FEDERAL EDUCATION BUDGET CUTS IN THE 2011 CONTINUING RESOLUTION

By Jeff Simering, Director of Legislation, COUNCIL OF GREAT CITY SCHOOLS | from the April 2011 Issue of Urban Educator - http://bit.ly/gNCV2E

At literally the 11th hour before the midnight shutdown of the federal government, an agreement on funding levels for FY 2011 was completed. The FY11 Continuing Resolution cuts some $38 billion in federal spending and is the first battle in Congress’ war on the federal budget deficit. Subsequent battles will include the FY 2012 Congressional Budget Resolution setting spending ceilings for next fiscal year and the Federal Debt Ceiling bill allowing the federal government to borrow money to cover the $14 trillion federal debt.

So who won the first budget battle of 2011? President Obama and the House leadership claim to have accomplished their goals. Unfortunately, the President’s statement on March 14th at the Kenmore Middle School that “We cannot cut education” could not be sustained. In fact, over $2 billion in cuts to the Education Department’s FY2010 discretionary program levels were made. Providing nearly $700 million for Race-To-The-Top and $150 million for Investing in Innovation (I3) in new funding did little to counterbalance the other $2 billion in funding cuts. And, only minor consolation can be found in sparing Title I programs for disadvantaged students and IDEA programs for students with disabilities from all but the two-tenths of one percent cut that was applied to all domestic discretionary programs as part of the continuing resolution.

Title I Grants to LEAs were subject to the 0.2 percent across-the-board cut ($29 million), while Title I School Improvement grants were reduced by $11 million. The IDEA formula grants were also cut by 0.2 percent ($23 million). Title II Teacher Quality formula grants, however, were cut by $480 million. Title III grants for English language learners were cut by $16 million. Title IV National Safe and Drug Free Schools grants were cut by $97 million. Over 20 categorical school programs funded at more than $800 million were eliminated, including Title II-D Education Technology ($100 million), Striving Readers ($200 million), Perkins Tech-Prep ($102 million), Smaller Learning Communities ($88 million), and Even Start ($66 million). Since the Education Department is charged with submitting a detailed spending plan to Congress by mid-May, these figures should be treated as estimates until the spending plan is submitted.

The new $700 million appropriation for the Administration’s signature Race-To-The-Top (RTTT) program will apparently be awarded only to State grant applicants. Despite frequent pledges to provide school district grants under RTTT, the final funding agreement includes no new authority for direct district-level grants. Districts, therefore, remain dependent on State participation in this $700 million competitive grant program.

Before adjourning for its spring recess, the House also passed the FY2012 Budget Resolution (H.Con.Res. 34) setting spending ceilings with sizeable reductions in entitlement programs and more cuts in domestic discretionary programs. While not cutting any specific programs, the Budget Resolution places procedural limits on overall funding levels that both appropriations and authorizing committees must follow. The Senate has yet to act on its version of the Budget Resolution, and may ultimately be unable to reach an agreement on FY2012 budget levels with the House. The likely stalemate over the congressional budget resolution has led “deficit-reduction hawks” to use the upcoming “must-pass” Federal Debt Ceiling legislation as an opportunity to force further reductions in federal spending. More to come.