Full text of Budget of the United States Government - Appendix : Fiscal Year 2003 : Department of Education

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DEPARTMENT OF EDUCATION

Federal Funds
General and special funds
EDUCATION

FOR THE

New budget authority (gross), detail:
Discretionary:
40.00
Appropriation .............................................................
55.00
Advance appropriation ..............................................

2,938
6,205

4,967
6,758

6,005
7,383

70.00

OFFICE OF ELEMENTARY AND SECONDARY
EDUCATION

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

9,143

11,725

13,388

72.40
73.10
73.20
73.40
73.45
74.40

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

86.90
86.93

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

5,545
3,106

6,027
3,374

6,579
5,271

87.00

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

8,650

9,401

11,850

89.00
90.00

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

9,143
8,650

11,725
9,401

13,388
11,850

DISADVANTAGED

For carrying out title I of the Elementary and Secondary Education
Act of 1965 (‘‘ESEA’’) and section 418A of the Higher Education
Act of 1965, ø$12,346,900,000¿ $13,388,330,000, of which
ø$4,777,199,000¿ $5,830,129,000 shall become available on July 1,
ø2002¿ 2003, and shall remain available through September 30,
ø2003¿ 2004, and of which $7,383,301,000 shall become available
on October 1, ø2002¿ 2003, and shall remain available through September 30, ø2003¿ 2004, for academic year ø2002–2003¿ 2003–2004:
Provided, That $235,000,000 shall be available for comprehensive
school reform grants under part F of the ESEA: Provided further,
That $15,000,000 of the amount appropriated for title I, part B,
subpart 1 shall become available October 1, ø2001¿ 2002, and shall
remain available through September 30, ø2003¿ 2004, for evaluation
and technical assistance: øProvided further, That the funds provided
for title I, part B, subpart 2 shall become available October 1, 2001,
and shall remain available through September 30, 2003:¿ Provided
further, That ø$7,172,971,000¿ $7,175,901,000 shall be available for
basic grants under section 1124: Provided further, That up to
$3,500,000 of these funds shall be available to the Secretary of Education on October 1, ø2001¿ 2002, to obtain updated educationalagency-level census poverty data from the Bureau of the Census:
Provided further, That $1,365,031,000 shall be available for concentration grants under section 1124A: Provided further, That
ø$1,018,499,000¿ $2,018,499,000 shall be available for targeted grants
under section 1125: Provided further, That $793,499,000 shall be
available for education finance incentive grants under section 1125A.
(Department of Education Appropriations Act, 2002; additional authorizing language is required.)

Budget Authority and Outlays Excluding Full Funding for Federal Retiree Costs (in
millions of dollars)
2001 actual

89.00
90.00

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

10.00

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

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

23.90
23.95
24.40

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

2003 est.

11,722
9,398

13,385
11,847

(in millions of dollars)
2001–2002
academic
year

2002–2003
academic
year

2003–2004
academic
year

6,957
1,148
...................
...................

6,892
1,350
1,018
794

2003 est.

7,187
1,351
2,018
794

...................
705
1,000
...................
75
75
234
271
200
...................
12
12
425
450
444
209
237
235
9
9
9
...................
2 ...................
...................
22
22
...................
10 ...................
7 ................... ...................
30
38
38
9,022

11,888

13,388

41
9,143

163 ...................
11,725
13,388

1 ................... ...................
9,185
11,888
13,388
¥9,022
¥11,888
¥13,388
163 ................... ...................

2,938
6,758

4,967
7,383

6,005
7,383

9,696

12,350

13,388

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

2002 est.

New Budget Authority ..................................................................
Advance appropriation ................................................................
Total program level ........................................................

2001 actual

Obligations by program activity:
Direct program:
Grants to local educational agencies:
Local educational agency formulas:
00.01
Basic grants .....................................................
00.02
Concentration grants ........................................
00.03
Targeted grants ................................................
00.04
Education finance incentive grants formula ........
Reading first:
00.05
Reading first State grants ...................................
00.06
Early reading first .................................................
00.07
Even start ..................................................................
00.08
Literacy through school libraries ..............................
00.09
State agency programs .............................................
00.10
Comprehensive school reform ...................................
00.11
Evaluation ..................................................................
00.12
Close up fellowships .................................................
00.13
Advanced placement .................................................
00.14
Dropout prevention programs ....................................
00.15
Capital expenses .......................................................
00.16
Migrant education projects .......................................

9,140
8,647

2002 est.

SUMMARY OF PROGRAM LEVEL

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

3,616
3,972
6,459
9,022
11,888
13,388
¥8,650
¥9,401
¥11,850
¥15 ................... ...................
¥1 ................... ...................
3,972
6,459
7,997

+533

+625

Grants to local educational agencies.—Funds are allocated
through four formulas—Basic Grants, Concentration Grants,
Targeted Grants and Education Finance Incentive Grants—
for local programs that provide extra academic support to
help raise the achievement of eligible students, in high-poverty communities, or, in the case of schoolwide programs,
help all students in high-poverty schools to meet challenging
State acedmic standards. States must annually assess participating students in at least reading and mathematics, and
school districts must identify for improvement, and provide
assistance to, schools that for two consecutive years fail to
make adequate yearly progress toward helping all groups of
students reach the proficient level on the State assessments.
Disticts must provide students attending such schools the
choice of attending another public school that is not identified
for improvement. After three years of failure, students who
remain in the school would be permitted to use Title I funds
to obtain supplemental educational services from a publicor private-sector provider. Schools that continue to fail to
meet State standards would be subject to progressively
stonger corrective actions and, after six years of failure, reconstitution under a restructing plan.
Reading first State grants.—Funds provide assistance to
State and local educational agencies in establishing reading
347

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348

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

THE BUDGET FOR FISCAL YEAR 2003

General and special funds—Continued
EDUCATION

FOR THE

IMPACT AID

DISADVANTAGED—Continued

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 end
of third grade.
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.
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.
Literacy through school libraries.—Funds support competitive grants to local educational agencies to provide students
with increased access to up-to-date school library materials
and professional certified library media specialists.
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.
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.
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.
Advanced placement.—Funds support formula grants to
States to pay test fees for low-income students if they are
enrolled in an Advanced Placement course and competitive
grants to State educational agencies, local educational agencies, or national nonprofit educational entities for activities,
such as teacher training and pre-advanced placement course
development, designed to expand access for low-income individuals to Advanced Placement classes.
Migrant education projects.—Funds support grants to institutions of higher education and other nonprofit agencies that
assist migrant students to earn a high school equivalency
certificate or to complete their first year of college.
Object Classification (in millions of dollars)
2001 actual

Identification code 91–0900–0–1–501

24.0
25.1
25.2
25.3
41.0
99.9

Printing and reproduction .............................................. ...................
Advisory and assistance services ..................................
11
Other services ................................................................
8
Other purchases of goods and services from Government accounts ...........................................................
6
Grants, subsidies, and contributions ............................
8,997
Total new obligations ................................................

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2002 est.

2003 est.

1
26
16

2
30
18

13
11,832

15
13,323

9,022

11,888

13,388

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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$1,143,500,000¿ $1,140,500,000, of
which $982,500,000 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$48,000,000¿ $45,000,000 shall be for
construction under section 8007 and shall remain available through
September 30, ø2003¿ 2004, $55,000,000 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 $3,000,000 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¿. (Department of Education Appropriations
Act, 2002.)
Program and Financing (in millions of dollars)
2001 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 ..................

882
50
1

2002 est.

983

2003 est.

983

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

00.91
01.01
02.01
03.01

Subtotal, payments for federally connected children
Facilities maintenance ...................................................
Construction ...................................................................
Payments for Federal property .......................................

933
8
13
41

1,038
8
22
55

1,033
8
46
55

10.00

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

995

1,123

1,142

21.40
22.00
22.10

14
993

14
1,144

35
1,141

23.90
23.95
24.40

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

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

1,009
¥995
14

1,158
¥1,123
35

1,176
¥1,142
35

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

993

1,144

1,141

72.40
73.10
73.20
73.40
73.45
74.40

86.90
86.93

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

918
122

999
153

999
127

87.00

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

1,040

1,152

1,126

89.00
90.00

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

993
1,040

1,144
1,152

1,141
1,126

266
215
186
995
1,123
1,142
¥1,040
¥1,152
¥1,126
¥4 ................... ...................
¥2 ................... ...................
215
186
202

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, can place 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 1.1 million federally connected students enrolled in about 1,330 local educational agencies to assist them

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

DEPARTMENT OF EDUCATION

in meeting their operation and maintenance costs. Average
per-student payments will be approximately $870.
Payments for Children with Disabilities.—Payments in addition to those provided under the Individuals with Disabilities
Education Act will be provided on behalf of approximately
54,000 federally connected students with disabilities in about
830 local educational agencies. Average per-student payments
will be approximately $920.
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 170 local educational agencies with large proportions of federally connected students. Payments will be made
on behalf of about 140,000 students who are military dependents or who reside on Indian lands. In addition, approximately 25 construction grants will be awarded competitively
to local educational agencies.
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 titles
II, IV, V, subpart 1 of part A of title VI, and parts B and C of
title VII of the Elementary and Secondary Education Act of 1965
(‘‘ESEA’’); øpart B of title II of the Higher Education Act;¿ the McKinney-Vento Homeless Assistance Act; and the Civil Rights Act of 1964,
ø$7,827,473,000¿ $6,784,484,000,
of
which
ø$1,717,609,000¿
$500,000,000 shall become available October 1, ø2001¿ 2002, and
shall remain available through September 30, ø2003¿ 2004, of which
ø$2,801,597,000¿ $3,579,517,000 shall become available on July 1,
ø2002¿ 2003, and remain available through September 30, ø2003¿
2004, and of which $1,765,000,000 shall become available on October
1, ø2002¿ 2003, and shall remain available through September 30,
ø2003¿ 2004, for academic year ø2002–2003: Provided, That
$75,000,000 for continuing and new grants to demonstrate effective
approaches to comprehensive school reform shall be allocated and
expended in the same manner as the funds provided under the Fund
for the Improvement of Education for this purpose were allocated
and expended in fiscal year 2001: Provided further, That $142,189,000
shall be available to support the activities authorized under subpart
4 of part D of title V of the ESEA, of which up to 5 percent shall
become available on October 1, 2001, for evaluation, technical assistance, school networking, peer review of applications, and program
outreach activities and of which not less than 95 percent shall become
available on July 1, 2002, and remain available through September
30, 2003, for grants to local educational agencies: Provided further,
That funds made available to local educational agencies under this
subpart shall be used only for activities related to establishing smaller learning communities in high schools: Provided further, That of
the amount made available for subpart 3, part C, of title II of the
ESEA, $2,000,000 shall be used by the Center for Civic Education
to implement a comprehensive program to improve public knowledge,
understanding, and support of the Congress and the state legislatures: Provided further, That $269,906,000 of the funds for subpart
1, part D of title V of the ESEA shall be available for the projects
and in the amounts specified in the statement of the managers on
the conference report accompanying this Act¿ 2003–2004: Provided,
That of the funds made available for subpart 2 of part A of title
IV of the ESEA, $10,000,000, to remain available until expended,
shall be for the Project School Emergency Response to Violence program to provide education-related services to local educational agencies in which the learning environment has been disrupted due to
a violent or traumatic crisis: Provided further, That $387,000,000
shall be for subpart 1 of part A of title VI of the ESEA. (Department
of Education Appropriations Act, 2002.)
øFor emergency expenses to provide education-related services to
local educational agencies in which the learning environment has
been disrupted due to a violent or traumatic crisis, for the Project

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School Emergency Response to Violence program, $10,000,000, to remain available until expended, and to be obligated from amounts
made available in Public Law 107–38.¿ (Emergency Supplemental
Act, 2002.)
Program and Financing (in millions of dollars)
2001 actual

Identification code 91–1000–0–1–501

Direct program:
Obligations by program activity:
Improving teacher quality:
00.01
Improving teacher quality State grants ...............
00.02
National activities .................................................
00.03
Mathematics and science partnerships ...............
00.04
Troops-to-teachers ................................................
00.05
Transition to teaching ..........................................
00.06
National writing project ........................................
00.07
Civic education .....................................................
00.08
Teaching of traditional American history .............
Educational technology:
00.09
Educational technology State grants ...................
00.10
Ready-to-learn television ......................................
00.11
Preparing tomorrow’s teachers to use technology
00.12
21st Century community learning centers ................
School choice and innovation:
00.13
State grants for innovative programs ..................
00.14
Charter schools grants .........................................
00.15
Credit enhancement for charter school facilities
00.16
Voluntary public school choice .............................
00.17
Magnet schools assistance ..................................
00.18
Choice demonstration fund ..................................
00.19
Fund for the Improvement of Education ...................
Safe and drug-free schools and communities:
00.20
State grants ..........................................................
00.21
National programs ................................................
00.22
State assessments and enhanced assessment instruments ..............................................................
00.23
Education for homeless children and youth .............
00.24
Education for Native Hawaiians ...............................
00.26
Alaska Native education equity ................................
00.27
Training and advisory services .................................
00.28
Rural education .........................................................
00.29
Class size reduction ..................................................
00.30
School renovation grants ..........................................
00.31
Eisenhower professional development State grants
00.32
Eisenhower professional development national activities ...................................................................
00.33
Close up fellowships .................................................
00.34
Comprehensive regional assistance centers .............
00.35
Advanced placement .................................................

2002 est.

2003 est.

...................
10
...................
...................
31
...................
...................
...................

1,700
2,850
35
15
13
13
18
20
35
39
14 ...................
27 ...................
100
50

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

700
700
22
22
62 ...................
1,000
1,000

381
388
190
200
................... ...................
...................
25
110
110
................... ...................
54
833

385
200
100
25
110
50
84

437
205

477
275

472
172

...................
35
28
15
7
...................
1,369
800
439

387
50
30
24
7
163
1,154
400
2

387
50
18
14
7
...................
...................
...................
...................

45
2
28
22

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

01.00
09.01

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

4,208
8,251
6,783
60 ................... ...................

10.00

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

4,268

8,251

21.40
22.00
22.10

6
4,679

414 ...................
7,837
6,784

23.90
23.95
23.98
24.40

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

6,783

1 ................... ...................
4,686
8,251
6,784
¥4,268
¥8,251
¥6,783
¥3 ................... ...................
414 ................... ...................

New budget authority (gross), detail:
Discretionary:
40.00
Appropriation .............................................................
3,107
6,062
5,019
40.15
Appropriation (emergency) ........................................ ...................
10 ...................
41.00
Transferred to other accounts ...................................
¥3 ................... ...................
43.00
55.00
68.00

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

3,104
1,515

70.00

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

4,679

72.40
73.10
73.20
73.40
73.45

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

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6,072
1,765

5,019
1,765

60 ................... ...................
7,837

6,784

2,380
3,771
7,574
4,268
8,251
6,783
¥2,856
¥4,449
¥6,713
¥20 ................... ...................
¥1 ................... ...................

350

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

THE BUDGET FOR FISCAL YEAR 2003

General and special funds—Continued
SCHOOL IMPROVEMENT PROGRAMS—Continued
Program and Financing (in millions of dollars)—Continued
2001 actual

Identification code 91–1000–0–1–501

2002 est.

2003 est.

74.40

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

3,771

7,574

7,644

86.90
86.93

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

1,214
1,642

1,628
2,821

1,575
5,138

87.00

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

2,856

4,449

6,713

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

89.00
90.00

¥60 ................... ...................

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

4,619
2,796

7,837
4,449

6,784
6,713

SUMMARY OF PROGRAM LEVEL
(in millions of dollars)
2001–2002
Academic
Year

2002–2003
Academic
Year

2003–2004
Academic
Year

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

3,104
1,765

6,072
1,765

5,019
1,765

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

4,869

7,837

6,784

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

+250 .................... ....................

Improving teacher quality.—
Improving teacher quality State grants.—Funds support
State and school district activities to prepare, train, and
recruit high-quality teachers to improve student achievement.
National activities.—Funds support competitive grants
to improve the knowledge and skills of early childhood
educators who work in communities that have high concentrations of children living in poverty.
Mathematics and science partnerships.—Funds support
State and local efforts to improve students’ academic
achievement in mathematics and science by promoting
strong teaching skills for elementary and secondary
school teachers, including integrating teaching methods
based on scientifically-based research and technology into
the curriculum.
Troops-to-teachers.—Funds assist eligible members of
the armed forces to obtain certification as teachers and
to become highly qualified teachers.
Transition to teaching.—Funds support competitive
grants to establish programs to recruit and retain highly
qualified mid-career professionals and recent college graduates as teachers in high-need schools.
Teaching of traditional American history.—Funds support competitive grants to school districts for activities
to improve history instruction and provide professional
development for teachers of American history.
Educational technology.—
Educational technology State grants.—Funds support
formula grants to States, which target funds to highpoverty school districts, to acquire computers, connections, software, and teacher training to enable schools
to integrate technology effectively into curricula.
Ready-to-learn television.—Funds support the development, distribution and production of educational video
for preschool children, elementary school children, and
their parents to facilitate student academic achievement.
21st Century community learning centers.—
Funds support formula grants to States, which award
subgrants to communities to provide academic enrich-

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ment opportunities and related services to students, primarily students who attend high-poverty schools, and
their families during before-school, after-school, weekend,
and summer hours.
School choice and innovation.—
State grants for innovative programs.—Funds support
formula grants to States and local educational agencies
to help implement innovative strategies for improving
student achievement.
Charter schools grants.—Funds support competitive
grants to State educational agencies and charter schools
to support the planning, design, initial implementation,
and dissemination of information regarding charter
schools. These schools are created by teachers, parents,
and members of the community, and are exempt from
certain local, State, and Federal regulations.
Credit enhancement for charter school facilities.—Funds
support competitive grants to State and local governments, nonprofit entities, and public and nonprofit consortia, to assist charter schools in acquiring, leasing, and
renovating school facilities.
Voluntary public school choice.—Funds support competitive grants to State educational agencies or local educational agencies to implement programs that provide
students, particularly students who attend low-performing schools, with expanded public school choice options.
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.
Choice demonstration fund.—Funds support grants to
State educational agencies, local educational agencies, institutions of higher education, governmental agencies, or other
public or private entities for research projects to measure
the effects on student, school, and district achievement of
providing parents—particularly low-income parents—with
school choice options.
Fund for the Improvement of Education (FIE).—Funds support nationally significant projects to improve the quality of
elementary and secondary education to help all children meet
challenging State content and student achievement standards,
including initiatives to improve teacher quality. In addition,
funds support the distribution of books to promote childhood
literacy and projects to design and implement character education programs.
Safe and drug-free schools and communities.—
State Grants.—Funds provide formula grants to States
to support research-based drug and violence-prevention programs and to implement strategies to improve school safety.
National Programs.—Funds support national activities to
prevent violence and the illegal use of drugs among, and
to promote safety and discipline for, students.
State assessments and enhanced assessments instruments.—
Funds support formula grants to States to develop and implement the new assessments, and related accountability efforts,
that States would use to test all children annually in grades
3–8 in reading and mathematics.
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 attend
and achieve success in school.
Education for Native Hawaiians.—Funds provide supplemental education services to Native Hawaiians in areas such
as 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 areas such

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

DEPARTMENT OF EDUCATION

as educational planning, curriculum development, teacher
training, teacher recruitment, student enrichment, and homebased instruction for pre-school children. Grants also go to
organizations specified in the law.
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.

2001 actual

Identification code 91–1000–0–1–501

2002 est.

2003 est.

25.5
41.0

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

1
1
4,167

99.0
99.0

Direct obligations ..................................................
Reimbursable obligations ..............................................

4,208
8,251
6,783
60 ................... ...................

99.9

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

24.0
25.1
25.2
25.3

41.0

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

287

201 ...................

99.9

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

296

201 ...................

EDUCATION REFORM
Program and Financing (in millions of dollars)

1
1
37

1
13
56

2
16
50

1
1
2 ...................
8,178
6,714

4,268

8,251

6,783

Obligations by program activity:
21st Century community learning centers ....................
Small learning communities ..........................................
Educational technology:
02.01
Technology literacy challenge fund ...........................
02.02
Technology innovation challenge grants ...................
02.03
Regional technology in education consortia .............
National activities:
02.04
Teacher training in technology .................................
02.05
Community-based technology ...................................
02.06
Technology leadership activities ...............................
02.07 Star schools ...................................................................
02.08 Ready to learn television ...............................................
02.09 Telecommunications demonstration project for mathematics ........................................................................
00.01
01.01

READING EXCELLENCE

02.91

Program and Financing (in millions of dollars)
2001 actual

Identification code 91–0011–0–1–501

2002 est.

2003 est.

296

201 ...................

10.00

296

23.90
23.95
24.40

16
286

6 ...................
195 ...................

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

302
201 ...................
¥296
¥201 ...................
6 ................... ...................

91 ................... ...................
195
195 ...................

70.00

286

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

Change in obligated balances:
72.40 Obligated balance, start of year ...................................
73.10 Total new obligations ....................................................
73.20 Total outlays (gross) ......................................................
73.40 Adjustments in expired accounts (net) .........................
74.40 Obligated balance, end of year .....................................

282
449
377
296
201 ...................
¥128
¥273
¥266
¥1 ................... ...................
449
377
111

9
118

21 ...................
251
266

87.00

128

273

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

286
128

846 ................... ...................
22
103 ...................
450 ................... ...................
136 ................... ...................
10 ................... ...................
125
65
2
59
16

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

9 ................... ...................
872 ................... ...................

03.91
04.01

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

46 ................... ...................
30 ................... ...................

10.00

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

21.40
22.00
22.21
22.22

63
103 ...................
1,881 ................... ...................
¥26 ................... ...................
2 ................... ...................

23.90
23.95
23.98
24.40

1,920
103 ...................
¥1,816
¥103 ...................
¥1 ................... ...................
103 ................... ...................

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

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

72.40
73.10
73.20
73.40
74.40

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

2,392
2,464
774
1,816
103 ...................
¥1,738
¥1,793
¥651
¥6 ................... ...................
2,464
774
123

86.90
86.93

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

1,577 ................... ...................
161
1,793
651

87.00

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

89.00
90.00

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

195 ...................

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

2003 est.

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

201 ...................

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

2002 est.

03.01
03.02

Obligations by program activity:
00.01 Reading Excellence ........................................................
Total new obligations ................................................

2001 actual

Identification code 91–0500–0–1–501

Object Classification (in millions of dollars)

351

266

195 ...................
273
266

Reading Excellence.—This program has been replaced by
the Reading First program in the Education for the Disadvantaged account. Amounts in these schedules reflect balances
that are spending out from prior-year appropriations.

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

1,816

1,738

103 ...................

1,793

651

1,881 ................... ...................
1,738
1,793
651

Programs in this account have been transferred to the
School Improvement account or discontinued. Amounts in
these schedules reflect balances that are spending out from
prior-year appropriations.
Object Classification (in millions of dollars)

Object Classification (in millions of dollars)
2001 actual

Identification code 91–0011–0–1–501

24.0
25.1
25.2
25.3

Printing and reproduction ..............................................
Advisory and assistance services ..................................
Other services ................................................................
Other purchases of goods and services from Government accounts ...........................................................

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1 ................... ...................
2 ................... ...................
3 ................... ...................
3 ................... ...................

PO 00000

2001 actual

Identification code 91–0500–0–1–501
2002 est.

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25.1
25.2
25.3
25.5
41.0

Advisory and assistance services ..................................
Other services ................................................................
Other purchases of goods and services from Government accounts ...........................................................
Research and development contracts ...........................
Grants, subsidies, and contributions ............................

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2002 est.

2003 est.

7 ................... ...................
8 ................... ...................
1 ................... ...................
8 ................... ...................
1,792
103 ...................

352

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

THE BUDGET FOR FISCAL YEAR 2003
74.40

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

132

139

143

86.90
86.93

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

2
76

6
107

6
112

87.00

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

113

119

89.00
90.00

General and special funds—Continued

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

116
78

120
113

122
119

EDUCATION REFORM—Continued
Object Classification (in millions of dollars)—Continued
2001 actual

Identification code 91–0500–0–1–501

99.9

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

2002 est.

1,816

2003 est.

103 ...................

CHICAGO LITIGATION SETTLEMENT
Program and Financing (in millions of dollars)
2001 actual

Identification code 91–0220–0–1–501

2002 est.

2003 est.

10.00

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 .......

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

72.40
73.10
73.20
74.40

Change in obligated balances:
Obligated balance, start of year ...................................
Total new obligations ....................................................
Total outlays (gross) ......................................................
Obligated balance, end of year .....................................

2
1
¥1
2

86.93

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

89.00
90.00

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

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

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

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 Indian Education program supports the efforts of local
educational agencies and tribal schools to improve teaching
and learning for the Nation’s American Indian and Alaska
Native Children.
Grants to local educational agencies.—Formula grants support local educational agencies in their efforts to reform elementary and secondary school programs that serve Indian
students, with the goal of ensuring that such programs assist
participating students in meeting the same academic standards as all other students. In 2001, the Department made
1,212 formula grants to local educational agencies and tribal
schools serving more than 462,000 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)
2002 est.

2003 est.

25.2
41.0

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

2
114

3
117

5
117

99.9

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

116

120

122

OFFICE OF ENGLISH LANGUAGE
ACQUISITION

INDIAN EDUCATION
For expenses necessary to carry out, to the extent not otherwise
provided, title VII, part A of the Elementary and Secondary Education Act of 1965, ø$120,368,000¿ $122,368,000. (Department of Education Appropriations Act, 2002.)
Program and Financing (in millions of dollars)
2001 actual

Identification code 91–0101–0–1–501

2001 actual

Identification code 91–0101–0–1–501

2002 est.

2003 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

97
20
3

97
20
5

10.00

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

116

120

Federal Funds
General and special funds:
øBILINGUAL

AND

IMMIGRANT EDUCATION¿

ENGLISH LANGUAGE ACQUISITION
For carrying out title III, part A of the ESEA, $665,000,000, of
which ø$415,000,000¿ $469,000,000 shall become available on July
1, ø2002¿ 2003, and shall remain available through September 30,
ø2003¿ 2004. (Department of Education Appropriations Act, 2002.)

122

Program and Financing (in millions of dollars)
2001 actual

Identification code 91–1300–0–1–501

00.01
00.02
00.03
00.04
00.05
00.06

116
¥116

120
¥120

122
¥122

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

116

120

122

10.00

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

95
132
139
116
120
122
¥78
¥113
¥119
¥2 ................... ...................

22.00
23.95
23.98

Budgetary resources available for obligation:
New budget authority (gross) ........................................
Total new obligations ....................................................
Unobligated balance expiring or withdrawn .................

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

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2003 est.

Obligations by program activity:
Language acquisition State grants ............................... ...................
456
510
Bilingual education instructional services ....................
179
121
91
Bilingual education support services ............................
16 ................... ...................
Bilingual education professional development .............
99
88
64
Immigrant education .....................................................
150 ................... ...................
Foreign language assistance .........................................
14 ................... ...................

72.40
73.10
73.20
73.40

2002 est.

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458

665

460
665
665
¥458
¥665
¥665
¥2 ................... ...................

OFFICE OF SPECIAL EDUCATION AND REHABILITATIVE SERVICES
Federal Funds

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

353

00.02
00.03

665

414
425

390
472

390
437

00.91

460

Preschool grants ...................................................
Grants for infants and families ...........................

5,940

8,409

9,356

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

35
78
53
82
26
39

95
78
53
90
26
38

52
78
53
90
26
33

01.91

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

313

380

332

665

566
603
789
458
665
665
¥410
¥479
¥600
¥11 ................... ...................
603
789
854

86.90
86.93

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

17
393

33
446

33
567

02.00

Total Direct Program ......................................................

6,253

8,789

9,688

87.00

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

410

479

600

10.00

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

6,253

8,789

9,688

89.00
90.00

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

460
410

665
479

665
600

21.40
22.00

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

259
6,110

116 ...................
8,673
9,688

23.90
23.95
24.40

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

Language acquisition State grants.—Funds provide formula
grants to States and discretionary National Activities grants
to improve services for limited English proficient and immigrant students. States are accountable for demonstrating that
limited English proficient students are learning English and
meeting the same high State standards as all other students.
Under National Activities, the statute authorizes competitive
professional development grants and a clearinghouse.

2001 actual

25.2
25.5
41.0
99.9

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

2002 est.

3
3
3
4 ................... ...................
451
662
662

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

458

665

OFFICE OF SPECIAL EDUCATION AND
REHABILITATIVE SERVICES

2,368
3,742

3,601
5,072

4,616
5,072

70.00

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

6,110

8,673

9,688

72.40
73.10
73.20
73.40
74.40

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

86.90
86.93

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

2,314
3,495

3,470
3,454

3,491
4,701

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

5,809

6,924

8,192

89.00
90.00

2003 est.

87.00

Object Classification (in millions of dollars)
Identification code 91–1300–0–1–501

6,369
8,789
9,688
¥6,253
¥8,789
¥9,688
116 ................... ...................

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

6,110
5,809

8,673
6,924

9,688
8,192

4,044
4,469
6,334
6,253
8,789
9,688
¥5,809
¥6,924
¥8,192
¥20 ................... ...................
4,469
6,334
7,830

Federal Funds
SUMMARY OF PROGRAM LEVEL

General and special funds:

[In millions of dollars]

SPECIAL EDUCATION
For carrying out the Individuals with Disabilities Education Act,
ø$8,672,804,000¿ $9,687,804,000,
of
which
ø$3,315,233,000¿
$4,335,233,000 shall become available for obligation on July 1, ø2002¿
2003, and shall remain available through September 30, ø2003¿ 2004,
and of which $5,072,000,000 shall become available on October 1,
ø2002¿ 2003, and shall remain available through September 30,
ø2003¿ 2004, for academic year ø2002–2003¿ 2003–2004: 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¿ the amount for section 611(c) of the Act shall be
equal to the amount available for that section øunder Public Law
106–554¿ in the Department of Education Appropriations Act, 2002,
increased by the amount of inflation as specified in section
611(f)(1)(B)(ii) of the Actø: Provided further, That $8,380,000 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¿. (Department of Education Appropriations Act, 2002.)
Program and Financing (in millions of dollars)
2001 actual

Identification code 91–0300–0–1–501

Direct program:
Obligations by program activity:
State grants:
00.01
Grants to States ...................................................

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2003 est.

5,101

7,547

8,529

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2001–2002
academic
year

2002–2003
academic
year

2003–2004
academic
year

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

2,368
5,072

3,601
5,072

4,616
5,072

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

7,440

8,673

9,688

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

+1,330

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.

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354

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

THE BUDGET FOR FISCAL YEAR 2003

General and special funds—Continued
SPECIAL EDUCATION—Continued

The goal of this program is to help States provide a
comprehensive system of early intervention services that
will enhance child and family 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.
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:
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 .........................................

2001 actual

6,381
599
231
1997–1998
actual

2002 est.

6,470
611
242
1998–1999
actual

2003 est.

6,548
623
255
1999–2000
actual

46.5
29.1
20.4
2.8
.7
.5

47.4
28.4
20.1
2.9
.7
.5

47.3
28.3
20.3
2.9
.7
.5

55.4
11.2
31.0
2.4

57.4
11.2
28.9
2.5

56.2
11.4
29.4
3.0

Object Classification (in millions of dollars)
2001 actual

Identification code 91–0300–0–1–501

2002 est.

2003 est.

25.2
41.0

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

21
6,232

21
8,768

21
9,667

99.9

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

6,253

8,789

9,688

REHABILITATION SERVICES

AND

DISABILITY RESEARCH

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Program and Financing (in millions of dollars)
2001 actual

Identification code 91–0301–0–1–506

2002 est.

2003 est.

Obligations by program activity:
Direct program:
00.01
Vocational rehabilitation State grants ......................
2,400
2,481
2,616
00.02
Vocational rehabilitation incentive grants ................ ................... ...................
30
00.03
Client assistance State grants .................................
12
12
12
00.04
Training .....................................................................
40
40
43
00.05
Demonstration and training programs .....................
21
21
17
00.06
Migrant and seasonal farmworkers ..........................
2
2 ...................
00.07
Recreational programs ..............................................
2
3 ...................
00.08
Protection and advocacy of individual rights ...........
14
15
15
00.09
Projects with industry ...............................................
22
22 ...................
00.10
Supported employment State grants ........................
38
38 ...................
00.11
Independent living .....................................................
100
110
117
00.12
Program improvement ...............................................
2
1
1
00.13
Evaluation ..................................................................
2
1
1
00.14
Helen Keller National Center .....................................
9
9
9
00.15
National Institute on Disability and Rehabilitation
Research ...............................................................
100
110
110
00.16
Assistive technology ..................................................
40
61
31
00.17
Access to Telework Fund ........................................... ...................
10
10
01.00
09.01

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

2,804
7

2,936
7

3,012
7

10.00

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

2,811

2,943

3,019

Budgetary resources available for obligation:
Unobligated balance carried forward, start of year ................... ...................
New budget authority (gross) ........................................
2,812
2,953

10
3,009

21.40
22.00
23.90
23.95
23.98
24.40

Total budgetary resources available for obligation
2,812
2,953
3,019
Total new obligations ....................................................
¥2,811
¥2,943
¥3,019
Unobligated balance expiring or withdrawn .................
¥2 ................... ...................
Unobligated balance carried forward, end of year ....... ...................
10 ...................

New budget authority (gross), detail:
Discretionary:
40.00
Appropriation .............................................................
Mandatory:
60.00
Appropriation .............................................................
Discretionary:
68.00
Spending authority from offsetting collections: Offsetting collections (cash) .....................................

405

464

469

2,400

2,482

2,533

2,812

2,953

3,009

70.00

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$2,945,813,000¿ $3,001,840,000,
of which ø$56,552,000¿ $45,218,000 shall remain available through
September 30, ø2003: Provided¿ 2004, of which $30,000,000 shall
be used to make awards to State Vocational Rehabilitation agencies
based on their performance under the Vocational Rehabilitation State
Grants program as determined by the Secretary: Provided, That funds
available under the Vocational Rehabilitation State Grants program
may be used by State Vocational Rehabilitation agencies to pay for
the fiscal year 2003 continuation costs of projects funded in fiscal
year 2002 under title VI, Part A of the Rehabilitation Act: Provided
further, 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: øProvided further, That in the case of a
State that was in the third year of a 3-year extension grant made
pursuant to section 101(f) of the Assistive Technology Act of 1998
for fiscal year 2001, the Secretary of Education shall award under
such section an additional 1-year extension of the grant to such
State for fiscal year 2002 in an amount equal to the amount the
State received under such section for fiscal year 2001:¿ Provided
further, That each State shall be provided $50,000 for activities under
section 102 of the AT Act: Provided further, That ø$36,552,000¿
$15,218,000 shall be used to support grants for up to 3 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 $3,746,000 of the funds for sec-

VerDate 11-MAY-2000

tion 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¿. (Department of Education Appropriations Act, 2002.)

Fmt 3616

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

72.40
73.10
73.20
73.40
74.40

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

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

70
277
1,892
497

330
447
1,737
521

333
140
1,773
742

87.00

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

2,736

3,035

2,989

¥3
¥4

88.90

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

¥7

89.00
90.00

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

2,805
2,730

2,946
3,028

3,002
2,982

977
1,043
951
2,811
2,943
3,019
¥2,736
¥3,035
¥2,989
¥9 ................... ...................
1,043
951
981

Vocational rehabilitation State grants.—The basic State
grants program provides Federal matching funds to State vocational rehabilitation (VR) agencies to assist individuals with

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

DEPARTMENT OF EDUCATION

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 2003.
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 1999 (370,742) and 2000 (376,510).
CONSUMER OUTCOMES (CASES CLOSED)
1999 actual

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

231,714
84.9%
62.5%

2000 actual

236,210
87.1%
62.7%

The 2003 budget request reflects a multi-year Administration effort to reform job training programs, target resources
to programs with documented effectiveness, and eliminate
funding for duplicative and overlapping programs. Consistent
with this crosscutting reform, the budget consolidates funding
for three programs in this account (Supported Employment
State Grants, Projects with Industry, and the Migrant and
Seasonal Farmworkers program) within the Vocational Rehabilitation State Grants program.
Vocational rehabilitation incentive grants.—Under this new
program, incentive grants would be used to encourage State
VR agencies to improve their performance in helping individuals with disabilities obtain competitive employment. Grants
would be awarded to State VR agencies based on program
performance.
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.
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.
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.
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.
Evaluation.—Studies are conducted to evaluate the impact
and effectiveness of various programs authorized under the
Rehabilitation Act.
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

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355

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.—Federal matching funds are
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)
2001 actual

Identification code 91–0301–0–1–506

2002 est.

2003 est.

25.1
25.2
25.5
41.0

Direct obligations:
Advisory and assistance services .............................
Other services ............................................................
Research and development contracts .......................
Grants, subsidies, and contributions ........................

5
2
2
2,795

5
2
5
2,924

5
2
5
3,000

99.0
99.0

Direct obligations ..................................................
Reimbursable obligations ..............................................

2,804
7

2,936
7

3,012
7

99.9

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

2,811

2,943

3,019

SPECIAL INSTITUTIONS

FOR

PERSONS WITH DISABILITIES

AMERICAN PRINTING HOUSE FOR THE BLIND

For carrying out the Act of March 3, 1879, as amended (20 U.S.C.
101 et seq.), $14,000,000. (Department of Education Appropriations
Act, 2002.)
Program and Financing (in millions of dollars)
2001 actual

Identification code 91–0600–0–1–501

2002 est.

2003 est.

10.00

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

22.00
23.95

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

12
¥12

14
¥14

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

72.40
73.10
73.20
74.40

Change in obligated balances:
Obligated balance, start of year ...................................
Total new obligations ....................................................
Total outlays (gross) ......................................................
Obligated balance, end of year .....................................

4
12
¥11
5

5
14
¥19
1

1
14
¥14
1

86.90
86.93

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

7
3

13
5

13
1

87.00

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

89.00
90.00

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

12
11

14
19

14
14

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356

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

THE BUDGET FOR FISCAL YEAR 2003

General and special funds—Continued
SPECIAL INSTITUTIONS

FOR

PERSONS WITH DISABILITIES—Continued

AMERICAN PRINTING HOUSE FOR THE BLIND—Continued

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 2001, the portion of the
Federal appropriation allocated to educational materials represented approximately 50.6 percent of the Printing House’s
total sales. The full appropriation represented approximately
43.2 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$55,376,000¿ $52,014,000, of which ø$5,376,000¿ $1,600,000
shall be for construction and shall remain available until expendedø:
Provided, That from the total amount available, the Institute may
at its discretion use funds¿, and of which not less than $1,000,000
shall be used for the endowment program as authorized under section
207: Provided, That such $1,000,000 is available until expended. (Department of Education Appropriations Act, 2002.)

of 1986 (20 U.S.C. 4301 et seq.), ø$96,938,000: Provided, That from
the total amount available, the University may at its discretion use
funds¿ $94,446,000, of which not less than $1,000,000 shall be used
for the endowment program as authorized under section 207: Provided, That such $1,000,000 is available until expended. (Department
of Education Appropriations Act, 2002.)
Program and Financing (in millions of dollars)
2001 actual

Identification code 91–0602–0–1–502

00.01
00.02

2002 est.

Obligations by program activity:
Operations ......................................................................
89
97
Endowment ..................................................................... ................... ...................

2003 est.

93
1

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

89
¥89

97
¥97

94
¥94

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

72.40
73.10
73.20
74.40

Change in obligated balances:
Obligated balance, start of year ...................................
8 ...................
Total new obligations ....................................................
89
97
Total outlays (gross) ......................................................
¥97
¥91
Obligated balance, end of year ..................................... ...................
6

6
94
¥95
6

86.90
86.93

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

87.00

89.00
90.00

Program and Financing (in millions of dollars)
2001 actual

Identification code 91–0601–0–1–502

00.01
00.02
00.03

2002 est.

Obligations by program activity:
Operations ......................................................................
48
50
Construction ...................................................................
5
5
Endowment ..................................................................... ................... ...................

2003 est.

49
2
1

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

53
¥53

55
¥55

52
¥52

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

72.40
73.10
73.20
74.40

Change in obligated balances:
Obligated balance, start of year ...................................
5 ...................
Total new obligations ....................................................
53
55
Total outlays (gross) ......................................................
¥58
¥48
Obligated balance, end of year ..................................... ...................
8

8
52
¥51
9

86.90
86.93

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

87.00

89.00
90.00

53
48
5 ...................

46
4

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

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

53
58

55
48

52
51

This residential program provides postsecondary technical
and professional education for people who are deaf to prepare
them for employment, provides training, and conducts applied
research into employment related aspects of deafness. In
2001, Federal appropriations represented 81 percent of the
Institute’s operating budget. The request includes funds for
the Endowment Grant program. The request also includes
funds for a construction project to improve roadways, walkways, and parking lots associated with NTID buildings.

89
91
8 ...................

88
6

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

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

89
97

97
91

94
95

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.
In 2001, the Federal appropriation represented 62.4 percent
of the University’s total operating budget, which also includes
Federal financial aid, vocational rehabilitation, Endowment
Grant income, and competitive grants and contracts, and 98.1
percent of the operating budgets of the related elementary
and secondary schools. The request also includes funds for
the Endowment Grant program.
f

OFFICE OF VOCATIONAL AND ADULT
EDUCATION
Federal Funds
General and special funds:

VOCATIONAL

GALLAUDET UNIVERSITY

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

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AND

ADULT EDUCATION

For carrying out, to the extent not otherwise provided, the Carl
D. Perkins Vocational and Applied Technology Education Act, and
the Adult Education and Family Literacy Act, øand title VIII–D of
the Higher Education Act of 1965, as amended, and Public Law
102–73, $1,934,060,000,¿ $1,897,617,000 of which ø$1,136,560,000¿

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

DEPARTMENT OF EDUCATION
$1,100,117,000 shall become available on July 1, ø2002¿ 2003 and
shall remain available through September 30, ø2003¿ 2004 and of
which $791,000,000 shall become available on October 1, ø2002¿ 2003
and shall remain available through September 30, ø2003¿ 2004: Provided, øThat of the amounts made available for the Carl D. Perkins
Vocational and Applied Technology Education Act, $6,500,000 shall
be for tribally controlled postsecondary vocational and technical institutions under section 117: Provided further, That notwithstanding
any other provision of law or any regulation, the Secretary of Education shall not require the use of a restricted indirect cost rate
for grants issued pursuant to section 117 of the Carl D. Perkins
Vocational and Applied Technology Education Act: Provided further,
That $9,500,000 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 Applied Technology 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, $9,500,000 shall be for national
leadership activities under section 243 and ø$6,560,000¿ $6,617,000
shall be for the National Institute for Literacy under section 242:
Provided further, That ø$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¿ 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, 2002; additional authorizing language required.)

2001 actual

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

¥1,846
¥1,935
¥1,915
¥2 ................... ...................
65
64
47

1,035
791

1,143
791

1,107
791

70.00

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

1,826

1,934

1,898

72.40
73.10
73.20
73.40
74.40

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

86.90
86.93

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

622
1,057

651
1,175

649
1,234

87.00

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

1,679

1,827

1,883

89.00
90.00

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

1,826
1,679

1,934
1,827

1,898
1,883

1,334
1,496
1,604
1,846
1,935
1,915
¥1,679
¥1,827
¥1,883
¥6 ................... ...................
1,496
1,604
1,635

Program levels for activities in this account are as follows:
(in millions of dollars)
2001–2002
academic
year

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

2002–2003
academic
year

2003–2004
academic
year

2002 est.

309
791

389
791

Subtotal, basic grants ...................................................
b. National programs ..............................................................
c. Occupational & employment information ...........................
d. Tribally controlled postsecondary vocational institutions
e. Tech-prep education ...........................................................
f. Tech-prep demonstration ....................................................
Total, vocational education ...........................................
2. Adult education:
a. State grants .......................................................................
b. National Institute for Literacy ............................................
c. National leadership activities ............................................

1,100
18
9
6
106
5
1,243

1,180
12
10
6
108
5
1,321

1,180
12
0
6
108
0
1,306

540
6
14

575
7
10

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

560
17
5

591
17
5

591
0
0

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

Program and Financing (in millions of dollars)
Identification code 91–0400–0–1–501

23.95
23.98
24.40

357

1,826

1,934

1,898

2003 est.

SUMMARY OF PROGRAM LEVEL
Obligations by program activity:
Vocational education:
Annual appropriations:
Vocational education:
00.01
State grants .....................................................
1,128
00.02
National programs ............................................
15
00.03
Occupational and employment information .....
9
00.04
Tribally controlled postsecondary vocational
institutions ...................................................
6
00.05
Tech-prep education .........................................
110
00.06
Tech-prep demonstration ...................................... ...................

1,178
19
2

00.91

(in millions of dollars)

1,180
12
9

7
7
108
108
5 ...................

1,268

1,319

1,316

01.01
01.02
01.03

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

538
7
14

573
7
14

575
7
10

01.91
02.01
03.01

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

559
14
5

594
17
5

592
3
5

10.00

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

1,846

1,935

1,915

21.40
22.00

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

86
1,826

65
1,934

64
1,898

23.90

Total budgetary resources available for obligation

1,912

1,999

1,962

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2001–2002
academic
year

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

1,035
791

2002–2003
academic
year

1,143
791

2003–2004
academic
year

1,107
791

Total program level ............................................................ .................... .................... ....................
Change in advance appropriation from the previous year ........

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

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.
National programs.—Funds support discretionary 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 improve-

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358

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

THE BUDGET FOR FISCAL YEAR 2003

General and special funds—Continued
VOCATIONAL

AND

ADULT EDUCATION—Continued

ment 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
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.
Object Classification (in millions of dollars)
2001 actual

Identification code 91–0400–0–1–501

2002 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

2003 est.

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

1
3
2

2
3
2

1
3
2

25.5
41.0

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

10
16
1,812

9
16
1,902

9
16
1,881

99.0
99.5

Direct obligations ..................................................
Below reporting threshold ..............................................

1,844
2

1,934
1

1,912
3

part 1 of title VII of said Act, under the terms and conditions of
part A, subpart 1: Provided further, That $1,000,000 is for data collection and evaluation activities for programs under the øHigher Education Act of 1965¿ HEA, including such activities needed to comply
with the Government Performance and Results Act of 1993: øProvided
further, That $17,500,000 shall be available for tribally controlled
colleges and universities under section 316 of the Higher Education
Act of 1965:¿ Provided further, That notwithstanding any other provision of law, funds made available in this Act to carry out title VI
of the øHigher Education Act of 1965, as amended,¿ HEA and section
102(b)(6) of the Mutual Educational and Cultural Exchange Act of
1961 may be used to support visits and study in foreign countries
by individuals who are participating in advanced foreign language
training and international studies in areas that are vital to United
States national security and who plan to apply their language skills
and knowledge of these countries in the fields of government, the
professions, or international development: Provided further, That up
to one percent of the funds referred to in the preceding proviso
may be used for program evaluation, national outreach, and information dissemination activities: øProvided further, That $149,722,000
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 HEA shall be allocated notwithstanding section 210 of said
Act: Provided further, That the funds provided for part B of title
VII of the HEA may be used, at the discretion of the Secretary of
Education, to fund continuation awards under title VII, part D of
said Act. (Department of Education Appropriations Act, 2002.)
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
01.03

99.9

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

1,846

1,935

1,915
01.04

Personnel Summary

1001

01.05
2001 actual

Identification code 91–0400–0–1–501

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

2002 est.

2003 est.

OFFICE OF POSTSECONDARY EDUCATION

01.91
02.01
02.02
02.03
02.04
02.05
02.06

Federal Funds
02.07
02.08
02.09

General and special funds:
HIGHER EDUCATION
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 amendedø, section 1543 of the Higher Education
Amendments of 1992, title VIII of the Higher Education Amendments
of 1998¿ (‘‘HEA’’), and the Mutual Educational and Cultural Exchange Act of 1961, ø$2,031,048,000¿ $1,883,053,000, of which
ø$5,000,000¿ $3,000,000 for interest subsidies authorized by section
121 of the øHigher Education Act of 1965¿ HEA, shall remain available until expended: Provided, That $10,000,000, to remain available
through September 30, ø2003¿ 2004, shall be available to fund fellowships for academic year ø2003–2004¿ 2004–2005 under part A, sub-

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2001 actual

Identification code 91–0201–0–1–502

02.91

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 .............................................
Subtotal, other aid for institutions ......................
Assistance for students:
Federal TRIO programs ..............................................
Gaining early awareness and readiness for undergraduate programs (GEAR UP) .............................
Byrd honors scholarships ..........................................
Javits fellowships ......................................................
Graduate assistance in areas of national need
Thurgood Marshall legal educational opportunity
program .................................................................
B. J. Stupak Olympic scholarships ...........................
Child care access means parents in school ............
Learning anytime anywhere partnerships .................

2002 est.

2003 est.

185

206

213

45
9

49
8

51
8

333

361

373

103

151

181

6
13

7 ...................
9
3

317

381

234

730

803

295
41
10
31

285
41
10
31

4
4 ...................
1
1 ...................
16
25
15
30 ................... ...................
1,158

03.01
03.02
03.03

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

03.91

Subtotal, Other Aid ...............................................

103

10.00

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

1,911

2,035

1,883

21.40

Budgetary resources available for obligation:
Unobligated balance carried forward, start of year

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98
3
2

1,200

1,185

90
90
1
1
2 ...................

OFFICE OF POSTSECONDARY EDUCATION—Continued
Federal Funds—Continued

DEPARTMENT OF EDUCATION
22.00

New budget authority (gross) ........................................

23.90
23.95
23.98
24.40

1,912

2,031

1,883

1,934
2,045
1,893
¥1,911
¥2,035
¥1,883
¥9 ................... ...................
14
10
10

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

1,912

2,031

1,883

72.40
73.10
73.20
73.40
74.40

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

86.90
86.93

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

89
1,373

106
1,760

97
1,856

87.00

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

1,463

1,866

1,953

89.00
90.00

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

1,912
1,462

2,031
1,866

1,883
1,953

1,963
2,396
2,565
1,911
2,035
1,883
¥1,463
¥1,866
¥1,953
¥15 ................... ...................
2,396
2,565
2,495

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.
Interest subsidy grants.—Funds will meet mandatory interest subsidy costs of construction loan commitments made
prior to 1974.

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359

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
under-represented 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)
2001 actual

Identification code 91–0201–0–1–502

2002 est.

2003 est.

4
6

4
5

41.0

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

2
1,898

2
2,023

2
1,872

99.0
99.5

Direct obligations ..................................................
Below reporting threshold ..............................................

1,910
2,035
1,883
1 ................... ...................

99.9

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

25.1
25.2
25.3

1,911

2,035

1,883

Personnel Summary
2001 actual

Identification code 91–0201–0–1–502

1001

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

2002 est.

2003 est.

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

HOWARD UNIVERSITY
For partial support of Howard University (20 U.S.C. 121 et seq.),
$237,474,000, 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, 2002.)
Program and Financing (in millions of dollars)
2001 actual

Identification code 91–0603–0–1–502

00.01

Obligations by program activity:
General support .............................................................

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199

2002 est.

211

2003 est.

207

360

OFFICE OF POSTSECONDARY EDUCATION—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 2003
New budget authority (gross), detail:
Discretionary:
40.00
Appropriation (Federal administration) .....................

General and special funds—Continued
HOWARD UNIVERSITY—Continued
Program and Financing (in millions of dollars)—Continued
2001 actual

Identification code 91–0603–0–1–502

2002 est.

72.40
73.10
73.20

2003 est.

Outlays (gross), detail:
Outlays from new discretionary authority .....................
1
Outlays from discretionary balances ............................. ...................

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

00.02

Howard University Hospital ............................................

10.00

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

229

241

237

86.90
86.93

4 ...................
237
237

87.00

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

232
241
237
¥229
¥241
¥237
4 ................... ...................

89.00
90.00

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

1
1

21.40
22.00
23.90
23.95
24.40

Budgetary resources available for obligation:
Unobligated balance carried forward, start of year ...................
New budget authority (gross) ........................................
232
Total budgetary resources available for obligation
Total new obligations ....................................................
Unobligated balance carried forward, end of year .......

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

Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
millions of dollars)
232

237

237
2001 actual

Identification code 91–0241–0–1–502

Change in obligated balances:
72.40 Obligated balance, start of year ...................................
14 ...................
73.10 Total new obligations ....................................................
229
241
73.20 Total outlays (gross) ......................................................
¥243
¥227
74.40 Obligated balance, end of year ..................................... ...................
14

14
237
¥237
14

86.90
86.93

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

229
14

223
4

223
14

87.00

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

243

227

237

89.00
90.00

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

232
243

237
227

237
237

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 2001, direct
Federal appropriations for general support represented approximately 58 percent of the university’s revenue.
f

COLLEGE HOUSING

AND

ACADEMIC FACILITIES LOANS PROGRAM

For Federal administrative expenses authorized under section 121
of the Higher Education Act of 1965, ø$762,000¿ $787,000 to carry
out activities related to existing facility loans entered into under
the Higher Education Act of 1965. (Department of Education Appropriations Act, 2002; additional authorizing legislation required.)
HISTORICALLY BLACK COLLEGE AND UNIVERSITY CAPITAL FINANCING
PROGRAM ACCOUNT
The øtotal amount of¿ aggregate principal amount of outstanding
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, ø$208,000¿ $211,000. (Department of Education Appropriations Act, 2002; additional authorizing legislation required.)
Program and Financing (in millions of dollars)
2001 actual

Identification code 91–0241–0–1–502

00.09

Obligations by program activity:
Federal administration ................................................... ...................

2002 est.

2003 est.

10.00

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

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

Direct loan downward reestimate subsidy budget authority:
137001 Downward reestimates subsidy budget authority .........

2002 est.

2003 est.

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

137901 Total downward reestimate budget authority ...............
Direct loan downward reestimate subsidy outlays:
138001 Downward reestimates subsidy outlays ........................

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

138901 Total downward reestimate subsidy outlays .................

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

Administrative expense data:
351001 Budget authority ............................................................
1
1
1
358001 Outlays from balances ...................................................
1 ................... ...................
359001 Outlays from new authority ........................................... ................... ................... ...................

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 2003 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.
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 loans 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. No subsidy appropriations are required. The
2003 budget provides funds for continuing Federal administrative activities only.

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OFFICE OF POSTSECONDARY EDUCATION—Continued
Federal Funds—Continued

DEPARTMENT OF EDUCATION
1499

Personnel Summary

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

361

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

2003 est.

AND

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

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

1999
7

COLLEGE HOUSING

24
24

4999

1001

2002 est.

Total assets ........................................
LIABILITIES:
2103 Federal liabilities: Debt ...........................
2999

2001 actual

Identification code 91–0241–0–1–502

ACADEMIC FACILITIES LOANS FINANCING
ACCOUNT

COLLEGE HOUSING

Program and Financing (in millions of dollars)
2001 actual

Identification code 91–4252–0–3–502

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

2002 est.

2003 est.

AND

ACADEMIC FACILITIES LOANS LIQUIDATING
ACCOUNT

Program and Financing (in millions of dollars)
2001 actual

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

Identification code 91–0242–0–1–502

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

00.01
00.02

Obligations by program activity:
Interest paid to Treasury ...............................................
Loan Servicing ...............................................................

10.00

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

21.40
22.00
22.60

73
57
¥111

23.90
23.95
24.40

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

08.91

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

2003 est.

16
15
14
1 ................... ...................

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

10.00

2002 est.

Budgetary resources available for obligation:
22.00 New financing authority (gross) ....................................
22.60 Portion applied to repay debt ........................................

4
¥1

2
¥1

23.90
23.95

3
¥3

1
¥1

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

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

70.00

3
¥3
3

1
¥1
1

New budget authority (gross), detail:
Mandatory:
60.00
Appropriation .............................................................
69.00 Offsetting collections (cash) .........................................
69.27 Capital transfer to general fund ...................................

2 ...................
53
46
¥40
¥32

19
15
14
¥17
¥15
¥14
2 ................... ...................

Change
Total
Total
Total

in obligated balances:
new obligations ....................................................
financing disbursements (gross) .........................
financing disbursements (gross) .........................

Offsets:
Against gross financing authority and financing disbursements:
Offsetting collections (cash) from:
Non-Federal sources:
88.40
Interest repayments ..........................................
88.40
Principal repayments ........................................
88.90

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

¥1
¥1

¥2

2002 est.

26
25
¥1 ...................
25

2003 est.

25
¥1
24

Balance Sheet (in millions of dollars)
Identification code 91–4252–0–3–502

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

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2000 actual

70.00

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

Change in obligated balances:
Obligated balance, start of year ...................................
Total new obligations ....................................................
Total outlays (gross) ......................................................
Obligated balance, end of year .....................................

21
17
¥17
21

21
15
¥8
28

28
14
¥15
27

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

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

¥34
¥18

¥34
¥15

¥29
¥14

88.90

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

¥52

¥49

¥43

89.00
90.00

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

5
¥35

4
¥41

3
¥28

¥2

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

2001 actual

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

¥1
¥1

Status of Direct Loans (in millions of dollars)

1290

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

72.40
73.10
73.20
74.40

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.

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

4
43
¥1

69.90

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

Identification code 91–4252–0–3–502

5
49
¥1

86.98

73.10
73.20
87.00

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

7
52
¥2

2001 actual

2002 est.

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.
Status of Direct Loans (in millions of dollars)

2003 est.

2001 actual

Identification code 91–0242–0–1–502

26
–2

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–2

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–2

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

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2002 est.

2003 est.

118
116
111
1 ................... ...................

362

OFFICE OF POSTSECONDARY EDUCATION—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 2003
99.9

General and special funds—Continued
COLLEGE HOUSING

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

ACADEMIC FACILITIES LOANS LIQUIDATING
ACCOUNT—Continued

AND

2001 actual

2002 est.

2003 est.

Repayments: Repayments and prepayments .................

¥3

¥5

1290

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

116

111

108

Program and Financing (in millions of dollars)

¥3

1290

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

COLLEGE HOUSING LOANS
Cumulative balance of direct loans outstanding:
1210 Outstanding, start of year .............................................
1251 Repayments: Repayments and prepayments .................
1290

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

27
¥3

24
¥2

22
¥1

0111
0112

CHAFL LIQUIDATING:
Revenue ...................................................
Expense ....................................................

0115

2001 actual

Identification code 91–4255–0–3–502

2002 est.

2003 est.

00.01
00.02

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

16
1

42
2

40
2

10.00

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

313
¥29

284
¥27

257
¥25

284

257

232

2002 est.

22.00
22.60
22.70

2003 est.

23.90
23.95

Budgetary resources available for obligation:
New financing authority (gross) ....................................
38
44
43
Portion applied to repay debt ........................................ ................... ...................
¥1
Balance of authority to borrow withdrawn ....................
¥21 ................... ...................
Total budgetary resources available for obligation
Total new obligations ....................................................

17
¥17

44
¥44

42
¥42

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

HISTORICALLY BLACK COLLEGE AND UNIVERSITY CAPITAL FINANCING
DIRECT LOAN FINANCING ACCOUNT

1251

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

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

37
1

42
2

40
3

2000 actual

2001 actual

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

9
–35

12
–16

9
–13

70.00

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

72.40
73.10
73.20
74.40
87.00

25
17
¥12
30
12

30
44
¥40
34
40

34
42
¥37
39
37

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

¥1
¥1

¥2
¥1

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

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

–26

–4

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

3
–2

2
–1

0125

Net income or loss (–) .......................
COLLEGE HOUSING LOANS:
0131 Revenue ...................................................
0132 Expense ....................................................

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

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

40
–91

35
–35

31
–31

0135

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

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

–51

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

0191

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

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

0192

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

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

–128

–52

–45

0195

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

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

–76

–3

0199

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

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

–76

–3

Identification code 91–0242–0–1–502

2000 actual

2001 actual

2002 est.

2003 est.

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

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

425
6

390
6

362
5

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

¥1

¥2

¥3

89.00
90.00

Balance Sheet (in millions of dollars)

88.90

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

37
11

42
38

40
34

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

431

396

367

The Federal Financing Bank (FFB) purchases 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. HBCU bonds are also 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.

Total assets ........................................
LIABILITIES:
Federal liabilities:
2103
Debt .....................................................
2104
Resources payable to Treasury ...........

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

431

396

367

Status of Direct Loans (in millions of dollars)

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

236
195

196
200

164
203

2999

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

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

431

396

367

4999

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

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

431

396

367

1699

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

1999

2001 actual

Identification code 91–4255–0–3–502

Position with respect to appropriations act limitation
on obligations:
1111 Limitation on direct loans .............................................
1142 Unobligated direct loan limitation (¥) ........................
1150

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

1210
1231
1251

1290

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

Object Classification (in millions of dollars)
2001 actual

Identification code 91–0242–0–1–502

25.3
43.0

Other purchases of goods and services from Government accounts ...........................................................
Interest and dividends ...................................................

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2002 est.

2003 est.

1 ................... ...................
16
15
14

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2002 est.

2003 est.

311
¥295

295
¥253

254
¥214

21
31
11
39
¥1 ...................

70
35
¥1

104

OFFICE OF STUDENT FINANCIAL ASSISTANCE
Federal Funds

DEPARTMENT OF EDUCATION
74.40

2000 actual

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

2001 actual

2002 est.

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

7,153

6,789

7,408

86.90
86.93

Balance Sheet (in millions of dollars)
Identification code 91–4255–0–3–502

363

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

2,650
7,511

3,805
8,188

2,958
8,463

87.00

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

10,161

11,993

11,420

89.00
90.00

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

10,674
10,161

12,286
11,993

12,768
11,420

2003 est.

104

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

103

143

Summary of Budget Authority and Outlays

103

143

2999

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

103

143

4999

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

103

143

Enacted/requested:
2001 actual
2002 est.
2003 est.
Budget Authority .....................................................................
10,674
12,286
12,768
Outlays ....................................................................................
10,161
11,993
11,421
Supplemental proposal:
Budget Authority ..................................................................... ....................
1,276 ....................
Outlays .................................................................................... .................... ....................
1,276

1999

(in millions of dollars)

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

OFFICE OF STUDENT FINANCIAL
ASSISTANCE

10,674
10,161

13,562
11,993

12,768
12,697

Federal Funds
Status of Direct Loans (in millions of dollars)

General and special funds:
STUDENT FINANCIAL ASSISTANCE

Program and Financing (in millions of dollars)
2001 actual

Identification code 91–0200–0–1–502

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 ...............
02.91
03.01
04.01
10.00

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

21.40
22.00
22.10

23.90
23.95
24.40

2002 est.

2003 est.

8,978

9,648

10,134

692
1,017
101
60

727
1,017
100
68

725
1,011
100
68

Subtotal, Campus-based activities ......................
1,870
Leveraging educational assistance partnership ...........
55
Loan forgiveness for child care providers ..................... ...................

1,912
1,904
67 ...................
2
1

10,903

11,629

12,039

1,492
10,674

1,288
12,286

1,945
12,768

25 ................... ...................

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

12,191
¥10,903
1,288

13,574
¥11,629
1,945

14,713
¥12,039
2,674

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

10,674

12,286

12,768

72.40
73.10
73.20
73.40
73.45

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

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6,476
7,153
6,789
10,903
11,629
12,039
¥10,161
¥11,993
¥11,420
¥40 ................... ...................
¥25 ................... ...................

PO 00000

2001 actual

Identification code 91–0200–0–1–502

For carrying out subparts 1ø,¿, and 3 øand 4¿ of part A, section
428K, part C and part E of title IV of the Higher Education Act
of 1965, as amended, ø$12,285,500,000¿ $12,767,500,000, which shall
remain available through September 30, ø2003.¿
øThe maximum Pell Grant for which a student shall be eligible
during award year 2002–2003 shall be $4,000.¿ 2004: Provided, That
notwithstanding section 401(b)(2)(A) and 401(g) of the Act, the Secretary shall, prior to the publication of the Pell Grant payment schedule, establish the maximum Pell Grant award using the latest data
satisfactory to the Secretary to determine the maximum award supportable by amounts available under this heading in this and prior
appropriations Acts. (Department of Education Appropriations Act.
2002.)

Frm 00017

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2002 est.

2003 est.

outstanding:1

Cumulative balance of direct loans
Outstanding, start of year .............................................
Repayments: Repayments and prepayments .................
Write-offs for default:
1263
Direct loans ...............................................................
1264
Other adjustments, net .............................................
1210
1251

1290

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

615
¥28

606
¥27

596
¥27

¥9
27

¥9
18

606

596

578

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

The Administration’s 2003 budget for the SFA account is
$12.768 billion, an increase of $482 million, or 4 percent,
over the 2002 appropriation, which together with matching
funds (less allowable administrative costs) would provide
nearly 7.5 million awards totalling more than $14.2 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 $10.863 billion, an increase
of $549 million over the 2002 appropriation level. The budget
also proposes a 2002 supplemental appropriation of $1.276
billion to fully fund the $4,000 maximum award in academic
year 2002–2003. (For more information, please see the Supplemental Proposals chapter of this document.)
Pell Grant costs are highly dependent on volatile and economic trends, making it difficult to project the required funding level for a given maximum award at the time of the
appropriation, which may be nine or more months prior to
the affected academic year. Accordingly, the Administration
is proposing that the Secretary of Education use the most
recent program cost projections to set the maximum award
for each upcoming academic year immediately prior to the
publication of the Pell Grant payment schedule, which must
occur by February 1 each year. Under current estimates, the
Administration’s request for 2003 would maintain the Pell
Grant maximum award at $4,000 for academic year 2003–
2004, the highest level ever and a full $700, or 21 percent,
above the level only three years earlier. Nearly 4.5 million
students would receive awards under this request, an increase
of 55,000 over 2002.
Campus-based programs.—The Federal Supplemental Educational Opportunity Grants, Federal Work-Study, and Federal Perkins Loan programs are called the ‘‘campus-based’’

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364

OFFICE OF STUDENT FINANCIAL ASSISTANCE—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 2003

General and special funds—Continued

eral cost of those loans. The data in these tables include
the effects of matching funds wherever applicable.

STUDENT FINANCIAL ASSISTANCE—Continued

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 $725
million for the SEOG program in 2003, the same as the
2002 level. This level of funding would provide approximately
$918 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. The Administration proposes $1.011 billion,
the same as the 2002 appropriation, for the Work-Study program, which will provide $1.2 billion in aid to nearly 1 million
students.
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 2002 level.
This level of funding would provide $1.2 billion in available
aid to some 715,000 needy undergraduate and graduate students in the 2003–2004 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
$67.5 million, the same as the 2002 level.
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 2003, the same as the 2002 level. Fewer than 100
recipients are expected in either 2002 or 2003.
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 Fed-

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AID FUNDS AVAILABLE FOR POSTSECONDARY EDUCATION AND TRAINING
[in thousands]
2001 actual

2002 est.

2003 est.

9,850,580

10,707,780

10,840,290

11,882,308
10,144,360
2,667,148

12,703,968
10,893,200
2,934,287

13,585,032
11,697,856
3,230,084

5,388,042
3,985,785
1,260,807

5,748,126
4,277,414
1,378,308

6,133,202
4,590,536
1,507,071

9,255,251
7,760,000

8,334,685
8,643,078

6,877,114
5,307,205

Student loans, subtotal .............................................
Work-study ...................................................................................
Supplemental educational opportunity grants ............................
Perkins loans ...............................................................................
Leveraging educational assistance partnership .........................
Loan forgiveness for child care providers ..................................

52,343,700
1,214,643
874,684
1,194,989
135,000
1,000

54,913,066
1,214,643
917,722
1,202,200
171,000
1,000

52,928,100
1,214,643
917,722
1,202,200
0
1,000

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

65,614,595

69,127,410

67,103,955

2002 est.

2003 est.

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

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

NUMBER OF AID AWARDS
[In thousands]
2001 actual

Pell grants ...................................................................................
4,284
Guaranteed student loans:
Stafford loans .........................................................................
2,890
Unsubsidized Stafford loans ...................................................
2,041
PLUS ........................................................................................
310
Consolidation ..........................................................................
309
Direct student loans:
Stafford loans .........................................................................
1,273
Unsubsidized Stafford loans ...................................................
866
PLUS ........................................................................................
152
Consolidation ..........................................................................
367
Work-study ...................................................................................
970
Supplemental educational opportunity grants ............................
1,169
Perkins loans ...............................................................................
711
Leveraging Educational Assistance Partnership .........................
135
Loan forgiveness for child care providers .................................. ....................
Total awards ..................................................................

15,477

4,444

4,499

3,084
2,199
334
308

3,269
2,330
353
222

1,324
878
153
357
970
1,227
715
171
*

1,399
929
161
256
970
1,227
715
0
*

16,164

16,329

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

AVERAGE AID AWARDS
[In whole dollars]
2001 actual

Pell grants ...................................................................................
Guaranteed student loans:
Stafford loans .........................................................................
Unsubsidized Stafford loans ...................................................
PLUS ........................................................................................
SLS ..........................................................................................
Consolidation ..........................................................................
Direct student loans:
Stafford loans .........................................................................
Unsubsidized Stafford loans ...................................................
PLUS ........................................................................................
Consolidation ..........................................................................
Work-study ...................................................................................
Supplemental educational opportunity grants ............................
Perkins loans ...............................................................................
Leveraging Educational Assistance Partnership .........................
Loan forgiveness for child care providers ..................................
Unduplicated student count ........................................................

2002 est.

2003 est.

2,299

2,409

3,390
4,077
7,359
0
29,378

3,397
4,065
7,504
0
26,504

3,427
4,120
7,817
0
30,420

3,491
3,824
7,097
20,976
1,252
748
1,681
1,000
13,333

3,582
4,043
7,708
24,033
1,252
748
1,681
1,000
13,333

3,615
4,103
8,010
20,634
1,252
748
1,681
0
13,333

7,611

8,064

8,403

The following table displays institutional administrative
costs paid from program funds.
ADMINISTRATIVE PAYMENTS TO INSTITUTIONS
[In millions of dollars]
2001 actual

Pell grants ...................................................................................

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21,420

2002 est.

22,220

2003 est.

22,495

OFFICE OF STUDENT FINANCIAL ASSISTANCE—Continued
Federal Funds—Continued

DEPARTMENT OF EDUCATION
Work-study ...................................................................................
Supplemental educational opportunity grants ............................
Perkins loans ...............................................................................

75,897
34,987
47,800

75,897
36,709
48,088

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

2001 actual

615
952
155
–28
–114
–9
–9

606
956
164
–27
–125
–9
–9

596
960
167
–27
–136
–9
–9

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

1,562

1,556

1,542

1 Permanently
2 Unassigned

2002 est.

2003 est.

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

STUDENT AID ADMINISTRATION
For Federal administrative expenses to carry out part D of title
I; subparts 1, 3, and 4 of part A; and parts B, C, D, and E of
title IV of the Higher Education Act of 1965, as amended,
$936,386,000, which shall remain available through September 30,
2004, of which not more than $195,000,000 shall be for account maintenance fees for fiscal year 2003 that are payable to guaranty agencies
under part B and are calculated in accordance with section 458 of
the Act.

participants, reduce the cost of student aid administration,
and improve accountability and program integrity.
The Department’s student aid administrative activities are
funded from four main sources: (1) funds appropriated on
a permanent basis under section 458 of the Higher Education
Act; (2) a portion of the Department’s general Program Administration funds; (3) a discretionary appropriation partially
supporting administrative activities associated with the Federal Family Education Loan (FFEL) program; and (4) permanent funds from the Direct Loan program subsidy account
supporting the origination of Direct Consolidation Loans. Student aid administrative funds totaled $887 million in 2002,
$180 million of which supported the payment of account maintenance fees to FFEL guaranty agencies.
The budget for 2003 includes $936 million for student aid
administration. In order to improve accountability and simplify program oversight and operations, the Administration
is proposing to consolidate funding for student aid administrative activities into a single discretionary account. Funding
levels for this account will be based on a workload-based
methodology consistent with the goals of the performancebased organization.
Object Classification (in millions of dollars)
2001 actual

Identification code 91–0202–0–1–502

11.1
11.5

2001 actual

2002 est.

2003 est.

00.01

Obligations by program activity:
Student aid administration ...........................................

936

10.00

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

936

3
¥3

2
¥2

936
¥936

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

11.9
12.1
21.0
23.1
23.3
24.0
25.1
25.2
25.3

2002 est.

2003 est.

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

81
5

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

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

86
23
6
12
53
9
4
45

25.7
26.0
31.0
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 ................................................................
Other purchases of goods and services from Government accounts ...........................................................
Operation and maintenance of equipment ...................
Supplies and materials .................................................
Equipment ......................................................................
Grants, subsidies, and contributions ............................

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

8
491
1
3
195

99.9

Program and Financing (in millions of dollars)
Identification code 91–0202–0–1–502

365

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

936

Change in obligated balances:
73.10 Total new obligations ....................................................
3
2
73.20 Total outlays (gross) ......................................................
¥3
¥2
74.40 Obligated balance, end of year ..................................... ................... ...................

Personnel Summary
936
¥603
333

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

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

3
3

2
2

1001

936
603

Budget Authority and Outlays Excluding Full Funding for Federal Retiree Costs (in
millions of dollars)
2001 actual

89.00
90.00

2002 est.

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

14:01 Jan 23, 2002

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2003 est.

1,118

FEDERAL STUDENT LOAN RESERVE FUND
Program and Financing (in millions of dollars)
2001 actual

Identification code 91–4257–0–3–502

2002 est.

2003 est.

934
601

Fmt 3616

01.02

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

3,595

4,060

4,613

10.00

2003 est.

The Department of Education manages Federal student aid
programs that will provide over $67 billion in Federal student
aid grants and loans to over 8 million students and parents
in 2003. Primary responsibility for administering these programs lies with the Office of Postsecondary Education and
the performance-based Office of Student Financial Assistance
(SFA). SFA was created by Congress in 1998 with a mandate
to improve service to students and other student aid program

VerDate 11-MAY-2000

2002 est.

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

603

89.00
90.00

2001 actual

Identification code 91–0202–0–1–502

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

3,595

4,060

4,613

21.40
22.00
22.40
23.90
23.95
24.40

Budgetary resources available for obligation:
Unobligated balance carried forward, start of year
2,232
New budget authority (gross) ........................................
3,826
Capital transfer to general fund ................................... ...................

2,463
1,409
4,091
4,590
¥1,085 ...................

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

6,058
¥3,595
2,463

5,469
¥4,060
1,409

5,999
¥4,613
1,386

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

3,826

4,091

4,590

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OFFICE OF STUDENT FINANCIAL ASSISTANCE—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 2003

General and special funds—Continued

tion is developing, and will implement, a new method of calculating student loan credit cost estimates for the 2003 MidSession Review.

FEDERAL STUDENT LOAN RESERVE FUND—Continued
Program and Financing (in millions of dollars)—Continued
2001 actual

Identification code 91–4257–0–3–502

Credit accounts:

2002 est.

2003 est.

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

73.10
73.20

Change in obligated balances:
Total new obligations ....................................................
Total outlays (gross) ......................................................

4,060
¥4,060

4,613
¥4,613

86.97
86.98

Outlays (gross), detail:
Outlays from new mandatory authority .........................
3,595
4,060
Outlays from mandatory balances ................................ ................... ...................

4,590
23

3,595
¥3,595

2001 actual

Identification code 91–0243–0–1–502

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

3,595

4,060

¥3,417
¥409

¥3,687
¥404

¥4,207
¥383

88.90

¥3,826

¥4,091

¥4,590

89.00
90.00

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.

2000 actual

2001 actual

2002 est.

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

2,092
–1,953

3,826
–3,595

4,091
–4,060

4,590
–4,613

0105

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

139

231

–23

2000 actual

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

1999

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

783

Budgetary resources available for obligation:
Unobligated balance carried forward, start of year
10
15 ...................
New budget authority (gross) ........................................
1,931
783 ...................
Resources available from recoveries of prior year obligations .......................................................................
20 ................... ...................
22.40 Capital transfer to general fund ................................... ...................
¥15 ...................
23.90
23.95
24.40

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

1,961
783 ...................
¥1,946
¥783
¥2
15 ...................
¥2

New budget authority (gross), detail:
Discretionary:
40.00
Appropriation ............................................................. ................... ...................
¥797
Mandatory:
60.00
Appropriation .............................................................
1,931
783
797
Offsetting collections (cash):
69.00
Offsetting collections (cash) .....................................
1,039
731
617
69.00
Offsetting collections (cash)—Downward Reestimate ......................................................................
531 ................... ...................
69.00
Offsetting collections (cash)—Interest on downward reestimate ....................................................
147 ................... ...................
69.27 Capital transfer to general fund ...................................
¥1,717
¥731
¥617
69.90

Spending authority from offsetting collections (total
mandatory) ............................................................ ................... ................... ...................
Total new budget authority (gross) ..........................

72.40
73.10
73.20
73.45
74.40

86.90
86.97
86.98

Outlays (gross), detail:
Outlays from new discretionary authority ..................... ................... ...................
Outlays from new mandatory authority .........................
1,775
498
Outlays from mandatory balances ................................
199
210

Balance Sheet (in millions of dollars)

1101

1,946

21.40
22.00
22.10

2003 est.

0101
0102

Identification code 91–4257–0–3–502

1,085 ................... ...................
74 ................... ...................
787
783
2

70.00

Statement of Operations (in millions of dollars)
Identification code 91–4257–0–3–502

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

2003 est.

4,613

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

10.00

87.00

00.05
00.06
00.09

2002 est.

2001 actual

2002 est.

2003 est.

2,232

2,462

1,408

2,462

1,408

1,386

2,232

2,462

1,408

1,386

783 ...................

347
299
373
1,946
783
2
¥1,974
¥708
¥319
¥20 ................... ...................
299
373
56

¥512
512
319

1,386

2,232

1,931

87.00

3999

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

2,232

2,462

1,408

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

2,232

2,462

1,408

1,386

1,974

708

319

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

¥1,717

¥731

¥617

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

214
257

52
¥23

¥617
¥298

1,386

4999

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

Object Classification (in millions of dollars)
2001 actual

Identification code 91–4257–0–3–502

2002 est.

2003 est.

41.0
42.0

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

246
3,349

264
3,796

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

3,595

4,060

4,613

Budget Authority and Outlays Excluding Full Funding for Federal Retiree Costs (in
millions of dollars)
2001 actual

258
4,355

99.9

89.00
90.00

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

212
255

2002 est.

49
¥26

2003 est.

¥619
¥300

For Budget Enforcement Act purposes, the Administration
will use the Congressional Budget Office’s estimates of the
costs of legislative proposals rather than calculating costs
against baselines contained in the Appendix. The Administra-

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

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

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2001 actual

214
257

2002 est.

52
–23

2003 est.

–617
–298

OFFICE OF STUDENT FINANCIAL ASSISTANCE—Continued
Federal Funds—Continued

DEPARTMENT OF EDUCATION
Legislative proposal, subject to PAYGO:
Budget Authority ..................................................................... .................... ....................
Outlays .................................................................................... .................... ....................
Total:
Budget Authority .....................................................................
Outlays ....................................................................................

214
257

52
–23

3
15
–614
–283

Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
millions of dollars)
2001 actual

Identification code 91–0243–0–1–502

2002 est.

2003 est.

5,522
4,314
1,396
8,682

6,234
4,793
1,535
8,704

6,651
5,145
1,679
5,368

19,914

21,266

18,843

7.16
¥12.61
¥9.49
¥7.03

3.63
¥12.40
¥8.95
¥4.02

4.97
¥12.25
¥9.80
¥3.75

132901 Weighted average subsidy rate .....................................
Direct loan subsidy budget authority:
133001 Stafford ..........................................................................
133002 Unsubsidized Stafford ....................................................
133003 PLUS ...............................................................................
133004 Consolidated ..................................................................

¥4.47

¥4.02

¥3.52

396
¥544
¥133
¥610

226
¥594
¥137
¥350

331
¥630
¥165
¥201

133901 Total subsidy budget authority ......................................
Direct loan subsidy outlays:
134001 Stafford ..........................................................................
134002 Unsubsidized Stafford ....................................................
134003 PLUS ...............................................................................
134004 Consolidated ..................................................................

¥891

¥855

¥665

295
¥584
¥140
¥610

257
¥519
¥122
¥347

275
¥553
¥140
¥199

134901 Total subsidy outlays .....................................................
Direct loan upward reestimate subsidy budget authority:
135005 Upward reestimate subsidy budget authority ...............

¥1,039

¥731

¥617

115901 Total direct loan levels ..................................................
Direct loan subsidy (in percent):
132001 Stafford ..........................................................................
132002 Unsubsidized Stafford ....................................................
132003 PLUS ...............................................................................
132004 Consolidated ..................................................................

1,159 ................... ...................

135901 Total upward reestimate budget authority ....................
Direct loan upward reestimate subsidy outlays:
136005 Upward reestimates subsidy outlays .............................

1,159 ................... ...................

136901 Total upward reestimate outlays ...................................
Direct loan downward reestimate subsidy budget authority:
137005 Downward reestimates offsetting collection .................

1,159 ................... ...................

¥678 ................... ...................

137901 Total downward reestimate budget authority ...............
Direct loan downward reestimate subsidy outlays:
138005 Downward reestimates offsetting collection .................

¥678 ................... ...................

138901 Total downward reestimate subsidy outlays .................

¥678 ................... ...................

Student loan administrative expense data:
351001 Budget authority ............................................................
359001 Outlays ...........................................................................

¥678 ................... ...................

772
815

783 ...................
708
319

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 2003, 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 2003 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.
From its inception in 1965 through 2000, the FFEL program has provided over $347 billion in loans to postsecondary
students and their parents. Since July 1, 1994, the Direct

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367

Loan program has provided $92 billion in new and consolidation loans to students and parents. Taken together, the FFEL
and Direct Loan programs will make almost $38 billion in
new loans available in 2002. 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 30 percent in academic year 2001–2002. 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
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

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368

OFFICE OF STUDENT FINANCIAL ASSISTANCE—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 2003

Credit accounts—Continued
FEDERAL DIRECT STUDENT LOAN PROGRAM, PROGRAM ACCOUNT—
Continued

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 mathematics, science, and special education teachers considered highly qualified under criteria established in the No
Child Left Behind Act of 2001.
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.
Student loan program administration activities are supported from a variety of sources, including a permanent appropriation authorized under Section 458 of the Higher Education Act, a small discretionary appropriation partially supporting FFEL program administration, a portion of funds appropriated under the Department’s discretionary Program Administration account, and subsidy funds associated with the
origination of Direct Consolidation Loans. In order to improve
accountability and simplify the funding process for these administrative activities, the President is proposing to create
a unified, discretionary Student Aid Administration account.
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)
2001 actual

Program Cost:
FFEL:
Liquidating 1 ..............................................................
Program:
Regular ..................................................................
Consolidation ........................................................
Reestimate of Prior Year Costs ............................
Non-Contractual Modifications 2 ...........................
Subtotal, Program ............................................
Total FFEL: ........................................................
Direct Loans:
Program:
Regular ..................................................................

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2002 est.

2003 est.

(1,063,810)

(744,810)

(625,162)

2,930,652
137,638
(4,727,793)
0

3,302,001
479,229
0
0

3,397,928
702,793
0
23,540

(1,659,503)
(2,723,314)

3,781,230
3,036,420

4,124,260
3,499,098

(428,683)

(383,848)

(414,192)

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Consolidation ........................................................
Reestimate of Prior Year Costs ............................
Non-Contractual Modification 2 ............................
Total, Direct Loans ...........................................
Administration:3
4 ........................................................................
FFEL :
Student Aid 5 .............................................................

(610,326)
481,223
0
(557,786)

(347,452)
0
0
(731,300)

(199,020)
0
12,127
(601,085)

48,000
784,755

48,836
780,000

0
0

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:3
4 .........................................................................
FFEL
Student Aid 5 .............................................................

832,955
(2,448,344)

828,836
3,133,956

0
2,898,013

(852,539)

(680,208)

(625,162)

2,982,980
136,876
(4,727,793)
0
(1,607,937)
(2,460,476)

2,787,487
477,577
0
0
3,265,064
2,584,856

2,953,599
700,778
0
23,540
3,677,917
3,052,754

(428,683)
(610,326)
481,223
0
(557,786)

(383,848)
(347,452)
0
0
(731,300)

(414,192)
(199,020)
0
12,127
(601,085)

55,652
812,948

66,761
705,229

11,328
318,743

868,600
(2,149,662)

771,990
2,625,546

330,071
2,781,740

Subtotal, Administration .......................................
Total, FFEL and Direct Loans ...............................
1 Liquidating

account reflects loans made prior to 1992.
the costs or savings associated with policy changes that would affect the terms of existing loans.
2003, no funds are requested for loan administration, as these costs would be part of the proposed
discretionary Student Aid Administration account. Outlays in 2003 reflect outlays from prior year balances.
4 Reflects annual discretionary appropriation.
5 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.
2 Reflects
3 For

Summary of Loans Available (net commitments in millions of dollars) 1
2001 actual

2002 est.

2003 est.

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

11,882
10,144
2,667

12,704
10,893
2,934

13,585
11,698
3,230

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

24,694
9,255

26,531
8,335

28,513
6,877

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

33,949

34,866

35,390

5,388
3,986
1,261

5,748
4,277
1,378

6,133
4,591
1,507

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

10,635
7,760

11,404
8,643

12,231
5,307

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

18,395
52,344

20,047
54,913

17,538
52,928

1 Net

commitments equal gross commitments minus loan cancellations.

Number of Loans (In thousands)
2001 actual

2002 est.

2003 est.

3,505
2,488
362

3,740
2,680
391

3,964
2,839
413

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

6,355
315

6,811
314

7,216
226

6,670

7,125

7,442

1,543
1,042
178

1,605
1,058
179

1,696
1,119
188

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

2,763
370

2,842
360

3,003
257

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

3,133

3,201

3,261

Sfmt 3643

E:\BUDGET\EDU.XXX

pfrm11

PsN: EDU

OFFICE OF STUDENT FINANCIAL ASSISTANCE—Continued
Federal Funds—Continued

DEPARTMENT OF EDUCATION
Total, All Loans ..................................................................

9,803

10,326

10,703

Average Loan Size (in whole dollars)
2001 actual

3,390
4,077
7,359

2002 est.

3,397
4,065
7,504

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

277,985
92,297
370,282
4,703,387

479,274
89,232
568,506
3,278,768

369
649,803
124,539
774,343
3,646,020

2003 est.

3,427
4,120
7,817

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

3,886

3,896

3,951

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

29,378

26,505

30,420

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

5,090

4,893

4,755

3,491
3,824
7,097

3,582
4,043
7,708

3,615
4,103
8,010

Weighted Average, Without Consolidations ........................

3,849

4,013

4,073

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

20,976

24,033

20,614

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

5,871
5,339

6,262
5,318

5,379
4,945

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 $157 million for 2001 ($87 million for FFEL and $71 million for Direct Loans); $174 million for
2002 ($90 million for FFEL and $84 million for Direct Loans); and $206 million for 2003 ($92 million for FFEL
and $114 million for Direct Loans).

Projected Participation in Repayment Plans 1 (in percent)

Summary of Subsidy Rates, Default and Interest Rates
2001 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 ........................................................................................
Consolidated ...........................................................................
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) ..........

2002 est.

2003 est.

18.15%
4.98%
2.98%
1.72%
8.84%

16.40%
6.18%
4.74%
5.73%
9.76%

16.85%
4.64%
4.67%
10.19%
10.37%

7.16%
¥12.61%
¥9.49%
¥7.03%
¥4.47%

3.63%
¥12.40%
¥8.95%
¥4.02%
¥4.02%

5.02%
¥12.21%
¥9.80%
¥3.75%
¥3.50%

16.22
14.29
9.61
20.53
16.30

16.24
14.31
9.66
20.53
16.11

16.27
14.34
9.70
20.52
15.86

14.65
13.31
9.04
14.27
13.81

14.64
13.32
9.06
14.11
13.75

14.64
13.34
9.07
14.29
13.72

6.66
6.66
7.16
8.00

6.69
6.69
6.87
5.88

6.53
6.54
7.25
5.34

6.66
6.66
7.16
7.88

6.69
6.69
6.87
5.75

6.50
6.50
7.27
5.63

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 three years of repayment to determine institutional eligibility to participate in Federal loan programs.
These three-year rates tend to be lower than those included in this table.
3 These represent average borrower interest rates during repayment for a typical borrower under standard repayment
over the life of the loan.

Composition of Loan Collections (In thousands of dollars)
2001 actual

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

VerDate 11-MAY-2000

14:01 Jan 23, 2002

Jkt 189685

2001 actual

Direct Loans 1
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 .................................................................

2002 est.

2003 est.

2,699,372
683,106
950,627
4,333,104

1,487,641
509,439
713,183
2,710,262

1,609,925
524,292
737,462
2,871,678

PO 00000

Frm 00023

Fmt 3616

2002 est.

2003 est.

72.84
68.66
75.43
21.96

72.84
68.66
75.43
24.04

72.84
68.66
75.43
21.39

8.98
¥10.44
¥7.13
¥0.09

4.21
¥11.89
¥7.31
0.25

5.45
¥11.92
¥8.19
1.83

18.77
20.72
18.11
18.18

18.77
20.72
18.11
20.39

18.77
20.72
18.11
17.56

2.82
¥17.90
¥18.22
¥12.96

2.08
¥14.40
¥14.37
1.83

3.94
¥13.73
¥15.12
4.25

6.77
8.80
6.46
15.55

6.77
8.80
6.46
18.12

6.77
8.80
6.46
14.84

3.45
¥17.17
¥16.61
¥11.65

2.53
¥13.87
¥12.84
1.65

4.29
¥13.30
¥13.68
3.71

1.63
1.83
44.31

1.63
1.83
37.44

1.63
1.83
46.21

0.60
0.49
¥9.32

0.19
¥1.59
¥12.09

1.12
¥0.64
¥11.13

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.

Maximum Term (in
years)

Debt Level

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

12
15
20
25
30

Percent of Volume
Within Direct Extended and Graduated
Plans (Stafford) FY 02
12.59
35.21
36.41
11.07
4.72

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.
Consistent with the Federal Credit Reform Act of 1990,
the Office of Management and Budget establishes procedures
for the estimation of subsidy rates for the Federal student
loan programs. Subsidy costs for each loan type are estimated
separately and, because costs can vary widely within a pro-

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370

OFFICE OF STUDENT FINANCIAL ASSISTANCE—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 2003

Credit accounts—Continued
FEDERAL DIRECT STUDENT LOAN PROGRAM, PROGRAM ACCOUNT—
Continued

gram 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. 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.

Category 4: Proprietary school, all students ..........................
Category 5: Graduate students ..............................................

3.54
4.57

2001 actual

2002 est.

19.97
12.41
31.34
45.07
8.00

19.96
12.39
31.29
44.92
7.98

2003 est.

19.96
12.38
31.26
44.77
7.98

UNSUBSIDIZED 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 ..............................................

2001 actual

–12.18
–12.84
–6.75
–5.98
–13.88

2002 est.

–11.00
–12.87
–5.85
–3.52
–14.28

2003 est.

–10.48
–12.81
–6.31
–4.80
–13.95

Gross Default Rates (in percent)

2001 actual

2002 est.

19.64
11.47
27.35
34.98
8.07

19.63
11.44
27.32
34.86
8.05

2003 est.

19.63
11.44
27.28
34.75
8.05

PLUS LOANS
Subsidy Rate (as a percentage of loan commitments)
2001 actual

Subsidy Rate (as a percentage of loan commitments)
2001 actual

2.97
3.15

Gross Default Rates (in percent)

FFEL RISK CATEGORIES: STAFFORD LOANS
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 ..............................................

7.93
5.78

2002 est.

22.19
16.38
20.26
14.30
17.48

20.07
14.86
17.80
12.78
15.90

2003 est.

20.59
15.33
18.13
13.00
16.39

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

–9.49

2002 est.

–8.95

2003 est.

–9.80

Gross Default Rates (in percent)
2001 actual

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

2002 est.

9.04

9.06

2003 est.

–9.07

Selected Program Costs and Offsets 1 (in thousands of dollars)
Gross Default Rates (in percent)

2001 actual

2002 est.

20.40
12.69
31.52
45.67
8.15

20.40
12.66
31.48
45.52
8.13

2003 est.

20.40
12.65
31.45
45.38
8.13

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

2001 actual

2002 est.

5.55
4.54
8.93
7.31
4.13

7.65
5.58
10.78
10.48
4.63

2003 est.

5.97
4.10
9.22
9.12
3.06

2001 actual

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

2002 est.

2003 est.

19,583
1,926,586

15,176
2,177,225

13,656
2,121,050

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

1,946,169

2,192,401

2,134,705

44,675
900,126

5,414
782,745

12,268
908,788

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

944,801

788,159

921,056

185,476
1,560,662

32,326
3,224,912

13,772
3,580,502

1,746,138

3,257,238

3,594,274

1,018,996
2,149,336

888,787
2,203,638

740,109
2,485,062

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

3,168,332

3,092,425

3,225,172

45,454
(2,753)

57,493
0

50,217
(640)

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

42,700

57,493

49,577

48,570
274,703

36,531
371,638

27,729
421,800

323,273

408,169

449,529

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
86,606

6,636,713
286,635
601,172
89,663

8,335,706
183,226
828,396
91,637

Gross Default Rates (in percent)

2001 actual

2002 est.

20.31
11.70
27.74
35.67
8.23

20.31
11.71
27.71
35.55
8.21

2003 est.

20.31
11.70
27.68
35.44
8.21

PLUS LOANS
Subsidy Rate (as a percentage of loan commitments)
2001 actual

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

2002 est.

2.98

4.74

2003 est.

4.67

Gross Default Rates (in percent)
2001 actual

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

2002 est.

9.61

9.66

2003 est.

9.70

DIRECT LOAN 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 ................................

VerDate 11-MAY-2000

14:01 Jan 23, 2002

Jkt 189685

2001 actual

2002 est.

2003 est.

11.19
5.45
11.28

6.91
2.08
5.65

8.36
3.53
6.69

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Frm 00024

Fmt 3616

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

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

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PsN: EDU

OFFICE OF STUDENT FINANCIAL ASSISTANCE—Continued
Federal Funds—Continued

DEPARTMENT OF EDUCATION
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 ..................

73.20
48,000
635,000

48,000
770,000

180,000
149,799

170,000
176,814

180,000
185,782

2001 actual

11.9
12.1
21.0
23.1
23.3
24.0
25.1
25.2
25.3

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

25.7
26.0
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 ................................................................
Other purchases of goods and services from Government accounts ...........................................................
Operation and maintenance of equipment ...................
Supplies and materials .................................................
Equipment ......................................................................
Land and structures ......................................................
Grants, subsidies, and contributions ............................

99.9

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

2002 est.

1001

44
11
5
5
51
12
2
50

46
13
4
7
48
9
4
41

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

4
7 ...................
421
419 ...................
1 ................... ...................
6
2 ...................
5
3 ...................
1,329
180 ...................
1,946

783

2002 est.

630

2003 est.

631 ...................

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

3
15

89.00
90.00

2001 actual

(Legislative proposal, subject to PAYGO)
Program and Financing (in millions of dollars)
2001 actual

2002 est.

2003 est.

Obligations by program activity:
00.03 Non-Contractual Modifications ...................................... ................... ...................

10.00

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

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

Direct loan levels supportable by subsidy budget authority:
115001 Stafford ..........................................................................
115002 Unsubsidized Stafford ....................................................
115003 PLUS ...............................................................................
115004 Consolidated ..................................................................
115901 Total direct loan levels ..................................................
Direct loan subsidy (in percent):
132001 Stafford ..........................................................................
132002 Unsubsidized Stafford ....................................................
132003 PLUS ...............................................................................
132004 Consolidated ..................................................................
132901 Weighted average subsidy rate .....................................
Direct loan subsidy budget authority:
133001 Stafford ..........................................................................
133002 Unsubsidized Stafford ....................................................
133003 PLUS ...............................................................................
133004 Consolidated ..................................................................
133006 Non-contractual modifcations .......................................
133901 Total subsidy budget authority ......................................
Direct loan subsidy outlays:
134001 Stafford ..........................................................................
134002 Unsubsidized Stafford ....................................................
134003 PLUS ...............................................................................
134004 Consolidated ..................................................................
134006 Non-contractual modifications ......................................

2002 est.

2003 est.

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

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

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

0.05
0.04
0.00
0.00

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

0.03

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

...................
3
...................
2
................... ...................
................... ...................
...................
12

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

...................
2
...................
1
................... ...................
................... ...................
...................
12

134901 Total subsidy outlays ..................................................... ................... ...................
15
Direct loan upward reestimate subsidy budget authority:
135005 Upward reestimate subsidy budget authority ............... ................... ................... ...................

FEDERAL DIRECT STUDENT LOAN PROGRAM

Identification code 91–0243–4–1–502

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

Identification code 91–0243–4–1–502

40
44 ...................
2 ................... ...................
2
2 ...................

2001 actual

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

86.97

2003 est.

Personnel Summary
Identification code 91–0243–0–1–502

¥12

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

Object Classification (in millions of dollars)
Identification code 91–0243–0–1–502

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

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

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 For 2003, no funds are requested for loan administration, as these costs would be part of the proposed
discretionary Student Aid Administration account.
3 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
11.3
11.5

371

¥12
¥12

135901 Total upward reestimate budget authority .................... ................... ................... ...................
Direct loan upward reestimate subsidy outlays:
136005 Upward reestimates subsidy outlays ............................. ................... ................... ...................
136901 Total upward reestimate outlays ................................... ................... ................... ...................
Direct loan downward reestimate subsidy budget authority:
137005 Downward reestimates offsetting collection ................. ................... ................... ...................
137901 Total downward reestimate budget authority ............... ................... ................... ...................
Direct loan downward reestimate subsidy outlays:
138005 Downward reestimates offsetting collection ................. ................... ................... ...................
138901 Total downward reestimate subsidy outlays ................. ................... ................... ...................

New budget authority (gross), detail:
Mandatory:
69.00
Offsetting collections (cash) ..................................... ................... ...................
69.27
Capital transfer to general fund .............................. ................... ...................
69.90

73.10

¥3
3

Student loan administrative expense data:
351001 Budget authority ............................................................ ................... ................... ...................
359001 Outlays ........................................................................... ................... ................... ...................

Spending authority from offsetting collections
(total mandatory) ............................................. ................... ................... ...................
Change in obligated balances:
Total new obligations .................................................... ................... ...................

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These schedules represent the Administration’s proposal to
expand teacher loan forgiveness. This proposal is described
above in the main account narrative.

Sfmt 3616

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pfrm11

PsN: EDU

372

OFFICE OF STUDENT FINANCIAL ASSISTANCE—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 2003

FEDERAL DIRECT STUDENT LOAN PROGRAM, FINANCING ACCOUNT
Program and Financing (in millions of dollars)
2001 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 ..............................................................
01.05
Upward adjustment in prior obligations ...................
01.91

2002 est.

2003 est.

5,523
6,234
6,652
4,314
4,793
5,145
1,396
1,535
1,679
7,987
8,704
5,368
350 ................... ...................

Subtotal, direct loans obligations ........................
Payment for consolidations:
Consolidated—Payment of Orig. Services ................
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 ............................................................

19,570

21,266
40
84
4,800

29
114
5,623

852

793

604

08.91

Subtotal, other obligations ........................................

1,530

793

604

10.00

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

26,315

26,983

25,214

Repayment of principal, PLUS .....................
Interest received on loans, PLUS .................
Origination Fees, PLUS ................................
Payment of principal, Consolidated ............
Interest received on loans, Consolidated ....

¥863
¥256
¥35
¥1,638
¥494

¥510
¥352
¥54
¥1,377
¥1,901

¥649
¥385
¥59
¥1,859
¥2,245

88.90

Total, offsetting collections (cash) ..................
Against gross financing authority only:
Change in receivables from program accounts .......

¥11,220

¥10,129

¥12,350

89.00
90.00

18,844

43
71
5,101

88.40
88.40
88.40
88.40
88.40

88.95

Credit accounts—Continued

02.04
03.01
04.01
08.01
08.02
08.04

New financing authority (gross), detail:
Mandatory:
67.10
Authority to borrow ....................................................
69.00 Offsetting collections (cash) .........................................
69.10 Change in uncollected customer payments from Federal sources (unexpired) ............................................
69.47 Portion applied to repay debt ........................................
69.90
70.00

16,851
17,149

12,863
12,580

Status of Direct Loans (in millions of dollars)
2001 actual

Identification code 91–4253–0–3–502

2002 est.

2003 est.

26,319
26,984
25,213
¥26,315
¥26,983
¥25,214
4 ................... ...................

21,795
11,220

22,055
10,129

19,447
12,350

¥71 ................... ...................
¥6,625
¥5,204
¥6,584

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

4,524

4,925

26,319

26,980

25,213

5,522

6,234

6,652

1150

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

5,522

6,234

6,652

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

26,564

30,041

33,260

UNSUBSIDIZED STAFFORD
Position with respect to appropriations act limitation
on obligations:
1131 Direct loan obligations exempt from limitation ............

4,314

4,793

5,145

1150

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

4,314

4,793

5,145

1210
1231
1251
1261
1264

15,048
4,039
¥1,697
167
¥38

17,519
4,186
¥1,353
580
¥29

20,903
4,492
¥1,808
479
¥34

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

17,519

20,903

24,032

PLUS
Position with respect to appropriations act limitation
on obligations:
1131 Direct loan obligations exempt from limitation ............

1,396

1,535

1,679

1150

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

1,396

1,535

1,679

1210
1231
1251
1261
1264

3,875

4,677

5,461

CONSOLIDATED
Position with respect to appropriations act limitation
on obligations:
1131 Direct loan obligations exempt from limitation ............

7,987

8,704

5,647

1150

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

7,987

8,704

5,647

1210
1231
1251
1261
1264

1290

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

23,362
26,564
30,041
5,467
5,636
6,014
¥2,466
¥2,113
¥2,743
248 ................... ...................
¥47
¥46
¥52

5,766

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

STAFFORD
Position with respect to appropriations act limitation
on obligations:
1131 Direct loan obligations exempt from limitation ............

1290

147 ................... ...................

Budgetary resources available for obligation:
Unobligated balance carried forward, start of year ...................
4 ...................
New financing authority (gross) ....................................
26,319
26,980
25,213
Resources available from recoveries of prior year obligations .......................................................................
4,555 ................... ...................
22.60 Portion applied to repay debt ........................................
¥2,236 ................... ...................
22.70 Balance of authority to borrow withdrawn ....................
¥2,319 ................... ...................
Total budgetary resources available for obligation
Total new obligations ....................................................
Unobligated balance carried forward, end of year .......

15,170
13,408

1290

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

21.40
22.00
22.10

23.90
23.95
24.40

71 ................... ...................

Change in obligated balances:
Obligated balance, start of year ...................................
Total new obligations ....................................................
Total financing disbursements (gross) .........................
Recoveries of prior year obligations ..............................
Change in uncollected customer payments from Federal sources (unexpired) ............................................
74.40 Obligated balance, end of year .....................................
87.00 Total financing disbursements (gross) .........................
72.40
73.10
73.20
73.45
74.00

Offsets:
Against gross financing authority and financing disbursements:
Offsetting collections (cash) from:
Federal sources:
Payments from program account:
88.00
Upward reestimate .......................................
88.00
Interest on upward reestimate ....................
88.25
Interest on uninvested funds ...............................
Non-Federal sources:
Stafford loans:
88.40
Repayment of principal, Stafford ................
88.40
Interest received on loans, Stafford ............
88.40
Origination Fees, Stafford ............................
88.40
Other Fees, Stafford .....................................
88.40
Repayment of principal, Unsubsidized Stafford ..........................................................
88.40
Interest received on loans, Unsubsidized
Stafford ....................................................
88.40
Origination Fees, Unsubsidized Stafford .....

VerDate 11-MAY-2000

14:01 Jan 23, 2002

Jkt 189685

7,052
4,239
3,945
26,315
26,983
25,214
¥24,644
¥27,278
¥24,930
¥4,555 ................... ...................
71 ................... ...................
4,239
3,945
4,229
24,644
27,278
24,930

¥1,085 ................... ...................
¥74 ................... ...................
¥1,058 ................... ...................

¥2,466
¥2,113
¥2,743
¥762
¥1,287
¥1,339
¥139
¥169
¥180
¥28 ................... ...................
¥1,697

¥1,353

¥1,808

¥516
¥109

¥887
¥126

¥948
¥135

PO 00000

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PsN: EDU

3,502
3,875
4,677
1,258
1,340
1,466
¥863
¥510
¥649
6 ................... ...................
¥28
¥28
¥33

16,610
22,526
29,711
7,402
8,643
5,307
¥1,638
¥1,377
¥1,859
231 ................... ...................
¥79
¥81
¥101
22,526

29,711

33,058

OFFICE OF STUDENT FINANCIAL ASSISTANCE—Continued
Federal Funds—Continued

DEPARTMENT OF EDUCATION

FEDERAL FAMILY EDUCATION LOAN PROGRAM ACCOUNT

Balance Sheet (in millions of dollars)
2000 actual

Identification code 91–4253–0–3–502

ASSETS:
1101 Federal assets: Fund balances with
Treasury ...............................................
Net value of assets related to post–
1991 direct loans receivable:
1401
Direct loans receivable, gross ............
1402
Interest receivable ..............................
1405
Allowance for subsidy cost (–) ...........
1499
1901

Net present value of assets related
to direct loans ...........................
Other Federal assets: Other assets ........

1999

373

2001 actual

2002 est.

2003 est.

2,299

603

3,945

4,229

58,351
1,779
2,756

70,313
2,616
1,739

85,332
5,481
3,468

95,810
6,298
3,073

62,886
258

74,668
2,497

94,281
..................

105,181
..................

Total assets ........................................
LIABILITIES:
Federal liabilities:
2101
Accounts payable ................................
2103
Debt .....................................................

65,443

77,768

98,226

109,410

96
65,347

579
77,189

2,406
95,820

4,086
105,324

2999

Total liabilities ....................................
NET POSITION:

65,443

77,768

98,226

109,410

3999

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

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

4999

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

65,443

77,768

98,226

øFor Federal administrative expenses to carry out guaranteed student loans authorized by title IV, part B, of the Higher Education
Act of 1965, as amended, $49,636,000.¿ (Department of Education
Appropriations Act, 2002; additional authorizing legislation required.)

Program and Financing (in millions of dollars)
2001 actual

Identification code 91–0231–0–1–502

Obligations by program activity:
Guaranteed Loan Net Subsidy .......................................
Administrative expenses:
00.09
Administrative expenses due to limitations .............
00.02

2,726
48

2002 est.

3,373

2003 est.

3,675

49 ...................

109,410

10.00

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.

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

23.90
23.95
24.40

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

2,774

3,422

2
3,116

3 ...................
3,830
4,090

1 ................... ...................
¥342
¥411
¥415
2,777
3,422
3,675
¥2,774
¥3,422
¥3,675
3 ................... ...................

New budget authority (gross), detail:
Discretionary:
40.00
Appropriation (Federal administration) .....................
48
40.71
Reduction pursuant to P.L. 107–116 ....................... ...................

43.00

FEDERAL DIRECT STUDENT LOAN FINANCING ACCOUNT

60.00

(Legislative proposal, subject to PAYGO)

69.00
69.00

3,675

69.27
2001 actual

Identification code 91–4253–4–3–502

2002 est.

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

72.40
73.10
73.20
73.45
74.40

86.90
86.93
86.97
86.98

37
19
1,871
1,249

37 ...................
29
11
2,409
2,685
855
963

87.00

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

3,176

3,332

¥5

10.00

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

¥5

22.00
23.95

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

¥5
5

¥5

73.10
73.20
87.00

Change
Total
Total
Total

in obligated balances:
new obligations .................................................... ................... ...................
financing disbursements (gross) ......................... ................... ...................
financing disbursements (gross) ......................... ................... ...................

¥5
5
¥5

89.00
90.00

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

¥5
¥5

2000 actual

LIABILITIES:
2101 Federal liabilities: Accounts payable ......

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

2999

2002 est.

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

3999

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

14:01 Jan 23, 2002

4,090

3,526 ................... ...................
1,202 ................... ...................
¥4,728 ................... ...................

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

3,116

3,830

4,090

1,265
862
952
2,774
3,422
3,675
¥3,176
¥3,332
¥3,660
¥1 ................... ...................
862
952
967

3,660

¥4,728 ................... ...................

¥1,612
¥1,552

3,830
3,332

4,090
3,660

2003 est.

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

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

Jkt 189685

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

–5

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

PO 00000

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(in millions of dollars)

–5

These schedules represent the Administration’s proposal to
expand teacher loan forgiveness. This proposal is decribed
above in the main account narrative.

VerDate 11-MAY-2000

3,781

Summary of Budget Authority and Outlays

Total liabilities ....................................
NET POSITION:
3100 Appropriated capital ................................
Total net position ................................

2001 actual

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

89.00
90.00

Balance Sheet (in millions of dollars)
Identification code 91–4253–4–3–502

3,068

49 ...................

2003 est.

Obligations by program activity:
Other obligations:
08.01
Payment of negative subsidy to program account ................... ...................

New financing authority (gross), detail:
Mandatory:
67.10
Authority to borrow .................................................... ................... ...................

Appropriation (total discretionary) ........................
Mandatory:
Appropriation .............................................................
Offsetting collections (cash):
Offsetting collections (cash)—downward reestimate
Offsetting collections (cash)—interest on downward reestimate ....................................................
Capital transfer to general fund ...................................

70.00

Program and Financing (in millions of dollars)

50 ...................
¥1 ...................

Fmt 3616

Enacted/requested:
2001 actual
2002 est.
Budget Authority .....................................................................
–1,612
3,830
Outlays ....................................................................................
–1,552
3,330
Legislative proposal, subject to PAYGO:
Budget Authority ..................................................................... .................... ....................
Outlays .................................................................................... .................... ....................
Total:
Budget Authority .....................................................................
Outlays ....................................................................................

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–1,612
–1,552

3,830
3,330

2003 est.

4,090
3,659
34
30
4,124
3,689

374

OFFICE OF STUDENT FINANCIAL ASSISTANCE—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 2003

Credit accounts—Continued
FEDERAL FAMILY EDUCATION LOAN PROGRAM ACCOUNT—Continued
Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
millions of dollars)
2001 actual

Identification code 91–0231–0–1–502

2002 est.

2003 est.

12.1
23.1
23.3
25.2
25.3
25.7
31.0
41.0

Civilian personnel benefits ............................................
Rental payments to GSA ................................................
Communications, utilities, and miscellaneous charges
Other services ................................................................
Other purchases of goods and services from Government accounts ...........................................................
Operation and maintenance of equipment ...................
Equipment ......................................................................
Grants, subsidies, and contributions ............................

5
3
3
1

5
3
2
1

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

1
11
1
2,726

1 ...................
12 ...................
1 ...................
3,373
3,675

99.9

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

2,774

3,422

3,675

12,601
11,117
2,985
8,002

14,407
12,633
3,346
8,364

15,408
13,569
3,685
6,897

215901 Total loan guarantee levels ...........................................
Guaranteed loan subsidy (in percent):
232001 Stafford ..........................................................................
232002 Unsubsidized Stafford ....................................................
232003 PLUS ...............................................................................
232004 Consolidated ..................................................................

34,705

38,750

39,559

18.15
4.98
2.98
1.72

16.40
6.18
4.74
5.73

16.81
4.61
4.67
10.19

232901 Weighted average subsidy rate .....................................
Guaranteed loan subsidy budget authority:
233001 Stafford ..........................................................................
233002 Unsubsidized Stafford ....................................................
233003 PLUS ...............................................................................
233004 Consolidated ..................................................................

8.84

9.76

10.34

2,288
554
89
138

2,363
781
159
479

2,590
626
172
703

3,069

3,782

4,091

2,298
577
97
137

2,060
611
117
478

2,218
583
147
701

00.02

Obligations by program activity:
Guaranteed Loan Net Subsidy ....................................... ................... ...................

10.00

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

3,109

3,266

3,649

22.00
23.95

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

34
¥32

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

73.10
73.20
74.40

Change in obligated balances:
Total new obligations .................................................... ................... ...................
Total outlays (gross) ...................................................... ................... ...................
Obligated balance, end of year ..................................... ................... ...................

32
¥30
2

86.97

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

89.00
90.00

34
30

Personnel Summary
2001 actual

Identification code 91–0231–0–1–502

1001

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

234901 Total subsidy outlays .....................................................
Guaranteed loan downward reestimate subsidy budget
authority:
237005 Downward reestimate ....................................................

¥4,728 ................... ...................
¥4,728 ................... ...................

237901 Total downward reestimate subsidy budget authority
Guaranteed loan downward reestimate subsidy outlays:
238005 Downward reestimate subsidy outlays ..........................

¥4,728 ................... ...................

326 ...................

FEDERAL FAMILY EDUCATION LOAN PROGRAM ACCOUNT
(Legislative proposal, subject to PAYGO)
Program and Financing (in millions of dollars)
2001 actual

2002 est.

2003 est.

¥4,728 ................... ...................

238901 Total downward reestimate subsidy outlays .................

345

2003 est.

Identification code 91–0231–4–1–502

233901 Total subsidy budget authority ......................................
Guaranteed loan subsidy outlays:
234001 Stafford ..........................................................................
234002 Unsubsidized Stafford ....................................................
234003 PLUS ...............................................................................
234004 Consolidated ..................................................................

2002 est.

Administrative expense data:
351001 Budget authority ............................................................
359001 Outlays ...........................................................................

48
56

49 ...................
67
11

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. Consistent with the Administration’s proposal to consolidate student aid administrative activities in
a single discretionary account, these expenses are not reflected for 2003. For a discussion of this proposal, see the
narrative description above in the Student Aid Administration
account. 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.
Object Classification (in millions of dollars)
2001 actual

Identification code 91–0231–0–1–502

11.1
11.3
11.5

11.9

Total personnel compensation ..............................

VerDate 11-MAY-2000

14:01 Jan 23, 2002

Jkt 189685

2002 est.

2003 est.

21
23 ...................
1 ................... ...................
1
1 ...................
23

PO 00000

24 ...................

Frm 00028

Fmt 3616

Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
millions of dollars)
2001 actual

Identification code 91–0231–4–1–502

Guaranteed loan levels supportable by subsidy budget
authority:
215001 Stafford ..........................................................................
215002 Unsubsidized Stafford ....................................................
215003 PLUS ...............................................................................
215004 Consolidated ..................................................................
215901 Total loan guarantee levels ...........................................
Guaranteed loan subsidy (in percent):
232001 Stafford ..........................................................................
232002 Unsubsidized Stafford ....................................................
232003 PLUS ...............................................................................
232004 Consolidated ..................................................................
232901 Weighted average subsidy rate .....................................
Guaranteed loan subsidy budget authority:
233001 Stafford ..........................................................................
233002 Unsubsidized Stafford ....................................................
233003 PLUS ...............................................................................
233004 Consolidated ..................................................................
233901 Total subsidy budget authority ......................................
Guaranteed loan subsidy outlays:
234001 Stafford ..........................................................................
234002 Unsubsidized Stafford ....................................................
234003 PLUS ...............................................................................

Sfmt 3643

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2002 est.

2003 est.

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

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

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

0.04
0.03
0.00
0.00

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

0.03

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

...................
6
...................
4
................... ...................
................... ...................

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

................... ...................
4
................... ...................
2
................... ................... ...................

OFFICE OF STUDENT FINANCIAL ASSISTANCE—Continued
Federal Funds—Continued

DEPARTMENT OF EDUCATION
234004 Consolidated .................................................................. ................... ................... ...................

10.00

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

234901 Total subsidy outlays ..................................................... ................... ...................
6
Guaranteed loan downward reestimate subsidy budget
authority:
237005 Downward reestimate .................................................... ................... ................... ...................

21.40
22.00
22.10

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

237901 Total downward reestimate subsidy budget authority ................... ................... ...................
Guaranteed loan downward reestimate subsidy outlays:
238005 Downward reestimate subsidy outlays .......................... ................... ................... ...................
238901 Total downward reestimate subsidy outlays ................. ................... ................... ...................
Administrative expense data:
351001 Budget authority ............................................................ ................... ................... ...................
359001 Outlays ........................................................................... ................... ................... ...................

These schedules represent the Administration’s proposal to
expand teacher loan forgiveness. This proposal is described
above in the main account narrative.
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)
2001 actual

Identification code 91–4251–0–3–502

2002 est.

2003 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 ..................................................
01.09
Voluntary flexible Agreement Performance Fee .........

2,557
1,443
1,359
421
189
408
1,278
1,377
1,531
142
138
148
26
19
25
29
94
100
48 ................... ...................

01.91

Subtotal, Stafford loans .......................................
Unsubsidized Stafford loans:
Special allowance ......................................................
Default claims ...........................................................
Death, disability, and bankruptcy claims .................
Contract collection costs ...........................................
Loan Processing Fee ..................................................
Voluntary flexible agreement performance fee .........

4,501

Subtotal, Unsubsidized Stafford loans .................
PLUS loans:
Special allowance ......................................................
Default claims ...........................................................
Death, disability, and bankruptcy claims .................
Contract Collection Costs ..........................................
Loan Processing Fee ..................................................
Voluntary flexible agreement performance fee .........

1,056

02.02
02.03
02.04
02.07
02.08
02.09
02.91
03.02
03.03
03.04
03.07
03.08
03.09
03.91
04.02
04.03
04.04
04.07
04.09
04.91

3,260

3,571

275
144
291
644
725
905
81
77
89
11
4
6
24
82
87
21 ................... ...................
1,032

1,378

18
19
24
71
176
199
46
66
76
1
1
1
6
22
24
7 ................... ...................

Subtotal, PLUS loans ............................................
149
284
324
SLS loans:
Special allowance ...................................................... ...................
1
1
Default claims ...........................................................
75
40
15
Death, disability and bankruptcy claims ..................
12
7
6
Contract collection costs ...........................................
3
5
5
Voluntary flexible agreement performance fee .........
2 ................... ...................

05.02
05.03
05.04
05.07
05.09

Subtotal, SLS loans ..............................................
Consolidation loans:
Special allowance ......................................................
Default claims ...........................................................
Death, disability, and bankruptcy claims .................
Contract collection costs ...........................................
Voluntary flexible agreement performance fee .........

129
58
168
453
861
1,016
105
151
182
3
4
5
23 ................... ...................

05.91
08.02
08.03
08.04

Subtotal, Consolidations loans .............................
Downward reestimate ....................................................
Adjusting payments to liquidating accounts ................
Interest on downward reestimate ..................................

713
1,074
1,371
3,526 ................... ...................
476 ................... ...................
1,202 ................... ...................

08.91

Direct Program by Activities—Subtotal (1 level)

5,204 ................... ...................

23.90
23.95
24.40

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11,715

5,703

6,671

7,652
8,271

4,952
6,867

6,117
7,712

744 ................... ...................

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

16,667
¥11,715
4,952

11,819
¥5,703
6,117

13,829
¥6,671
7,158

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

8,271

6,867

7,712

72.40
73.10
73.20
73.45
74.40
87.00

Change in obligated balances:
Obligated balance, start of year ...................................
Total new obligations ....................................................
Total financing disbursements (gross) .........................
Recoveries of prior year obligations ..............................
Obligated balance, end of year .....................................
Total financing disbursements (gross) .........................

1,868
1,392
677
11,715
5,703
6,671
¥11,448
¥6,417
¥6,555
¥744 ................... ...................
1,392
677
792
11,448
6,417
6,555

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 ......................................
88.25
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
Other 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
Other fees ....................................................
88.40
Consolidation recoveries on defaults ..........
88.40
Consolidation origination fees .....................
88.40
Consolidated loan holders fee .....................

¥1,998
¥1,071
¥1,192
¥404
¥435
¥466
¥27
¥27
¥24
¥188 ................... ...................

88.90

¥8,271

89.00
90.00

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

¥2,298
¥577
¥97
¥137
¥461

¥2,060
¥611
¥117
¥478
¥395

¥803
¥332

¥289
¥373

¥2,218
¥583
¥147
¥701
¥447

¥363
¥400

¥17
¥18
¥18
¥65
¥60
¥73
¥96
¥99
¥109
¥6
¥6
¥6
¥207
¥94
¥93
¥1 ................... ...................
¥2 ................... ...................
¥240
¥307
¥411
¥28
¥41
¥34
¥287
¥386
¥427
¥6,867

¥7,712

Net financing authority and financing disbursements:
Financing authority ........................................................ ................... ................... ...................
Financing disbursements ...............................................
3,177
¥450
¥1,157

Status of Guaranteed Loans (in millions of dollars)
2001 actual

Identification code 91–4251–0–3–502

2002 est.

2003 est.

STAFFORD
Position with respect to appropriations act limitation
on commitments:
2131 Guaranteed loan commitments exempt from limitation

12,601

14,407

15,408

2150
2199

12,601
12,601

14,407
14,407

15,408
15,408

63,723
11,337
¥4,450

69,103
12,435
¥9,428

70,587
13,297
¥10,560

¥1,365

¥1,385

¥1,534

¥142

¥138

¥148

69,103

70,587

71,642

Total guaranteed loan commitments ........................
Guaranteed amount of guaranteed loan commitments

Cumulative balance of guaranteed loans outstanding:
Outstanding, start of year .............................................
Disbursements of new guaranteed loans ......................
Repayments and prepayments ......................................
Adjustments:
2261
Terminations for default that result in loans receivable .......................................................................
2263
Terminations for default that result in claim payments ....................................................................
2210
2231
2251

2290

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375

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

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376

OFFICE OF STUDENT FINANCIAL ASSISTANCE—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 2003

FEDERAL FAMILY EDUCATION LOAN PROGRAM, FINANCING
ACCOUNT—Continued

2331
2351
2361
2364

Disbursements for guaranteed loan claims .............
Repayments of loans receivable ...............................
Write-offs of loans receivable ...................................
Other adjustments, net .............................................

Status of Guaranteed Loans (in millions of dollars)—Continued

2390

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

Credit accounts—Continued

2001 actual

Identification code 91–4251–0–3–502

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

69,103

2002 est.

70,587

2003 est.

71,642

2,649
2,498
2,782
1,365
1,385
1,534
¥1,241
¥1,071
¥1,192
¥30
¥30
¥34
¥245 ................... ...................
2,498

2,782

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

76
163
199
¥39
¥60
¥73
¥10
¥12
¥17
¥34 ................... ...................
189

280

389

2,200
¥252

1,856
¥227

1,576
¥204

¥80

¥46

¥19

¥12

¥7

¥6

2290

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

1,856

1,576

1,347

2299

Memorandum:
Guaranteed amount of guaranteed loans outstanding,
end of year ................................................................

1,856

1,576

1,347

3,090

UNSUBSIDIZED STAFFORD
Position with respect to appropriations act limitation
on commitments:
2131 Guaranteed loan commitments exempt from limitation

11,117

12,633

13,569

2150
2199

11,117
11,117

12,633
12,633

13,569
13,569

36,718
9,624
¥3,736

41,838
10,651
¥4,897

46,790
11,438
¥6,196

¥687

¥725

¥893

¥81

¥77

¥89

41,838

46,790

51,050

Total guaranteed loan commitments ........................
Guaranteed amount of guaranteed loan commitments

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

2390

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

614

564

488

CONSOLIDATED
Position with respect to appropriations act limitation
on commitments:
2131 Guaranteed loan commitments exempt from limitation

8,002

8,364

6,897

2150
2199

8,002
8,002

8,364
8,364

6,897
6,897

28,162
6,955
¥2,144

32,384
8,335
¥2,438

37,316
6,877
¥3,053

¥484

¥814

¥1,010

¥105

¥151

¥182

Total guaranteed loan commitments ........................
Guaranteed amount of guaranteed loan commitments

41,838

46,790

51,050

901
922
1,337
687
725
893
¥490
¥289
¥363
¥17
¥21
¥29
¥159 ................... ...................
922

1,337

2290

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

32,384

37,316

39,948

2299

Memorandum:
Guaranteed amount of guaranteed loans outstanding,
end of year ................................................................

32,384

37,316

39,948

1,838

PLUS
Position with respect to appropriations act limitation
on commitments:
2131 Guaranteed loan commitments exempt from limitation

2,985

3,346

3,685

2150
2199

2,985
2,985

3,346
3,346

3,685
3,685

8,131
2,621
¥1,004

9,626
2,834
¥1,712

¥76

¥163

¥199

¥46

¥66

¥76

10,519
3,120
¥1,912

Total guaranteed loan commitments ........................
Guaranteed amount of guaranteed loan commitments

2390

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

9,626

10,519

11,452

2299

Memorandum:
Guaranteed amount of guaranteed loans outstanding,
end of year ................................................................

9,626

10,519

11,452

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

189

280

PO 00000

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1,116

1,855

2,411

2000 actual

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 ......................................
1502
Interest receivable ..............................
1505
Allowance for subsidy cost (–) ...........
1599

196

922
1,116
1,855
484
814
1,010
¥139
¥42
¥411
¥22
¥33
¥43
¥129 ................... ...................

Balance Sheet (in millions of dollars)
Identification code 91–4251–0–3–502

2290

Addendum:
Cumulative balance of defaulted guaranteed loans
that result in loans receivable:
2310
Outstanding, start of year ........................................

674
614
564
80
46
19
¥131
¥94
¥93
¥2
¥2
¥2
¥7 ................... ...................

1901

Net present value of assets related
to defaulted guaranteed loans
Other Federal assets: Other assets ........

Sfmt 3633

E:\BUDGET\EDU.XXX

pfrm11

2001 actual

9,741

6,531

6,117

7,158

5,342
1,189
1,503

5,339
1,287
1,830

6,816
1,390
2,233

8,215
1,501
2,724

8,034
2

8,456
336

10,439
..................

12,440
..................

PsN: EDU

2002 est.

2003 est.

OFFICE OF STUDENT FINANCIAL ASSISTANCE—Continued
Federal Funds—Continued

DEPARTMENT OF EDUCATION
1999

Total assets ........................................
LIABILITIES:
2101 Federal liabilities: Accounts payable ......
2204 Non-Federal liabilities: Liabilities for
loan guarantees ..................................

17,777

15,323

16,556

19,598

4,553

2,827

4,685

8,321

13,224

12,496

11,871

11,277

2999

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

17,777

15,323

16,556

19,598

4999

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

17,777

15,323

16,556

19,598

377

Special allowance net of origination fees ................
Default claims ...........................................................
Death, disability, and bankruptcy claims .................
Contract collection costs ...........................................

45
156
41
35

5
29
27
45

12
12
20
40

01.91

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.

01.02
01.03
01.04
01.07

296

121

02.01
02.02
02.05

Subtotal, Stafford loans .......................................
PLUS/SLS loans:
Default claims ...........................................................
Death, disability, and bankruptcy claims .................
Contract collection costs ...........................................

30
7
8

4
10
12

2
8
9

02.91

Subtotal, PLUS/SLS loans .....................................

10.00

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

341

147

117

521
437

146 ...................
147
117

FEDERAL FAMILY EDUCATION LOAN PROGRAM FINANCING ACCOUNT
(Legislative proposal, subject to PAYGO)

49 ................... ...................
¥521
¥146 ...................

23.90
23.95
24.40

486
147
117
¥341
¥147
¥117
146 ................... ...................

21.40
22.00
22.10

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

Program and Financing (in millions of dollars)
2001 actual

Identification code 91–4251–4–3–502

2002 est.

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

2003 est.

Budgetary resources available for obligation:
22.00 New financing authority (gross) .................................... ................... ...................
24.40 Unobligated balance carried forward, end of year ....... ................... ...................

6
6

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

¥4
¥2

88.90

69.90

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

1,501
¥1,064

892
¥745

742
¥625

437

147

117

72.40
73.10
73.20
73.45
74.40

86.97
86.98

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

227
422

147
117
65 ...................

87.00

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

649

212

422
65 ...................
341
147
117
¥649
¥212
¥117
¥49 ................... ...................
65 ................... ...................

¥6

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

Net financing authority and financing disbursements:
89.00 Financing authority ........................................................ ................... ................... ...................
90.00 Financing disbursements ............................................... ................... ...................
¥6

Balance Sheet (in millions of dollars)
2000 actual

Identification code 91–4251–4–3–502

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

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

1999

2001 actual

2002 est.

2003 est.

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

Total assets ........................................
LIABILITIES:
2101 Federal liabilities: Accounts payable ......

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

2999

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

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

4999

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

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

Offsets:
Against gross budget authority and outlays:
Offsetting collections (cash) from:
88.00
Federal sources .....................................................
Federal student loans:
Non-Federal sources:
88.40
Fed collections on defaulted loans, Stafford
88.40
Federal collections on bankruptcies, Stafford ..........................................................
88.40
Offsets against Federal tax refunds,Stafford ..........................................
88.40
Reimbursements from guaranty agencies,
Stafford ....................................................
88.40
Sallie Mae Offset Fee ..................................
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 .................................................

117

¥476 ................... ...................
¥356

¥260

¥229

¥4

¥2

¥173

¥241

¥204

¥335
¥230
¥179
¥1 ................... ...................
¥80

¥67

¥1

¥56

¥1 ...................

¥21

¥56

¥45

¥54

¥35

¥27

88.90

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

¥1,501

¥892

¥742

89.00
90.00

These schedules represent the Administration’s proposal to
increase teacher loan forgiveness. This proposal is described
above in the main account narrative.

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

¥1,064
¥852

¥745
¥680

¥625
¥625

FEDERAL FAMILY EDUCATION LOAN LIQUIDATING ACCOUNT
Status of Guaranteed Loans (in millions of dollars)

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.

2001 actual

Identification code 91–0230–0–1–502

Program and Financing (in millions of dollars)
2001 actual

Identification code 91–0230–0–1–502

Obligations by program activity:
Stafford loans:
01.01
Interest benefits, net of origination fees ..................

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2003 est.

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

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PsN: EDU

2002 est.

2003 est.

5,481
¥1,512

3,612
¥1,713

1,812
¥979

¥316

¥50

¥15

378

OFFICE OF STUDENT FINANCIAL ASSISTANCE—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 2003
Net value of assets related to pre–1992
direct loans receivable and acquired defaulted guaranteed loans
receivable:
Defaulted guaranteed loans, gross ....
Interest receivable ..............................
Allowance for estimated uncollectible
loans and interest (–) ....................

15,026
2,007

14,160
1,740

13,310
1,514

12,511
1,317

–14,087

–14,533

–14,200

–13,600

Defaulted guaranteed loans and
interest receivable, net ..............

2,946

1,367

624

228

Value of assets related to loan
guarantees .................................
Other Federal assets: Other assets ........

2,946
754

1,367
62

624
..................

228
..................

Total assets ........................................
LIABILITIES:
Non-Federal liabilities:
2201
Accounts payable ................................
2204
Liabilities for loan guarantees ...........

4,589

1,620

624

228

246
4,343

8
1,612

..................
624

..................
228

2999

Total liabilities ....................................
NET POSITION:

4,589

1,620

624

228

3999

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

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

4999

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

4,589

1,620

624

228

Credit accounts—Continued
FEDERAL FAMILY EDUCATION LOAN LIQUIDATING ACCOUNT—
Continued

1701
1702
1703

Status of Guaranteed Loans (in millions of dollars)—Continued
2001 actual

Identification code 91–0230–0–1–502

2263
2290

2002 est.

2003 est.

1704

Terminations for default that result in claim payments ....................................................................

¥41

¥37

¥28

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

3,612

1,812

790

1799
1901

2299

Memorandum:
Guaranteed amount of guaranteed loans outstanding,
end of year ................................................................

1999
3,612

1,812

790

12,835
316
¥628
¥183
¥246

12,094
50
¥419
¥173
¥59

11,493
15
¥344
¥164
¥46

2390

12,094

11,493

10,954

1,042
¥93

881
¥103

760
¥103

¥61

¥8

¥2

¥7

¥10

¥8

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.

881

760

647

Object Classification (in millions of dollars)

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

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 ....................................................................
2290

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

2299

Memorandum:
Guaranteed amount of guaranteed loans outstanding,
end of year ................................................................

881

760

647

2,151
61
¥113
¥32
¥41

2,026
8
¥75
¥30
¥8

1,921
2
¥60
¥29
¥6

2,026

1,921

1 Excludes

interest and premium collections on insured loans.

1,828

2390

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

2001 actual

Identification code 91–0230–0–1–502

2002 est.

2003 est.

25.2
33.0
41.0
42.0

Other services ................................................................
Investments and loans ..................................................
Grants, subsidies, and contributions ............................
Insurance claims and indemnities ................................

43
185
64
49

57
32
21
37

49
14
26
28

99.9

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

341

147

117

OFFICE OF EDUCATIONAL RESEARCH AND
IMPROVEMENT
Federal Funds
General and special funds:

Statement of Operations (in millions of dollars)

EDUCATION RESEARCH, STATISTICS,
Identification code 91–0230–0–1–502

0111
0112

Stafford:
Revenue ...................................................
Expense ....................................................

0115

Net income or loss (–) ............................
PLUS/SLS:
0121 Revenue ...................................................
0122 Expense ....................................................

2000 actual

2001 actual

2002 est.

2003 est.

1,711
–221

868
–296

733
–122

613
–98

1,490

572

611

515

307
–30

156
–45

159
–25

129
–19

0125

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

277

111

134

110

0191

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

2,018

1,024

892

742

0192

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

–251

–341

–147

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

1,767

683

745

625

0199

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

1,767

683

745

625

ASSESSMENT

–117

0195

AND

øFor 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, including sections 411 and 412; section 4 of the No Child Left Behind
Act of 2001; and title VI, part A of the Elementary and Secondary
Education Act, $443,870,000: Provided, That $58,000,000 of the
amount available for the national education research institutes 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.¿ (Department of Education Appropriations Act, 2002.)
Program and Financing (in millions of dollars)
2001 actual

Identification code 91–1100–0–1–503

Balance Sheet (in millions of dollars)
Identification code 91–0230–0–1–502

1101

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

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2001 actual

889

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2002 est.

2003 est.

191

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

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2002 est.

2003 est.

Direct program:
Obligations by program activity:
Research, development and dissemination:
00.01
Research and dissemination ................................
120
122 ...................
00.02
Regional educational laboratories ........................
65
67 ...................
00.03
Statistics ...............................................................
80
85 ...................
00.04
Assessment ................................................................
40
112 ...................
00.05
Eisenhower professional development Federal activities ...................................................................
23 ................... ...................
00.06
Fund for the Improvement of Education ...................
340
1 ...................
00.07
Mulit-year grants and contracts ............................... ...................
58 ...................

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OFFICE OF EDUCATIONAL RESEARCH AND IMPROVEMENT—Continued
Federal Funds—Continued

DEPARTMENT OF EDUCATION
00.08
00.09
00.10
00.11
00.12

Javits gifted and talented education ........................
Eisenhower regional mathematics and science education consortia ....................................................
National writing project ............................................
Civic education ..........................................................
International education exchange .............................

15
10
12
10

01.00
09.01

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

723
5

445 ...................
5 ...................

10.00

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

728

450 ...................

21.40
22.00

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

2
727

1 ...................
449 ...................

23.90
23.95
24.40

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

New budget authority (gross), detail:
Discretionary:
40.00
Appropriation .............................................................
40.75
Reduction pursuant to P.L. 106–554 (Labor/HHS)
41.00
Transferred to other accounts ...................................
43.00
68.00

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

729
450 ...................
¥728
¥450 ...................
1 ................... ...................

25.5
25.7
31.0
41.0

Advisory and assistance services .............................
Other services ............................................................
Other purchases of goods and services from Government accounts .................................................
Research and development contracts .......................
Operation and maintenance of equipment ...............
Equipment .................................................................
Grants, subsidies, and contributions ........................

36
98
6
2
494

36
98
6
2
174

99.0
99.0

Direct obligations ..................................................
Reimbursable obligations ..............................................

723
5

445 ...................
5 ...................

99.9

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

25.1
25.2
25.3

2
81

379
2 ...................
123 ...................

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

728

450 ...................

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

Personnel Summary
2001 actual

Identification code 91–1100–0–1–503

1001

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

2002 est.

2003 est.

15 ...................

733
444 ...................
¥1 ................... ...................
¥10 ................... ...................

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

722

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

727

449 ...................

72.40
73.10
73.20
73.40
74.40

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

ASSESSMENT

5 ...................

70.00

AND

(Legislative proposal, not subject to PAYGO)

444 ...................

EDUCATION RESEARCH, STATISTICS,

Program and Financing (in millions of dollars)
2001 actual

2002 est.

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

175
68
95
95

01.00
09.01

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

433
5

10.00

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

438

22.00
23.95

438
¥438

New budget authority (gross), detail:
Discretionary:
40.00
Appropriation ............................................................. ................... ...................
68.00 Spending authority from offsetting collections: Offsetting collections (cash) .............................................. ................... ...................

433

70.00

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

438

73.10
73.20
74.40

438
¥112
326

86.90

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

112

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

¥5

433
107

Identification code 91–1100–2–1–503

720
876
502
728
450 ...................
¥570
¥824
¥404
¥2 ................... ...................
876
502
98

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

132
438

107 ...................
717
404

87.00

570

824

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

404

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

¥5

¥5 ...................

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

722
565

444 ...................
819
404

89.00
90.00

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

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

Enacted/requested:
2001 actual
2002 est.
2003 est.
Budget Authority .....................................................................
722
444 ....................
Outlays ....................................................................................
565
819
404
Legislative proposal, not subject to PAYGO:
Budget Authority ..................................................................... .................... ....................
433
Outlays .................................................................................... .................... ....................
107
Total:
Budget Authority .....................................................................
Outlays ....................................................................................

722
565

444
819

433
511

The Administration will propose legislation reauthorizing
the research, statistics, and assessment activities carried out
by the Office of Educational Research and Improvement.
When new authorizing legislation is enacted, resources for
these programs will be requested. See the ‘‘Legislative proposal, not subject to PAYGO’’ schedule for additional details.
Object Classification (in millions of dollars)
2001 actual

Identification code 91–1100–0–1–503

2002 est.

2003 est.

11.1
11.3

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

1
1

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

11.9
24.0

Total personnel compensation .........................
Printing and reproduction .........................................

2
2

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

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89.00
90.00

2003 est.

Research and dissemination.—The Administration’s proposal will address needed improvements in the quality and
relevance of the Department’s research activities. Funds will
support a diverse portfolio of directed research, field-initiated
studies, research and development centers, and interagency
initiatives. New research on reading comprehension, early
childhood education, and learning and cognition will expand
the understanding of how children learn. Funds also will support fellowships for doctoral students to increase the nation’s
educational research capacity and dissemination activities
that provide parents, teachers, and schools with valid information on effective educational practice.

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380

OFFICE OF EDUCATIONAL RESEARCH AND IMPROVEMENT—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 2003
10.00

General and special funds—Continued
EDUCATION RESEARCH, STATISTICS,

AND

Regional educational laboratories.—Funds will be used to
continue current contracts for the network of regional laboratories. The laboratories conduct applied research and development, dissemination, and technical assistance activities to address needs in their regions.
Statistics.—Funds support the Department’s statistical data
collection activities, which are conducted by the National Center for Education Statistics (NCES). NCES collects, analyzes,
and disseminates statistics on education at all levels, from
preschool through postsecondary and adult education, including statistics on international education activities.
Assessment.—Funds support the National Assessment of
Educational Progress (NAEP). NAEP administers assessments
to samples of students in order to gather reliable information
about educational attainment in important academic areas.
Funds support collection and reporting of national, State, and
long-term trend information, including the conduct of biennial
State NAEP in reading and mathematics at grades 4 and
8.

11.1
11.3
11.9
24.0
25.1
25.2
25.3

2001 actual

2002 est.

436

425

425
436
425
¥425
¥436
¥425
¥1 ................... ...................

New budget authority (gross), detail:
Discretionary:
40.00
Appropriation .............................................................
424
435
423
40.71
Reduction pursuant to P.L. 107–116 ....................... ...................
¥1 ...................
40.75
Reduction pursuant to P.L. 106–554 (Labor/HHS)
¥1 ................... ...................

1
1

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

2
2
2
167

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

36
98
6
2
118

99.0
99.0

Direct obligations .................................................. ................... ...................
Reimbursable obligations .............................................. ................... ...................

433
5

99.9

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

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

423

434

423

70.00

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

425

436

425

72.40
73.10
73.20
73.40
74.40

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

151
133
116
425
436
425
¥449
¥453
¥410
6 ................... ...................
133
116
130

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

328
336
325
120
117
85
1 ................... ...................

87.00

2003 est.

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

43.00
68.00

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

449

453

410

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

¥2

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

423
447

434
451

423
408

438

25.5
25.7
31.0
41.0

Total personnel compensation .........................
Printing and reproduction .........................................
Advisory and assistance services .............................
Other services ............................................................
Other purchases of goods and services from Government accounts .................................................
Research and development contracts .......................
Operation and maintenance of equipment ...............
Equipment .................................................................
Grants, subsidies, and contributions ........................

22.00
23.95
23.98

425

86.90
86.93
86.98

Object Classification (in millions of dollars)
Identification code 91–1100–2–1–503

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

ASSESSMENT—Continued

Personnel Summary
2001 actual

Identification code 91–1100–2–1–503

1001

2002 est.

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

2003 est.

DEPARTMENTAL MANAGEMENT
Federal Funds
General and special funds:
PROGRAM ADMINISTRATION
For carrying out, to the extent not otherwise provided, the Department of Education Organization Act, including rental of conference
rooms in the District of Columbia and hire of øtwo¿ three passenger
motor vehicles, ø$424,212,000¿ $423,291,000, of which $12,795,000,
to remain available until expended, shall be for building alterations
and related expenses for the modernization of the Mary E. Switzer
Building in Washington, D.C. (Department of Education Appropriations Act, 2002; additional authorizing legislation required.)
Program and Financing (in millions of dollars)
2001 actual

Identification code 91–0800–0–1–503

00.01
09.01

Obligations by program activity:
Program administration .................................................
Reimbursable program ..................................................

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2003 est.

423
2

434
2

423
2

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89.00
90.00

Budget Authority and Outlays Excluding Full Funding for Federal Retiree Costs (in
millions of dollars)
2001 actual

89.00
90.00

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

412
436

2002 est.

423
440

2003 est.

412
397

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, and programs for persons
with disabilities. 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;
telecommunications; 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; personnel security; budget
formulation and execution; program evaluation; legal services;
congressional and public relations; and intergovernmental affairs.
Included in this account is the Department of Education’s
portion of costs to modernize the Mary E. Switzer building,
including costs for building renovations, furniture, information technology equipment and services, and telecommunications, to remain available until expended. The additional
funds required for the modernization will be provided by the
General Services Administration. This account also provided
funds for the renovation of the Department’s main headquarters building which was completed in 1998.

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DEPARTMENTAL MANAGEMENT—Continued
Federal Funds—Continued

DEPARTMENT OF EDUCATION

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.
Note.—Excludes $54 million in budget authority in 2003 for activities transferred to
the Student Aid Administration account. Comparable amounts for 2001 ($58 million) and
2002 ($59 million) are included above.

381

86.93

Outlays from discretionary balances .............................

87.00

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

89.00
90.00

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

79
83

83
85

89
86

Budget Authority and Outlays Excluding Full Funding for Federal Retiree Costs (in
millions of dollars)
2001 actual

2002 est.

2003 est.

Object Classification (in millions of dollars)
2001 actual

Identification code 91–0800–0–1–503

11.1
11.3
11.5
11.9
12.1
21.0
23.1
23.3

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

25.7
26.0
31.0
32.0
99.0
99.0
99.5

183
10
4

208
56
5
35

197
55
6
32

12
2
6
21

14
3
4
21

15
3
5
20

11
76
2
11
2

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

193
10
5

189
50
6
34

Direct obligations ..................................................
Reimbursable obligations ..............................................
Below reporting threshold ..............................................

99.9

2003 est.

164
20
5

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 ............................................................
Other purchases of goods and services from Government accounts .................................................
Operation and maintenance of equipment ...............
Supplies and materials .............................................
Equipment .................................................................
Land and structures ..................................................

24.0
25.1
25.2
25.3

2002 est.

8
66
3
9
2

8
60
3
16
3

1001

11.1
11.3

425

2002 est.

2,581

2,709

2003 est.

OFFICE

FOR

2001 actual

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

25.2
25.3
25.7
31.0

CIVIL RIGHTS

For expenses necessary for the Office for Civil Rights, as authorized
by section 203 of the Department of Education Organization Act,
ø$79,934,000¿ $89,710,000. (Department of Education Appropriations
Act, 2002; additional authorizing legislation required.)

86
83

2002 est.

2003 est.

44
2

48
2

49
2

Total personnel compensation .........................
46
Civilian personnel benefits .......................................
13
Travel and transportation of persons .......................
1
Rental payments to GSA ...........................................
6
Communications, utilities, and miscellaneous
charges .................................................................
2
Other services ............................................................
2
Other purchases of goods and services from Government accounts .................................................
2
Operation and maintenance of equipment ............... ...................
Equipment .................................................................
6

11.9
12.1
21.0
23.1
23.3

2,476

80
82

Object Classification (in millions of dollars)

425

436

76
80

The Office for Civil Rights is responsible for ensuring that
no person is unlawfully discriminated against on the basis
of race, color, national origin, sex, disability, or age in the
delivery of services or the provision of benefits in programs
or activities of schools and institutions receiving financial assistance from the Department of Education. The authorities
under which the Office for Civil Rights operates are Title
VI of the Civil Rights Act of 1964 (racial and ethnic discrimination), Title IX of the Education Amendments of 1972 (sex
discrimination), section 504 of the Rehabilitation Act of 1973
(discrimination against individuals with a disability), the Age
Discrimination Act of 1975, and the Americans with Disabilities Act of 1990.

Identification code 91–0700–0–1–751

2001 actual

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

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

422
434
423
2
2
2
1 ................... ...................

Personnel Summary
Identification code 91–0800–0–1–503

89.00
90.00

50
14
1
6

51
15
1
6

2
1

1
5
2

1
8
3

99.0
99.5

Direct obligations ..................................................
Below reporting threshold ..............................................

78
1

82
1

88
1

99.9

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

Program and Financing (in millions of dollars)
2001 actual

Identification code 91–0700–0–1–751

2002 est.

Personnel Summary

2003 est.

2001 actual

Identification code 91–0700–0–1–751

Obligations by program activity:
00.01 Civil rights .....................................................................

10.00

2002 est.

2003 est.

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

1001

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

696

718

714

Budgetary resources available for obligation:
22.00 New budget authority (gross) ........................................
23.95 Total new obligations ....................................................
New budget authority (gross), detail:
Discretionary:
40.00
Appropriation .............................................................

72.40
73.10
73.20
73.40
74.40

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

86.90

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

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Jkt 189685

79
¥79

83
¥83

89
¥89

23
17
15
79
83
89
¥83
¥85
¥86
¥1 ................... ...................
17
15
18

OFFICE

OF THE

INSPECTOR GENERAL

For expenses necessary for the Office of the Inspector General,
as authorized by section 212 of the Department of Education Organization Act, ø$38,720,000¿ $42,361,000. (Department of Education Appropriations Act, 2002; additional authorizing legislation required.)
Program and Financing (in millions of dollars)
2001 actual

Identification code 91–1400–0–1–751

2002 est.

2003 est.

Frm 00035

Fmt 3616

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

PO 00000

Obligations by program activity:
Inspector General ...........................................................

10.00
67

00.01

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382

DEPARTMENTAL MANAGEMENT—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 2003

General and special funds—Continued
OFFICE

OF THE

INSPECTOR GENERAL—Continued

GENERAL FUND RECEIPT ACCOUNTS

Program and Financing (in millions of dollars)—Continued
(in millions of dollars)
2001 actual

Identification code 91–1400–0–1–751

2002 est.

2003 est.
2001 actual

37
¥37

40
¥40

42
¥42

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

72.40
73.10
73.20
73.40
74.40

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

86.90
86.93

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

31
6

33
8

34
6

87.00

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

89.00
90.00

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

37
37

40
39

42
39

36
36

2002 est.

2003 est.

39
38

41
38

The Inspector General is responsible for the quality, coverage, and coordination of audit and investigation 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)
2001 actual

Identification code 91–1400–0–1–751

11.1
11.3
11.5
11.9
12.1
21.0
23.1
23.3
25.1
25.2
25.3

2002 est.

2003 est.

17
20
21
1
1
1
1 ................... ...................
19
6
2
2
1
2
1

21
6
2
3
1
2
1

22
6
2
3
1
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
Advisory and assistance services ..................................
Other services ................................................................
Other purchases of goods and services from Government accounts ...........................................................
Operation and maintenance of equipment ...................
Equipment ......................................................................

1
2
1

2
2
1

99.9

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

Personnel Summary
2001 actual

Identification code 91–1400–0–1–751

1001

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

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General Fund Offsetting receipts from the public .....................

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

GENERAL PROVISIONS

2001 actual

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

2003 est.

10
9
10
37
40
42
¥37
¥39
¥39
¥1 ................... ...................
9
10
13

Budget Authority and Outlays Excluding Full Funding for Federal Retiree Costs (in
millions of dollars)

89.00
90.00

2002 est.

Offsetting receipts from the public:
91–274130 College housing and academic facilities loan,
downward reestimates of subsidies ..................................
91–291500 Repayment of loans, capital contributions,
higher education activities ................................................

2002 est.

2003 est.

275

285

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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 ø1¿ 3 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 ø3¿ 10
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. (a) Section 1543(a) of the Higher Education Amendments of 1992 (20 U.S.C. 1070 note) is amended by striking paragraph (2) and inserting the following:
‘‘(2) AWARD DETERMINATION.—The amount of the financial assistance provided to an athlete described in paragraph (1) shall be
determined in accordance with criteria, and in amounts, specified
in the application of the center under subsection (c). Such assistance shall not exceed the athlete’s cost of attendance as determined
under section 472 of the Higher Education Act of 1965 (20 U.S.C.
1087ll).
‘‘(3) INFORMATION ON DISTRIBUTION OF ASSISTANCE.—Each center
providing such assistance shall annually report to the Secretary
such information as the Secretary may reasonably require on the
distribution of such assistance among athletes and institutions of
higher education. The Secretary shall compile such reports and
submit them to the Committees on Education and the Workforce
and Appropriations of the House of Representatives and the Committees on Health, Education, Labor, and Pensions and Appropriations of the Senate.’’.
(b) The amendments made by subsection (a) shall apply with respect to any funds appropriated pursuant to section 1543(d) of the
Higher Education Amendments of 1992, including funds appropriated
pursuant to that section in fiscal years 2000 and 2001, that are

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GENERAL PROVISIONS—Continued

DEPARTMENT OF EDUCATION
available for financial assistance under section 1543 on or after the
date of enactment of this Act.¿
øSEC. 306. (a) Notwithstanding sections 413D, 442, and 488 of
the Higher Education Act of 1965, the Secretary of Education may
reallocate, from funds made available under the heading ‘‘Student
Financial Assistance’’ to carry out part C of title IV of that Act,
excess allocations for fiscal year 2002 in an amount not to exceed
$1,000,000 in the aggregate to institutions of higher education described in subsection (b) for the purposes described in subsection
(c). The reallocation to each such institution shall be made in accordance with subsection (d). Such excess allocations shall remain available for obligation until March 31, 2004.
(b) An institution of higher education may receive a reallocation
under subsection (a) if the institution—
(1) is, on the date of enactment of this Act, participating in
the Federal Supplemental Educational Opportunity Grant and Federal Work Study programs under subpart 3 of part A, and part
C of title IV of that Act, respectively;
(2) initially began participating in both such programs during
or after 1989, but not later than 1999;
(3) has a current enrollment of not less than 2,000 students;
(4) provides educational programs for which the institution
awards baccalaureate and graduate degrees;
(5) has experienced an actual enrollment increase of 75 percent
or more since the institution began participating in such programs;
and
(6) charged, for academic year 2000–2001, in-State tuition and
fees for a full-time undergraduate student that were less than
such tuition and fees charged by the institution for academic year
1998–1999.
(c) An institution of higher education that receives a reallocation
under subsection (a) may use that reallocation for Federal Supplemental Educational Opportunity Grants or Federal Work Study
awards.
(d)(1) A reallocation made under subsection (a) to an institution
described in subsection (b) shall be determined by calculating the
difference between—
(A) the amount (commonly referred to as the ‘‘base guarantee’’)
that the institution received under section 413D(a) or 442(a) of
that Act, as the case may be; and

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383

(B) the amount that the institution would receive pursuant to
section 413D(a)(2)(B)(ii) or 442(a)(2)(B)(ii) of that Act, as the case
may be, if the institution were beginning its program participation
in the 2002–2003 academic year.
(2) If the amounts available for reallocation under subsection (a)
are insufficient to fully fund the amounts determined under paragraph (1) of this subsection to each institution described in subsection
(b), then the amount to be reallocated to each such institution shall
be ratably reduced.
(e) The Secretary may use such data as he determines appropriate
in order to carry out this section.¿
øSEC. 307. If this Act is enacted before H.R. 1, the No Child
Left Behind Act of 2001, is enacted, then references to the Elementary and Secondary Education Act of 1965 or to any other Acts
that would be amended by H.R. 1 shall be read to be references
to those Acts as they would be amended by H.R. 1 (including amendments made by H. Con. Res. 289, as passed by the House and the
Senate).¿
SEC. 305. (a) DISCRETIONARY FUNDING.—Section 458(a)(1) of the
Higher Education Act of 1965 (20 U.S.C. 1087h(a)(1)), is amended—
(1) in the matter preceding subparagraph (A), by striking ‘‘there
shall be available to the Secretary, from funds not otherwise appropriated, funds to be obligated for—’’ and inserting in lieu thereof,
‘‘there are authorized to be appropriated to carry out this section
such sums as may be necessary, for—’’; and
(2) in the flush language at the end thereof,
(A) by striking ‘‘such’’;
(B) by inserting ‘‘and’’ after ‘‘2001,’’ and
(C) by striking ‘‘, and $795,000,000 in fiscal year 2003’’.
(b) EFFECTIVE DATE.—The amendments made by subsection (a)
shall be effective beginning in fiscal year 2003.
SEC. 306. Section 1202 of the Elementary and Secondary Education
Act of 1965 is amended by inserting the following subsection at the
end thereof:
‘‘(g) SUPPLEMENT, NOT SUPPLANT.—State or local educational agency shall use funds received under this subpart only to supplement
the level of non-Federal funds that, in the absence of funds under
this subpart, would be expended for activities authorized under this
subpart, and not to supplant those non-Federal funds.’’. (Department
of Education Appropriations Act, 2002.)

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Full text of Budget of the United States Government - Appendix : Fiscal Year 2003 : Department of Education

FRASER