State By State Analysis
Proposed Education Department FY2002 Budget

President Bush’s first budget request delivered to the Congress today calls for an increase in federal funding for the Education Department that is greater than any other domestic Federal department. The 11.5% increase would inject an additional $4.6 billion into the Education Department for fiscal year 2002. At the program level, the increase would be 5.9% or $2.5 billion.

"Since his first day in office, President Bush has demonstrated his commitment to providing every child in America with access to a quality education at all levels," said U.S. Secretary of Education Rod Paige. "He has made No Child Left Behind his number one legislative priority and his number one domestic budget priority."

Combined with a rigorous accountability system and increased flexibility, the President’s increased funding for education will provide much-needed assistance for disadvantaged students who have for too long been left behind.

The President’s budget request includes major increases in several Education Department programs including the following increases:

• $1 billion more for special education grants to States to provide assistance to students with disabilities;

• $1 billion more for Pell Grants to provide disadvantaged students with financial assistance for higher education;

• $614 million more for Reading First State grants to ensure that every American child can read;

• $459 million more for Title I grants to Local Education Agencies to assist low performing schools and disadvantaged students;

• $375 million more for State grants for improving teacher quality;

• $320 million to help States develop and implement annual state reading and math assessments to measure the performance of all students every year in grades 3-8;

• $175 million for a new Charter School Homestead Fund to expand parental options; and

• $137 million more for public school buildings serving military bases and Native American lands.

In addition to his commitment to the Education Department, the President will provide other federal agencies with a $490 million increase to support other initiatives related to his education reform agenda. The President’s budget also supports education through innovative tax exemptions and other non-discretionary investments in education.

"The President’s budget request consolidates existing education programs to reduce regulatory burdens while giving states and school districts flexibility to use Federal funds to address education priorities," Paige said."The President has also directed the Education Department to strengthen financial management to address audit deficiencies arising since 1995, modernize student aid delivery and management, and reduce student loan default costs to taxpayers."

Both houses of Congress have passed budget resolutions that closely reflect the President’s budget priorities. The Congressional appropriations hearing process for allocating fiscal year 2002 resources will begin when the Members of Congress return to Washington, D.C. after the April recess. At the same time, the Senate is expected to begin floor debate on comprehensive education reform, and the House Education and Workforce Committee will begin mark-up of H.R. 1, which closely reflects the President’s No Child Left Behind plan for reforming elementary and secondary education through high standards, annual measurement, accountability, expanded parental choice and greater flexibility and local control for States and school districts.

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