[NLA] NIFL Policy Update - President's FY 2003 Budget Proposal

[Gullion, Christy]

President Bush Proposes Level Funding for Literacy

Yesterday, President Bush released his FY 2003 budget proposal for adult
education and family literacy programs, which provides level funding for
Adult Education State Grants at $575 million.  Additionally, the President
proposes to level fund National Leadership Activities and provide a slight
increase for the National Institute for Literacy.

TABLE 1
Proposed Funding for Selected Federal Programs (dollars in millions)

State Grants for Adult Education	FY 03-$575		FY 02-$575
National Leadership Activities	FY 03-$9.5		FY 02-$9.5
National Institute for Literacy	FY 03-$6.62		FY 02-$6.56
Reading First State Grants		FY 03-$1,000	FY 02-$900
Early Reading First Grants		FY 03-$75		FY 02-$75
Even Start					FY 03-$200		FY
02-$250
Incarcerated Youth Offenders Grants	FY 03-$17		FY 02-$17
Prison Literacy Grants			FY 03-$5		FY 02-$5
21st Century Comm. Learning Centers	FY 03-$1,000	FY 02-$1,000
Community Technology Centers		FY 03-$0		FY 02-$32.5

In his State of the Union address last week, the President indicated that
his budget proposal would include domestic programs cuts to pay for national
security and homeland defense.  Through his FY 2003 budget proposal, the
President plans to terminate 35 Department of Education programs that he
feels have not proven effective.  The President further proposes funding
decreases for other programs he views as marginally effective.  According to
the President, this "budget seeks to redirect funds from lower-performing
programs to higher-performing or more-effective programs."  

The President's FY 2003 budget proposal also launches a "multi-year effort
to reform job training programs across the federal government, target
resources to programs with documented effectiveness, and eliminate funding
for ineffective, duplicative, and overlapping programs."  The federal
government has at least 48 training and employment programs, including
workplace basic skills programs, administered by as many as ten different
federal agencies - including the U.S. Departments of Labor and Education.
Through his FY 2003 budget proposal, the President calls for reducing the
number of job training programs from 48 to 28.  

Congress is expected to debate the President's budget proposal throughout
the spring.  During this time, the U.S. House of Representatives and the
U.S. Senate will release their own budget proposals for FY 2003.  All three
proposals will be considered until Congress reaches agreement on a
compromise budget.  Congress will likely complete the FY 2003 budget process
by fall 2002.

The following list describes the literacy programs included in Table 1.  

	The President proposes to level fund State Grants for Adult
Education at $575 million.  The state grant program, administered by the
Office of Vocational and Adult Education (OVAE) within the U.S. Department
of Education, helps fund most local Adult Basic Education (ABE), Adult
Secondary Education (ASE), and General Education Development (GED) programs
across the country through grants distributed by state education agencies.
Of the $575 million proposed for state grants, $70 million is dedicated for
English Literacy and Civics Education programs. 
	
	Under the President's proposal, funding for National Leadership
Activities would be level funded at $9.5 million.  This funding supports
research, demonstration, and evaluation projects administered by OVAE.
	
	The National Institute for Literacy would receive a slight increase
of $57,000 under the President's proposed budget for FY 2003.   The
Institute supports capacity building, communication, and policy analysis
activities in support of the goal that all Americans will be literate and
able to succeed at work, home, and in their communities. 
	
	The President proposes $1 billion for the new Reading First State
Grants program to help states and local educational agencies implement
comprehensive reading instruction grounded in scientifically-based reading
research for children in kindergarten through third grade.  This proposal
increases funding from $900 million in FY 2002 to $1 billion in FY 2003. 
	
	Early Reading First State Grants would be level funded at $75
million under the President's budget.  This initiative would complement
Reading First State Grants by supporting model programs to develop the
academic readiness of preschool children.  Activities would support
evidence-based strategies to enhance pre-reading skills and school readiness
for children in preschool programs.

	The President's budget proposal includes $200 million for Even
Start, a decrease of $50 million from FY 2002.  Even Start funds support
local projects that blend early childhood education, parenting instruction,
and adult education into a unified family literacy program.  While the
President's budget describes the Even Start program as "well-intentioned,"
he proposes to shift $50 million out of Even Start into programs he expects
will have a more direct impact on reading achievement.

	The Incarcerated Youth Offenders state grant program would not be
funded under the President's proposal.  This program provides grants to
state correctional agencies to assist and encourage incarcerated youth to
acquire functional literacy, life, and job skills through post-secondary
education, employment counseling, and related services.
	
	The budget proposal does not fund the Prison Literacy program, which
provides grants to state and local correctional agencies to establish and
operate programs that reduce recidivism through the improvement of literacy
and life skills.
	
	The 21st Century Community Learning Centers grant supports before
and after school projects that extend learning time and offer enriching
activities for youth.  The President's budget level funds this large program
at $1 billion for FY 2003.
	
	Community Technology Center (CTC) competitive grants provide
opportunities for low-income children, youth, and adults to learn vital
computer literacy skills in their communities.  The President's budget
eliminates funding for this program.

More information on the President's FY 2003 federal budget proposal is
available at http://www.whitehouse.gov/omb/budget/fy2003/index.html
<http://www.whitehouse.gov/omb/budget/>.


Christy Gullion
Associate Director for Federal Policy
National Institute for Literacy
1775 I Street, NW, Suite 730
Washington, DC  20006-2417
ph. (202) 233-2033 
fax (202) 233-2050

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