Special Federal Budget Issue: Department of Education

The Administration’s FY 2006 budget request for the Department of Education (ED) is $56 billion, a 0.9 percent decrease ($529.6 million) from the FY 2005 appropriation.

The most positive news in the request concerns the popular Pell Grant federal student loan program. Already lauded in a joint statement from the nation's six leading higher education associations, the ED FY06 budget request for the Pell Grant program of $13.7 billion (a $1.3 billion increase) includes funds allowing an increase in the maximum Pell Grant award by $100 annually over the next five years, from $4,050 to $4,550. In addition, the FY06 budget request includes a one-time $4.3 billion in mandatory funding to retire the Pell Grant shortfall accumulated from 2002 to 2005.

The Pell Grant increase and deficit payoff come at a cost, however -- the termination of 48 existing programs, such as the Educational Technology State Grants ($496.0 million in FY05), Community Technology Centers ($5 million in FY05), Projects with Industry ($21.6 million), the Regional Educational Laboratories ($66.1 million), Upward Bound ($312.6 million), and the Vocational Education State Grants ($1.19 billion). The agency budget brief states, "Termination of these 48 programs frees up almost $4.26 billion ­ based on 2005 levels ­ for reallocation to more effective, higher-priority activities." The complete list of programs slated for termination and the agency rationale for each is available here.

Also among the casualties is the proposed phaseout of the Perkins Loans program ($6 billion in FY05), which provided help to more than 670,000 students in 2004. The Department would recall the federal contribution to revolving loan funds at participating institutions and would provide no funding for loan cancellations ($66.1 million in FY05).

The FY06 request provides $269 million for Mathematics and Science Partnerships, a program for developing rigorous mathematics and science curricula, distance learning programs, and incentives to recruit college graduates with degrees in math and science into the teaching profession. The request is $90.4 million above the FY05 appropriation, a 51 percent increase.

Included in the Postsecondary Education FY06 budget is $50 million for a new Presidential Math-Science Scholars program, under which ED would enter into a public-private partnership to award $100 million annually in grants to low-income math and science students. Approximately 20,000 low-income students who receive Pell Grants would receive these separate, additional awards of $5,000 each.

Another new initiative proposed in the FY06 budget request is $125 million for a new Community College Access program, which would provide incentives to states and partnerships to improve access to a college education, particularly for low-income and minority students, through "dual-enrollment" programs offering both high school and postsecondary credit to high school students who take college-level courses.

At $999.1 million, funding for the 21st Century Community Learning Centers would reflect no change. The centers are designed to help communities establish or expand learning centers that provide extended learning opportunities for students and related services to their families.

On the research front, the Institute of Education Sciences FY06 request of $479.1 million (8.4 percent decrease from FY05) is intended to fund programs of research, development and dissemination in areas where knowledge of learning and instruction is inadequate.

• The Research, Development and Dissemination funding request for FY06 is $164.2 million (no change) to help support the National Center for Education Research, which oversees directed research, field-initiated studies, and research and development centers. The ED SBIR is administered by the center.
• $10 million of new funding is proposed for a new line item, Special Education Studies and Evaluations. The Research in Special Education line item is reduced by $10.5 million, however.

Rehabilitation Services and Disability Research would receive $339.1 million of discretionary funding, a decrease of $99.6 million or 22.7 percent from FY05 appropriation levels. The reduction is a result of several programs slated for termination, including the Assistive Technology Programs (see discussion above for more information).