Monday, February 1, 2010

Obama Administration Releases FY2011 Budget

Today, President Barack Obama formally released his FY2011 Budget Request. The budget request is a formal submission to Congress. The President’s budget provides $49.7 billion (7.5% increase over the FY2010 budget request) for the Department of Education, but this figure does not include the Pell Grant program. The Administration is seeking to move the Pell Grant into the mandatory side of the federal budget. If this switch was to occur, the Pell Grant program would not be subject to the annual discretionary appropriations process. The total budget request for Pell is $34.9 billion and would provide for a $5,710 Pell Grant maximum. It is estimated that there is a $18 billion Pell Grant shortfall.

The Department of Education FY2011 budget request also includes “$10.6 billion over 10 years for the President's American Graduation Initiative, to strengthen and support community colleges, focus on college completion, and graduate 5 million more students by 2020.” The House passed version of H.R. 3221, “Student Aid and Fiscal Responsibility Act,” provides $9.5 billion for AGI. The AGI funding amount is expected to increase in the Senate bill, which still has not been released.

Below are some other key other funding areas:

  • Carl Perkins Career and Technical Education State Grants: $1.26 billion, an increase of $103 million (the increase comes from the consolidation of Tech-Prep)
  • Tech-Prep State Grants: $0, a decrease of $103 million
  • Strengthening Institutions: $88.2 million, an increase of $4.2 million
  • Hispanic Serving Institutions: $123.3 million, an increase of $6 million
  • Predominantly Black Institutions: $11.3 million, an increase of $500 thousand
  • College Pathways and Accelerated Learning: $100 million (a new program, focused on early college initiatives and Advanced Placement/International Baccalaureate)
  • Work-study: $980.5 million, level funding
  • Supplemental Educational Opportunity Grants: $958.8 million, level funding
Click here for more information from the Department of Education.

Meanwhile, the Department of Labor also released its budget request, which includes $14 billion for its programs. Unfortunately, the Career Pathways program is slated to be consolidated because the Department believes that many of the programs would be eligible for funding under the American Graduation Initiative. The Department would provide $85 million for a program focused on Green Jobs and $261 million for two new innovation funds for job training. Additionally, language was inserted in the request for the Workforce Investment Act to allow local workforce boards to award contracts to institutions of higher education or other eligible training providers.

Click here for more information from the Department of Labor.

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