EDUCATION

Caps, Cuts, Sequesters, Shutdowns and Squeezes FEDERAL EDUCATION FUNDINGJoel Packer, Executive Director The Committee for Education FundingJpacker@cef.org

Committee For Education FundingThe Committee for Education Funding (CEF) is the oldest and largest education coalition.We represent 113 national organizations and institutions from PreK through graduate education including EIA.For more information: www.cef.orgFollow us on Twitter: www.twitter.com/edfunding 2Trench Warfare!Since January 2011 Republicans and Democrats have had multiple battles over the budget and deficit.Republicans are opposed to revenue increases.Liberal Democrats are opposed to entitlement cuts.Education and other nondefense programs have borne the brunt of the cuts.3

Fiscal Year 2012 Outlays

4$1.5 BILLION IN CUTSFISCAL YEARS 2011/20125Final FY 11 and 12 AppropriationsFY 2011 cut ED (other than Pell) by $1.2 billion.Teacher Quality grants cut 16%, Career/Tech grants cut 11%, ED tech eliminated, HBCUs/MSIs cut 11%. FY 2012 total ED funding cut by $233 million.All programs cut by 0.189% across-the-board cut.Both FY 11 and FY 12 maintained the Pell maximum award of $5,550.But paid for by enacting restrictions and other cuts to Pell and student loans. College students contributed $4.6 billion out of their pockets to deficit reduction.

6LARGEST EDUCATION CUTS EVER!FISCAL YEAR 20137Caps and CutsBudget Control Act in August 2011 set in law discretionary caps for ten years (FY 12-FY 21).Reduced spending by $900 billion over ten years.Created Supercommitte to reduce deficit another $1.2 trillion.

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SequestrationSupercommittee failure triggered sequestration. $1.2 trillion in automatic cuts between FY 13-21; 50% from defense, 50% from nondefense FY 13 cuts took effect on March 1, 2013.However, other than Impact Aid and Head Start, education cuts started in 2013-14 school year.

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Largest Education Cuts Ever!FY 13 = fixed percentage across-the-board (ATB) cuts.NDD cut was 5% = $2.5 billion from ED.Pell grants exempt from across-the-board cuts.Head Start in HHS cut $401 million.Final ED non-Pell grant funding now lower than in FY 04.FY 14-21 - not ATB cut; further lowers discretionary caps.Squeezes education $; Pell no longer exempt.

10FY 13 Impact of Sequestration

1111FY 14 Budget: Dueling VisionsHouse Budget by Chairman Ryan (R-WI) passed on party line vote.Balanced budget in ten years: No new revenueMore than doubled the sequester cuts to nondefense discretionary (NDD) programs.Senate Budget by Chairman Murray (D-WA) also passed on party line vote.Repealed sequester.Increased revenue by $900 billion.

12FY 2014 AppropriationsBased on different Budgets, the Appropriations Committees worked from different allocations for NDD:Senate = $506 billionHouse = $414 billion (12% below sequester level!)House only passed 4 bills, Senate passed none.Labor-HHS-ED passed Senate Appropriations Committee; House failed to produce a bill.

13Government Shutdown!Different appropriations totals and fight over Obamacare led to a 16 day government shutdown starting on 10/1.

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Budget DealOctober 17, 2013 CR/debt deal extended FY 13 CR at post-sequester levels through January 15.House Budget Chair Ryan and Senate Budget Chair Murray Bipartisan Budget Act passed Congress in December.Partially replaced the sequester cuts to discretionary programs for FY 2014 and FY 2015.Paid for by extending mandatory sequester cuts into FY 2022 and FY 2023 and other small mandatory cuts and user fees.

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FY 2014 OmnibusBased on BBA, House and Senate Appropriations Committees on January 13 completed omnibus appropriations bill.In aggregate restores 2/3rds of ED sequester cuts.Big winner was preschool programs (Head Start, new preschool Race To The Top).

FY 2014 Omnibus: IncreasesTitle I (+4.5%)Impact Aid (+5.3%)After school (+5.3%)ELL Grants (+4.3%)IDEA State Grants (+4.5%)IDEA infants and families (+4.5%)Career/technical Ed state grants (+5.0%)GEAR UP (+5.3%)TRIO (+5.3%)SEOG (+5.3%)Work-Study (+5.3%)New $75 million First in the World

Education Department Funding18In billionsFY 2015 OutlookFacing a freeze or less for next two years!

FY 15 NDD cap only increases by $583 million (+0.1%).Same for FY 16. Presidents FY 15 Budget to be released on March 4/March 11.

NDD Cap LevelsBudget Authority in Billions

Sources: CEF Calculations based on CBO and OMB data20Chart157680563773557251482223

Fiscal Year 12Defense19%Nondefense discretionary(other than education)16%

Sheet1Fiscal Year 12Education57Discretionary Defense680non-defense discretionary (other than education563Social Security773Medicare557Medicaid251Other Mandatory482Interest223

Chart1-2478-727-65-124-620-87-86-15-42-401

In millionsColumn1

Sheet1Column1Total Dep't. of ED-2478Title I-727Impact Aid-65Teacher Quality-124IDEA Grants-620Career, Tech, Adult-87Student Aid-86GEAR UP-15TRIO-42Head Start-401