FEDERAL EDUCATION-RELATED DISCRETIONARY PROGRAMS

Impact of the Budget Control Act's Across-the-Board Reductions (Sequestration)

If sequestration is triggered for 2013
Funding Cuts (in millions)* Students Impacted*

Program

Job Losses*

U.S. Department of Education Discretionary Programs Elementary & Secondary Education Grants to Local Educational Agencies (ESEA Title I, Part A) School Improvement State Grants (ESEA section 1003(g))
State Agency Programs: Migrant (ESEA I-C) and Neglected & Delinquent (ESEA I-D)

The Budget Control Act of 2011 (Public Law $1,128.1 41.7 34.7 88.6 192.5 13.7 90.0 30.4 5.1 13.6 8.1 57.2 200.4 1,904.1 1,496,300 41,300 30,000 72,500 ----136,500 --67,500 345,600 36,900 350,000 --** 14,660 540 425 1,155 2,440 170 1,160 375 65 190 110 650 2,460 24,400 112-25) created a Joint Select Committee on Deficit Reduction that is charged with identifying budgetary savings of at least $1.2 trillion over ten years (fiscal years 20122021). If a joint committee bill cutting the deficit by at least $1.2 trillion is not enacted by January 15, 2012, then an automatic spending reduction process that includes sequestration (the cancellation of budgetary resources) would be triggered to take effect on January 2, 2013. For discretionary spending, which represents most federal education programs, the reductions are achieved through sequestration the first year (2013). For subsequent fiscal years (2014-2021), the discretionary spending reductions are achieved through a downward adjustment of 895.6 29.1 34.2 19.4 978.3 47.0 518,000 57,000 25,400 --600,400 --11,350 365 440 240 12,395 580 statutory limits on discretionary spending divided into two new categories -- defense and nondefense spending. Importantly, some programs, including Federal Pell Grants, are exempt from sequestration in 2013. The Congressional Budget Office has estimated that nonexempt discretionary programs would be reduced by 7.8 pecent in fiscal year 2013 if the joint committee is unable to agree 87.6 46.5 1.5 135.6 1,214,500 195,600 --1,410,100 1,145 580 20 1,745 on a bill or if Congress is unable to approve the joint committee's bill. The accompanying chart illustrates the impact of a 7.8 percent across-the-board reduction to nonexempt federal education programs in 2013, if no deficit reduction is enacted. Based on current funding levels, funding for the U.S. exempt 57.4 76.3 133.7 --1,339,100 713,100 ** --------Department of Education would be reduced by $3.54 billion, affecting millions of students and leading to potentially significant job losses for teachers and other school employees.

Impact Aid Basic Support Payments (ESEA VIII section 8003(b)) Improving Teacher Quality State Grants (ESEA II, Part A) Mathematics & Science Partnerships (ESEA II-B) 21st Century Community Learning Centers (ESEA IV-B) State Assessments (ESEA VI-A-1) Education for Homeless Children and Youths (MVHAA Title VII-B) Rural Education (ESEA VI-B) Indian Education Grants to Local Educational Agencies (ESEA VII, Part A-1) English Language Acquisition (ESEA III, Part A) All Other Elementary & Secondary Education Subtotal, Elementary & Secondary Education Special Education Special Education Grants to States (IDEA-B-611) Preschool grants (IDEA-B-619) Grants for infants and families (IDEA-C) All Other Special Education Subtotal, Special Education Rehabilitation Services and Disability Research Career, Technical Career Technical, and Adult Education Career and Technical Education State Grants (Carl D. Perkins CTEA Title I)
Adult Basic and Literacy Education State Grants (AEFLA and WIA section 503)

All Other Career, Technical, and Adult Education Subtotal, Career, Technical, and Adult Education Federal Student Financial Assistance Federal Pell Grants (HEA IV-A-1) Federal Supplemental Educational Opportunity Grants (HEA IV-A-3) Federal Work-Study (HEA IV-C) Subtotal, Federal Student Financial Assistance Higher Education Aid for Institutional Development (HEA) Federal TRIO Programs (HEA IV-A-2, Chapter 1) GEAR UP (HEA IV-A-2, Chapter 2) All Other Higher Education Subtotal, Higher Education Institute of Education Sciences Departmental Management Total, U.S. Department of Education Discretionary Programs Other Federal Education-Related Programs Head Start (HSA section 639 ) Total, Federal Education-Related Discretionary Programs

52.7 64.5 23.6 27.6 168.4 47.5 125.6

--65,600 59,000 --** -----

170 210 145 90 615 220 340

$3,540.4

**

40,295

589.7 $4,130.0

75,500 **

31,040 71,335

*Rounded estimates. ** Program area subtotals/totals are not provided to avoid duplication. Some students receive services under more than one program. For more information, contact Tom Zembar at 202.822.7109 or TZembar@nea.org. As of September 30, 2011.