IU Federal Relations Update 5
February 14, 2006
CONGRESSIONAL DEVELOPMENTS
President Bush Unveils Fiscal Year 2007 Federal Budget Request
Part II
While the physical sciences would see increases in their funding levels in the President's proposed budget request for fiscal year 2007, the budgets for both the Department of Education and the National Institutes of Health (NIH) would be reduced under the recommendation. This update is the second of several that will outline key budget recommendations important to Indiana University.
Department of Education
The Administration's budget calls for $54.4 billion in discretionary spending, a decrease of $3.1 billion, or 5.5 percent, below the current year's funding level. The Administration proposes to eliminate 42 programs in the Department of Education, resulting in an estimated savings of $3.5 billion.
As was reported previously, the President unveiled the Advanced Competitiveness Initiative (ACI) as the focus of his domestic agenda. The ACI is designed to keep our nation competitive in the world economy by generating scientific and technological developments and applying these developments to real world situations. The Administration is proposing $250 million total for the two-part Math Now effort, as well as $10 million for the National Mathematics Panel and $5 million to evaluate all federal science, technology, education and math (STEM) programs. In addition, the budget calls for an increase of $90 million to train Advanced Placement and International Baccalaureate teachers, as well as $25 million for the creation of the Adjunct Teacher Corps.
At the recently-held university presidents and chancellors "summit" at the State Department, the Administration unveiled its National Security Language Initiative, a program designed to increase the number of speakers of critical foreign languages. The budget proposes an increase of $35 million for the Education Department, with $24 million for the new Advancing America Through Foreign Language Partnerships program.
For much of student financial aid and other higher education programs, the Administration has proposed the status quo. For example, the budget calls for the maximum Pell grant award to remain at $4,050. The Supplemental Education Opportunity Grants (SEOG) and the federal work-study programs would be level funded under this budget at $770.9 million and $980.4 million, respectively. Javits and Graduate Assistance in Areas of National Need (GAANN) programs would also be flat funded. Programs that serve historically black colleges and universities (HBCUs), Hispanic-serving institutions (HSI's), and tribally-controlled institutions are all slated for level funding.
The Department has proposed to eliminate, once again, the Leveraging Education Assistance Partnerships (LEAP) program and Perkins loans, including the loan cancellation program. In addition, the budget seeks to zero out the Gaining Early Awareness and Readiness for Undergraduate Program (GEAR UP) and is looking to substantially decrease TRIO programs.
While calling for the level funding of the Pell maximum, the budget does seek to make a number of policy changes. For example, the Administration is seeking to make Pell grants available for year-round study and would limit eligibility to 16 semesters. Furthermore, the Department is calling for the removal of tuition sensitivity for Pell grants.
The Administration is seeking other policy changes as well. The budget includes a proposal that could potentially have an impact on the direct loan (DL) program. It calls for the administrative costs of the DL program to be transferred from a mandatory account (Section 458 of the Higher Education Act (HEA)) to a discretionary account. The budget also assumes other changes to the loan program. For example, it is supporting increases in loan limits for both the direct loan progam and Federal Family Education Loan Program (FFEL), which it did last year.
Although efforts to improve math and science education have been highlighted as critical, as exemplified by the Math Now programs, the Math and Science Partnership (MSP) program at Department of Education is being slated for level funding in FY2007.
The Education budget is available on the department website by clicking here.
National Institutes of Health
Unlike its treatment of the physical sciences, the Administration proposes flat funding of NIH at $28.59 billion. This level is in essence the same as the FY2006 funding level.
Within the various Institutes and offices, the budget proposes an increase for the National Institute for Allergy and Infectious Diseases (NIAID). However, all of the other Institutes would be reduced from the current year, including a reduction of about $40 million for the National Cancer Institute.
The NIH budget request is available on the NIH website.
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This report has been brought to you by the Indiana University Office of Government Relations with help and technical support from IU University Communications. Staff members from the Office of the Vice President and Chief Financial Officer and the Office of the Vice President and Chief Administrative Officer are frequent contributors to this report.
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