up
to 1 percent of loan principal as a guarantee fee). The following schedules reflect the balances in these guaranty agency funds.

[In millions of dollars]
2000 actual

Pell grants ...................................................................................
Work-study ...................................................................................
Supplemental educational opportunity grants ............................
Perkins loans ...............................................................................

19
70
32
43

2001 est.

20
76
35
45

The following table displays the status of defaulted Perkins
loans held by the Department and by institutions.

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2002 est.

Fmt 3616

Identification code 91–4257–0–3–502

1999 actual

2000 actual

0101
0102

Revenue ...................................................
Expense ....................................................

..................
..................

2,092
–1,953

3,657
–3,560

3,962
–3,903

0105

Net income or loss (–) ............................

..................

139

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2001 est.

2002 est.

368

OFFICE OF STUDENT FINANCIAL ASSISTANCE—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 2002
Offsets:
Against gross budget authority and outlays:
88.00
Offsetting collections (cash) from: Federal sources

General and special funds—Continued
FEDERAL STUDENT LOAN RESERVE FUND—Continued

¥3,511

¥2,321

¥1,416

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

¥2,776
¥2,862

¥392
¥442

¥636
¥639

Balance Sheet (in millions of dollars)
Identification code 91–4257–0–3–502

1999 actual

2000 actual

ASSETS:
1101 Federal assets: Fund balances with
Treasury ...............................................

..................

2,232

2,329

2002 est.

1999

Total assets ........................................
NET POSITION:
3300 Cumulative results of operations ............

..................

2,232

2,329

1,303

..................

2,232

2,329

1,303

3999

..................

2,232

2,329

1,303

89.00
90.00

1,303

Total net position ................................

2001 est.

Object Classification (in millions of dollars)
2000 actual

Identification code 91–4257–0–3–502

2001 est.

2002 est.

41.0
42.0

Grants, subsidies, and contributions ............................
Insurance claims and indemnities ................................

294
1,659

131
3,429

139
3,764

99.9

Total new obligations ................................................

1,953

3,560

3,903

Summary of Budget Authority and Outlays
(in millions of dollars)

Enacted/requested:
2000 actual
2001 est.
Budget Authority .....................................................................
–2,776
–392
Outlays ....................................................................................
–2,862
–442
Legislative proposal, subject to PAYGO:
Budget Authority ..................................................................... .................... ....................
Outlays .................................................................................... .................... ....................
Total:
Budget Authority .....................................................................
Outlays ....................................................................................

–2,776
–2,862

–392
–442

2002 est.

–636
–639
4
4
–632
–635

Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
millions of dollars)

f
2000 actual

Identification code 91–0243–0–1–502

Credit accounts:
FEDERAL DIRECT STUDENT LOAN PROGRAM, PROGRAM ACCOUNT
Program and Financing (in millions of dollars)
2000 actual

Identification code 91–0243–0–1–502

00.05
00.06
00.09

Obligations by program activity:
Upward Subsidy Reestimate .......................................... ...................
Interest on Subsidy Reestimate ..................................... ...................
Student Loan Administrative Expenses .........................
735

2001 est.

2002 est.

Total new obligations ................................................

735

1,929

780

21.40
22.00

Budgetary resources available for obligation:
Unobligated balance carried forward, start of year
New budget authority (gross) ........................................

12
735

11
1,929

11
780

23.90
23.95
24.40

Total budgetary resources available for obligation
Total new obligations ....................................................
Unobligated balance carried forward, end of year .......

747
¥735
11

1,940
¥1,929
11

791
¥780
11

770
780
1,159 ...................

62.50

1,929

780

1,643

1,416

69.00
69.27

Appropriation (total mandatory) ...........................
735
Offsetting collections (cash):
Offsetting collections (cash) .....................................
3,511
Offsetting collections (cash)—Downward Reestimate ...................................................................... ...................
Offsetting collections (cash)—Interest on downward reestimate .................................................... ...................
Capital transfer to general fund ...................................
¥3,511

531 ...................

70.00

Total new budget authority (gross) ..........................

735

1,929

780

Change in unpaid obligations:
Unpaid obligations, start of year:
72.40
Unpaid obligations, start of year ..............................

300

387

437

300
735
¥649

387
1,929
¥1,879

437
780
¥777

74.40

Obligated balance, start of year ..........................
Total new obligations ....................................................
Total outlays (gross) ......................................................
Unpaid obligations, end of year:
Unpaid obligations, end of year ...............................

387

437

440

74.99

Obligated balance, end of year ............................

387

437

440

86.97
86.98

Outlays (gross), detail:
Outlays from new mandatory authority .........................
Outlays from mandatory balances ................................

433
216

1,641
238

492
285

87.00

Total outlays (gross) .................................................

649

1,879

777

08:42 Mar 26, 2001

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15,854

20,363

17,948

2.37
¥23.26
¥18.07
¥7.85

2.50
¥22.38
¥16.38
¥8.01

2.66
¥22.20
¥16.21
¥6.96

Weighted average subsidy rate .................................
¥9.09
Direct loan subsidy budget authority:
1330 Stafford ..........................................................................
136
1330 Unsubsidized Stafford ....................................................
¥979
1330 PLUS ...............................................................................
¥242
1330 Consolidated ..................................................................
¥357
1330 Subsidy Reestimate Upward .......................................... ...................
1330 Subsidy Reestimate Downward ......................................
¥2,442

¥8.82

¥8.74

Total direct loan levels .............................................
Direct loan subsidy (in percent):
1320 Stafford ..........................................................................
1320 Unsubsidized Stafford ....................................................
1320 PLUS ...............................................................................
1320 Consolidated ..................................................................

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147
160
¥1,029
¥1,093
¥237
¥258
¥677
¥377
1,159 ...................
¥678 ...................

Total subsidy budget authority .................................
¥3,884
Direct loan subsidy outlays:
1340 Stafford ..........................................................................
218
1340 Unsubsidized Stafford ....................................................
¥754
1340 PLUS ...............................................................................
¥180
1340 Consolidated ..................................................................
¥353
1340 Subsidy Reestimate Upward .......................................... ...................
1340 Subsidy Reestimate Downward ......................................
¥2,442

¥1,315

¥1,568

133
144
¥903
¥966
¥209
¥225
¥664
¥369
1,159 ...................
¥678 ...................

1349

Total subsidy outlays ................................................

¥3,511

¥1,162

¥1,416

3510
3590

Student loan administrative expense data:
Budget authority ............................................................
Outlays ...........................................................................

735
649

770
719

780
777

147 ...................
¥2,321
¥1,416

Spending authority from offsetting collections (total
mandatory) ............................................................ ................... ................... ...................

VerDate 19-MAR-2001

6,010
4,923
1,593
5,422

1339

69.90

72.99
73.10
73.20

5,868
4,598
1,447
8,450

1329

New budget authority (gross), detail:
Mandatory:
60.00
Appropriation .............................................................
735
60.05
Appropriation (indefinite) .......................................... ...................

2002 est.

5,759
4,210
1,338
4,547

1159

1,085 ...................
74 ...................
770
780

10.00

69.00
69.00

Direct loan levels supportable by subsidy budget authority:
1150 Stafford ..........................................................................
1150 Unsubsidized Stafford ....................................................
1150 PLUS ...............................................................................
1150 Consolidated ..................................................................

2001 est.

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. For 2002, the President is committed to improving the efficiency of both programs and allowing individual institutions to choose which of these two programs
best meets their needs and the needs of their students.
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 2002 budget, the President
is proposing a change to the loan forgiveness provisions of
the Direct Loan and FFEL programs. This proposal is discussed as part of this program description.

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OFFICE OF STUDENT FINANCIAL ASSISTANCE—Continued
Federal Funds—Continued

DEPARTMENT OF EDUCATION

From its inception in 1965 through 2000, the FFEL program has provided over $300 billion in loans to postsecondary
students and their parents. Since July 1, 1994, the Direct
Loan program has provided $72 billion in new and consolidation loans to students and parents. Taken together, the FFEL
and Direct Loan programs will make almost $35 billion in
new loans available in 2001. 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 collection of some defaulted loans, default
avoidance activities, and counseling to schools, students, and
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 of 1993. Under this program, the Federal Government provides loan funds to postsecondary institutions directly or through an alternative originator. The Direct Loan
program began operation in academic year 1994–1995 with
7 percent of overall loan volume and is expected to account
for 31 percent in academic year 2000–2001. 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.
The borrower interest rate for new Stafford Loans equals
the 91-day Treasury bill rate plus 1.7 percent during inschool, grace, and deferment periods, and the 91-day Treasury
bill plus 2.3 percent at all other times, with a cap of 8.25
percent, 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 borrower interest rate
as Stafford loans, but have no interest subsidy. For new PLUS
loans, the borrower interest rate equals the 91-day Treasury
bill rate plus 3.1 percent, with a cap of 9 percent and no
interest subsidy.
In the FFEL program, lenders may receive an 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 marketyield formulas. For new Stafford and Unsubsidized Stafford
loans, for example, the Federal Government must pay lenders
a special allowance if the average 3-month commercial paper
rate for a given quarter plus 2.34 percent—or 1.74 percent
during in-school, grace, or deferment periods—is higher than
the current interest rate charged borrowers.
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. The interest rate for new FFEL
and Direct Consolidation loans equals the weighted average
of the interest rate on the loans consolidated, rounded up
to the nearest one-eighth of one percent. Lenders may choose

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to offer a lower rate. Interest rates for all new FFEL and
Direct Consolidation Loans are capped at 8.25 percent.
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 and FFEL lenders have the option of paying some
or all of a borrower’s origination fee for Stafford Loan borrowers. Direct Loan borrowers are charged an origination fee
equal to 3 percent of principal, which partially offsets Federal
program operation costs. Borrowers in both programs may
be offered financial incentives to encourage prompt repayment.
Loan limits are also identical across the two programs.
In addition, loans made under both programs are discharged
when borrowers die, are totally and permanently disabled,
or, under some circumstances, declare bankruptcy.
Under both programs, new borrowers after October 1, 1998,
who are employed as teachers in schools serving low-income
populations for five consecutive, complete school years, qualify
for up to $5,000 in loan forgiveness. The Administration is
proposing to increase this benefit to a maximum of $17,500
for qualifying mathematics and science teachers.
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).
FFEL borrowers may choose from among four repayment
plans. Repayment periods under standard, graduated, and
income-sensitive repayment may not exceed 10 years. An extended repayment plan of up to 25 years is available for
new borrowers with outstanding loans totalling more than
$30,000. FFEL borrowers may change repayment plans annually.
In order to ensure the uninterrupted availability of aid
funds for students and parents, Congress provided permanent
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, and certain costs associated with activities
common to Direct Loans, FFEL and other student assistance
programs, such as application printing and processing. Discretionary funds requested for the FFEL program support additional Department personnel and administrative activities associated with operating the program.
Performance indicators have been developed on a broad
spectrum of policy objectives in both the Direct Loan and
FFEL programs. These indicators 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.
Funding Levels (In thousands of dollars)
2000 actual

2001 est.

2002 est.

Program Cost:
FFEL:
Liquidating 1 ..............................................................
Program:
Regular ..................................................................
Consolidation ........................................................
Reestimate of Prior Year Costs ............................
Non-Contractual Modifications 2 ...........................

(1,188,367)

(741,821)

(604,457)

3,565,824
196,823
776,001
......................

3,714,477
137,635
(4,727,793)
......................

4,008,183
213,849
......................
4,420

Subtotal, Program ............................................

4,538,648

(875,681)

4,226,451

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OFFICE OF STUDENT FINANCIAL ASSISTANCE—Continued
Federal Funds—Continued

370

THE BUDGET FOR FISCAL YEAR 2002

Credit accounts—Continued
FEDERAL DIRECT STUDENT LOAN PROGRAM, PROGRAM ACCOUNT—
Continued
Funding Levels (In thousands of dollars)—Continued
2000 actual

Total FFEL: ........................................................
Direct Loans:
Program:
Regular ..................................................................
Consolidation ........................................................
Reestimate of Prior Year Costs ............................
Non-Contractual Modification 2 ............................
Total, Direct Loans ...........................................
Administration:
3 ........................................................................
FFEL :
Student Aid 4 .............................................................
Subtotal, Administration .......................................
Total, FFEL and Direct Loans ...............................
Program Cost Outlays:
FFEL:
Liquidating 1 ..............................................................
Program:
Regular ..................................................................
Consolidation ........................................................
Reestimate of Prior Year Costs ............................
Non-Contractual Modification 2 ............................
Subtotal, Program ............................................
Total, FFEL ........................................................
Direct Loans:
Program:
Regular ..................................................................
Consolidation ........................................................
Reestimate of Prior Year Costs ............................
Non-Contractual Modifications 2 ...........................
Total, Direct Loans ...........................................
Administration:
FFEL 3 .........................................................................
Student Aid 4 .............................................................
Subtotal, Administration .......................................
Total, FFEL and Direct Loans ...............................

2001 est.

2002 est.

3,350,282

(1,617.502)

3,621,994

(715,953)
(352,697)
(2,442,286)
......................
(3,510,936)

(979,179)
(664,024)
481,223
......................
(1,161,980)

(1,044.966)
(369,3640
......................
2,596
(1,411,735)

48,000
735,000

48,000
770,000

49,636
780,000

783,000
622,346

818,000
(1,961,482)

829,636
(3,039,896)

(699,345)

(604,457)

3,333,312
196,823
776,000
......................
4,306,135
2,669,434

3,445,578
137,409
(4,727,793)
......................
(1,144,806)
(1,844,15)

3,447,111
213,499
......................
4,420
3,665,029
3,060,572

(715,953)
(352,697)
(2,442,286)
......................
(3,510,936)

(979,179)
(664,024)
481,223
......................
(1,161,980)

(1,044,966)
(369,364)
......................
2,596
(1,411,735)

38,038
648,696

56,092
719,495

6,598

1,552
1,010
177

1,535
1,028
183

1,553
1,078
193

Subtotal ..............................................................................
Consolidation ..........................................................................

2,739
272

2,745
419

2,825
275

Total, Direct Loans .............................................................
Total, All Loans ..................................................................

3,011
9,187

3,164
9,589

3,101
9,699

Average Loan Size (in whole dollars)
2000 actual

FFEL:
Stafford ...................................................................................
Unsubsidized Stafford .............................................................
PLUS ........................................................................................

3,419
4,066
6,811

2001 est.

3,418
4,115
7,002

2002 est.

3,460
4,202
7,276

Weighted Average, without Consolidations ........................

3,863

3,906

3,993

19,122

19,429

19,666

Weighted Average, FFEL .....................................................
Direct Loans:
Stafford ...................................................................................
Unsubsidized Stafford .............................................................
PLUS ........................................................................................

4,599

4,646

4,728

3,457
3,771
6,643

3,545
4.017
7.056

3,589
4,099
7,335

Weighted Average, Direct Loans ........................................

3,778

3,956

4,040

19,747

19,785

19,265

Weighted Average, Direct Loans ........................................
Weighted Average, All Loans ..............................................

5,221
4,803

6,052
5,110

5,393
4,940

49,808
777,164

686,734
(154,768)

775,587
(2,230,544)

826,972
2,475,810

account reflects loans made prior to 1992.
the costs or savings associated with policy changes that would affect the terms of existing loans.
3 Reflects annual discretionary appropriation.
4 Supports account maintenance fee payments to FFEL guaranty agencies, Direct Loan origination and servicing,
and a range of administrative activities such as application printing, mailing, and processing that are common
to all Federal student financial assistance programs.

Summary of Loans Available (net commitments in millions of dollars) 1
2000 actual

2001 est.

2002 est.

11,259
9,126
2,326

11,436
9,907
2,560

11,683
10,606
2,821

Subtotal ..............................................................................
Consolidation ..........................................................................

22,711
5,695

23,903
5,948

25,111
6,083

Total, FFEL ..........................................................................
Direct Loans:
Stafford ...................................................................................
Unsubsidized Stafford .............................................................
PLUS ........................................................................................

28,407

29,851

31,193

5,366
3,807
1,175

5,442
4,129
1,290

5,575
4,420
1,419

Subtotal ..............................................................................
Consolidation ......................................................................

10,347
5,369

10,860
8,290

11,414
5,307

Total, Direct Loans .............................................................
Total, All Loans ..................................................................

15,717
44,124

19,150
49,001

16,721
47,914

commitments equal gross commitments minus loan cancellations.

Number of Loans (In thousands)
2000 actual

2001 est.

3,293
2,244
342

3,345
2,408
366

3,377
2,524
388

Subtotal ..............................................................................
Consolidation ..........................................................................

5,879
298

6,119
306

6,289
309

Jkt 188677

PO 00000

Frm 00026

Summary of Subsidy Rates, Default and Interest Rates
2000 actual

Subsidy Rates (in percent) 1
FFEL:
Stafford ...................................................................................
Unsubsidized Stafford .............................................................
PLUS ........................................................................................
Consolidation ..........................................................................
Weighted Average, FFEL .....................................................
Direct Loans:
Stafford ...................................................................................
Unsubsidized Stafford .............................................................
PLUS ........................................................................................
Consolidation ......................................................................
Weighted Average, Direct Loans ........................................
Default Rates (in percent) 2
FFEL:
Stafford ...................................................................................
Unsubsidized Stafford .............................................................
PLUS ........................................................................................
Weighted Average, FFEL .....................................................
Direct Loans:
Stafford ...................................................................................
Unsubsidized Stafford .............................................................
PLUS ........................................................................................
Consolidation ..........................................................................
Weighted Average, Direct Loans ........................................
Borrower Interest Rates (in percent) 3
FFEL:
Stafford ...................................................................................
Unsubsidized Stafford .............................................................
PLUS ........................................................................................
Consolidation (reflects Sub and Unsub Stafford Only) ..........
Direct Loans:
Stafford ...................................................................................
Unsubsidized Stafford .............................................................
PLUS ........................................................................................
Consolidation (reflects Sub and Unsub Stafford only) ..........

2001 est.

2002 est.

24.92
8.47
5.80
4.29
14.20

22.46
6.24
3.83
2.31
11.62

23.15
6.86
3.92
3.51
12.18

2.37
¥23.26
¥18.07
¥7.85
¥9.09

2.50
¥22.38
¥16.38
¥8.01
¥8.82

2.68
¥22.19
¥16.21
¥6.96
¥8.73

15.68
14.63
9.19
16.70

15.80
14.74
9.38
16.72

15.80
14.85
9.57
16.67

14.68
14.02
8.84
19.71
15.80

14.80
14.13
8.99
19.02
16.09

14.81
14.25
9.14
19.90
15.79

7.70
7.70
8.57
7.79

7.59
7.59
8.70
8.25

7.48
7.48
8.62
8.00

7.70
7.70
8.57
7.69

7.59
7.59
8.70
8.00

7.48
7.48
8.62
7.88

2002 est.

08:42 Mar 26, 2001

6,425

Consolidation ..........................................................................

(1,636,701)

2 Reflect

VerDate 19-MAR-2001

6,176

Consolidation ..........................................................................

1 Liquidating

1 Net

Fmt 3616

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 two-year rates tend to be lower than those included in this table.
3 These represent average borrower interest rates during repayment for a typical borrower under standard repayment
over the life of the loan.

Sfmt 3643

E:\BUDGET\EDU.XXX

pfrm07

PsN: EDU

OFFICE OF STUDENT FINANCIAL ASSISTANCE—Continued
Federal Funds—Continued

DEPARTMENT OF EDUCATION
Composition of Loan Collections (In thousands of dollars)
2000 actual

FFEL:
Collections by Guaranty Agencies 1 ........................................
Collections by Department of Education 2 ..............................
Internal Revenue Service Tax Refund Offsets ........................
Total, FFEL .....................................................................
Direct Loans:
Collections by Department of Education 2 ..............................
Internal Revenue Service Tax Refund Offsets ........................
Total, Direct Loans .........................................................
Total, FFEL and Direct Loan ...............................................

2001 est.

2002 est.

2,596,201
634,663
927,097
4,157,960

2,045,315
423,516
716,361
3,185,192

2,095,001
431,160
715,369
3,241,192

123,507
45,144
168,652
4,326,612

522,619
78,553
601,172
3,786,364

712,330
116,066
828,396
4,069,926

1 These figures show collections net of the amount agencies are allowed to retain under the provisions of
the Higher Education Act of 1965. Agencies may retain 24 percent of most collections, and 18.5 percent of
amounts collected through the consolidation of existing defaulted loans.
2 These figures include amounts subsequently paid to Department contract collections agencies; contract collection
costs total $110 million for 2000 ($81 million for FFEL and $29 million for Direct Loans); $171 million for
2001 ($77 million for FFEL and $95 million for Direct Loans); and $207 million for 2002 ($78 million for FFEL
and $129 million for Direct Loans).

Projected Participation in Repayment Plans 1 (in percent)
2000 actual

Standard:
Percent of Loan Volume: 2
Stafford ..........................................................................
Unsubsidized Stafford ....................................................
PLUS ...............................................................................
Consolidation .................................................................
Subsidy Rate (in percent):
Stafford ..........................................................................
Unsubsidized Stafford ....................................................
PLUS ...............................................................................
Consolidation .................................................................
Graduated: 3
Percent of Loan Volume 2
Stafford ..........................................................................
Unsubsidized Stafford ....................................................
PLUS ...............................................................................
Consolidation .................................................................
Subsidy Rate (in percent):
Stafford ..........................................................................
Unsubsidized Stafford ....................................................
PLUS ...............................................................................
Consolidation .................................................................
Extended: 3
Percent of Loan Volume: 2
Stafford ..........................................................................
Unsubsidized Stafford ....................................................
PLUS ...............................................................................
Consolidation .................................................................
Subsidy Rate (in percent):
Stafford ..........................................................................
Unsubsidized Stafford ....................................................
PLUS ...............................................................................
Consolidation .................................................................
Income-Contingent:
Percent of Loan Volume: 2
Stafford ..........................................................................
Unsubsidized Stafford ....................................................
Consolidation .................................................................
Subsidy Rate (in percent):
Stafford ..........................................................................
Unsubsidized Stafford ....................................................
Consolidation .................................................................

2001 est.

2002 est.

74.14
70.24
77.82
37.42

70.18
66.17
77.82
35.18

66.43
62.34
77.82
39.03

5.28
¥19.53
¥13.99
¥0.83

5.21
¥18.92
¥13.14
¥0.53

5.71
¥18.32
¥12.99
0.05

18.57
20.67
16.20
26.13

21.57
23.66
16.20
24.94

24.41
26.47
16.20
26.99

¥6.50
¥34.52
¥33.14
¥12.73

¥4.15
¥30.66
¥28.12
¥13.94

¥3.55
¥29.92
¥27.83
¥12.73

5.90
7.51
5.99
15.75

6.85
8.59
5.99
16.95

7.75
9.61
5.99
14.89

¥5.87
¥33.70
¥32.67
¥12.64

¥3.29
¥29.62
¥26.16
¥12.74

¥2.72
¥28.98
¥25.92
¥11.63

1.40
1.58
20.69

1.40
1.58
22.93

1.40
1.58
19.09

0.39
0.30
¥12.29

0.32
0.12
¥9.53

0.49
0.23
¥9.46

Maximum
Term (in
years)

Debt Level

Below $10,000 ..................................................................................................................................
$10,000–$20,000 ..............................................................................................................................
$20,000–$40,000 ..............................................................................................................................
$40,000–$60,000 ..............................................................................................................................
Above $60,000 ..................................................................................................................................

08:42 Mar 26, 2001

Jkt 188677

The Higher Education Amendments of 1998 broadened the
availability of alternative repayment plans in the FFEL program. As noted in the Table above, data on the extent to
which FFEL borrowers will take advantage of these plans
is not yet available.
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.
FFEL RISK CATEGORIES: STAFFORD LOANS
Subsidy Rate (as a percentage of loan commitments)

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 ..............................................

2000 actual

30.52
21.63
24.98
25.50
24.22

2001 est.

27.25
20.33
24.19
17.11
22.07

2002 est.

27.88
21.05
24.97
18.18
22.74

Gross Default Rates (in percent)

2000 actual

19.26
12.64
30.52
44.60
8.19

2001 est.

19.43
12.73
30.74
45.11
8.24

2002 est.

19.53
12.79
30.85
45.53
8.26

UNSUBSIDIZED STAFFORD LOANS

1 For modeling purposes, all FFEL borrowers are assumed to have chosen Standard repayment. For Direct Loans,
no data is included for the Alternative repayment plan, since borrowers are not expected to participate in this
plan due to the flexibility available under the other options. Income-contingent repayment is not available for
Direct 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 borrower debt levels.

VerDate 19-MAR-2001

371

PO 00000

12
15
20
25
30

Frm 00027

Percent of
Volume
Within Direct Extended
and
Graduated
Plans
(Stafford)
FY 01
5.73
13.24
32.00
20.74
28.29

Fmt 3616

Subsidy Rate (as a percentage of loan commitments)

2000 actual

9.79
6.76
12.74
17.51
6.92

2001 est.

6.73
5.65
10.37
8.58
5.56

2002 est.

7.44
6.25
11.06
9.54
6.11

Gross Default Rates (in percent)

2000 actual

19.69
12.48
29.64
42.85
8.10

2001 est.

19.87
12.57
29.89
43.47
8.14

2002 est.

20.00
12.67
30.11
44.00
8.18

PLUS LOANS
Subsidy Rate (as a percentage of loan commitments)
2000 actual

All PLUS Loans ........................................................................

5.80

2001 est.

3.83

2002 est.

3.92

Gross Default Rates (in percent)
2000 actual

All PLUS Loans ........................................................................

Sfmt 3647

E:\BUDGET\EDU.XXX

pfrm07

PsN: EDU

9.19

2001 est.

9.38

2002 est.

9.57

372

OFFICE OF STUDENT FINANCIAL ASSISTANCE—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 2002

Credit accounts—Continued
FEDERAL DIRECT STUDENT LOAN PROGRAM, PROGRAM ACCOUNT—
Continued
DIRECT LOAN RISK CATEGORIES: STAFFORD LOANS
Subsidy Rate (as a percentage of loan commitments)

2000 actual

2001 est.

7.42
–0.68
5.52
11.50
0.99

2002 est.

7.08
0.41
7.24
4.24
1.12

7.28
0.61
7.59
4.84
1.25

Gross Default Rates (in percent)

2000 actual

2001 est.

19.35
12.49
30.50
44.14
8.11

2002 est.

19.52
12.58
30.74
44.65
8.15

19.61
12.64
30.86
45.07
8.17

UNSUBSIDIZED STAFFORD LOANS
Subsidy Rate (as a percentage of loan commitments)

2000 actual

–23.04
–24.74
–16.90
–7.83
–24.96

2001 est.

2002 est.

–21.89
–22.87
–15.74
–14.36
–23.74

–21.43
–22.79
–15.60
–14.21
–23.55

2000 actual

2001 est.

19.36
12.27
29.45
42.30
8.01

19.66
12.45
29.95
43.44
8.09

PLUS LOANS
2000 actual

–18.07

2001 est.

2000 actual

–16.21

2001 est.

8.84

FFEL:
Interest costs:
Interest benefits:
FFEL Liquidating ........................................................
FFEL Program ............................................................

750,082
125,014
44,723
209,817

706,622
117,770
51,368
278,037

739,777
123,296
47,374
318,984

5,820,065
358,336
168,652
28,546

6,636,713
286,635
601,172
94,699

8,335,706
183,226
828,396
129,074

48,000
735,000

48,000
770,000

49,636
780,000

180,000
149,799

170,000
176,814

180,000
185,782

2000 actual

Identification code 91–0243–0–1–502

Personnel compensation:
Full-time permanent ..................................................
Other personnel compensation ..................................

11.9
12.1
21.0
23.1
23.3
24.0
25.1
25.2
25.3

2001 est.

2002 est.

33
3

37
3

39
2

36
8
6
6
41
12
1
30

40
8
6
7
37
8
6
25

41
9
5
5
48
8
6
32

25.7
31.0
32.0
41.0

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 equipment ...................
Equipment ......................................................................
Land and structures ......................................................
Grants, subsidies, and contributions ............................

5
394
5
11
180

1
449
1
12
1,329

3
438
2
3
180

2002 est.

8.99

9.14

99.9

Total new obligations ................................................

735

1,929

780

Selected Program Costs and Offsets 1 (in thousands of dollars)
2000 actual

458,303

Object Classification (in millions of dollars)

2002 est.

–16.38

Gross Default Rates (in percent)

All PLUS Loans ........................................................................

416,406

2002 est.

19.54
12.36
29.72
42.91
8.05

Subsidy Rate (as a percentage of loan commitments)

All PLUS Loans ........................................................................

309,560

Details may not sum to totals due to rounding.
1 This table represents explicit cash flows in the FFEL and Direct Loan financing accounts. Examples of these
flows would include payments of FFEL interest benefits, default claims, and discharge claims, or collections on
FFEL or Direct Loan defaults all of which involve explicit events that are reflected in the Department’s financial
systems as they occur. Non-events, such as Direct Loan interest benefits, defaults, or discharges, involve payments
that are not received, and hence not recorded in the Department’s financial systems in the same way. For
that reason, these non-events are not included in this table.
2 A number of expenses related to the administration of the student assistance programs are paid out of
Student Aid Management funds. One of these expenses, account maintenance fee payments to guaranty agencies,
is shown as a separate line.

11.1
11.5

Gross Default Rates (in percent)

Total ......................................................................
Fees:
Borrower origination fees: .........................................
Lender origination fee ...............................................
Sallie Mae offset fee: ................................................
Consolidation loan holder fees: ................................
Direct Loans:
Borrower repayments: ................................................
Borrower origination fees: ................................
Net default Collections: ....................................
Contact Collection Costs ..................................
Administrative Costs:
Federal administration:
FFEL ..................................................................
Student Aid Management (SAM) 2 ...................
Guaranty agency administrative payments:
Account Maintenance Fee (included in SAM)
Loan Issuance and Processing Fee ..................

2001 est.

Personnel Summary
2002 est.

1001
16,481
1,926,586

......................
2,177,225

......................
2,121,050

Total ......................................................................
Special allowance:
FFEL Liquidating ........................................................
FFEL Program ............................................................

1,943,067

2,177,225
46,228
782,745

25,013
908,788

Total ......................................................................
Default costs and offsets:
Default claims:
FFEL Liquidating ........................................................
FFEL Program ............................................................

975,666

828,973

933,802

Total compensable workyears: Full-time equivalent
employment ...............................................................

2,121,050

75,539
900,126

2000 actual

Identification code 91–0243–0–1–502

2001 est.

554

2002 est.

571

FEDERAL DIRECT STUDENT LOAN PROGRAM, PROGRAM ACCOUNT
(Legislative proposal, subject to PAYGO)
Program and Financing (in millions of dollars)
2000 actual

Identification code 91–0243–4–1–502

2001 est.

2002 est.

00.03

Obligations by program activity:
Non contractual modification ........................................ ................... ...................

10.00

Total new obligations (object class 41.0) ................ ................... ...................

22.00
23.95

3
¥3

3
¥1
1

86,351
1,560,662

115,419
3,224,912

62,716
3,580,502

1,647,013

3,340,331

3,643,218

2,008,624
2,149,336

981,554
2,203,638

756,467
2,485,062

Total ......................................................................
Contract collection costs: .....................................
FFEL Liquidating ...................................................
FFEL Program ............................................................

4,157,960

3,185,192

3,241,530

40,912
40,285

42,060
34,684

33,584
44,544

New budget authority (gross), detail:
Mandatory:
60.05
Appropriation (indefinite) .......................................... ................... ...................
69.00 Offsetting collections (cash) ......................................... ................... ...................
69.27 Capital transfer to general fund ................................... ................... ...................

Total ......................................................................
Death, disability, and bankruptcy costs:
FFEL Liquidating ...................................................
FFEL Program ........................................................

81,197

76,743

78,128

69.90

Spending authority from offsetting collections (total
mandatory) ............................................................ ................... ................... ...................

34,858
274,703

44,768
371,638

36,502
421,800

70.00

Total new budget authority (gross) .......................... ................... ...................

Total ......................................................................
Net default collections:
FFEL Liquidating ........................................................
FFEL Program ............................................................

VerDate 19-MAR-2001

08:42 Mar 26, 2001

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PO 00000

Frm 00028

Fmt 3616

Sfmt 3643

E:\BUDGET\EDU.XXX

pfrm07

PsN: EDU

OFFICE OF STUDENT FINANCIAL ASSISTANCE—Continued
Federal Funds—Continued

DEPARTMENT OF EDUCATION

73.10
73.20

3
¥3

86.97

Outlays (gross), detail:
Outlays from new mandatory authority ......................... ................... ...................

Offsets:
Against gross budget authority and outlays:
88.00
Offsetting collections (cash) from: Federal sources ................... ...................

72.99
73.10
73.20
73.40

74.40

Obligated balance, start of year ..........................
6,718
7,020
3,373
Total new obligations ....................................................
24,069
27,023
24,805
Total financing disbursements (gross) .........................
¥23,766
¥30,670
¥24,606
Adjustments in expired accounts (net) ......................... ................... ................... ...................
Unpaid obligations, end of year:
Unpaid obligations, end of year ...............................
7,020
3,373
3,573

74.99
87.00

Obligated balance, end of year ............................
Total financing disbursements (gross) .........................

4
4

Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
millions of dollars)
2000 actual

Identification code 91–0243–4–1–502

1320
1320
1329

2001 est.

Direct loan subsidy (in percent):
Stafford .......................................................................... ................... ...................
Unsubsidized Stafford .................................................... ................... ...................

0.02
0.02

................... ...................

0.01

................... ...................
................... ...................
................... ...................

1
1
2

Total subsidy budget authority ................................. ................... ...................
Direct loan subsidy outlays:
1340 Stafford .......................................................................... ................... ...................
1340 Non contractual modifications ...................................... ................... ...................

1349

1330
1330
1330

Weighted average subsidy rate .................................
Direct loan subsidy budget authority:
Stafford ..........................................................................
Unsubsidized Stafford ....................................................
Non contractual modifications ......................................

2002 est.

1339

1
2

Total subsidy outlays ................................................ ................... ...................
f

Change in unpaid obligations:
Unpaid obligations, start of year:
72.40
Unpaid obligations, start of year ..............................

373

6,718

7,020
23,766

7,020

3,373
30,670

3,373

3,573
24,606

Offsets:
Against gross financing authority and financing disbursements:
Offsetting collections (cash) from:
Federal sources:
Payments from program account:
88.00
Upward reestimate ....................................... ...................
¥1,085 ...................
88.00
Interest on upward reestimate .................... ...................
¥74 ...................
88.25
Interest on uninvested funds ...............................
¥1,191 ................... ...................
Non-Federal sources:
Stafford loans:
88.40
Repayment of principal, Stafford ................
¥1,825
¥1,283
¥1,647
88.40
Interest received on loans, Stafford ............
¥404
¥1,224
¥1,428
88.40
Fees, Stafford ...............................................
¥188
¥139
¥83
88.40
Repayment of principal, Unsubsidized Stafford ..........................................................
¥1,156
¥820
¥1,101
88.40
Interest received on loans, Unsubsidized
Stafford ....................................................
¥325
¥831
¥1,023
88.40
Fees, Unsubsidized Stafford ........................
¥131
¥103
¥66
88.40
Repayment of principal, PLUS .....................
¥544
¥257
¥323
88.40
Interest received on loans, PLUS .................
¥227
¥347
¥387
88.40
Fees, PLUS ...................................................
¥40
¥45
¥35
88.40
Payment of principal, Consolidated ............
¥955
¥973
¥1,342
88.40
Interest received on loans, Consolidated ....
¥553
¥1,503
¥1,912
88.90

Total, offsetting collections (cash) ..................

¥7,539

¥8,684

¥9,347

89.00
90.00

16,543
16,229

18,322
21,986

15,458
15,259

FEDERAL DIRECT STUDENT LOAN PROGRAM, FINANCING ACCOUNT
Program and Financing (in millions of dollars)
2000 actual

Identification code 91–4253–0–3–502

Obligations by program activity:
Direct loans:
01.01
Stafford ......................................................................
01.02
Unsubsidized Stafford ...............................................
01.03
PLUS ..........................................................................
01.04
Consolidated ..............................................................

2001 est.

2002 est.

Status of Direct Loans (in millions of dollars)
5,759
4,210
1,338
4,547

5,868
4,598
1,447
8,450

6,010
4,923
1,593
5,422

Subtotal, direct loans obligations ........................
Payment for consolidations:
Consolidated ..............................................................
Payment of contract collections ....................................
Interest payment to Treasury .........................................
Other obligations:
Payment of negative subsidy to program account
Payment of downward reestimate to program account .....................................................................
Payment of interest on downward reestimate to program account ............................................................

15,854

20,363

17,948

26
29
4,402

47
95
4,177

31
129
5,265

1,316

1,663

1,432

08.91

Subtotal, other obligations ........................................

3,758

2,341

1,432

10.00

Total new obligations ................................................

24,069

27,023

24,805

21.40
22.00

Budgetary resources available for obligation:
Unobligated balance carried forward, start of year
New financing authority (gross) ....................................

5
24,082

17 ...................
27,006
24,805

23.90
23.95
24.40

Total budgetary resources available for obligation
Total new obligations ....................................................
Unobligated balance carried forward, end of year .......

01.91
02.04
03.01
04.01

2000 actual

Identification code 91–4253–0–3–502

2001 est.

2002 est.

STAFFORD
Position with respect to appropriations act limitation
on obligations:
1111 Limitation on direct loans ............................................. ................... ................... ...................
1131 Direct loan obligations exempt from limitation ............
5,759
5,868
6,010

08.04

New financing authority (gross), detail:
Mandatory:
67.15
Authority to borrow (indefinite) .................................
69.00 Offsetting collections (cash) .........................................
69.47 Portion applied to repay debt ........................................
69.90
70.00

2,158

531 ...................

284

147 ...................

24,087
27,023
24,805
¥24,069
¥27,023
¥24,805
17 ................... ...................

19,612
7,539
¥3,069

22,687
8,684
¥4,365

19,381
9,347
¥3,923

Spending authority from offsetting collections (total
mandatory) ............................................................

4,470

4,319

5,424

Total new financing authority (gross) ......................

24,082

27,006

24,805

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Total direct loan obligations .....................................

1210
1231
1251
1261
1264

Cumulative balance of direct loans outstanding:
Outstanding, start of year .............................................
Disbursements: Direct loan disbursements ...................
Repayments: Repayments and prepayments .................
Adjustments: Capitalized interest .................................
Write-offs for default: Other adjustments, net .............

1290

Outstanding, end of year ..........................................

23,943

28,057

31,874

UNSUBSIDIZED STAFFORD
Position with respect to appropriations act limitation
on obligations:
1131 Direct loan obligations exempt from limitation ............

4,210

4,598

4,923

1150

08.01
08.02

1150

Total direct loan obligations .....................................

4,210

4,598

4,923

1210
1231
1251
1261
1264

11,516
4,812
¥1,156
309
25

15,506
4,046
¥820
729
¥24

19,437
4,342
¥1,101
783
¥29

1290

Outstanding, end of year ..........................................

15,506

19,437

23,432

PLUS
Position with respect to appropriations act limitation
on obligations:
1131 Direct loan obligations exempt from limitation ............

1,338

1,447

1,593

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5,759

5,868

6,010

19,067
23,943
28,057
6,557
5,436
5,510
¥1,825
¥1,283
¥1,647
119 ................... ...................
25
¥39
¥46

374

OFFICE OF STUDENT FINANCIAL ASSISTANCE—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 2002

Credit accounts—Continued

FEDERAL DIRECT STUDENT LOAN PROGRAM, FINANCING ACCOUNT
(Legislative proposal, subject to PAYGO)

FEDERAL DIRECT STUDENT LOAN PROGRAM, FINANCING ACCOUNT—
Continued
Status of Direct Loans (in millions of dollars)—Continued
2000 actual

Identification code 91–4253–0–3–502

1150

Total direct loan obligations .....................................

1210
1231
1251
1261
1264

1290

Outstanding, end of year ..........................................

2001 est.

Program and Financing (in millions of dollars)
2000 actual

Identification code 91–4253–4–3–502
2002 est.

2001 est.

2002 est.

1,447

1,593

2,737
3,642
4,618
1,396
1,255
1,380
¥544
¥257
¥323
35 ................... ...................
18
¥22
¥28
3,642

4,618

5,647

CONSOLIDATED
Position with respect to appropriations act limitation
on obligations:
1131 Direct loan obligations exempt from limitation ............

4,547

8,450

Total direct loan obligations .....................................

4,547

8,450

5,422

1210
1231
1251
1261
1264

11,655
3,618
¥955
269
35

14,622
8,290
¥973
88
¥62

21,965
5,307
¥1,342
60
¥90

1290

Outstanding, end of year ..........................................

14,622

21,965

25,900

Total new obligations ................................................ ................... ...................

¥2

22.00
23.95
24.40

Budgetary resources available for obligation:
New financing authority (gross) .................................... ................... ...................
Total new obligations .................................................... ................... ...................
Unobligated balance carried forward, end of year ....... ................... ...................

1
2
3

New financing authority (gross), detail:
Mandatory:
67.15
Authority to borrow (indefinite) ................................. ................... ...................
69.00 Offsetting collections (cash) ......................................... ................... ...................

¥2
3

5,422

1150

¥2

10.00

1,338

Obligations by program activity:
Other obligations:
08.01
Payment of negative subsidy to program account ................... ...................

70.00

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 (–) ...........

1999 actual

2000 actual

2001 est.

Net present value of assets related
to direct loans ...........................

1999

¥2
2
¥2

Offsets:
Against gross financing authority and financing disbursements:
Payments from program account:
88.00
Offsetting collections (cash) from: Non Contractual Modification .............................................. ................... ...................

¥3

Net financing authority and financing disbursements:
Financing authority ........................................................ ................... ...................
Financing disbursements ............................................... ................... ...................

¥2
¥5

2002 est.

Balance Sheet (in millions of dollars)

1101

1499

Change
Total
Total
Total

in unpaid obligations:
new obligations .................................................... ................... ...................
financing disbursements (gross) ......................... ................... ...................
financing disbursements (gross) ......................... ................... ...................

73.10
73.20
87.00

89.00
90.00

Balance Sheet (in millions of dollars)

Total new financing authority (gross) ...................... ................... ...................

7,020

3,373

3,573

19,698
11,216
2,848
12,067

23,943
15,505
3,643
14,622

28,057
19,437
4,618
21,965

31,875
23,432
5,647
25,899

333
405
1,965
427
–1,558

405
516
2,513
518
2,585

474
647
3,186
777
3,321

539
780
3,896
917
2,927

47,401

64,250

82,482

95,912

Total assets ........................................
LIABILITIES:
2103 Federal liabilities: Debt ...........................

40,683

71,270

85,855

99,485

52,070

68,612

86,935

1999 actual

2000 actual

2001 est.

..................

–2

2999

Total liabilities ....................................
NET POSITION:
3100 Appropriated capital ................................

..................

–2

..................

3999

..................

Total net position ................................

2002 est.

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 of 1965, as amended, ø$48,000,000¿ $49,636,000. (Department
of Education Appropriations Act, 2001, as enacted by section 1(a)(1)
of P.L. 106–554.)

102,393

2999

Identification code 91–4253–4–3–502

LIABILITIES:
2103 Federal liabilities: Debt ...........................

–6,718

Program and Financing (in millions of dollars)

Total liabilities ....................................
NET POSITION:
3100 Appropriated capital ................................

52,070

68,612

86,935

102,393

–11,386

2,657

–1,079

–2,909

3999

Total net position ................................

–11,386

2,657

–1,079

–2,909

4999

Total liabilities and net position ............

40,684

71,269

85,856

99,484

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.

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2000 actual

Identification code 91–0231–0–1–502

Obligations by program activity:
Guaranteed Loan Net Subsidy .......................................
Upward reestimate .........................................................
Interest on reestimate ...................................................
Administrative expenses:
00.09
Administrative expenses due to limitations .............
00.02
00.07
00.08

10.00

Total new obligations ................................................

22.00
23.95
23.98

Budgetary resources available for obligation:
New budget authority (gross) ........................................
Total new obligations ....................................................
Unobligated balance expiring or withdrawn .................

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2001 est.

2002 est.

3,763
3,852
4,218
607 ................... ...................
169 ................... ...................
48

4,587

3,900

4,268

4,624
3,900
4,268
¥4,587
¥3,900
¥4,268
¥37 ................... ...................

OFFICE OF STUDENT FINANCIAL ASSISTANCE—Continued
Federal Funds—Continued

DEPARTMENT OF EDUCATION
New budget authority (gross), detail:
Discretionary:
40.00
Appropriation (Federal administration) .....................
48
Mandatory:
60.05
Appropriation (indefinite) ..........................................
4,576
Offsetting collections (cash):
69.00
Offsetting collections (cash)—downward reestimate ...................
69.00
Offsetting collections (cash)—interest on downward reestimate .................................................... ...................
69.27 Capital transfer to general fund ................................... ...................

3,852

4,218

3,526 ...................

2340
2340
2340
2340
2340
2340

375

Guaranteed loan subsidy outlays:
Stafford ..........................................................................
2,517
2,665
2,647
Unsubsidized Stafford ....................................................
690
672
692
PLUS ...............................................................................
126
109
106
Consolidated ..................................................................
197
137
213
Subsidy reestimate upward ...........................................
776 ................... ...................
Subsidy reestimate downward ....................................... ...................
¥4,728 ...................

1,202 ...................
¥4,728 ...................

2349

Total subsidy outlays ................................................

4,306

¥1,145

3,658

69.90

Spending authority from offsetting collections (total
mandatory) ............................................................ ................... ................... ...................

3510
3590

Administrative expense data:
Budget authority ............................................................
Outlays ...........................................................................

48
38

48
56

50
50

70.00

Total new budget authority (gross) ..........................

Change in unpaid obligations:
Unpaid obligations, start of year:
72.40
Unpaid obligations, start of year ..............................

4,624

3,900

4,268

1,032

1,275

1,535

1,032
4,587
¥4,344

1,275
3,900
¥3,639

1,535
4,268
¥3,708

74.40

Obligated balance, start of year ..........................
Total new obligations ....................................................
Total outlays (gross) ......................................................
Unpaid obligations, end of year:
Unpaid obligations, end of year ...............................

1,275

1,535

2,095

74.99

Obligated balance, end of year ............................

1,275

1,535

2,095

86.90
86.93
86.97
86.98

36
2
3,301
1,006

37
19
2,345
1,238

39
11
2,581
1,077

87.00

Total outlays (gross) .................................................

4,344

3,639

As required by the Federal Credit Reform Act of 1990,
this program account records 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, are
included in the FFEL subsidy estimates of each year’s cohort.
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.

3,708

72.99
73.10
73.20

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 ...........................................................................

4,624
4,344

¥4,728 ...................

11.1
11.3

¥828
¥1,089

11.9
12.1
21.0
23.1
23.3
25.2
25.3

4,268
3,708

(in millions of dollars)

Enacted/requested:
2000 actual
2001 est.
Budget Authority .....................................................................
4,624
–828
Outlays ....................................................................................
4,345
–1,089
Legislative proposal, subject to PAYGO:
Budget Authority ..................................................................... .................... ....................
Outlays .................................................................................... .................... ....................

2002 est.

4,268
3,708
8
7

–828
–1,089

2000 actual

2001 est.

12,877
11,382
2,943
5,958

13,152
12,186
3,244
6,093

2159

26,503

33,160

24.92
8.47
5.80
4.29

22.46
6.24
3.83
2.31

23.14
6.85
3.92
3.51

2329

Weighted average subsidy rate .................................
14.20
11.62
12.17
Guaranteed loan subsidy budget authority:
2330 Stafford ..........................................................................
2,682
2,892
3,043
2330 Unsubsidized Stafford ....................................................
752
710
834
2330 PLUS ...............................................................................
132
113
127
2330 Consolidated ..................................................................
197
138
214
2330 Subsidy reestimate upward ...........................................
776 ................... ...................
2330 Subsidy reestimate downward ....................................... ...................
¥4,728 ...................

VerDate 19-MAR-2001

08:42 Mar 26, 2001

Jkt 188677

Total new obligations ................................................

4,587

3,900

4,268

Personnel Summary
2000 actual

Identification code 91–0231–0–1–502

1001

34,675

Total subsidy budget authority .................................

22
24
25
1 ................... ...................

Total compensable workyears: Full-time equivalent
employment ...............................................................

2001 est.

372

368

2002 est.

368

FEDERAL FAMILY EDUCATION LOAN PROGRAM ACCOUNT
10,761
8,875
2,279
4,588

2339

2002 est.

Guaranteed loan levels supportable by subsidy budget
authority:
2150 Stafford ..........................................................................
2150 Unsubsidized Stafford ....................................................
2150 PLUS ...............................................................................
2150 Consolidated ..................................................................
Total loan guarantee levels ......................................
Guaranteed loan subsidy (in percent):
2320 Stafford ..........................................................................
2320 Unsubsidized Stafford ....................................................
2320 PLUS ...............................................................................
2320 Consolidated ..................................................................

2001 est.

Total personnel compensation ..............................
23
24
25
Civilian personnel benefits ............................................
5
5
6
Travel and transportation of persons ............................ ...................
1
1
Rental payments to GSA ................................................
5
4
4
Communications, utilities, and miscellaneous charges
2
2
2
Other services ................................................................ ...................
1
4
Purchases of goods and services from Government
accounts ....................................................................
1
1
1
Operation and maintenance of equipment ...................
9
9
6
Equipment ...................................................................... ...................
1
1
Land and structures ......................................................
2 ................... ...................
Grants, subsidies, and contributions ............................
4,540
3,852
4,218

4,276
3,715

Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
millions of dollars)
Identification code 91–0231–0–1–502

25.7
31.0
32.0
41.0

Personnel compensation:
Full-time permanent ..................................................
Other than full-time permanent ...............................

99.9
4,624
4,345

2000 actual

Identification code 91–0231–0–1–502

Summary of Budget Authority and Outlays

Total:
Budget Authority .....................................................................
Outlays ....................................................................................

Object Classification (in millions of dollars)

4,539

PO 00000

¥875

Frm 00031

4,218

Fmt 3616

(Legislative proposal, subject to PAYGO)
Program and Financing (in millions of dollars)
2000 actual

Identification code 91–0231–4–1–502

2001 est.

2002 est.

00.02

Obligations by program activity:
Guaranteed Loan Net Subsidy ....................................... ................... ...................

10.00

Total new obligations (object class 41.0) ................ ................... ...................

22.00
23.95

8
¥8

8
8

Change in unpaid obligations:
Total new obligations .................................................... ................... ...................

73.10

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376

OFFICE OF STUDENT FINANCIAL ASSISTANCE—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 2002

FEDERAL FAMILY EDUCATION LOAN PROGRAM ACCOUNT—Continued

04.03
04.04
04.07

Default claims ...........................................................
Death, disability and bankruptcy claims ..................
Contract collection costs ...........................................

49
9
7

93
7
4

66
7
5

Program and Financing (in millions of dollars)—Continued

04.91

104

05.02
05.03
05.04
05.07

Subtotal, SLS loans ..............................................
Consolidation loans:
Special allowance ......................................................
Default claims ...........................................................
Death, disability, and bankruptcy claims .................
Contract collection costs ...........................................

6
286
34
3

120
802
111
4

136
927
135
6

05.91
08.02
08.04

Subtotal, Consolidations loans .............................
329
Downward reestimate .................................................... ...................
Interest on downward reestimate .................................. ...................

1,037
1,204
3,526 ...................
1,202 ...................

08.91

Direct Program by Activities—Subtotal (1 level) ...................

4,728 ...................

10.00

Total new obligations ................................................

4,852

11,495

7,262

21.40
22.00

Budgetary resources available for obligation:
Unobligated balance carried forward, start of year
New financing authority (gross) ....................................

4,990
8,112

8,250
7,410

4,165
7,762

23.90
23.95
24.40

Total budgetary resources available for obligation
Total new obligations ....................................................
Unobligated balance carried forward, end of year .......

13,102
¥4,852
8,250

15,660
¥11,495
4,165

11,927
¥7,262
4,664

New financing authority (gross), detail:
Mandatory:
69.00
Offsetting collections (cash) .....................................

8,112

7,410

7,762

Change in unpaid obligations:
Unpaid obligations, start of year:
72.40
Unpaid obligations, start of year ..............................

2,152

1,361

3,224

2,152
4,852
¥5,643

1,361
11,495
¥9,632

3,224
7,262
¥8,450

74.40

Obligated balance, start of year ..........................
Total new obligations ....................................................
Total financing disbursements (gross) .........................
Unpaid obligations, end of year:
Unpaid obligations, end of year ...............................

1,361

3,224

2,037

74.99
87.00

Obligated balance, end of year ............................
Total financing disbursements (gross) .........................

1,361
5,643

3,224
9,632

2,037
8,450

Credit accounts—Continued

2000 actual

Identification code 91–0231–4–1–502

2001 est.

2002 est.

Total outlays (gross) ...................................................... ................... ...................
Unpaid obligations, end of year:
Unpaid obligations, end of year ............................... ................... ...................

¥7

74.40
74.99

Obligated balance, end of year ............................ ................... ...................

86.97

Outlays (gross), detail:
Outlays from new mandatory authority ......................... ................... ...................

89.00
90.00

8
7

73.20

Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
millions of dollars)
2000 actual

Identification code 91–0231–4–1–502

2001 est.

2320
2320

Guaranteed loan subsidy (in percent):
Stafford .......................................................................... ................... ...................
Unsubsidized Stafford .................................................... ................... ...................

2329

2002 est.

0.02
0.01

Weighted average subsidy rate .................................
Guaranteed loan subsidy budget authority:
2330 Stafford ..........................................................................
2330 Unsubsidized Stafford ....................................................
2330 Non contractual modification ........................................

................... ...................

0.01

................... ...................
................... ...................
................... ...................

2
2
4

2339

................... ...................

................... ...................
................... ...................
................... ...................

2
1
4

Total subsidy outlays ................................................ ................... ...................

Total subsidy budget authority .................................
Guaranteed loan subsidy outlays:
2340 Stafford ..........................................................................
2340 Unsubsidized Stafford ....................................................
2340 Non contractual modification ........................................
2349

3510
3590

Administrative expense data:
Budget authority ............................................................ ................... ................... ...................
Outlays from new authority ........................................... ................... ................... ...................
f

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.

Program and Financing (in millions of dollars)
2000 actual

Identification code 91–4251–0–3–502

2001 est.

2002 est.

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 .................
01.07
Contract collection costs ...........................................
01.08
Loan Processing Fee ..................................................

1,926
799
748
123
26
73

2,177
387
1,375
129
20
84

2,121
434
1,460
138
25
85

01.91

Subtotal, Stafford loans .......................................
Unsubsidized Stafford loans:
Special allowance ......................................................
Default claims ...........................................................
Death, disability, and bankruptcy claims .................
Contract collection costs ...........................................
Loan Processing Fee ..................................................

3,695

4,172

4,263

82
407
54
3
61

254
830
65
5
74

320
983
76
7
79

Subtotal, Unsubsidized Stafford loans .................
PLUS loans:
Special allowance ......................................................
Default claims ...........................................................
Death, disability, and bankruptcy claims .................
Contract Collection Costs ..........................................
Loan Processing Fee ..................................................

607

1,228

1,465

11
70
56
1
16

21
125
59
2
19

18
145
66
2
21

Subtotal, PLUS loans ............................................
SLS loans:
Special allowance ......................................................

154

226

252

02.02
02.03
02.04
02.07
02.08
02.91
03.02
03.03
03.04
03.07
03.08
03.91
04.02

VerDate 19-MAR-2001

08:42 Mar 26, 2001

Jkt 188677

72.99
73.10
73.20

Offsets:
Against gross financing authority and financing disbursements:
Offsetting collections (cash) from:
Federal sources:
Payments from program account:
88.00
Stafford loans ..............................................
88.00
Unsubsidized Stafford ..................................
88.00
PLUS loans ...................................................
88.00
Consolidated loans ......................................
88.00
Upward reestimate .......................................
88.00
Interest on upward reestimate ....................
88.25
Interest on uninvested funds ...............................
Non-Federal sources:
Student Loans: Stafford, Unsubsidized Stafford, PLUS, SLS & Consolidation:
88.40
Stafford recoveries on defaults ...................
88.40
Stafford origination fees ..............................
88.40
Stafford Sallie Mae offset fees ...................
88.40
Unsubsidized Stafford recoveries on defaults .......................................................
88.40
Unsubsidized Stafford origination fees .......
88.40
Unsubsidized Stafford Sallie Mae offset
fees ..........................................................
88.40
PLUS recoveries on defaults ........................
88.40
PLUS origination fees ..................................
88.40
PLUS Sallie Mae offset fees ........................
88.40
SLS recoveries on defaults ..........................
88.40
SLS Sallie Mae offset fees ..........................
88.40
Consolidation recoveries on defaults ..........
88.40
Consolidation origination fees .....................
88.40
Consolidated loan holders fee .....................
88.90

89.00
90.00

Total, offsetting collections (cash) ..................

Frm 00032

Fmt 3616

¥1,585
¥438
¥25

¥1,192
¥399
¥28

¥1,266
¥404
¥25

¥159
¥349

¥440
¥339

¥536
¥364

¥13
¥56
¥88
¥5
¥187
¥1
¥162
¥27
¥210

¥17
¥17
¥65
¥75
¥86
¥95
¥6
¥6
¥131
¥128
¥1 ...................
¥375
¥480
¥30
¥30
¥278
¥319

¥8,112

¥7,410

¥7,762

Net financing authority and financing disbursements:
Financing authority ........................................................ ................... ................... ...................
Financing disbursements ...............................................
¥2,469
2,222
688

2 ................... ...................

PO 00000

¥2,518
¥2,665
¥2,647
¥690
¥672
¥692
¥126
¥109
¥106
¥197
¥137
¥213
¥607 ................... ...................
¥169 ................... ...................
¥500
¥440
¥359

Sfmt 3643

E:\BUDGET\EDU.XXX

pfrm07

PsN: EDU

OFFICE OF STUDENT FINANCIAL ASSISTANCE—Continued
Federal Funds—Continued

DEPARTMENT OF EDUCATION
2263

2000 actual

Identification code 91–4251–0–3–502

2001 est.

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 ................................................................
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 ......................................

12,074

12,877

13,152

55,684
10,298
¥4,473

60,388
11,414
¥7,538

62,832
11,552
¥8,817

¥998

¥1,303

¥1,472

¥123

¥129

60,388

62,832

63,957

60,388

62,832

63,957

3,148
2,446
2,455
998
1,303
1,472
¥1,340
¥1,192
¥1,266
¥112
¥102
¥106
¥248 ................... ...................
2,446

2,455

11,382

12,186

2150

10,128

11,382

12,186

30,537
8,181
¥1,759

36,361
9,673
¥3,349

41,840
10,389
¥4,410

Outstanding, end of year ..........................................

2299

Memorandum:
Guaranteed amount of guaranteed loans outstanding,
end of year ................................................................

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 ......................................

¥66

Outstanding, end of year ..........................................

7,470

8,553

9,600

2299

Memorandum:
Guaranteed amount of guaranteed loans outstanding,
end of year ................................................................

7,470

8,553

9,600

¥544

¥780

¥977

¥54

¥65

¥76

36,361

41,840

46,766

36,361

41,840

46,766

748
1,050
1,331
544
780
977
¥134
¥440
¥536
¥49
¥59
¥75
¥59 ................... ...................
1,050

1,331

2390

Outstanding, end of year ......................................

SLS
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 ....................................................................

1,697

PLUS
Position with respect to appropriations act limitation
on commitments:
2131 Guaranteed loan commitments exempt from limitation

2,626

2,943

3,244

2150

2,626

2,943

3,244

6,630
2,064
¥1,075

7,470
2,466
¥1,205

8,553
2,718
¥1,460

¥93

¥119

VerDate 19-MAR-2001

08:42 Mar 26, 2001

Jkt 188677

Frm 00033

205

223

2,418
¥342

2,001
¥723

1,183
¥525

¥66

¥88

¥71

¥9

¥7

Outstanding, end of year ..........................................

2,001

1,183

580

2299

Memorandum:
Guaranteed amount of guaranteed loans outstanding,
end of year ................................................................

2,001

1,183

580

Fmt 3616

606
458
408
66
88
71
¥158
¥131
¥128
¥8
¥7
¥6
¥48 ................... ...................

Outstanding, end of year ......................................

458

408

345

CONSOLIDATED
Position with respect to appropriations act limitation
on commitments:
2131 Guaranteed loan commitments exempt from limitation

4,599

5,958

6,093

2150

4,599

5,958

6,093

22,737
6,059
¥490

27,891
5,948
¥1,784

31,207
6,083
¥2,221

¥381

¥737

¥924

¥34

¥111

¥135

Total guaranteed loan commitments ........................

2290

Outstanding, end of year ..........................................

27,891

31,207

34,010

2299

Memorandum:
Guaranteed amount of guaranteed loans outstanding,
end of year ................................................................

27,891

31,207

34,010

PO 00000

199

2290

¥145

Total guaranteed loan commitments ........................

221
199
205
93
119
145
¥47
¥65
¥75
¥51
¥48
¥52
¥17 ................... ...................

2,555

10,128

2210
2231
2251

¥59

¥138

UNSUBSIDIZED STAFFORD
Position with respect to appropriations act limitation
on commitments:
2131 Guaranteed loan commitments exempt from limitation
Total guaranteed loan commitments ........................

¥56

2002 est.

STAFFORD
Position with respect to appropriations act limitation
on commitments:
2111 Limitation on guaranteed loans made by private lenders .............................................................................. ................... ................... ...................
2131 Guaranteed loan commitments exempt from limitation
12,074
12,877
13,152
Total guaranteed loan commitments ........................

Terminations for default that result in claim payments ....................................................................

2290

Status of Guaranteed Loans (in millions of dollars)

2150

377

Sfmt 3643

Outstanding, end of year ......................................

E:\BUDGET\EDU.XXX

pfrm07

PsN: EDU

1,060
1,190
1,516
381
737
924
¥137
¥375
¥480
¥31
¥36
¥46
¥83 ................... ...................
1,190

1,516

1,914

378

OFFICE OF STUDENT FINANCIAL ASSISTANCE—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 2002

Credit accounts—Continued

FEDERAL FAMILY EDUCATION LOAN LIQUIDATING ACCOUNT

FEDERAL FAMILY EDUCATION LOAN PROGRAM, FINANCING
ACCOUNT—Continued

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.

Balance Sheet (in millions of dollars)

Program and Financing (in millions of dollars)

Identification code 91–4251–0–3–502

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 ......................................
1599

Net present value of assets related
to defaulted guaranteed loans

1999 actual

2000 actual

2001 est.

2002 est.

6,384

8,250

4,165

4,664

8,701

5,342

5,913

6,732

8,701

5,342

5,913

6,732

2000 actual

Identification code 91–0230–0–1–502

01.01
01.02
01.03
01.04
01.07
01.91

Obligations by program activity:
Stafford loans:
Interest benefits, net of origination fees ..................
Special allowance net of origination fees ................
Default claims ...........................................................
Death, disability, and bankruptcy claims .................
Contract collection costs ...........................................
Subtotal, Stafford loans .......................................
PLUS/SLS loans:
Default claims ...........................................................
Death, disability, and bankruptcy claims .................
Contract collection costs ...........................................
Special allowance net of origination fees ................

2001 est.

2002 est.

16 ................... ...................
72
44
23
72
97
56
30
34
27
31
34
28
221

209

134

14
5
8
3

18
11
8
2

6
10
6
2

Total assets ........................................
NET POSITION:
3100 Appropriated capital ................................

15,085

13,592

10,078

11,396

14,968

13,592

10,077

11,396

02.01
02.02
02.05
02.06

3999

Total net position ................................

14,968

13,592

10,077

11,396

02.91

Subtotal, PLUS/SLS loans .....................................

4999

Total liabilities and net position ............

15,085

13,592

10,077

11,396

10.00

Total new obligations ................................................

251

248

158

As required by the Federal Credit Reform Act of 1990,
this nonbudgetary account records all cash flows to and from
the Government resulting from Federal Family Education
Loans (FFEL), formerly guaranteed student loans (GSL), committed in 1992 and beyond. The amounts in this account
are a means of financing and are not included in the budget
totals.

21.40
22.00
22.40

Budgetary resources available for obligation:
Unobligated balance carried forward, start of year
New budget authority (gross) ........................................
Capital transfer to general fund ...................................

3,779
830
¥3,779

23.90
23.95
24.40

Total budgetary resources available for obligation
Total new obligations ....................................................
Unobligated balance carried forward, end of year .......

830
248
158
¥251
¥248
¥158
578 ................... ...................

60.05
69.00
69.27

New budget authority (gross), detail:
Mandatory:
Appropriation (indefinite) ..........................................
Offsetting collections (cash) .........................................
Capital transfer to general fund ...................................

96 ................... ...................
2,018
990
762
¥1,284
¥742
¥604

1999

FEDERAL FAMILY EDUCATION LOAN PROGRAM, FINANCING ACCOUNT
(Legislative proposal, subject to PAYGO)
Program and Financing (in millions of dollars)

69.90
2000 actual

Identification code 91–4251–4–3–502

22.00
24.40

2001 est.

88.90

89.00
90.00

Total, offsetting collections (cash) .................. ................... ...................

Total new budget authority (gross) ..........................

830

248

158

Change in unpaid obligations:
Unpaid obligations, start of year:
72.40
Unpaid obligations, start of year ..............................

172

42 ...................

172
251
¥383

42 ...................
248
158
¥291
¥158

72.99
73.10
73.20

Obligated balance, start of year ..........................
Total new obligations ....................................................
Total outlays (gross) ......................................................
Unpaid obligations, end of year:
Unpaid obligations, end of year ...............................
Obligated balance, end of year ............................

86.97
86.98

¥4

87.00

¥7

Offsets:
Against gross budget authority and outlays:
Offsetting collections (cash) from:
Federal student loans:
Non-Federal sources:
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 ...
88.40
Federal collections on defaulted loans,
PLUS/SLS .................................................
88.40
Federal collections on bankruptcies, PLUS/
SLS ...........................................................
88.40
Offsets against Federal tax refunds, PLUS/
SLS ...........................................................
88.40
Reimbursements from guaranty agencies,
PLUS/SLS .................................................

1999 actual

ASSETS:
1101 Federal assets: Fund balances with
Treasury ...............................................

2002 est.

..................

1999

..................

42 ................... ...................
42 ................... ...................

Outlays (gross), detail:
Outlays from new mandatory authority ......................... ...................
Outlays from mandatory balances ................................
383

¥2
¥1

Identification code 91–4251–4–3–502

Total assets ........................................
NET POSITION:
3100 Appropriated capital ................................

158

74.99

Balance Sheet (in millions of dollars)
2001 est.

248

74.40

Net financing authority and financing disbursements:
Financing authority ........................................................ ................... ................... ...................
Financing disbursements ............................................... ................... ...................
¥7

2000 actual

734

70.00
7
7

New financing authority (gross), detail:
Mandatory:
69.00
Offsetting collections (cash) ..................................... ................... ...................
Offsets:
Against gross financing authority and financing disbursements:
Offsetting collections (cash) from:
Payments from program account:
Federal sources:
88.00
Stafford loans .............................................. ................... ...................
88.00
Unsubsidized Stafford .................................. ................... ...................
88.00
Scheduled payments from program account
for noncontractual modifications ............ ................... ...................

Spending authority from offsetting collections (total
mandatory) ............................................................

2002 est.

Budgetary resources available for obligation:
New financing authority (gross) .................................... ................... ...................
Unobligated balance carried forward, end of year ....... ................... ...................

578 ...................
248
158
¥578 ...................

Total outlays (gross) .................................................

248
158
42 ...................

383

291

158

¥468
¥8
¥575
¥660

¥190
¥7
¥235
¥400

¥152
¥5
¥182
¥301

¥126

¥42

¥33

¥1

¥2

¥1

¥73

¥42

¥33

Total net position ................................

..................

4999

Total liabilities and net position ............

..................

¥72

¥55

Total, offsetting collections (cash) ..................

¥2,018

¥990

¥762

89.00

3999

¥107

88.90

Net budget authority and outlays:
Budget authority ............................................................

¥1,188

¥742

¥604

VerDate 19-MAR-2001

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Jkt 188677

PO 00000

Frm 00034

Fmt 3616

Sfmt 3643

E:\BUDGET\EDU.XXX

pfrm07

PsN: EDU

OFFICE OF EDUCATIONAL RESEARCH AND IMPROVEMENT
Federal Funds

DEPARTMENT OF EDUCATION
90.00

Outlays ...........................................................................

¥1,637

¥699

¥604

Balance Sheet (in millions of dollars)
1999 actual

Identification code 91–0230–0–1–502

Status of Guaranteed Loans (in millions of dollars)
2000 actual

Identification code 91–0230–0–1–502

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 ....................................................................
2290

2001 est.

11,470
¥2,532

8,670
¥2,574

2002 est.

5,953
¥1,657

¥238

¥98

¥65

¥30

¥45

4,194

Memorandum:
2299 Guaranteed amount of guaranteed loans outstanding,
end of year ................................................................

8,670

5,953

4,194

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 ....................................................................

1704

16,560

15,928

15,437

10,591

16,560

15,928

15,437

Defaulted guaranteed loans and
interest receivable, net ..............

2001 est.

2002 est.

1799

Value of assets related to loan
guarantees .................................

10,591

16,560

15,928

15,437

Total assets ........................................
NET POSITION:
3100 Appropriated capital ................................

10,707

16,560

15,928

15,437

10,707

16,560

15,928

15,437

3999

5,953

Outstanding, end of year ......................................

10,591

ASSETS:
Net value of assets related to pre–1992
direct loans receivable and acquired defaulted guaranteed loans
receivable:
1701
Defaulted guaranteed loans, gross ....

10,707

16,560

15,928

15,437

1999
8,670

2390

2000 actual

¥37

Outstanding, end of year ..........................................

379

Total net position ................................

1 Excludes

interest and premium collections on insured loans.

14,737
238
¥1,733
¥300
637

13,579
98
¥523
¥277
¥109

12,768
65
¥396
¥260
¥81

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 for
1992 and beyond is recorded in corresponding program and
financing accounts.

13,579

12,768

12,096

Object Classification (in millions of dollars)
2000 actual

Identification code 91–0230–0–1–502

1,855
¥360

1,444
¥303

1,112
¥159

¥46

¥18

¥8

¥5

¥11

Outstanding, end of year ..........................................

1,444

1,112

935

2299

Memorandum:
Guaranteed amount of guaranteed loans outstanding,
end of year ................................................................

1,444

1,112

2002 est.

Other services ................................................................
Investments and loans ..................................................
Grants, subsidies, and contributions ............................
Insurance claims and indemnities ................................

40
85
92
34

42
115
46
45

33
63
25
37

99.9

Total new obligations ................................................

251

248

158

¥10

2290

2001 est.

25.2
33.0
41.0
42.0

935

OFFICE OF EDUCATIONAL RESEARCH AND
IMPROVEMENT
Federal Funds
General and special funds:

Outstanding, end of year ......................................

EDUCATION RESEARCH, STATISTICS,
ASSESSMENT
3,172
46
¥311
¥53
125

2,979
18
¥93
¥50
¥20

2,834
8
¥71
¥47
¥16

2,979

2,834

2,708

Statement of Operations (in millions of dollars)
Identification code 91–0230–0–1–502

0111
0112

Stafford:
Revenue ...................................................
Expense ....................................................

0115

1999 actual

2000 actual

2001 est.

2002 est.

1,019
–585

1,711
–221

832
–211

639
–134

Net income or loss (–) ............................
PLUS/SLS:
0121 Revenue ...................................................
0122 Expense ....................................................

434

1,490

621

505

169
–66

307
–30

158
–38

123
–24

0125

Net income or loss (–) ............................

103

277

120

0191

Total revenues .........................................

1,188

2,018

990

762

0192

Total expenses .........................................

–651

–251

–249

–158

0195

Total income or loss (–) .........................

537

1,767

741

604

0199

Total comprehensive income ...................

537

1,767

741

604

Jkt 188677

PO 00000

VerDate 19-MAR-2001

08:42 Mar 26, 2001

Frm 00035

Fmt 3616

AND

øIMPROVEMENT¿

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, øincluding
sections 411 and 412; section 2102 of title II, parts A, B, K and
L and sections 10102 and 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, $732,721,000¿ $273,067,000:
Provided, øThat of the funds appropriated for part A of title X of
the Elementary and Secondary Education Act of 1965, as amended,
$5,000,000 shall be made available for a high school reform program
of grants to State educational agencies to improve academic performance and provide technical skills training: Provided further, That
of the funds appropriated for part A of title X of the Elementary
and Secondary Education Act of 1965, as amended, $5,000,000 shall
be made available to carry out part L of title X of the Act: Provided
further, That of the amount available for part A of title X of the
Elementary and Secondary Education Act of 1965, as amended,
$5,000,000 shall be available for grants to State and local educational
agencies, in collaboration with other agencies and organizations, for
school dropout prevention programs designed to address the needs
of populations or communities with the highest dropout rates: Provided further, That of the amount made available for part A of title
X of the Elementary and Secondary Education Act of 1965, as amended, $50,000,000 shall be made available to enable the Secretary of
Education to award grants to develop, implement, and strengthen
programs to teach American history (not social studies) as a separate
subject within school curricula: Provided further,¿ That $53,000,000
of the amount available for the national education research institutes

Sfmt 3616

E:\BUDGET\EDU.XXX

pfrm07

PsN: EDU

380

OFFICE OF EDUCATIONAL RESEARCH AND IMPROVEMENT—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 2002

General and special funds—Continued
EDUCATION RESEARCH, STATISTICS, AND øIMPROVEMENT¿
ASSESSMENT—Continued
shall be allocated notwithstanding section 912(m)(1)(B–F) and subparagraphs (B) and (C) of section 931(c)(2) of Public Law 103–227
øand $20,000,000 of that $53,000,000 shall be made available for
the Interagency Education Research Initiative: Provided further, That
of the funds appropriated for part A of title X of the Elementary
and Secondary Education Act, as amended, $50,000,000 shall be
available to demonstrate effective approaches to comprehensive school
reform, to be allocated and expended in accordance with the instructions relating to this activity in the statement of managers on the
conference report accompanying Public Law 105–78 and in the statement of the managers on the conference report accompanying Public
Law 105–277: Provided further, That the funds made available for
comprehensive school reform shall become available on July 1, 2001,
and remain available through September 30, 2002, and in carrying
out this initiative, the Secretary and the States shall support only
approaches that show the most promise of enabling children to meet
challenging State content standards and challenging State student
performance standards based on reliable research and effective practices, and include an emphasis on basic academics and parental involvement: Provided further, That $139,624,000 of the funds for section 10101 of the Elementary and Secondary Education Act of 1965
shall be available for the projects and in the amounts specified in
the statement of the managers on the conference report accompanying
this Act: Provided further, That of the funds appropriated under
section 10601 of title X of the Elementary and Secondary Education
Act of 1965, as amended, $2,000,000 shall be used to conduct a
violence prevention demonstration program: Provided further, That
of the funds available for section 10601 of title X of the Elementary
and Secondary Education Act of 1965, as amended, $150,000 shall
be awarded to the Center for Educational Technologies to complete
production and distribution of an effective CD–ROM product that
would complement the ‘‘We the People: The Citizen and the Constitution’’ curriculum: Provided further, That, of the funds for title VI
of Public Law 103–227 and notwithstanding the provisions of section
601(c)(1)(C) of that Act, $1,200,000 shall be available to the Center
for Civic Education to conduct a civic education program with Northern Ireland and the Republic of Ireland and, consistent with the
civics and Government activities authorized in section 601(c)(3) of
Public Law 103–227, to provide civic education assistance to democracies in developing countries. The term ‘‘developing countries’’ shall
have the same meaning as the term ‘‘developing country’’ in the
Education for the Deaf Act¿. (Department of Education Appropriations Act, 2001, as enacted by section 1(a)(1) of P.L. 106–554.)
Program and Financing (in millions of dollars)
2000 actual

Identification code 91–1100–0–1–503

Direct program:
Obligations by program activity:
Research, development and dissemination:
00.01
Research and dissemination ................................
00.02
Regional educational laboratories ........................
00.03
Statistics ...............................................................
00.04
Assessment ................................................................
00.05
Eisenhower professional development Federal activities ...................................................................
00.06
Fund for the Improvement of Education ...................
00.07
Javits gifted and talented education ........................
00.08
Eisenhower regional mathematics and science education consortia ....................................................
00.09
National writing project ............................................
00.10
Civic education ..........................................................
00.11
International education exchange .............................

2001 est.

2002 est.

103
65
68
40

120
123
65
65
80
85
40 ...................

23
242
7

23 ...................
341 ...................
8 ...................

15
9
10
7

15
10
12
10

...................
...................
...................
...................

589
6

724
6

New budget authority (gross), detail:
Discretionary:
40.00
Appropriation .............................................................
597
733
273
40.75
Reduction pursuant to P.L. 106–554 (Labor/HHS) ...................
¥1 ...................
40.76
Reduction pursuant to P.L. 106–113 .......................
¥6 ................... ...................
41.00
Transferred to other accounts ................................... ...................
¥10 ...................
43.00
68.00

Appropriation (total discretionary) ........................
Spending authority from offsetting collections: Offsetting collections (cash) ..............................................

591
6

70.00

Total new budget authority (gross) ..........................

597

728

279

Change in unpaid obligations:
Unpaid obligations, start of year:
72.40
Unpaid obligations, start of year ..............................

682

720

725

72.99
73.10
73.20
73.40

722

273

74.40

Obligated balance, start of year ..........................
Total new obligations ....................................................
Total outlays (gross) ......................................................
Adjustments in expired accounts (net) .........................
Unpaid obligations, end of year:
Unpaid obligations, end of year ...............................

720

725

360

74.99

Obligated balance, end of year ............................

720

725

360

86.90
86.93

Outlays (gross), detail:
Outlays from new discretionary authority .....................
Outlays from discretionary balances .............................

85
478

130
595

70
574

87.00

Total outlays (gross) .................................................

563

725

644

Offsets:
Against gross budget authority and outlays:
88.00
Offsetting collections (cash) from: Federal sources

¥6

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

591
556

722
719

273
638

89.00
90.00

682
720
725
595
730
279
¥563
¥725
¥644
5 ................... ...................

The Administration is working with Congress to develop
legislation reauthorizing the National Assessment of Educational Progress. When new authorizing legislation is enacted, resources for this program will be requested. See the
‘‘Legislative proposal, not subject to PAYGO’’ schedule for additional details.
Research and dissemination.—Funds support the activities
of the five National Education Research Institutes, as well
as interagency research focusing on large-scale educational
improvements and teaching language minority students.
Funds also support a variety of dissemination activities that
make the best research-based information on educational
practice available to educators, parents, and policymakers.
Regional educational laboratories.—Funds support a network of 10 regional educational laboratories responsible for
promoting the use of broad-based systemic strategies to improve student achievement. The regional laboratories conduct
applied research and development, dissemination, and technical assistance to address needs in their regions.
Statistics.—Funds support the collection of statistics on educational institutions and on individuals to monitor trends in
education. Funds also support a coordinated program of statistical services to assist States in the development of comparable databases and analyses of the implications of data.

273
6

Summary of Budget Authority and Outlays
01.00
09.01
10.00

21.40
22.00
23.90
23.95
24.40

Total direct program ......................................................
Reimbursable program ..................................................
Total new obligations ....................................................

595

Budgetary resources available for obligation:
Unobligated balance carried forward, start of year ...................
New budget authority (gross) ........................................
597
Total budgetary resources available for obligation
Total new obligations ....................................................
Unobligated balance carried forward, end of year .......

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730

279

2 ...................
728
279

597
730
279
¥595
¥730
¥279
2 ................... ...................

PO 00000

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(in millions of dollars)

Enacted/requested:
2000 actual
2001 est.
Budget Authority .....................................................................
591
722
Outlays ....................................................................................
557
719
Legislative proposal, not subject to PAYGO:
Budget Authority ..................................................................... .................... ....................
Outlays .................................................................................... .................... ....................
Total:
Budget Authority .....................................................................
Outlays ....................................................................................

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591
557

722
719

2002 est.

273
638
109
28
382
666

DEPARTMENTAL MANAGEMENT
Federal Funds

DEPARTMENT OF EDUCATION
Object Classification (in millions of dollars)
2000 actual

Identification code 91–1100–0–1–503

2001 est.

vide national, State and long-term trend information. In addition, Federal funds would pay for the costs of annual State
NAEP in reading and mathematics at grades 4 and 8.

2002 est.

25.5
25.7
41.0
92.0

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 ........................
Undistributed .............................................................

29
95
7
381
2

43
95
7
490
2

25
92
7
76
2

99.0
99.0

Subtotal, direct obligations ..................................
Reimbursable obligations ..............................................

589
6

724
6

273
6

99.9

Total new obligations ................................................

595

730

279

11.3
24.0
25.1
25.2
25.3

Object Classification (in millions of dollars)
1
2
2
70

1 ...................
2
1
2 ...................
82
70

1001

2000 actual

Total compensable workyears: Full-time equivalent
employment ...............................................................

2001 est.

11.1
11.3

11.9
25.1
25.2
25.5
41.0

99.0
99.0

Subtotal, direct obligations .................................. ................... ...................
Reimbursable obligations .............................................. ................... ...................

109
1

Total new obligations ................................................ ................... ...................

110

Personnel Summary
1

2000 actual

Identification code 91–1100–2–1–503

2001 est.

2002 est.

Total compensable workyears: Full-time equivalent
employment ............................................................... ................... ...................

ASSESSMENT

2000 actual

...................
...................
...................
...................
...................

1
1
2
1
2
2
102

DEPARTMENTAL MANAGEMENT

Program and Financing (in millions of dollars)

Federal Funds
2001 est.

2002 est.

General and special funds:

Direct program:
Obligations by program activity:
00.04
Assessment ................................................................ ................... ...................

109

01.00
09.01

Total direct program ...................................................... ................... ...................
Reimbursable program .................................................. ................... ...................

109
1

10.00

Total new obligations .................................................... ................... ...................

110

22.00
23.95

110
¥110

2002 est.

...................
...................
...................
...................
...................

1001

AND

Total personnel compensation .........................
Advisory and assistance services .............................
Other services ............................................................
Research and development contracts .......................
Grants, subsidies, and contributions ........................

(Legislative proposal, not subject to PAYGO)

Identification code 91–1100–2–1–503

2001 est.

Direct obligations:
Personnel compensation:
Full-time permanent ............................................. ................... ...................
Other than full-time permanent ........................... ................... ...................

2002 est.

EDUCATION RESEARCH STATISTICS

2000 actual

Identification code 91–1100–2–1–503

99.9

Personnel Summary
Identification code 91–1100–0–1–503

381

Total new budget authority (gross) .......................... ................... ...................

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$413,184,000¿ $424,212,000. (Department of Education Appropriations Act, 2001, as enacted by section 1(a)(1) of P.L. 106–
554.)
Unavailable Collections (in millions of dollars)
2000 actual

Identification code 91–0800–0–1–503

2001 est.

2002 est.

01.99
109

Balance, start of year .................................................... ...................
1
1
Receipts:
02.00 Contributions ..................................................................
1 ................... ...................

04.00

Total: Balances and collections ....................................

110

07.99

Balance, end of year .....................................................

110
¥29

Program and Financing (in millions of dollars)
2000 actual

Identification code 91–0800–0–1–503

2001 est.

2002 est.

00.01
00.02
09.01

Obligations by program activity:
Program administration .................................................
Trust funds ....................................................................
Reimbursable program ..................................................

10.00

Total new obligations ................................................

Offsets:
Against gross budget authority and outlays:
88.00
Offsetting collections (cash) from: Federal sources ................... ...................

¥1

21.40
22.00
22.21

2 ................... ...................
394
413
425
¥1 ................... ...................

109
28

23.90
23.95
23.98

Total budgetary resources available for obligation
Total new obligations ....................................................
Unobligated balance expiring or withdrawn .................

395
413
425
¥393
¥413
¥425
¥1 ................... ...................

74.99

Obligated balance, end of year ............................ ................... ...................

86.90

Outlays (gross), detail:
Outlays from new discretionary authority ..................... ................... ...................

89.00
90.00

Assessment.—The National Assessment of Educational
Progress (NAEP) administers assessments and surveys to a
sample of students in order to gather reliable information
about educational attainment in important skill areas. Under
the Administration’s proposal, NAEP would continue to pro-

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382
412
424
1 ................... ...................
10
1
1
393

413

425

New budget authority (gross), detail:
Discretionary:
40.00
Appropriation .............................................................
384
40.75
Reduction pursuant to P.L. 106–554 (Labor/HHS) ...................

413
424
¥1 ...................

43.00

412

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Appropriation (total discretionary) ........................

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384

424

382

DEPARTMENTAL MANAGEMENT—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 2002
23.1
23.3

425

25.7
26.0
31.0
32.0

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 .................................................................
Land and structures ..................................................

128

99.0
99.0
99.5

99.9

Total new obligations ................................................

General and special funds—Continued
PROGRAM ADMINISTRATION—Continued

24.0
25.1
25.2
25.3

Program and Financing (in millions of dollars)—Continued
2000 actual

Identification code 91–0800–0–1–503

68.00
70.00

74.40

2002 est.

Spending authority from offsetting collections: Offsetting collections (cash) ..............................................

Total new budget authority (gross) ..........................

394

413

Change in unpaid obligations:
Unpaid obligations, start of year:
72.40
Unpaid obligations, start of year ..............................
72.99
73.10
73.20
73.40

2001 est.

Obligated balance, start of year ..........................
Total new obligations ....................................................
Total outlays (gross) ......................................................
Adjustments in expired accounts (net) .........................
Unpaid obligations, end of year:
Unpaid obligations, end of year ...............................

138

148

138
148
128
393
413
425
¥367
¥433
¥415
¥16 ................... ...................
148

128

138

74.99

Obligated balance, end of year ............................

148

128

138

86.90
86.93

Outlays (gross), detail:
Outlays from new discretionary authority .....................
Outlays from discretionary balances .............................

281
86

315
119

Total outlays (gross) .................................................

367

433

415

Offsets:
Against gross budget authority and outlays:
88.00
Offsetting collections (cash) from: Federal sources

¥10

¥1

12
3
3
21

13
6
5
23

13
6
4
23

11
57
3
11
4

9
57
3
10
3

8
63
3
9
2

383
412
424
9
1
1
1 ................... ...................
393

413

425

Personnel Summary
2000 actual

Identification code 91–0800–0–1–503

1001

Total compensable workyears: Full-time equivalent
employment ...............................................................

326
89

87.00

2,659

2001 est.

2,755

2002 est.

2,755

OFFICE

FOR

CIVIL RIGHTS

For expenses necessary for the Office for Civil Rights, as authorized
by section 203 of the Department of Education Organization Act,
ø$76,000,000¿ $79,934,000. (Department of Education Appropriations
Act, 2001, as enacted by section 1(a)(1) of P.L. 106–554.)
Program and Financing (in millions of dollars)

384
357

412
432

424
414

The Program Administration account includes the direct
Federal costs of providing grants and administering elementary and secondary education, bilingual education, Indian
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, and research 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, education agencies and other grant recipients, and preparation
of auditable financial statements; information technology
services; personnel management; budget formulation and execution; program evaluation; legal services; congressional and
public relations; and intergovernmental affairs.
Also included in this account are contributions from the
public. Activities supported include Presidential Scholars, Satellite Town Meetings, School Recognition, and the Gifts and
Bequests Miscellaneous Fund.
Reimbursable program.—Reimbursements to this account
are for providing administrative services to other agencies,
recycling activities, and in-kind travel.

2000 actual

Identification code 91–0700–0–1–751

2001 est.

2002 est.

00.01

Obligations by program activity:
Civil rights .....................................................................

10.00

Total new obligations ................................................

22.00
23.95

Budgetary resources available for obligation:
New budget authority (gross) ........................................
Total new obligations ....................................................

71
¥71

76
¥76

80
¥80

New budget authority (gross), detail:
Discretionary:
40.00
Appropriation .............................................................

Change in unpaid obligations:
Unpaid obligations, start of year:
72.40
Unpaid obligations, start of year ..............................

20
71
¥68

23
76
¥83

16
80
¥79

74.40

Obligated balance, start of year ..........................
Total new obligations ....................................................
Total outlays (gross) ......................................................
Unpaid obligations, end of year:
Unpaid obligations, end of year ...............................

74.99

Obligated balance, end of year ............................

86.90
86.93

Outlays (gross), detail:
Outlays from new discretionary authority .....................
Outlays from discretionary balances .............................

61
7

63
20

68
11

87.00

Total outlays (gross) .................................................

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

71
68

76
83

80
79

72.99
73.10
73.20

Object Classification (in millions of dollars)
2000 actual

Identification code 91–0800–0–1–503

2001 est.

2002 est.

11.1
11.3
11.5

Direct obligations:
Personnel compensation:
Full-time permanent .............................................
Other than full-time permanent ...........................
Other personnel compensation .............................

155
25
4

187
8
4

195
9
3

11.9
12.1
21.0

Total personnel compensation .........................
Civilian personnel benefits .......................................
Travel and transportation of persons .......................

184
38
7

199
43
7

207
44
7

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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

Sfmt 3616

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DEPARTMENTAL MANAGEMENT—Continued
Federal Funds—Continued

DEPARTMENT OF EDUCATION

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.
Object Classification (in millions of dollars)
2000 actual

Identification code 91–0700–0–1–751

11.1
11.3

Direct obligations:
Personnel compensation:
Full-time permanent .............................................
Other than full-time permanent ...........................

2001 est.

2002 est.

42
1

45
2

48
2

43
9
1
5

47
10
1
6

50
11
1
6

2
1

25.7
31.0

Total personnel compensation .........................
Civilian personnel benefits .......................................
Travel and transportation of persons .......................
Rental payments to GSA ...........................................
Communications, utilities, and miscellaneous
charges .................................................................
Other services ............................................................
Purchases of goods and services from Government
accounts ................................................................
Operation and maintenance of equipment ...............
Equipment .................................................................

1
4
2

1
5
1

99.0
99.5

Subtotal, direct obligations ..................................
Below reporting threshold ..............................................

68
3

74
2

78
2

99.9

Total new obligations ................................................

11.9
12.1
21.0
23.1
23.3
25.2
25.3

2000 actual

1001

Total compensable workyears: Full-time equivalent
employment ...............................................................

2001 est.

712

2002 est.

724

Outlays ...........................................................................

724

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)
2000 actual

Identification code 91–1400–0–1–751

11.1
11.3
11.5
11.9
12.1
21.0
23.1
25.1
25.2
25.3

Personnel compensation:
Full-time permanent ..................................................
Other than full-time permanent ...............................
Other personnel compensation ..................................

2001 est.

2002 est.

16
19
20
1
1
1
1 ................... ...................

Total personnel compensation ..............................
Civilian personnel benefits ............................................
Travel and transportation of persons ............................
Rental payments to GSA ................................................
Advisory and assistance services ..................................
Other services ................................................................
Purchases of goods and services from Government
accounts ....................................................................
Operation and maintenance of equipment ...................
Equipment ......................................................................
Land and structures ......................................................

18
4
2
3
2
1

25.7
31.0
32.0

Personnel Summary
Identification code 91–0700–0–1–751

90.00

383

99.9

Total new obligations ................................................

20
21
5
6
2
2
3
3
2
3
1 ...................

1
1
1
1
2
2
1 ...................
1
1 ................... ...................
36

Personnel Summary
OFFICE

OF THE

INSPECTOR GENERAL

2000 actual

Identification code 91–1400–0–1–751

For expenses necessary for the Office of the Inspector General,
as authorized by section 212 of the Department of Education Organization Act, ø$36,500,000¿ $38,720,000. (Department of Education Appropriations Act, 2001, as enacted by section 1(a)(1) of P.L. 106–
554.)

1001

Total compensable workyears: Full-time equivalent
employment ...............................................................

262

2001 est.

2002 est.

285

Program and Financing (in millions of dollars)
2000 actual

Identification code 91–1400–0–1–751

2001 est.

2002 est.

HEADQUARTERS RENOVATION

00.01

Obligations by program activity:
Inspector General ...........................................................

10.00

Total new obligations ................................................

22.00
23.95

Budgetary resources available for obligation:
New budget authority (gross) ........................................
Total new obligations ....................................................

34
¥34

36
¥36

39
¥39

Program and Financing (in millions of dollars)
2000 actual

Identification code 91–1500–0–1–503

Change in unpaid obligations:
Unpaid obligations, start of year:
72.40
Unpaid obligations, start of year ..............................
72.99
73.20

2001 est.

2002 est.

3 ...................

Obligated balance, start of year ..........................
3
3 ...................
Total outlays (gross) ...................................................... ...................
¥3 ...................
Unpaid obligations, end of year:
Unpaid obligations, end of year ...............................
3 ................... ...................

New budget authority (gross), detail:
Discretionary:
40.00
Appropriation .............................................................

Change in unpaid obligations:
Unpaid obligations, start of year:
72.40
Unpaid obligations, start of year ..............................

9
34
¥33

10
36
¥38

9
39
¥38

86.93

Outlays (gross), detail:
Outlays from discretionary balances ............................. ...................

74.40

Obligated balance, start of year ..........................
Total new obligations ....................................................
Total outlays (gross) ......................................................
Unpaid obligations, end of year:
Unpaid obligations, end of year ...............................

89.00
90.00

74.99

Obligated balance, end of year ............................

86.90
86.93

Outlays (gross), detail:
Outlays from new discretionary authority .....................
Outlays from discretionary balances .............................

27
6

29
8

32
7

87.00

Total outlays (gross) .................................................

89.00

Net budget authority and outlays:
Budget authority ............................................................

72.99
73.10
73.20

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Obligated balance, end of year ............................

3 ................... ...................

3 ...................

This account provided 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 was completed
in 1998, were provided by the General Services Administration.

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384

GENERAL FUND RECEIPT ACCOUNTS
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 2002

GENERAL FUND RECEIPT ACCOUNTS
(in millions of dollars)
2000 actual

2001 est.

2002 est.

Offsetting receipts from the public:
91–274130 College housing and academic facilities loan,
downward reestimates of subsidies .................................. ...................
2 ...................
91–291500 Repayment of loans, capital contributions,
higher education activities ................................................
69
50
50
91–310300 FFEL Guarantee agency reserve recoveries ...... ................... ...................
59
91–310900 HEAF reserve recoveries ................................... ...................
7 ...................
General Fund Offsetting receipts from the public .....................

109

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
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.
(TRANSFER

OF FUNDS)

SEC. 304. Not to exceed 1 percent of any discretionary funds (pursuant to the Balanced Budget and Emergency Deficit Control Act of
1985, as amended) which are appropriated 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 15 days in advance
of any transfer.
øSEC. 305. The Comptroller General of the United States shall
evaluate the extent to which funds made available under part A
of title I of the Elementary and Secondary Education Act of 1965
are allocated to schools and local educational agencies with the greatest concentrations of school-age children from low-income families,
the extent to which allocations of such funds adjust to shifts in
concentrations of pupils from low-income families in different regions,
States, and substate areas, the extent to which the allocation of
such funds encourages the targeting of State funds to areas with
higher concentrations of children from low-income families, and the
implications of current distribution methods for such funds, shall
make formula and other policy recommendations to improve the targeting of such funds to more effectively serve low-income children
in both rural and urban areas, and shall prepare interim and final
reports based on the results of the study, to be submitted to Congress
not later than February 1, 2001, and April 1, 2001.¿
øSEC. 306. (a) From the amount appropriated for title VI of the
Elementary and Secondary Education Act of 1965 in accordance with
this section, the Secretary of Education—
(1) shall make available a total of $6,000,000 to the Secretary
of the Interior (on behalf of the Bureau of Indian Affairs) and
the outlying areas for activities under this section; and
(2) shall allocate the remainder by providing each State the same
percentage of that remainder as it received of the funds allocated
to States under section 307(a)(2) of the Department of Education
Appropriations Act, 1999.

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(b)(1) Each State that receives funds under this section shall distribute 100 percent of such funds to local educational agencies, of
which—
(A) 80 percent of such amount shall be allocated to such local
educational agencies in proportion to the number of children, aged
5 to 17, who reside in the school district served by such local
educational agency from families with incomes below the poverty
line (as defined by the Office of Management and Budget and
revised annually in accordance with section 673(2) of the Community Services Block Grant Act (42 U.S.C. 9902(2))) applicable to
a family of the size involved for the most recent fiscal year for
which satisfactory data are available compared to the number of
such individuals who reside in the school districts served by all
the local educational agencies in the State for that fiscal year;
and
(B) 20 percent of such amount shall be allocated to such local
educational agencies in accordance with the relative enrollments
of children, aged 5 to 17, in public and private nonprofit elementary
and secondary schools within the boundaries of such agencies.
(2) Notwithstanding paragraph (1), if the award to a local educational agency under this section is less than the starting salary
for a new fully qualified teacher in that agency, who is certified
within the State (which may include certification through State or
local alternative routes), has a baccalaureate degree, and demonstrates the general knowledge, teaching skills, and subject matter
knowledge required to teach in his or her content areas, that agency
may use funds under this section to (A) help pay the salary of a
full- or part-time teacher hired to reduce class size, which may be
in combination with other Federal, State, or local funds; or (B) pay
for activities described in subsection (c)(2)(A)(iii) which may be related to teaching in smaller classes.
(c)(1) The basic purpose and intent of this section is to reduce
class size with fully qualified teachers. Each local educational agency
that receives funds under this section shall use such funds to carry
out effective approaches to reducing class size with fully qualified
teachers who are certified within the State, including teachers certified through State or local alternative routes, and who demonstrate
competency in the areas in which they teach, to improve educational
achievement for both regular and special needs children, with particular consideration given to reducing class size in the early elementary grades for which some research has shown class size reduction
is most effective.
(2)(A) Each such local educational agency may use funds under
this section for—
(i) recruiting (including through the use of signing bonuses, and
other financial incentives), hiring, and training fully qualified regular and special education teachers (which may include hiring special education teachers to team-teach with regular teachers in classrooms that contain both children with disabilities and non-disabled
children) and teachers of special-needs children who are certified
within the State, including teachers certified through State or local
alternative routes, have a baccalaureate degree and demonstrate
the general knowledge, teaching skills, and subject matter knowledge required to teach in their content areas;
(ii) testing new teachers for academic content knowledge and
to meet State certification requirements that are consistent with
title II of the Higher Education Act of 1965; and
(iii) providing professional development (which may include such
activities as those described in section 2210 of the Elementary
and Secondary Education Act of 1965, opportunities for teachers
to attend multi-week institutes, such as those made available during the summer months that provide intensive professional development in partnership with local educational agencies and initiatives
that promote retention and mentoring), to teachers, including special education teachers and teachers of special-needs children, in
order to meet the goal of ensuring that all instructional staff have
the subject matter knowledge, teaching knowledge, and teaching
skills necessary to teach effectively in the content area or areas
in which they provide instruction, consistent with title II of the
Higher Education Act of 1965.
(B)(i) Except as provided under clause (ii), a local educational agency may use not more than a total of 25 percent of the award received
under this section for activities described in clauses (ii) and (iii)
of subparagraph (A).
(ii) A local educational agency in which 10 percent or more of
teachers in elementary schools, as defined by section 14101(14) of
the Elementary and Secondary Education Act of 1965, have not met
applicable State and local certification requirements (including certifi-

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GENERAL PROVISIONS—Continued

DEPARTMENT OF EDUCATION
cation through State or local alternative routes), or if such requirements have been waived, may use more than 25 percent of the funds
it receives under this section for activities described in subparagraph
(A)(iii) to help teachers who are not certified by the State become
certified, including through State or local alternative routes, or to
help teachers affected by class size reduction who lack sufficient
content knowledge to teach effectively in the areas they teach to
obtain that knowledge, if the local educational agency notifies the
State educational agency of the percentage of the funds that it will
use for the purpose described in this clause.
(C) A local educational agency that has already reduced class size
in the early grades to 18 or less children (or has already reduced
class size to a State or local class size reduction goal that was in
effect on the day before the enactment of the Department of Education Appropriations Act, 2000, if that State or local educational
agency goal is 20 or fewer children) may use funds received under
this section—
(i) to make further class size reductions in grades kindergarten
through 3;
(ii) to reduce class size in other grades; or
(iii) to carry out activities to improve teacher quality including
professional development.
(D) If a local educational agency has already reduced class size
in the early grades to 18 or fewer children and intends to use funds
provided under this section to carry out professional development
activities, including activities to improve teacher quality, then the
State shall make the award under subsection (b) to the local educational agency.
(3) Each such agency shall use funds under this section only to
supplement, and not to supplant, State and local funds that, in the
absence of such funds, would otherwise be spent for activities under
this section.
(4) No funds made available under this section may be used to
increase the salaries or provide benefits, other than participation
in professional development and enrichment programs, to teachers
who are not hired under this section. Funds under this section may
be used to pay the salary of teachers hired under section 307 of
the Department of Education Appropriations Act, 1999, or under section 310 of the Department of Education Appropriations Act, 2000.
(d)(1) Each State receiving funds under this section shall report
on activities in the State under this section, consistent with section
6202(a)(2) of the Elementary and Secondary Education Act of 1965.
(2) Each State and local educational agency receiving funds under
this section shall publicly report to parents on its progress in reducing
class size, increasing the percentage of classes in core academic areas
taught by fully qualified teachers who are certified within the State
and demonstrate competency in the content areas in which they
teach, and on the impact that hiring additional highly qualified teachers and reducing class size, has had, if any, on increasing student
academic achievement.
(3) Each school receiving funds under this section shall provide
to parents, upon request, the professional qualifications of their
child’s teacher.
(e) If a local educational agency uses funds made available under
this section for professional development activities, the agency shall
ensure for the equitable participation of private nonprofit elementary
and secondary schools in such activities. Section 6402 of the Elementary and Secondary Education Act of 1965 shall not apply to other
activities under this section.
(f) A local educational agency that receives funds under this section
may use not more than 3 percent of such funds for local administrative costs.
(g) Each local educational agency that desires to receive funds
under this section shall include in the application required under
section 6303 of the Elementary and Secondary Education Act of 1965
a description of the agency’s program to reduce class size by hiring
additional highly qualified teachers.
(h) No funds under this section may be used to pay the salary
of any teacher hired with funds under section 307 of the Department
of Education Appropriations Act, 1999, unless, by the start of the
2001–2002 school year, the teacher is certified within the State
(which may include certification through State or local alternative
routes) and demonstrates competency in the subject areas in which
he or she teaches.
(i) Not later than 30 days after the date of the enactment of
this Act, the Secretary shall provide specific notification to each local
educational agency eligible to receive funds under this part regarding
the flexibility provided under subsection (c)(2)(B)(ii) and the ability

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385

to use such funds to carry out activities described in subsection
(c)(2)(A)(iii).¿
øSEC. 307. Section 412 of the National Education Statistics Act
of 1994 (Public Law 103–382) is amended—
(1) in subsection 412(c)(1), after ‘‘period of’’ and before ‘‘years,’’,
by striking ‘‘3’’ and inserting ‘‘4’’; and
(2) after ‘‘expiration of such term.’’, by adding the following new
subsection:
‘‘(4) CONFORMING PROVISION.—Members of the Board previously
granted 3 year terms, whose terms are in effect on the date of
enactment of the Department of Education Appropriations Act,
2001, shall have their terms extended by one year.’’.¿
øSEC. 308. (a) Section 435(a)(2) of the Higher Education Act of
1965 (20 U.S.C. 1085(a)(2)) is amended by adding at the end thereof
the following new subparagraph:
‘‘(D) Notwithstanding the first sentence of subparagraph (A), the
Secretary shall restore the eligibility to participate in a program
under subpart 1 of part A, part B, or part D of an institution that
did not appeal its loss of eligibility within 30 days of receiving notification if the Secretary determines, on a case-by-case basis, that the
institution’s failure to appeal was substantially justified under the
circumstances, and that—
‘‘(i) the institution made a timely request that the appropriate
guaranty agency correct errors in the draft data used to calculate
the institution’s cohort default rate;
‘‘(ii) the guaranty agency did not correct the erroneous data in
a timely fashion; and
‘‘(iii) the institution would have been eligible if the erroneous
data had been corrected by the guaranty agency.’’.
(b) The amendment made by subsection (a) of this section shall
be effective for cohort default rate calculations for fiscal years 1997
and 1998.¿
øSEC. 309. Section 439(r)(2) of the Higher Education Act of 1965
(20 U.S.C. 1087–2(r)(2)) is amended—
(1) in clause (A)(i), by striking ‘‘auditors and examiners’’ and
inserting ‘‘and fix the compensation of such auditors and examiners
as may be necessary’’; and
(2) by inserting at the end of subparagraph (E) the following
new subparagraph:
‘‘(F) COMPENSATION OF AUDITORS AND EXAMINERS.—
‘‘(i) RATES OF PAY.—Rates of basic pay for all auditors and
examiners appointed pursuant to subparagraph (A) may be
set and adjusted by the Secretary of the Treasury without
regard to the provisions of chapter 51 or subchapter III of
chapter 53 of title 5, United States Code.
‘‘(ii) COMPARABILITY.—
‘‘(I) IN GENERAL.—Subject to section 5373 of title 5, United
States Code, the Secretary of the Treasury may provide additional compensation and benefits to auditors and examiners
appointed pursuant to subparagraph (A) if the same type
of compensation or benefits are then being provided by any
agency referred to in section 1206 of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (12
U.S.C. 1833b) or, if not then being provided, could be provided by such an agency under applicable provisions of law,
rule, or regulation.
‘‘(II) CONSULTATION.—In setting and adjusting the total
amount of compensation and benefits for auditors and examiners appointed pursuant to subparagraph (A), the Secretary
of the Treasury shall consult with, and seek to maintain
comparability with, the agencies referred to in section 1206
of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 1833b).’’.¿
øSEC. 310. Section 117(i) of the Carl D. Perkins Vocational and
Technical Education Act of 1998 (20 U.S.C. 2327(i)) is amended by
inserting ‘‘such sums as may be necessary for’’ before ‘‘each of the
4 succeeding fiscal years.’’.¿
øSEC. 311. Section 432(m)(1) of the Higher Education Act of 1965
(20 U.S.C. 1082(m)(1)) is amended—
(1) by striking clause (iv) of subparagraph (D); and
(2) by adding at the end the following new subparagraph:
‘‘(E) PERFECTION OF SECURITY INTERESTS IN STUDENT
LOANS.—
‘‘(i) IN GENERAL.—Notwithstanding the provisions of any
State law to the contrary, including the Uniform Commercial
Code as in effect in any State, a security interest in loans
made under this part, on behalf of any eligible lender (as
defined in section 435(d)) shall attach, be perfected, and be

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GENERAL PROVISIONS—Continued

(TRANSFER

THE BUDGET FOR FISCAL YEAR 2002

OF FUNDS)—Continued

assigned priority in the manner provided by the applicable
State’s law for perfection of security interests in accounts, as
such law may be amended from time to time (including applicable transition provisions). If any such State’s law provides for
a statutory lien to be created in such loans, such statutory
lien may be created by the entity or entities governed by such
State law in accordance with the applicable statutory provisions that created such a statutory lien.
‘‘(ii) COLLATERAL DESCRIPTION.—In addition to any other
method for describing collateral in a legally sufficient manner
permitted under the laws of the State, the description of collateral in any financing statement filed pursuant to this subparagraph shall be deemed legally sufficient if it lists such loans,
or refers to records (identifying such loans) retained by the
secured party or any designee of the secured party identified
in such financing statement, including the debtor or any loan
servicer.
‘‘(iii) SALES.—Notwithstanding clauses (i) and (ii) and any
provisions of any State law to the contrary, other than any
such State’s law providing for creation of a statutory lien, an
outright sale of loans made under this part shall be effective
and perfected automatically upon attachment as defined in the
Uniform Commercial Code of such State.’’.¿
øSEC. 312. Section 435(a)(5) of the Higher Education Act of 1965
(20 U.S.C. 1085(a)(5)) is amended—
(1) in subparagraph (A)(i), by striking ‘‘July 1, 2002,’’ and inserting ‘‘July 1, 2004,’’;
(2) in subparagraph (B), by striking ‘‘1999, 2000, and 2001’’ and
inserting ‘‘1999 through 2003’’.¿
øSEC. 313. From the amounts made available for the ‘‘Fund for
the Improvement of Education’’ under the heading ‘‘Education Research, Statistics, and Improvement’’, $10,000,000, to remain available until expended, shall be available to the Secretary of Education
to be transferred to the Secretary of the Interior for an award to
the National Constitution Center for construction activities authorized under Public Law 100–433.¿
øSEC. 314. Section 4116(b)(4) of the Elementary and Secondary
Education Act of 1965 is amended by striking subparagraph (D) and
inserting in lieu thereof: ‘‘(D) the development and implementation
of character education and training programs that reflect the values
of parents, teachers, and local communities, and incorporate elements
of good character, including honesty, citizenship, courage, justice, respect, personal responsibility, and trustworthiness; and’’.¿
øSEC. 315. The Secretary of Education shall review the nursing
program operated by Graceland University in Lamoni, Iowa, and
may exercise the waiver authority provided in section 102(a)(3)(B)
of the Higher Education Act of 1965, without regard to the provisions
of 34 CFR 600.7(b)(3)(ii), if the Secretary determines that such a
waiver is appropriate.¿
øSEC. 316. Section 415 of the Higher Education Act of 1965 is
amended—
(1) in section 415A(a)(2), by striking ‘‘section 415F’’ and inserting
‘‘section 415E’’;
(2) in section 415E, by striking 415E(c) and inserting in lieu
thereof the following:
‘‘(c) AUTHORIZED ACTIVITIES.—Each State receiving a grant under
this section may use the grant funds for—
‘‘(1) making awards that—
‘‘(A) supplement grants received under section 415C(b)(2) by
eligible students who demonstrate financial need; or
‘‘(B) provide grants under section 415C(b)(2) to additional eligible students who demonstrate financial need;
‘‘(2) providing scholarships for eligible students—
‘‘(A) who demonstrate financial need; and
‘‘(B) who—
‘‘(i) desire to enter a program of study leading to a career
in—
‘‘(I) information technology;
‘‘(II) mathematics, computer science, or engineering;
‘‘(III) teaching; or
‘‘(IV) another field determined by the State to be critical
to the State’s workforce needs; or
‘‘(ii) demonstrate merit or academic achievement; and
‘‘(3) making awards that—
‘‘(A) supplement community service work-study awards received
under section 415C(b)(2) by eligible students who demonstrate
financial need; or

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‘‘(B) provide community service work-study awards under section 415C(b)(2) to additional eligible students who demonstrate
financial need.’’.
(3) in section 415E, adding at the end the following new subsections:
‘‘(f) SPECIAL RULE.—Notwithstanding subsection (d), for purposes
of determining a State’s share of the cost of the authorized activities
described in subsection (c), the State shall consider only those expenditures from non-Federal sources that exceed its total expenditures
for need-based grants, scholarships, and work-study assistance for
fiscal year 1999 (including any such assistance provided under this
subpart).
‘‘(g) USE OF FUNDS FOR ADMINISTRATIVE COSTS PROHIBITED.—A
State receiving a grant under this section shall not use any of the
grant funds to pay administrative costs associated with any of the
authorized activities described in subsection (c).’’.¿
øSEC. 317. (a) Section 402D of the Higher Education Act of 1965
(20 U.S.C. 1070a–14) is amended—
(1) by redesignating subsection (c) as subsection (d); and
(2) by inserting after subsection (b) the following new subsection:
‘‘(c) SPECIAL RULE.—
‘‘(1) USE FOR STUDENT AID.—A recipient of a grant that undertakes any of the permissible services identified in subsection (b)
may, in addition, use such funds to provide grant aid to students.
A grant provided under this paragraph shall not exceed the maximum appropriated Pell Grant or, be less than the minimum appropriated Pell Grant, for the current academic year. In making grants
to students under this subsection, an institution shall ensure that
adequate consultation takes place between the student support
service program office and the institution’s financial aid office.
‘‘(2) ELIGIBLE STUDENTS.—For purposes of receiving grant aid
under this subsection, eligible students shall be current participants in the student support services program offered by the institution and be—
‘‘(A) students who are in their first 2 years of postsecondary
education and who are receiving Federal Pell Grants under
subpart 1; or
‘‘(B) students who have completed their first 2 years of postsecondary education and who are receiving Federal Pell Grants
under subpart 1 if the institution demonstrates to the satisfaction of the Secretary that—
‘‘(i) these students are at high risk of dropping out; and
‘‘(ii) it will first meet the needs of all its eligible first- and
second-year students for services under this paragraph.
‘‘(3) DETERMINATION OF NEED.—A grant provided to a student
under paragraph (1) shall not be considered in determining that
student’s need for grant or work assistance under this title, except
that in no case shall the total amount of student financial assistance awarded to a student under this title exceed that student’s
cost of attendance, as defined in section 472.
‘‘(4) MATCHING REQUIRED.—A recipient of a grant who uses such
funds for the purpose described in paragraph (1) shall match the
funds used for such purpose, in cash, from non-Federal funds, in
an amount that is not less than 33 percent of the total amount
of funds used for that purpose. This paragraph shall not apply
to any grant recipient that is an institution of higher education
eligible to receive funds under part A or B of title III or title
V.
‘‘(5) RESERVATION.—In no event may a recipient use more than
20 percent of the funds received under this section for grant aid.
‘‘(6) SUPPLEMENT, NOT SUPPLANT.—Funds received by a grant
recipient that are used under this subsection shall be used to
supplement, and not supplant, non-Federal funds expended for student support services programs.’’.
(b) The amendments made by subsection (a) shall apply with respect to student support services grants awarded on or after the
date of enactment of this Act.¿
øSEC. 318. (a) Subparagraph (B) of section 427A(c)(4) of the Higher
Education Act of 1965 (20 U.S.C. 1077a(c)(4)) is amended to read
as follows:
‘‘(B)(i) For any 12-month period beginning on July 1 and
ending on or before June 30, 2001, the rate determined under
this subparagraph is determined on the preceding June 1 and
is equal to—
‘‘(I) the bond equivalent rate of 52-week Treasury bills
auctioned at the final auction held prior to such June 1;
plus
‘‘(II) 3.25 percent.

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DEPARTMENT OF EDUCATION
‘‘(ii) For any 12-month period beginning on July 1 of 2001
or any succeeding year, the rate determined under this subparagraph is determined on the preceding June 26 and is equal
to—
‘‘(I) the weekly average 1-year constant maturity Treasury
yield, as published by the Board of Governors of the Federal
Reserve System, for the last calendar week ending on or
before such June 26; plus
‘‘(II) 3.25 percent.’’.
(b) Subparagraph (A) of section 455(b)(4) of such Act (20 U.S.C.
1087e(b)(4)) is amended to read as follows:
‘‘(A)(i) For Federal Direct PLUS Loans for which the first
disbursement is made on or after July 1, 1994, the applicable
rate of interest shall, during any 12-month period beginning
on July 1 and ending on or before June 30, 2001, be determined
on the preceding June 1 and be equal to—
‘‘(I) the bond equivalent rate of 52-week Treasury bills
auctioned at final auction held prior to such June 1; plus
‘‘(II) 3.1 percent,
except that such rate shall not exceed 9 percent.
‘‘(ii) For any 12-month period beginning on July 1 of 2001
or any succeeding year, the applicable rate of interest determined under this subparagraph shall be determined on the
preceding June 26 and be equal to—
‘‘(I) the weekly average 1-year constant maturity Treasury
yield, as published by the Board of Governors of the Federal
Reserve System, for the last calendar week ending on or
before such June 26; plus
‘‘(II) 3.1 percent,
except that such rate shall not exceed 9 percent.’’.¿
øSEC. 319. Section 1543 of the Higher Education Amendments of
1992 (20 U.S.C. 1070 note) is amended by adding at the end the
following new subsection:
‘‘(e) DESIGNATION.—Scholarships awarded under this section shall
be known as ‘B. J. Stupak Olympic Scholarships’.’’.¿
øSEC. 320. (a) Subject to subsection (c), the Secretary of Education
shall release the reversionary interests that were retained by the
United States, as part of the conveyance of certain real property
situated in the County of Marin, State of California, in an April
3, 1978 Quitclaim Deed, which was filed for record on June 5, 1978,
in Book 3384, at page 33, of the official Records of Marin County,
California.
(b) The Secretary shall execute the release of the reversionary
interests under subsection (a) without consideration.
(c) The Secretary shall execute and file in the appropriate office
or offices a deed of release, amended deed, or other appropriate instruments effectuating the release of the reversionary interests under
subsection (a). In all other respects the provisions of the April 3,
1978 Quitclaim Deed shall remain intact.¿
øSEC. 321. (a) GRANTS TO NATIVE AMERICAN SCHOOLS AND STATE
EDUCATIONAL AGENCIES.—
(1) ALLOCATION OF FUNDS.—Of the amount made available under
the heading ‘‘School improvement programs’’ for grants made in
accordance with this section for school repair and renovation, activities under part B of the Individuals with Disabilities Education
Act (20 U.S.C. 1411 et seq.), and technology activities, the Secretary
of Education shall allocate—
(A) $75,000,000 for grants to impacted local educational agencies (as defined in paragraph (3)) for school repair, renovation,
and construction;
(B) $3,250,000 for grants to outlying areas for school repair
and renovation in high-need schools and communities, allocated
on such basis, and subject to such terms and conditions, as the
Secretary determines appropriate;
(C) $25,000,000 for grants to public entities, private nonprofit
entities, and consortia of such entities, for use in accordance
with subpart 2 of part C of title X of the Elementary and Secondary Education Act of 1965; and
(D) the remainder to State educational agencies in proportion
to the amount each State received under part A of title I of
the Elementary and Secondary Education Act of 1965 (20 U.S.C.
6311 et seq.) for fiscal year 2000, except that no State shall
receive less than 0.5 percent of the amount allocated under this
subparagraph.
(2) DETERMINATION OF GRANT AMOUNT.—
(A) DETERMINATION OF WEIGHTED STUDENT UNITS.—For purposes of computing the grant amounts under paragraph (1)(A)
for fiscal year 2001, the Secretary shall determine the results

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obtained by the computation made under section 8003 of the
Elementary and Secondary Education Act of 1965 (20 U.S.C.
7703) with respect to children described in subsection (a)(1)(C)
of such section and computed under subsection (a)(2)(B) of such
section for such year—
(i) for each impacted local educational agency that receives
funds under this section; and
(ii) for all such agencies together.
(B) COMPUTATION OF PAYMENT.—For fiscal year 2001, the Secretary shall calculate the amount of a grant to an impacted
local educational agency by—
(i) dividing the amount described in paragraph (1)(A) by the
results of the computation described in subparagraph (A)(ii);
and
(ii) multiplying the number derived under clause (i) by the
results of the computation described in subparagraph (A)(i)
for such agency.
(3) DEFINITION.—For purposes of this section, the term ‘‘impacted
local educational agency’’ means, for fiscal year 2001—
(A) a local educational agency that receives a basic support
payment under section 8003(b) of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 7703(b)) for such fiscal year;
and
(B) with respect to which the number of children determined
under section 8003(a)(1)(C) of such Act for the preceding school
year constitutes at least 50 percent of the total student enrollment in the schools of the agency during such school year.
(b) WITHIN-STATE ALLOCATIONS.—
(1) ADMINISTRATIVE COSTS.—
(A) STATE EDUCATIONAL AGENCY ADMINISTRATION.—Except as
provided in subparagraph (B), each State educational agency may
reserve not more than 1 percent of its allocation under subsection
(a)(1)(D) for the purpose of administering the distribution of
grants under this subsection.
(B) STATE ENTITY ADMINISTRATION.—If the State educational
agency transfers funds to a State entity described in paragraph
(2)(A), the agency shall transfer to such entity 0.75 of the amount
reserved under this paragraph for the purpose of administering
the distribution of grants under this subsection.
(2) RESERVATION FOR COMPETITIVE SCHOOL REPAIR AND RENOVATION GRANTS TO LOCAL EDUCATIONAL AGENCIES.—
(A) IN GENERAL.—Subject to the reservation under paragraph
(1), of the funds allocated to a State educational agency under
subsection (a)(1)(D), the State educational agency shall distribute
75 percent of such funds to local educational agencies or, if such
State educational agency is not responsible for the financing of
education facilities, the agency shall transfer such funds to the
State entity responsible for the financing of education facilities
(referred to in this section as the ‘‘State entity’’) for distribution
by such entity to local educational agencies in accordance with
this paragraph, to be used, consistent with subsection (c), for
school repair and renovation.
(B) COMPETITIVE GRANTS TO LOCAL EDUCATIONAL AGENCIES.—
(i) IN GENERAL.—The State educational agency or State entity shall carry out a program of competitive grants to local
educational agencies for the purpose described in subparagraph
(A). Of the total amount available for distribution to such agencies under this paragraph, the State educational agency or
State entity, shall, in carrying out the competition—
(I) award to high poverty local educational agencies described in clause (ii), in the aggregate, at least an amount
which bears the same relationship to such total amount as
the aggregate amount such local educational agencies received under part A of title I of the Elementary and Secondary Education Act of 1965 for fiscal year 2000 bears to
the aggregate amount received for such fiscal year under
such part by all local educational agencies in the State;
(II) award to rural local educational agencies in the State,
in the aggregate, at least an amount which bears the same
relationship to such total amount as the aggregate amount
such rural local educational agencies received under part
A of title I of the Elementary and Secondary Education Act
of 1965 for fiscal year 2000 bears to the aggregate amount
received for such fiscal year under such part by all local
educational agencies in the State; and
(III) award the remaining funds to local educational agencies not receiving an award under subclause (I) or (II), in-

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GENERAL PROVISIONS—Continued

(TRANSFER

THE BUDGET FOR FISCAL YEAR 2002

OF FUNDS)—Continued

cluding high poverty and rural local educational agencies
that did not receive such an award.
(ii) HIGH POVERTY LOCAL EDUCATIONAL AGENCIES.—A local
educational agency is described in this clause if—
(I) the percentage described in subparagraph (C)(i) with
respect to the agency is 30 percent or greater; or
(II) the number of children described in such subparagraph
with respect to the agency is at least 10,000.
(C) CRITERIA FOR AWARDING GRANTS.—In awarding competitive
grants under this paragraph, a State educational agency or State
entity shall take into account the following criteria:
(i) The percentage of poor children 5 to 17 years of age,
inclusive, in a local educational agency.
(ii) The need of a local educational agency for school repair
and renovation, as demonstrated by the condition of its public
school facilities.
(iii) The fiscal capacity of a local educational agency to meet
its needs for repair and renovation of public school facilities
without assistance under this section, including its ability to
raise funds through the use of local bonding capacity and otherwise.
(iv) In the case of a local educational agency that proposes
to fund a repair or renovation project for a charter school
or schools, the extent to which the school or schools have access
to funding for the project through the financing methods available to other public schools or local educational agencies in
the State.
(v) The likelihood that the local educational agency will
maintain, in good condition, any facility whose repair or renovation is assisted under this section.
(D) POSSIBLE MATCHING REQUIREMENT.—
(i) IN GENERAL.—A State educational agency or State entity
may require local educational agencies to match funds awarded
under this subsection.
(ii) MATCH AMOUNT.—The amount of a match described in
clause (i) may be established by using a sliding scale that
takes into account the relative poverty of the population served
by the local educational agency.
(3) RESERVATION FOR COMPETITIVE IDEA OR TECHNOLOGY GRANTS
TO LOCAL EDUCATIONAL AGENCIES.—
(A) IN GENERAL.—Subject to the reservation under paragraph
(1), of the funds allocated to a State educational agency under
subsection (a)(1)(D), the State educational agency shall distribute
25 percent of such funds to local educational agencies through
competitive grant processes, to be used for the following:
(i) To carry out activities under part B of the Individuals
with Disabilities Education Act (20 U.S.C. 1411 et seq.).
(ii) For technology activities that are carried out in connection with school repair and renovation, including—
(I) wiring;
(II) acquiring hardware and software;
(III) acquiring connectivity linkages and resources; and
(IV) acquiring microwave, fiber optics, cable, and satellite
transmission equipment.
(B) CRITERIA FOR AWARDING IDEA GRANTS.—In awarding competitive grants under subparagraph (A) to be used to carry out
activities under part B of the Individuals with Disabilities Education Act (20 U.S.C. 1411 et seq.), a State educational agency
shall take into account the following criteria:
(i) The need of a local educational agency for additional funds
for a student whose individually allocable cost for expenses
related to the Individuals with Disabilities Education Act substantially exceeds the State’s average per-pupil expenditure (as
defined in section 14101(2) of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 8801(2))).
(ii) The need of a local educational agency for additional
funds for special education and related services under part
B of the Individuals with Disabilities Education Act (20 U.S.C.
1411 et seq.).
(iii) The need of a local educational agency for additional
funds for assistive technology devices (as defined in section
602 of the Individuals with Disabilities Education Act (20
U.S.C. 1401)) or assistive technology services (as so defined)
for children being served under part B of the Individuals with
Disabilities Education Act (20 U.S.C. 1411 et seq.).
(iv) The need of a local educational agency for additional
funds for activities under part B of the Individuals with Dis-

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abilities Education Act (20 U.S.C. 1411 et seq.) in order for
children with disabilities to make progress toward meeting the
performance goals and indicators established by the State
under section 612(a)(16) of such Act (20 U.S.C. 1412).
(C) CRITERIA FOR AWARDING TECHNOLOGY GRANTS.—In awarding competitive grants under subparagraph (A) to be used for
technology activities that are carried out in connection with
school repair and renovation, a State educational agency shall
take into account the need of a local educational agency for
additional funds for such activities, including the need for the
activities described in subclauses (I) through (IV) of subparagraph (A)(ii).
(c) RULES APPLICABLE TO SCHOOL REPAIR AND RENOVATION.—With
respect to funds made available under this section that are used
for school repair and renovation, the following rules shall apply:
(1) PERMISSIBLE USES OF FUNDS.—School repair and renovation
shall be limited to one or more of the following:
(A) Emergency repairs or renovations to public school facilities
only to ensure the health and safety of students and staff, including—
(i) repairing, replacing, or installing roofs, electrical wiring,
plumbing systems, or sewage systems;
(ii) repairing, replacing, or installing heating, ventilation, or
air conditioning systems (including insulation); and
(iii) bringing public schools into compliance with fire and
safety codes.
(B) School facilities modifications necessary to render public
school facilities accessible in order to comply with the Americans
with Disabilities Act of 1990 (42 U.S.C. 12101 et seq.).
(C) School facilities modifications necessary to render public
school facilities accessible in order to comply with section 504
of the Rehabilitation Act of 1973 (29 U.S.C. 794).
(D) Asbestos abatement or removal from public school facilities.
(E) Renovation, repair, and acquisition needs related to the
building infrastructure of a charter school.
(2) IMPERMISSIBLE USES OF FUNDS.—No funds received under this
section may be used for—
(A) payment of maintenance costs in connection with any
projects constructed in whole or part with Federal funds provided
under this section;
(B) the construction of new facilities, except for facilities for
an impacted local educational agency (as defined in subsection
(a)(3)); or
(C) stadiums or other facilities primarily used for athletic contests or exhibitions or other events for which admission is
charged to the general public.
(3) CHARTER SCHOOLS.—A public charter school that constitutes
a local educational agency under State law shall be eligible for
assistance under the same terms and conditions as any other local
educational agency (as defined in section 14101(18) of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 8801(18))).
(4) SUPPLEMENT, NOT SUPPLANT.—Excluding the uses described
in subparagraphs (B) and (C) of paragraph (1), a local educational
agency shall use Federal funds subject to this subsection only to
supplement the amount of funds that would, in the absence of
such Federal funds, be made available from non-Federal sources
for school repair and renovation.
(d) SPECIAL RULE.—Each local educational agency that receives
funds under this section shall ensure that, if it carries out repair
or renovation through a contract, any such contract process ensures
the maximum number of qualified bidders, including small, minority,
and women-owned businesses, through full and open competition.
(e) PUBLIC COMMENT.—Each local educational agency receiving
funds under paragraph (2) or (3) of subsection (b)—
(1) shall provide parents, educators, and all other interested
members of the community the opportunity to consult on the use
of funds received under such paragraph;
(2) shall provide the public with adequate and efficient notice
of the opportunity described in paragraph (1) in a widely read
and distributed medium; and
(3) shall provide the opportunity described in paragraph (1) in
accordance with any applicable State and local law specifying how
the comments may be received and how the comments may be
reviewed by any member of the public.
(f) REPORTING.—
(1) LOCAL REPORTING.—Each local educational agency receiving
funds under subsection (a)(1)(D) shall submit a report to the State

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DEPARTMENT OF EDUCATION
educational agency, at such time as the State educational agency
may require, describing the use of such funds for—
(A) school repair and renovation (and construction, in the case
of an impacted local educational agency (as defined in subsection
(a)(3)));
(B) activities under part B of the Individuals with Disabilities
Education Act (20 U.S.C. 1411 et seq.); and
(C) technology activities that are carried out in connection with
school repair and renovation, including the activities described
in subclauses (I) through (IV) of subsection (b)(3)(A)(ii).
(2) STATE REPORTING.—Each State educational agency shall submit to the Secretary of Education, not later than December 31,
2002, a report on the use of funds received under subsection
(a)(1)(D) by local educational agencies for—
(A) school repair and renovation (and construction, in the case
of an impacted local educational agency (as defined in subsection
(a)(3)));
(B) activities under part B of the Individuals with Disabilities
Education Act (20 U.S.C. 1411 et seq.); and
(C) technology activities that are carried out in connection with
school repair and renovation, including the activities described
in subclauses (I) through (IV) of subsection (b)(3)(A)(ii).
(3) ADDITIONAL REPORTS.—Each entity receiving funds allocated
under subsection (a)(1)(A) or (B) shall submit to the Secretary,
not later than December 31, 2002, a report on its uses of funds
under this section, in such form and containing such information
as the Secretary may require.
(g) APPLICABILITY OF PART B OF IDEA.—If a local educational agency uses funds received under this section to carry out activities under
part B of the Individuals with Disabilities Education Act (20 U.S.C.
1411 et seq.), such part (including provisions respecting the participation of private school children), and any other provision of law that
applies to such part, shall apply to such use.
(h) REALLOCATION.—If a State educational agency does not apply
for an allocation of funds under subsection (a)(1)(D) for fiscal year
2001, or does not use its entire allocation for such fiscal year, the
Secretary may reallocate the amount of the State educational agency’s
allocation (or the remainder thereof, as the case may be) to the
remaining State educational agencies in accordance with subsection
(a)(1)(D).
(i) PARTICIPATION OF PRIVATE SCHOOLS.—
(1) IN GENERAL.—Section 6402 of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 7372) shall apply to subsection
(b)(2) in the same manner as it applies to activities under title
VI of such Act, except that—
(A) such section shall not apply with respect to the title to
any real property renovated or repaired with assistance provided
under this section;
(B) the term ‘‘services’’ as used in section 6402 of such Act
with respect to funds under this section shall be provided only
to private, nonprofit elementary or secondary schools with a rate
of child poverty of at least 40 percent and may include for purposes of subsection (b)(2) only—
(i) modifications of school facilities necessary to meet the
standards applicable to public schools under the Americans
with Disabilities Act of 1990 (42 U.S.C. 12101 et seq.);
(ii) modifications of school facilities necessary to meet the
standards applicable to public schools under section 504 of
the Rehabilitation Act of 1973 (29 U.S.C. 794); and
(iii) asbestos abatement or removal from school facilities;
and
(C) notwithstanding the requirements of section 6402(b) of the
Elementary and Secondary Education Act of 1965 (20 U.S.C.
7372(b)), expenditures for services provided using funds made
available under subsection (b)(2) shall be considered equal for
purposes of such section if the per-pupil expenditures for services
described in subparagraph (B) for students enrolled in private
nonprofit elementary and secondary schools that have child poverty rates of at least 40 percent are consistent with the perpupil expenditures under this section for children enrolled in
the public schools in the school district of the local educational
agency receiving funds under this section.
(2) REMAINING FUNDS.—If the expenditure for services described
in paragraph (1)(B) is less than the amount calculated under paragraph (1)(C) because of insufficient need for such services, the
remainder shall be available to the local educational agency for
renovation and repair of public school facilities.

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(3) APPLICATION.—If any provision of this section, or the application thereof, to any person or circumstances is judicially determined
to be invalid, the provisions of the remainder of the section and
the application to other persons or circumstances shall not be affected thereby.
(j) DEFINITIONS.—For purposes of this section:
(1) CHARTER SCHOOL.—The term ‘‘charter school’’ has the meaning given such term in section 10310(1) of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 8066(1)).
(2) ELEMENTARY SCHOOL.—The term ‘‘elementary school’’ has the
meaning given such term in section 14101(14) of the Elementary
and Secondary Education Act of 1965 (20 U.S.C. 8801(14)).
(3) LOCAL EDUCATIONAL AGENCY.—The term ‘‘local educational
agency’’ has the meaning given such term in subparagraphs (A)
and (B) of section 14101(18) of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 8801(18)).
(4) OUTLYING AREA.—The term ‘‘outlying area’’ has the meaning
given such term in section 14101(21) of the Elementary and Secondary Act of 1965 (20 U.S.C. 8801(21)).
(5) POOR CHILDREN AND CHILD POVERTY.—The terms ‘‘poor children’’ and ‘‘child poverty’’ refer to children 5 to 17 years of age,
inclusive, who are from families with incomes below the poverty
line (as defined by the Office of Management and Budget and
revised annually in accordance with section 673(2) of the Community Services Block Grant (42 U.S.C. 9902(2)) applicable to a family
of the size involved for the most recent fiscal year for which data
satisfactory to the Secretary are available.
(6) RURAL LOCAL EDUCATIONAL AGENCY.—The term ‘‘rural local
educational agency’’ means a local educational agency that the
State determines is located in a rural area using objective data
and a commonly employed definition of the term ‘‘rural’’.
(7) SECONDARY SCHOOL.—The term ‘‘secondary school’’ has the
meaning given such term in section 14101(25) of the Elementary
and Secondary Education Act of 1965 (20 U.S.C. 8801(25)).
(8) STATE.—The term ‘‘State’’ means each of the 50 states, the
District of Columbia, and the Commonwealth of Puerto Rico.¿
øSEC. 322. (a) Part C of title X of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 8061 et seq.) is amended—
(1) by inserting after the part heading the following:
‘‘Subpart 1—Basic Charter School Grant Program’’;
and
(2) by adding at the end the following:
‘‘Subpart 2—Credit Enhancement Initiatives To Assist
Charter School Facility Acquisition, Construction, and
Renovation
‘‘SEC. 10321. PURPOSE.
‘‘The purpose of this subpart is to provide one-time grants to eligible entities to permit them to demonstrate innovative credit enhancement initiatives that assist charter schools to address the cost of
acquiring, constructing, and renovating facilities.
‘‘SEC. 10322. GRANTS TO ELIGIBLE ENTITIES.
‘‘(a) IN GENERAL.—The Secretary shall use 100 percent of the
amount available to carry out this subpart to award not less than
3 grants to eligible entities having applications approved under this
subpart to demonstrate innovative methods of assisting charter
schools to address the cost of acquiring, constructing, and renovating
facilities by enhancing the availability of loans or bond financing.
‘‘(b) GRANTEE SELECTION.—The Secretary shall evaluate each application submitted, and shall make a determination of which are sufficient to merit approval and which are not. The Secretary shall award
at least one grant to an eligible entity described in section
10330(2)(A), at least one grant to an eligible entity described in
section 10330(2)(B), and at least one grant to an eligible entity described in section 10330(2)(C), if applications are submitted that permit the Secretary to do so without approving an application that
is not of sufficient quality to merit approval.
‘‘(c) GRANT CHARACTERISTICS.—Grants under this subpart shall be
of a sufficient size, scope, and quality so as to ensure an effective
demonstration of an innovative means of enhancing credit for the
financing of charter school acquisition, construction, or renovation.
‘‘(d) SPECIAL RULE.—In the event the Secretary determines that
the funds available are insufficient to permit the Secretary to award
not less than 3 grants in accordance with subsections (a) through
(c), such 3-grant minimum and the second sentence of subsection
(b) shall not apply, and the Secretary may determine the appropriate
number of grants to be awarded in accordance with subsection (c).

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GENERAL PROVISIONS—Continued

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‘‘SEC. 10323. APPLICATIONS.

‘‘SEC. 10326. LIMITATION ON ADMINISTRATIVE COSTS.

‘‘(a) IN GENERAL.—To receive a grant under this subpart, an eligible
entity shall submit to the Secretary an application in such form
as the Secretary may reasonably require.
‘‘(b) CONTENTS.—An application under subsection (a) shall contain—
‘‘(1) a statement identifying the activities proposed to be undertaken with funds received under this subpart, including how the
applicant will determine which charter schools will receive assistance, and how much and what types of assistance charter schools
will receive;
‘‘(2) a description of the involvement of charter schools in the
application’s development and the design of the proposed activities;
‘‘(3) a description of the applicant’s expertise in capital market
financing;
‘‘(4) a description of how the proposed activities will leverage
the maximum amount of private-sector financing capital relative
to the amount of government funding used and otherwise enhance
credit available to charter schools;
‘‘(5) a description of how the applicant possesses sufficient expertise in education to evaluate the likelihood of success of a charter
school program for which facilities financing is sought;
‘‘(6) in the case of an application submitted by a State governmental entity, a description of the actions that the entity has taken,
or will take, to ensure that charter schools within the State receive
the funding they need to have adequate facilities; and
‘‘(7) such other information as the Secretary may reasonably require.

‘‘An eligible entity may use not more than 0.25 percent of the
funds received under this subpart for the administrative costs of
carrying out its responsibilities under this subpart.

‘‘SEC. 10324. CHARTER SCHOOL OBJECTIVES.
‘‘An eligible entity receiving a grant under this subpart shall use
the funds deposited in the reserve account established under section
10325(a) to assist one or more charter schools to access private sector
capital to accomplish one or both of the following objectives:
‘‘(1) The acquisition (by purchase, lease, donation, or otherwise)
of an interest (including an interest held by a third party for
the benefit of a charter school) in improved or unimproved real
property that is necessary to commence or continue the operation
of a charter school.
‘‘(2) The construction of new facilities, or the renovation, repair,
or alteration of existing facilities, necessary to commence or continue the operation of a charter school.
‘‘SEC. 10325. RESERVE ACCOUNT.
‘‘(a) USE OF FUNDS.—To assist charter schools to accomplish the
objectives described in section 10324, an eligible entity receiving a
grant under this subpart shall, in accordance with State and local
law, directly or indirectly, alone or in collaboration with others, deposit the funds received under this subpart (other than funds used
for administrative costs in accordance with section 10326) in a reserve
account established and maintained by the entity for this purpose.
Amounts deposited in such account shall be used by the entity for
one or more of the following purposes:
‘‘(1) Guaranteeing, insuring, and reinsuring bonds, notes, evidences of debt, loans, and interests therein, the proceeds of which
are used for an objective described in section 10324.
‘‘(2) Guaranteeing and insuring leases of personal and real property for an objective described in section 10324.
‘‘(3) Facilitating financing by identifying potential lending
sources, encouraging private lending, and other similar activities
that directly promote lending to, or for the benefit of, charter
schools.
‘‘(4) Facilitating the issuance of bonds by charter schools, or by
other public entities for the benefit of charter schools, by providing
technical, administrative, and other appropriate assistance (including the recruitment of bond counsel, underwriters, and potential
investors and the consolidation of multiple charter school projects
within a single bond issue).
‘‘(b) INVESTMENT.—Funds received under this subpart and deposited
in the reserve account shall be invested in obligations issued or
guaranteed by the United States or a State, or in other similarly
low-risk securities.
‘‘(c) REINVESTMENT OF EARNINGS.—Any earnings on funds received
under this subpart shall be deposited in the reserve account established under subsection (a) and used in accordance with such subsection.

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‘‘SEC. 10327. AUDITS AND REPORTS.
‘‘(a) FINANCIAL RECORD MAINTENANCE AND AUDIT.—The financial
records of each eligible entity receiving a grant under this subpart
shall be maintained in accordance with generally accepted accounting
principles and shall be subject to an annual audit by an independent
public accountant.
‘‘(b) REPORTS.—
‘‘(1) GRANTEE ANNUAL REPORTS.—Each eligible entity receiving
a grant under this subpart annually shall submit to the Secretary
a report of its operations and activities under this subpart.
‘‘(2) CONTENTS.—Each such annual report shall include—
‘‘(A) a copy of the most recent financial statements, and
any accompanying opinion on such statements, prepared by
the independent public accountant reviewing the financial
records of the eligible entity;
‘‘(B) a copy of any report made on an audit of the financial
records of the eligible entity that was conducted under subsection (a) during the reporting period;
‘‘(C) an evaluation by the eligible entity of the effectiveness
of its use of the Federal funds provided under this subpart
in leveraging private funds;
‘‘(D) a listing and description of the charter schools served
during the reporting period;
‘‘(E) a description of the activities carried out by the eligible
entity to assist charter schools in meeting the objectives set
forth in section 10324; and
‘‘(F) a description of the characteristics of lenders and other
financial institutions participating in the activities undertaken
by the eligible entity under this subpart during the reporting
period.
‘‘(3) SECRETARIAL REPORT.—The Secretary shall review the reports submitted under paragraph (1) and shall provide a comprehensive annual report to the Congress on the activities conducted under this subpart.
‘‘SEC. 10328. NO FULL FAITH AND CREDIT FOR GRANTEE
OBLIGATIONS.
‘‘No financial obligation of an eligible entity entered into pursuant
to this subpart (such as an obligation under a guarantee, bond, note,
evidence of debt, or loan) shall be an obligation of, or guaranteed
in any respect by, the United States. The full faith and credit of
the United States is not pledged to the payment of funds which
may be required to be paid under any obligation made by an eligible
entity pursuant to any provision of this subpart.
‘‘SEC. 10329. RECOVERY OF FUNDS.
‘‘(a) IN GENERAL.—The Secretary, in accordance with chapter 37
of title 31, United States Code, shall collect—
‘‘(1) all of the funds in a reserve account established by an eligible
entity under section 10325(a) if the Secretary determines, not earlier than 2 years after the date on which the entity first received
funds under this subpart, that the entity has failed to make substantial progress in carrying out the purposes described in section
10325(a); or
‘‘(2) all or a portion of the funds in a reserve account established
by an eligible entity under section 10325(a) if the Secretary determines that the eligible entity has permanently ceased to use all
or a portion of the funds in such account to accomplish any purpose
described in section 10325(a).
‘‘(b) EXERCISE OF AUTHORITY.—The Secretary shall not exercise the
authority provided in subsection (a) to collect from any eligible entity
any funds that are being properly used to achieve one or more of
the purposes described in section 10325(a).
‘‘(c) PROCEDURES.—The provisions of sections 451, 452, and 458
of the General Education Provisions Act (20 U.S.C. 1234 et seq.)
shall apply to the recovery of funds under subsection (a).
‘‘(d) CONSTRUCTION.—This section shall not be construed to impair
or affect the authority of the Secretary to recover funds under part
D of the General Education Provisions Act (20 U.S.C. 1234 et seq.).
‘‘SEC. 10330. DEFINITIONS.
‘‘In this subpart:
‘‘(1) The term ‘charter school’ has the meaning given such term
in section 10310.

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‘‘(2) The term ‘eligible entity’ means—
‘‘(A) a public entity, such as a State or local governmental
entity;
‘‘(B) a private nonprofit entity; or
‘‘(C) a consortium of entities described in subparagraphs (A)
and (B).
‘‘SEC. 10331. AUTHORIZATION OF APPROPRIATIONS.
‘‘For the purpose of carrying out this subpart, there are authorized
to be appropriated $100,000,000 for fiscal year 2001.’’.
(b) Part C of title X of the Elementary and Secondary Education
Act of 1965 (20 U.S.C. 8061 et seq.) is amended in each of the
following provisions by striking ‘‘part’’ each place such term appears
and inserting ‘‘subpart’’:
(1) Sections 10301 through 10305.
(2) Section 10307.
(3) Sections 10309 through 10311.
SEC. 323. (a) Section 8003(b)(2)(F) of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 7703(b)(2)(F)) is amended—
(1) by striking ‘‘the Secretary shall use’’ and inserting ‘‘the Secretary—
‘‘(i) shall use’’;
(2) by striking the period at the end and inserting ‘‘; and’’; and
(3) by adding at the end the following:
‘‘(ii) except as provided in subparagraph (C)(i)(I), shall include all of the children described in subparagraphs (F) and
(G) of subsection (a)(1) enrolled in schools of the local educational agency in determining (I) the eligibility of the agency
for assistance under this paragraph, and (II) the amount of
such assistance if the number of such children meet the requirements of subsection (a)(3).’’.

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(b) Section 8003(b)(2) of the Elementary and Secondary Education
Act of 1965 (20 U.S.C. 7703(b)(2)) is amended by adding at the end
the following:
‘‘(G) DETERMINATION OF AVERAGE TAX RATES FOR GENERAL
FUND PURPOSES.—For the purpose of determining average tax
rates for general fund purposes for local educational agencies
in a State under this paragraph (except under subparagraph
(C)(i)(II)(bb)), the Secretary shall use either—
‘‘(i) the average tax rate for general fund purposes for comparable local educational agencies, as determined by the Secretary in regulations; or
‘‘(ii) the average tax rate of all the local educational agencies
in the State.’’¿.
SEC. 305. (a) Notwithstanding section 321(b)(2)(A) and (3)(A) of
the Department of Education Appropriations Act, 2001, a State educational agency may determine the percentage of the funds allocated
to the agency under section 321(a)(1)(D) of that Act that the agency
shall distribute in accordance with section 321(b)(2)(A) and (3) of
that Act.
(b) Notwithstanding section 321(b)(1)(B) of that Act, if a State educational agency transfers funds received under section 321(a)(1)(D)
of that Act to the State entity responsible for the financing of education
facilities, the State educational agency shall transfer to the State
entity that share of the administrative funds reserved by the agency
under section 321(b)(1)(A) of that Act that is in proportion to the
percentage of funds that the agency determines under subsection (a)
that it will distribute in accordance with section 321(b)(2) of that
Act. (Department of Education Appropriations Act, 2001, as enacted
by section 1(a)(1) of P.L. 106–554.)

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Full text of Budget of the United States Government - Appendix : Fiscal Year 2002 : Department of Education

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