Congress Works Out Fiscal ’04 Spending Blueprint

In March, the Republican-controlled House and Senate embarked on the challenging task of creating a budget for fiscal year 2004. The proposed budget blueprints indicate a potential end to the era of increased federal spending on education. The House narrowly approved its version of the budget resolution with a vote of 215 to 212. The Senate was still in the process of debating their version at that time.

The House plan aligns with President Bush’s request and suggests maintaining the same level of funding for the Department of Education in fiscal year 2004. The Senate’s version of the budget was still subject to changes, but as it currently stands, it includes an additional $1 billion for the agency. These figures slightly surpass the White House proposals for special education and the Title I program for disadvantaged students. The current discretionary budget for the Department of Education for the current fiscal year is $53.1 billion.

Both bills outline a future of controlled domestic spending, further tax cuts, and continued deficits that will take several years to eliminate. The House plan takes a more aggressive approach, proposing a slight reduction in domestic spending. Notably, the budget resolution does not require the president’s signature.

The House Budget Committee chairman, Rep. Jim Nussle, emphasized that tough decisions needed to be made regarding spending priorities, acknowledging that it is taxpayers’ money being spent. Democrats criticized the Republican budget plans, particularly the focus on tax cuts, and some moderate Republicans also expressed concerns.

The resolution sets an overall spending limit for discretionary programs, and specific decisions regarding spending are then made through the annual appropriations bills. The budget resolution groups funding into categories, with the Department of Education falling under "Function 500," which encompasses education, training, employment, and social services. The House version allocates $75.4 billion for this category, slightly lower than President Bush’s request, while the Senate bill sets it at $78.5 billion.

The next step involves reconciling the budget resolutions between the House and the Senate. Despite falling short of President Bush’s request, the House plan aims to maintain similar spending levels for the Education Department at $53.1 billion by making cuts in other areas. Additionally, the House budget plan outlines specific allocations, including $9.5 billion for special education state grants, $12.35 billion for Title I, and $12.7 billion for Pell Grants, all aligning with President Bush’s requests. The plan also supports a $75 million pilot program for school choice.

Is it a ‘More Challenging Situation’?

The current state of affairs in the Senate indicates that there may be slightly larger increases in funding for Title I and special education than what President Bush originally requested. Specifically, the Senate budget resolution allocates $12.68 billion for Title I, exceeding the President’s request by around $300 million. Furthermore, it sets aside $9.87 billion for special education state grants, which is almost $350 million more than what the President proposed.

On top of these increases, if the Individuals with Disabilities Education Act is reauthorized this year, an additional $205 million would become available. However, at the same time, the Senate’s plan assumes the passage of President Bush’s proposal to eliminate 45 Education Department programs.

Senator Don Nickles, the chairman of the Senate Budget Committee, expressed concerns about the significant growth in spending over the past years, emphasizing that it is not sustainable or affordable. He acknowledged that the Senate plan aligns closely with the President’s request but slightly surpasses it in the field of education.

However, the Senate Democrats were dissatisfied with this budget proposal as they aimed to allocate more funding towards education. Senator Patty Murray highlighted that a budget reflects our priorities and criticized the limited investment in funding for the No Child Left Behind Act.

Joel Packer, a senior lobbyist for the National Education Association, speculated that the budget proceedings last week could lead to a repetition of last year’s delayed budget process. During that time, House leaders attempted to enforce a spending cap that was unfavorable even to some moderate Republicans.

"They’re placing themselves in a similar, if not a more challenging situation," he remarked.