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FY '05 Budget Update

FY Œ05 Budget Update

Senate Majority Leader Frist (R-TN) has postponed a vote on the conference report on the FY Œ05 Budget Resolution until after the Memorial Day recess, as the Senate lacked the necessary votes of at least two of the four dissenting Republican moderates for its passage. GOP leadership is still negotiating with the four Republican moderates who continue to oppose the one-year PAYGO (Pay As You Go) deal: McCain (R-AZ), Collins (R-ME), Snowe (R-ME), and Chafee (R-RI).

House Speaker J. Dennis Hastert (R-IL) publicly rebuked Senator McCain and the rest of the Senate Republican moderates for hindering the passage of a budget, which he has called the ³most fiscally responsible² since he has been a Member of Congress.

If the Senate passes the conference report after the recess, it will bind appropriators by the $821.4 billion overall discretionary spending ceiling and would subject all amendments that go over the top line to a 60 vote point of order.

Without a Budget Resolution, overall discretionary spending would be capped at the discretionary spending total set in last yearıs budget resolution, which was $814 billion. But Senate staff believe that the cap could be waived easily since there is consensus that it is inadequate to accommodate must-pass appropriations bill in an election year.

In addition, a Budget Process reform bill is unlikely to move if there is no budget resolution.

House rules allow appropriators to move bills after May 15 in the absence of a Budget Resolution. Since they already have a preliminary 302 (b) allocation, the House Labor, HHS, Education subcommittee may mark up their bill soon after the Memorial Day recess. The preliminary House allocation is $142.5 billion. According to staff speculation, the FY Œ05 education funding bill may not be marked up before late June or early July.

According to staff, House Democrats may offer a substitute education funding bill that would provide significantly more funding for education offset by rolling back the tax cuts for the top 1% of income earners.

According to Senate majority appropriations staff for Labor, HHS, Education, a current draft of an FY Œ05 education funding bill is already well over the House discretionary 302 (b) allocation of $142.5 billion, as the Presidentıs budget assumes $1.5 billion in Medicare savings that have not been enacted.

Senate staff expect to accommodate the Presidentıs request for $1 billion increases for both Title I and IDEA and to restore the majority of program eliminations. That leaves little for other program increases and no funding to increase the Pell Grant maximum award.

Senate majority appropriations staff have also speculated that a ³minibus² strategy, where appropriators bundle two or more funding bills, may ensue after the passage of the Defense, Homeland Security and Military Construction funding bills.

On the Senate side, there is no sense of urgency among staff to move what would likely be an unpopular FY Œ05 Labor, HHS, Education funding bill. They expect to see continuing resolutions at FY Œ04 levels until Congress reconvenes in 2005.

According to a cover story in Thursdayıs Washington Post, a recent White House memo addressed to all federal agencies states that if the President is reelected in November, his budget for FY 2006 will include cuts to all domestic discretionary programs, including education. You can view the article at http://www.washingtonpost.com/wp-dyn/articles/A58762-2004May26.html

Specifically, the memo instructs all agencies to assume the figures in the OMB assumptions printout, which was leaked shortly after the Presidentıs FY Œ05 budget was unveiled, when crafting their FY Œ06 budgets this summer. Education would be cut by $1.5 billion in FY ı06, wiping out 88% of the Presidentıs proposed FY Œ05 increase of $1.7 billion.

Also, the memo instructs agencies to offset proposed increases with other cuts to other accounts in the agenciesı budget, so virtually any increase in one education program would mean cuts in other education programs.

Take Action!: Please go to CECıs Legislative Action Center and send two messages to your Members of Congress: one urging them to co-sponsor legislation that would support gifted and talented programs, and one asking them to co-sponsor a bill to fully fund IDEA. Simply go to: http://capwiz.com/cek/mail/oneclick_compose/?alertid=1730181 and http://capwiz.com/cek/issues/alert/?alertid=5091656&type=CO and enter your zip code to send your messages TODAY!!!!

GAO Issues Report on Unfunded Mandates; Does Not Include NCLB

The General Accounting Office has issued a report on the implementation and impact of the Unfunded Mandates Reform Act (UMRA) entitled ³Unfunded Mandates: Analysis of Reform Act Coverage.² GAO-04-637, May 12. http://www.gao.gov/cgi-bin/getrpt?GAO-04-637
Highlights - http://www.gao.gov/highlights/d04637high.pdf

The report reviewed which bills enacted in the last Congress were unfunded mandates as defined by UMRA. UMRA has a very specific definition of unfunded mandates, and among its exclusions are "enforceable duties that are conditions of federal financial assistance or arise from participation in a voluntary federal program."

Under the UMRA statutory definition, No Child Left Behind (NCLB) has not been classified as an unfunded mandate because it falls within this exclusion.

U.S. Secretary of Education Rod Paige responded to the GAO report, stating ³The non-partisan GAO found that No Child Left Behind was in fact not an Œunfunded mandate,ı as those who are opposed to accountability and education reform have often portrayed it in the press.²

³The chorus of the 'unfunded mandate' has now been exposed for exactly what it is,² Paige continued, ³--a red herring--trying to take focus off the true subject at hand: changing the way we do things so that every child in America is provided a quality education, regardless of her or his skin color, spoken accent or street address.²

"According to the report, NCLB '[d]id not meet the UMRA's [Unfunded Mandates Reform Act of 1995] definition of a mandate because the requirements were a condition of federal financial assistance' and 'any costs incurred by state, local or tribal governments would result from complying' with conditions for receiving the funds,² the Secretary noted. ³As I have said many times before, NCLB is a radical departure from the old ways of doing things: gone are the days where taxpayers' hard-earned money was dispensed without any accountability for whether children were achieving. If states do not want federal support, they are not required to take the funds. It's that simple. But if they do, we insist that they measure student progress so that they can diagnose areas that need improvement and ensure that all students are indeed learning.²

However, GAO listed 10 "Selected Examples of Statutes with Potentially Significant Impacts on Nonfederal Parties", and included NCLB on the list.

The GAO said: "The No Child Left Behind Act is a well-known example that has intergovernmental implications, but was not identified as a federal mandate under UMRA. No Child Left Behind provides federal grants for a host of education programs, requires states to design and implement standards and assessments, and provides financial penalties for states that fail to achieve certain standards over 2 consecutive years. CBO stated that the bill does not contain any federal mandates as defined by UMRA because any costs incurred by state, local, or tribal governments would result from complying with conditions of financial aid, a definitional exception under UMRA.

"Though it does not meet the UMRA definition of a federal mandate, No Child Left Behind is still perceived as an "unfunded mandate" by some interested parties. In a recent radio advertisement, the president of the National Education Association described this act as a "huge unfunded federal mandate." In response to our query, NCSL listed No Child Left Behind as one of the most important statutes that was not identified as a federal mandate, but should have been. A recent newspaper article identified 15 states with resolutions, bills, or studies that "protest" in one form or another against the act. According to the article, some states claim that significant impacts resulting from No Child Left Behind may include the loss of funds if schools fail to make enough progress, extra costs for tutoring and teacher training, and costs associated with possible longer school days and summer school, all of which may be required to meet standards set by the act."

Labor Secretary Chao and Defense Secretary Rumsfeld Issue Memo Urging Federal Hiring of College Students with Disabilities

U.S. Labor Secretary Elaine L. Chao and U.S. Defense Secretary Donald H. Rumsfeld are urging federal government agency heads to continue to enthusiastically support a Bush Administration program that has successfully placed hundreds of college students with disabilities in summer and permanent employment.

"The Workforce Recruitment Program (WRP) gives students with disabilities the opportunities they need to start successful careers," said Secretary Chao. "The program also fulfills President Bush's New Freedom Initiative pledge to promote employment opportunities for people with disabilities throughout the nation."

In a joint memorandum, both Secretaries said "President Bush's New Freedom Initiative calls for expanding employment opportunities for Americans with disabilities. The Workforce Recruitment Program (WRP) for College Students with Disabilities can help the federal government lead by example in achieving that goal. "Please encourage your selecting officials to consider the candidates referred through this program for career development opportunities and permanent employment."

Last summer, more than 300 students and recent graduates with disabilities found summer or permanent jobs through WRP. The Labor Department estimates that because of the popularity of the program, that number will likely be exceeded by mid-summer 2004.

Through the WRP, the Labor Department's Office of Disability Employment Policy (ODEP), in cooperation with the Department of Defense, offers a database of almost 1,600 job seekers with disabilities on a complimentary CD-ROM. Private and public sector employers can search for potential applicants by field of study, state or school, in disciplines ranging from computer sciences and business to communications engineering and office administration. Searches generate candidate profiles, academic and demographic data and contact information from applications recruited by the program from more than 180 colleges and universities in over 40 states and territories. The CD-ROM and additional information are available from www.wrpjobs.com <http://www2.dol.gov/cgi-bin/leave-dol.asp?exiturl=http://www.wrpjobs.com&exittitle=www.wrpjobs.com>, or by contacting ODEP at (202) 693-7880, or at www.dol.gov/odep

Census Bureau Public Information Office Releases New Fact Sheet on Disability Statistics

The U.S. Census Bureau has issued a new Fact Sheet in honor of the upcoming anniversary of the Americans with Disabilities Act. The Fact Sheet provides statistics on population distribution, specific disabilities, earnings, and those who served our nation. To read the entire Fact Sheet, go to: http://www.census.gov/Press-Release/www/releases/archives/facts_for_features_special_editions/001823.html

ED Requests Comments on Proposed Funding Priority

In the May 26, 2004 (Volume 69, Number 102) Federal Register, the Assistant Secretary for the Office of Special Education and Rehabilitative Services proposes a priority, definitions, and application requirements under the Special Demonstration Programs focusing on developing models that adapt positive psychology techniques for use by vocational rehabilitation (VR) professionals to improve the employment outcomes of VR consumers. The positive psychology models developed under this priority must incorporate effective, research-based principles. The Assistant Secretary may use this priority, definitions, and application requirements for competitions in fiscal year (FY) 2004 and later years. We take this action to improve the quality of employment outcomes for VR consumers through testing and measuring the effects of three specific positive psychology techniques for use within State VR agencies.

Comments must be received on or before June 25, 2004.

Address all comments about this proposed priority, definitions, and application requirements to Alfreda Reeves, U.S. Department of Education, 400 Maryland Avenue, SW., Room 3314, Switzer Building, Washington, DC 20202-2645 (on or before June 4, 2004); room 5040, Potomac Center Plaza, Washington, DC 20202-2645 (after June 4, 2004).

If you prefer to send your comments through the Internet, use the following address: Alfreda.Reeves@ed.gov. You must include the term ``SPECIAL DEMONSTRATION: POSITIVE PSYCHOLOGY'' in the subject line of your electronic message.

For further information, contact Alfreda Reeves at (202) 205-9361 (on or before June 4, 2004); (202) 245-7485 (after June 4, 2004); or via Internet: Alfreda.Reeves@ed.gov.

To read the complete notice, go to:
http://a257.g.akamaitech.net/7/257/2422/14mar20010800/edocket.access.gpo.gov/2004/04-11928.htm
or
http://a257.g.akamaitech.net/7/257/2422/14mar20010800/edocket.access.gpo.gov/2004/pdf/04-11928.pdf

OSERS Issues IDEA Correspondence List

Under section 607(d) of the IDEA, the Secretary is required, on a quarterly basis, to publish in the Federal Register a list of correspondence from the Department of Education received by individuals during the previous quarter that describes the interpretations of the Department of Education (Department) of the IDEA or the regulations that implement the IDEA.

This list identifies correspondence from the Department issued from January 2, 2004, through March 31, 2004. Included on the list are those letters that contain interpretations of the requirements of the IDEA and its implementing regulations, as well as letters and other documents that the Department believes will assist the public in understanding the requirements of the law and its regulations... For the complete list go to http://www.ed.gov/legislation/FedRegister/other/2004-2/052404d.html

© 2004 ConnSENSE Bulletin