NSBA Issue Brief: Federal Funding for Education
BACKGROUND FISCAL YEAR 2008 SUPPLEMENTAL APPROPRIATIONS
The Senate Appropriations Committee is scheduled to consider a second supplemental funding bill, the Emergency Supplemental Appropriations for Infrastructure, Energy, Economic Recovery, and Natural Disasters Act of 2008, this month. Committee Chairman Robert C. Byrd (D-WV) announced details of the proposed bill before the August congressional recess.
The supplemental is slated to include immediate funding for disaster relief and for items that were negotiated out of the first FY 2008 supplemental appropriations bill (H.R. 2642) that Congress passed in June. NSBA’s goal includes securing at least $850 million for school repairs and modernization; $400 million in immediate funding for the “Secure Rural Schools” program; and, $36 million in additional funding for homeless assistance to students affected by the housing crisis.
School Repairs and Modernization Senator Tom Harkin (D-IA) is leading Senate efforts to provide $850 million in assistance to school districts for infrastructure repairs and modernization. The provision would also create contracting opportunities for businesses and an estimated 13,727 jobs.
The funding would be distributed similar to that of the Consolidated Appropriations Act of 2001 (Public Law 106-554), which appropriated $2.1 billion for “grants for school repair and renovation, activities under Part B of the Individuals with Disabilities Education Act (IDEA), and technology activities.”
Approximately three million students attend public schools that require major renovation or replacement. Estimates such as the Government Accounting Office 1995 Report and the National Education Association 2000 Report place the need for building new schools to educate record student enrollments and renovating and repairing existing school buildings as high as $300 billion. Local school districts in every state are delaying priority school construction projects as they struggle to secure local and state financing.
The demands of today’s educational programs and services are overwhelming the structural capacity of the average school in America built almost fifty years ago. Growing communities across our country cannot build schools fast enough to accommodate increasing student populations.
In a related effort, the House’s most recent legislative action on school construction was its passage of H.R. 3021, the 21st Century Green High-Performing Public School Facilities Act, which would authorize $6.4 billion in FY 2009 to state education agencies and school districts for school repairs and modernization. Funding allocations would be based on the Title I (Part A) funding formula, with the exception that it guarantees each district a minimum of $5,000. The bill is currently awaiting Senate consideration.
An extension of tax provisions that provide resources for school modernization is also pending via the Qualified Zone Academy Bond (QZAB) program. The QZAB program authorizes about $400 million per year in bond authority to states for school repairs and modernization, as well as curriculum development. The House passed a tax-extenders package last year that included the extension; and, the Senate Finance Committee is slated to consider a companion bill before the end of the congressional session.
Secure Rural Schools The supplemental proposes $400 million for a one-year extension of the “Secure Rural Schools” program, which provides critical funding to school districts in 42 states. Funding for the program expired at the end of June. Under the Secure Rural Schools and Communities Self-Determination Act, the program provides funding for governmental operations as federal payment-in-lieu-of-taxes to jurisdictions with nontaxable federal forest lands.
“These funds are critically urgent to over 775 rural counties and 4,400 schools nationwide that are facing permanent cuts to teaching positions and school and road improvement programs,” Chairman Byrd stated in July. “Nearly 7,000 teachers and educational staff across the country have received pink slips and will otherwise not have a job when the new school year begins this September.”
Along with Federation members, NSBA lobbied aggressively to continue Secure Rural Schools funding in the first supplemental, but encountered staunch opposition from the White House. In addition, NSBA helped lead efforts to hold a floor vote in the House on a reauthorization bill for the program, sponsored by Rep. Peter DeFazio (D-OR-4) – the Public Land Communities Transition Act (H.R. 3058). Because of such opposition, the reauthorization bill failed largely along party lines.
Last June, more than 200 Federation, Federal Relations Network and National Affiliate members wrote official letters of support for the program to Speaker Nancy Pelosi (D-CA-8) and Senate Appropriations Committee Chairman Byrd (D-WV). These letters were championed by Rep. DeFazio and submitted for the record, building greater congressional support for additional funding in the upcoming supplemental.
Disaster Relief and Homeless Assistance for Students The pending supplemental also includes provision that would allocate $22 million for schools, libraries, and museums for disaster relief assistance. This proposed allocation may be increased, however, because of the recent storms affecting a number of states in August.
Education advocates are also urging Congress to include additional funding for the McKinney-Vento Homeless Assistance program for students. The program helps homeless students to stay in their schools even if they are forced to move outside the school district. The program provides homeless students with a variety of supports, such as tutoring, school supplies, and counseling, among others, to help stabilize their education. An estimated 1.8 million are affected by the current foreclosure crisis, according to the Brookings Institution.
Senators Patty Murray (D-WA), Robert Menendez (D-NJ), and Ted Kennedy (D-MA) are spearheading efforts to secure $36 million for the McKinney-Vento program in the supplemental, as that amount would cover the gap between the FY 2008 funding level of $64 million and the $100 million authorized by the Menendez Amendment in the Foreclosure Prevention Act of 2008, H.R. 3221. The Menendez Amendment increased the McKinney-Vento authorization from $70 million to $100 million, and designates that $30 million is for emergency grants. Additionally, the funding request broadens the eligibility of the funding to include children becoming homeless due to the foreclosure crisis as eligible for services. Senator Murray’s appropriations request would cover children and families becoming homeless due to home foreclosure, flood, hurricane, fire and other natural disasters.
FISCAL YEAR 2009 APPROPRIATIONS FOR EDUCATION The Fiscal Year 2009 appropriations process was upended when the House Appropriations Committee did not report its bill for Labor, Health & Human Services, and Education programs in June after Ranking Member Jerry Lewis (R-CA-41) attempted to substitute the Interior Appropriations bill. Ranking Member Lewis argued that passage of the Interior bill would help alleviate rising gas prices before the July 4th holiday. Chairman David Obey (D-WI-7) then ended the meeting, indicating that the bill would not be considered by the full committee until September, setting the stage for a Continuing Resolution that could provide level funding for programs until a final appropriations bill is enacted for FY 2009. Since the House and Senate Appropriations Committee meetings, congressional leaders are now indicating that a final FY 2009 funding bill may not be enacted until March or April, citing a better climate for domestic priorities with a new Administration and Congress.
While the FY 2009 appropriations bill is tabled, NSBA continues to urge both the House and Senate Appropriations Committees to provide larger increases of at least $2.5 billion for the federal share of funding for Title I grants and for IDEA. Based on the preliminary reports, NSBA acknowledges the Appropriations Committees’ efforts to increase funding for education and reject cuts to programs that were proposed in the Administration’s FY 2009 budget request to Congress. The Committee reports would provide increases of about $600 million each for Title I ($14.5 billion total) and special education ($11.5 billion total). The Committee reports would also reject the Administration’s proposal of $300 million in funding for a new “Pell Grants for Kids” voucher program and a plan to cut funding for the 21st Century Community Learning Centers program and convert it into an $800 million voucher program.
Greater funding levels for Title I and IDEA Part B grants are needed, especially during the current economic conditions facing many states. According to the Center on Budget and Policy Priorities, 29 states faced budget shortfalls of at least $48 billion for FY 2009. The housing crisis has affected local property tax revenues, which is the largest source of funding for education in many states. State budget shortfalls are continuing to grow as a result of the economy, hence the declines in property and sales tax revenues. Also, healthcare costs under the Medicaid program continue to rise for states while the federal share of Medicaid funding has declined. All of these factors are impacting local and state budgets for education.
The federal share of funding for key programs such as Title I and IDEA (special education) must be fully funded. Historically, these two major programs that benefit most school districts are underfunded. Therefore, local school districts and states are making up the difference from the lack of federal funding and are now facing the current economic challenges. Our school districts are urging Congress to continue increasing the federal investment in our students and schools in order to fulfill federal mandates and requirements for special education and NCLB.
NSBA POSITION NSBA supports the provision of adequate funding and efficient procedures for financing federal public education programs and urges Congress to:
(a) make full funding of mandated public education programs the top priority in adopting the federal budget, and fully fund all federal public education programs;
(b) meet the funding levels authorized as part of the No Child Left Behind Act;
(c) oppose general budget reductions by formulations that circumvent Congress’ responsibility to set funding priorities among government functions.
(Excerpt from resolution on Federal Funding for Public Education adopted by NSBA’s 2008 Delegate Assembly.)
NSBA urges Congress to provide an increase of at least $2.5 billion for Title I and for IDEA for FY 2009.
For additional information, please contact
Deborah Rigsby, director of federal legislation at the National School Boards Association, at 703-838-6208.
September 2008