Thank you for this opportunity to testify on behalf of President Bush's 2002 budget for the Department of Education. As you know, the President has made education his highest priority, and this priority is reflected in his 2002 budget request.

The reason for this is simple: there is nothing more important for the future of this great Nation than the education of our children. Unfortunately, our system of education is failing too many of those children. Earlier this month, the latest results of the National Assessment of Educational Progress (NAEP) showed that the average reading performance among our fourth graders has not improved since 1992. And when 37 percent of our 4th-graders -- and nearly half of inner-city 4th-graders -- are unable to read at even the NAEP Basic level, our education system is broken and needs repair urgently.

President Bush and I are especially concerned about the persistent gaps in achievement between poor and minority students and their more advantaged peers. For example, the NAEP results showed that in 4th grade reading, 73 percent of white students performed at or above the basic level, compared with just 42 percent of Hispanic students and only 37 percent of African American students.

This disappointing performance comes after nearly two decades of national attention on education reform and a dozen years of rapidly increasing Federal spending on elementary and secondary education. Simply spending more money in the same way is not the answer. We need to do things differently, to adopt a culture of achievement in our schools and school systems, and to demand results for our growing investment in education.

That's why I'm especially proud of the President's 2002 budget request for education. It provides a budget authority increase of $4.6 billion, or 11.5 percent -- the largest increase of any cabinet-level agency -- and a $2.5 billion or almost 6 percent increase over the 2001 program level. This increase is particularly impressive in the context of the President's overall effort to restore discipline to discretionary spending over the next decade while delivering an across-the-board tax cut benefiting all American families.

Even more important, these new dollars are focused on changing the culture of our education system and closing the achievement gap. Our budget reflects the principles put forward in No Child Left Behind: high standards; annual testing of all students in grades 3-8 in reading and math; increased accountability for student performance; a focus on research-based practices-particularly in teaching reading; reduced bureaucracy and greater flexibility for States, school districts, and schools; and expanded options for parents to make choices for their children's education.

CLOSING THE ACHIEVEMENT GAP

President Bush believes that the Federal government can, and must, help close the achievement gap between disadvantaged students and their peers. The primary means toward this goal is the Title I Grants to Local Educational Agencies program. We are requesting $9.1 billion for this program, an increase of $459 million, to give States and school districts financial support to turn around failing schools, improve teacher quality, and ensure that all students meet State academic standards before advancing to the next grade.

No Child Left Behind provides a new framework of accountability for ensuring that the Federal investment in Title I is well-spent and delivers the results intended when it was first authorized 36 years ago: closing the achievement gap between poor children and their more advantaged peers. The foundation of this new accountability framework is annual State assessments in reading and math for all students in grades 3-8, instead of the current law requirement for testing only twice during these critical formative years. The President's budget provides $320 million to help States develop and implement these additional assessments.

I know many in Congress have concerns about these new assessments, but I can tell you from my own experience that there is no substitute for annual information on how well students and schools are performing. Children in good schools make remarkable progress during these early grades, and we cannot afford to wait three or four years to find out that some students have fallen behind. Where there are problems, they must be discovered and addressed immediately, an approach that can only be accomplished with the information provided by annual testing.

Moreover, these tests are essential if we are to set clear goals for performance and help our schools get the job done. The alternative is to continue to rob millions of poor and disadvantaged young Americans of their futures by failing to provide them an effective education.

The important thing about testing, of course, is what we do with the results. We would start by helping teachers learn to use data effectively. Secondly, we would require schools to report assessment results for all students to parents and the public. School districts would use these results to make sure that all schools and students are making adequate yearly progress toward State content and performance standards, and that no groups of students are left behind.

Under No Child Left Behind, schools would be identified for improvement after just one year of failing to meet State standards. And unlike the current system, where about half of schools identified for improvement receive no additional assistance from their State or district, we would require States and school districts to provide these schools with technical assistance grounded in scientifically-based research. The $9.1 billion request for Title I Grants to Local Educational Agencies includes $400 million, an increase of $175 million or 78 percent, to help pay for these efforts to turn around low-performing schools.

If the school still has not improved after two years, it would be identified for corrective action and subjected to more comprehensive measures, such as implementation of a new curriculum, intensive professional development, or reconstitution as a public charter school. While such measures are underway, students would be given the option of attending another public school not identified for improvement or corrective action.

Only after all these efforts, and following three full years of poor performance -- during which time a student may well have fallen behind a grade or two -- would we use Federal funds to help that student find a better education at a private school. We are proposing to permit the use of Title I funds to help students transfer to a higher performing public or private school, or to obtain supplemental educational services from a public- or private-sector provider. I know there are disagreements about methods of reform, but surely everyone can agree that no child should be trapped in a persistently failing school.

Taken as a whole, these proposals reflect what I believe is a strong consensus, both within the Congress and among the American people, that States, school districts, and schools must be accountable for ensuring that all students, including disadvantaged students, meet high academic standards. At the same time, we recognize that it is unfair to demand accountability without enabling success. This is why the 2002 budget supports other proposals in No Child Left Behind that would give States, school districts, schools, teachers, and parents the tools and flexibility to help all students succeed.

For example, the President's Reading First program would help States and school districts implement comprehensive reading instruction grounded in scientifically-based reading research for children in kindergarten through third grade. The budget includes $900 million for Reading First State grants, more than triple the 2001 level for reading instruction. The request also would provide $75 million for Early Reading First, an initiative that would complement Reading First State Grants by supporting model programs to develop the academic readiness of preschool-aged children. Over 5 years, the President would invest more than $5 billion to ensure that every child in America can read by the 3rd grade.

We also are requesting $846 million for 21st Century Community Learning Centers to support a State formula program that provides high-quality extended learning opportunities after school and during the summer, particularly for children in high-poverty and low-performing schools. And a $30 million request for our Transition to Teaching proposal would help school districts recruit, prepare, and support a wide range of talented career-changing professionals as teachers, particularly in high-poverty schools and in high-need subject areas.

EMPOWERING PARENTS WITH CHOICES

President Bush and I believe that one of the best ways to improve accountability in our schools is to give parents the information and options needed to make the right choices for their children's education. This is why, for example, the accountability proposals in No Child Left Behind include school-by-school report cards and give students in failing schools the option of transferring to a better school. In addition, the 2002 budget request includes the following:

The President is proposing to increase the choices available to parents through a new $175 million Charter Schools Homestead Fund. The program dollars will be used to provide grants to leverage funds to build, lease, purchase, or renovate facilities for use by charter schools. A $200 million request for the regular Charter Schools programs, an increase of $10 million, would support approximately 1,780 new and existing charter schools that offer enhanced public school choice and have the flexibility to offer innovative educational programs in exchange for greater accountability for student achievement.

The President is also proposing a tenfold increase in the annual contribution limit for education savings accounts, from $500 to $5,000. Parents would be able to make tax-free withdrawals from these accounts to pay for elementary, secondary, college, and after-school program expenses at both public and private schools.

EXPANDING FLEXIBILITY AND REDUCING BUREAUCRACY

The Administration believes that it is possible to achieve better results by reducing regulations, paperwork, and bureaucracy and giving States and communities the flexibility to create their own innovative solutions to challenges in education.

For example, the $2.6 billion State Grants for Improving Teacher Quality proposal would combine funding from several existing education programs, including the Class Size Reduction and Eisenhower Professional Development State Grants programs, into performance-based grants. The proposal would provide a $375 million or 17 percent increase over the antecedent programs to help States and local educational agencies (LEAs) fund their own needs and priorities in developing and supporting a high-quality teaching force.

Similarly, the $817 million Educational Technology State grants proposal would consolidate all of the Department's current educational technology programs into a single, performance-based grant program to ensure that schools use technology effectively to improve teaching and learning. And our $472 million request for Choice and Innovation State grants would combine overlapping and duplicative programs into one flexible grant program to help States and school districts implement their own innovative strategies, including school choice, for improving student achievement.

OTHER KEY ELEMENTARY AND SECONDARY PROPOSALS

The President's budget includes a $1 billion increase for the Special Education Grants to States program, for a total of $7.3 billion. This is the largest increase in this program ever requested by a President, and would provide an estimated $1,133 for each child with a disability. That is approximately 17 percent of the national average per-pupil expenditure -- the highest level of Federal support ever under the Individuals with Disabilities Education Act.

We also are requesting $644 million for Safe and Drug-Free Schools State grants to provide students with more effective drug- and violence-prevention programs and to implement strategies to improve school safety. No Child Left Behind includes proposals designed to strengthen the ability of schools and teachers to prevent violence in our schools, and our budget proposal would provide flexible Federal resources to help make our schools safe and drug-free.

The President's Budget also supports a significant increase in the Impact Aid program, which provides financial assistance to school districts affected by Federal activities. The $137 million increase for Impact Aid Construction would greatly expand support for the renovation and repair of schools that serve large proportions of military dependent students and students residing on Indian lands.

In addition to our discretionary request, the President's budget includes tax proposals that would significantly benefit elementary and secondary education. I have already mentioned our plan to expand tax-free Education Savings Accounts to increase the educational choices available to parents. Another key proposal would allow States to issue tax-exempt private activity bonds for constructing public elementary and secondary schools. Current law does not exclude from income the interest on such bonds used to finance school construction. Private entities would construct, own, and maintain the schools.

We also would allow teachers and other elementary and secondary school professionals to treat up to $400 in out-of-pocket classroom expenses as a non-itemized, above-the-line deduction beginning in 2002. Expenditures for books, supplies and equipment related to classroom instruction and for professional training programs would qualify for this deduction.

POSTSECONDARY EDUCATION

No Child Left Behind is focused on elementary and secondary education, but the 2002 request also demonstrates the President's commitment to preparing low-income and minority students for postsecondary education, strengthening financial aid programs that help students and families pay rising college costs, and building the capacity of postsecondary institutions serving large proportions of minority students.

For example, we are proposing a $1 billion increase for Pell Grants to support a maximum grant of $3,850 -- the highest ever -- and to improve access to postsecondary education for economically disadvantaged students. Overall, the President's budget would support a total of more than $49 billion in student financial aid, an increase of $2.2 billion or 4.6 percent over the 2001 level, for an estimated 8.2 million students and parents.

To help low-income students prepare for, enroll in, and complete a college education, we are requesting a $50 million increase for TRIO outreach and support services. We also are seeking a $15 million increase for Historically Black Colleges and Universities and a $4 million increase for postsecondary institutions that serve largely Hispanic populations.

We would encourage more college students to pursue teaching careers in high-need areas by expanding loan forgiveness for math and science teachers serving low-income communities from $5,000 to a maximum of $17,500.

We also would permit tax-free distributions from Qualified State Tuition Plans (QSTPs) to pay higher education expenses, including room and board, tuition and fees, and certain expenses for books, supplies, and equipment. In addition, private educational institutions would be permitted to establish qualified prepaid tuition plans, provided they are eligible to participate in Federal financial aid programs under Title IV of the Higher Education Act of 1965.

CONCLUSION

The President's 2002 budget request for education, in tandem with the education reform proposals contained in No Child Left Behind, support a comprehensive vision for closing the achievement gap and improving the quality of education for all Americans. I urge you to give these proposals careful consideration, and I stand ready to answer any questions you may have.