Transcript EDUCATION - Education Industry Association

FEDERAL EDUCATION FUNDING
Caps, Cuts, Sequesters,
Shutdowns and
Squeezes
Joel Packer, Executive Director
The Committee for Education Funding
[email protected]
Committee For Education
Funding
 The 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.org
 Follow us on Twitter: www.twitter.com/edfunding
2
Trench 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
Education
2%
Medicaid
7%
Other
Mandatory
13%
Medicare
15%
4
Interest
6%
Defense
19%
Social Security
22%
Nondefense
discretionary
(other than
education)
16%
FISCAL YEARS 2011/2012
$1.5 BILLION IN CUTS
5
Final FY 11 and 12 Appropriations
 FY 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.
6
FISCAL YEAR 2013
LARGEST EDUCATION
CUTS EVER!
7
Caps and Cuts
 Budget 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.
8
Sequestration
 Supercommittee 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.
9
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.
10
FY 13 Impact of Sequestration
In millions
$0
-$65
-$87
-$124
-$86
-$15
-$42
-$401
-$500
-$727
-$620
-$1,000
-$1,500
-$2,000
-$2,500
11
11
-$2,478
Total
Dep't.
of ED
Title I
Impact Teacher IDEA
Aid
Quality Grants
Career, Student
Tech,
Aid
Adult
GEAR
UP
TRIO
Head
Start
FY 14 Budget: Dueling Visions
 House Budget by Chairman Ryan (R-WI) passed on
party line vote.
 Balanced budget in ten years: No new revenue
 More 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.
12
FY 2014 Appropriations
 Based on different Budgets, the Appropriations
Committees worked from different allocations
for NDD:
 Senate = $506 billion
 House = $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.
13
Government Shutdown!
 Different appropriations totals and fight over
Obamacare led to a 16 day government shutdown
starting on 10/1.
14
Budget Deal
 October 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.
15
FY 2014 Omnibus
 Based 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: Increases
 Title I (+4.5%)
 Career/technical Ed
 Impact Aid (+5.3%)
 After school (+5.3%)

 ELL Grants (+4.3%)

 IDEA State Grants

(+4.5%)
 IDEA infants and families
(+4.5%)


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 Funding
In billions
$100
Sequestration
below FY 04!
$80
$60
$40
$20
$0
18
Total Discretionary
Total Discretionary w/out Pell
FY 14 below
FY 08
FY 2015 Outlook
 Facing a freeze or less for next two years!
 FY 15 NDD cap only increases by $583 million (+0.1%).
 Same for FY 16.
 President’s FY 15 Budget to be released on March 4/March
11.
NDD Cap Levels
Budget Authority in Billions
$700
$650
$600
$550
$500
$450
$400
FY 12
FY 13
FY 14
FY 15
FY 12 Cap adjusted for inflation
FY 16
FY 17
FY 18
BCA Pre-Sequester Caps
Sources: CEF Calculations based on CBO and OMB data
FY 19
FY 20
Sequestration
FY 21
FY 22
FY 23
Ryan-Murray