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<TITLE>NIFL Policy Update - President's FY 2003 Budget Proposal</TITLE>
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<P><FONT SIZE=2>President Bush Proposes Level Funding for Literacy</FONT>
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<P><FONT SIZE=2>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.</FONT></P>
<P><FONT SIZE=2>TABLE 1</FONT>
<BR><FONT SIZE=2>Proposed Funding for Selected Federal Programs (dollars in millions)</FONT>
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<P><FONT SIZE=2>State Grants for Adult Education FY 03-$575 FY 02-$575</FONT>
<BR><FONT SIZE=2>National Leadership Activities FY 03-$9.5 FY 02-$9.5</FONT>
<BR><FONT SIZE=2>National Institute for Literacy FY 03-$6.62 FY 02-$6.56</FONT>
<BR><FONT SIZE=2>Reading First State Grants FY 03-$1,000 FY 02-$900</FONT>
<BR><FONT SIZE=2>Early Reading First Grants FY 03-$75 FY 02-$75</FONT>
<BR><FONT SIZE=2>Even Start FY 03-$200 FY 02-$250</FONT>
<BR><FONT SIZE=2>Incarcerated Youth Offenders Grants FY 03-$17 FY 02-$17</FONT>
<BR><FONT SIZE=2>Prison Literacy Grants FY 03-$5 FY 02-$5</FONT>
<BR><FONT SIZE=2>21st Century Comm. Learning Centers FY 03-$1,000 FY 02-$1,000</FONT>
<BR><FONT SIZE=2>Community Technology Centers FY 03-$0 FY 02-$32.5</FONT>
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<P><FONT SIZE=2>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." </FONT></P>
<P><FONT SIZE=2>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. </FONT></P>
<P><FONT SIZE=2>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.</FONT></P>
<P><FONT SIZE=2>The following list describes the literacy programs included in Table 1. </FONT>
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<P> <FONT SIZE=2>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. </FONT></P>
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<BR> <FONT SIZE=2>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.</FONT></P>
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<BR> <FONT SIZE=2>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. </FONT></P>
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<BR> <FONT SIZE=2>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. </FONT></P>
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<BR> <FONT SIZE=2>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.</FONT></P>
<P> <FONT SIZE=2>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.</FONT></P>
<P> <FONT SIZE=2>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.</FONT></P>
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<BR> <FONT SIZE=2>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.</FONT></P>
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<BR> <FONT SIZE=2>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.</FONT></P>
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<BR> <FONT SIZE=2>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.</FONT></P>
<P><FONT SIZE=2>More information on the President's FY 2003 federal budget proposal is available at <A HREF="http://www.whitehouse.gov/omb/budget/fy2003/index.html" TARGET="_blank">http://www.whitehouse.gov/omb/budget/fy2003/index.html</A> <<A HREF="http://www.whitehouse.gov/omb/budget/" TARGET="_blank">http://www.whitehouse.gov/omb/budget/</A>>.</FONT></P>
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<P><FONT SIZE=2>Christy Gullion</FONT>
<BR><FONT SIZE=2>Associate Director for Federal Policy</FONT>
<BR><FONT SIZE=2>National Institute for Literacy</FONT>
<BR><FONT SIZE=2>1775 I Street, NW, Suite 730</FONT>
<BR><FONT SIZE=2>Washington, DC 20006-2417</FONT>
<BR><FONT SIZE=2>ph. (202) 233-2033 </FONT>
<BR><FONT SIZE=2>fax (202) 233-2050</FONT>
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