Education Issues in the 105th Congress, 2nd Session

Education Issues in the 105th Congress, 2nd Session

97-65 EPW
Updated January 26, 1998
CRS Report for Congress
Received through the CRS Web
Education Issues in the 105th Congress, 2 Session
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Paul M. Irwin
Coordinator
Education and Public Welfare Division
Summary
Several education issues are being considered by the 105 Congress. Some of the
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congressional action results from expiring legislation, such as the Higher Education Act
of 1965 (HEA). Other action may occur because of debate over the appropriate federal
role in education, including federal support for school reform or national testing. This
report provides a brief summary of education issues anticipated for the 2 Session, a
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well as a synopsis of education activity during the 1 Session.
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Higher Education
The 105 Congress, 2
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nd Session, will consider the reauthorization of the Higher
Education Act of 1965 (HEA). The principal objective of the HEA is to expand
postsecondary education opportunity for low and moderate income families. The HEA
supports an estimated $38 billion a year in student aid, including Pell Grants, Federal
Family Education Loans (FFEL), and Direct Loans (DL). This amount represents about
68% of financial assistance awarded to postsecondary students from all sources. Other
HEA programs include student support services, such as TRIO, aid for institutional
development, international education, and teacher education and recruitment. A variety
of issues are being considered in the reauthorization of the HEA; these issues include:
! access to postsecondary education, particularly for students who are low-income
or from certain minority groups; and how to cope with rising college costs;
! the forms of assistance, the balance among grants, loans, and work-study; the
relation between forms of assistance and tax relief programs; and the balance
between student and institutional assistance;
! standards and accountability, including not only the administration of HEA
programs and student default rates, but also whether eligibility should be predicated
in some degree on standards of academic quality;
! the efficiency of the student aid system including whether there are too many
current programs possibly resulting in costly and confusing administration as well
as inequity in student participation; and
Congressional Research Service ˜ The Library of Congress

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! teacher education and recruitment, including assistance or provisions for
preservice education for elementary and secondary school teachers, inservice
training for professional development, recruitment, license issues, workplace
quality, and quality standards or accreditation for teacher education programs.
In the 1 Session:
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hearings were held on HEA oversight and reauthorization issues. For
additional information: CRS Issue Brief 98004, The Higher Education Act:
Reauthorization by the 105 Congress
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, by James B. Stedman and Wayne C. Riddle.
Vocational and Adult Education
The 105th Congress has continued the process, started in the 104 Congress, o
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revising the Carl D. Perkins Vocational and Applied Technology Education Act (Perkins
Act) and the Adult Education Act (AEA).
1 The objectives of the Perkins Act are to assist
states improve vocational education at the secondary and postsecondary levels and to
provide access to special populations, such as disadvantaged or disabled students, to
quality vocational education programs. The objectives of the AEA are to assist states
provide adult basic education and literacy, adult secondary education and high school
equivalency, and English-as-a-second-language programs. To date, Perkins Act and AEA
issues include:
! possible consolidation with other programs, particularly job training programs,
or continuation as separate education programs;
! administrative simplification and accountability at the state and local levels,
including the extent to which governors would determine which state agency would
be responsible for the administration of the federal program;
! allocation of state grants between state and local levels, and in the case of the
Perkins Act, the degree of targeting for poverty populations in the substate
allocation formula; and
! performance standards and measures, and their use in program administration
and funding allocations.
In the 1 Session:
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the House passed H.R. 1385 (AEA) and H.R. 1853 (Perkins Act) and
the Senate reported S. 1186 (AEA and Perkins Act). For additional information: CRS
Report 97-283, Vocational Education: Legislation to Reauthorize the Carl D. Perkins
Vocational and Applied Technology Education Act, by Richard N. Apling; and CRS
Report 97-534, Adult Education and Literacy: Current Programs and Legislative
Proposals in the 105 Congress
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, by Paul M. Irwin.

1 Vocational education programs and most adult education programs are authorized through
FY1995 by the Perkins Act and the AEA, respectively. However, the General Education
Provisions Act, §422, extends the authorization of appropriations for most education programs for
one additional year, through FY1996 in this instance, unless the authorization of appropriations
for the program has been changed prior to the beginning of the final fiscal year. In addition, the
Congress has enacted appropriations for FY1997 and FY1998 for some Perkins Act and AEA
programs, in effect providing an automatic extension of authorization for those years as well.

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Elementary and Secondary Education
The 2 Sess
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ion is likely to continue to consider several issues related to elementary
and secondary education; a number of these have already received some attention during
the 1 Session as p
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art of the consideration of the President’s FY1998 budget request and
the enactment of FY1998 appropriations.
School Reform. Federal support of systemic state and local reform of elementary
and secondary education has raised concern in some quarters about inappropriate federal
direction and control of education. Congressional attention has focused on the state grant
program under the Goals 2000: Educate America Act, which funds state and local efforts
to establish and achieve high standards in education. The Goals 2000 Act authorizes
grants through FY1998, and codifies national education goals. Continuing controversy
over the program, the expiration of authorization of appropriations, and interest in
competing reform proposals are expected to prompt debate during the 2 Session.
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In the
1st Session: For the FY1998 appropriations, the House would have reduced funding by
more than 20%, and the Senate would have transferred all funds to a block grant, but the
final version continued funding at the FY1997 level. For additional information: CRS
Report 95-502, Goals 2000: Educate America Act Implementation Status and Issues, by
James B. Stedman and Wayne C. Riddle.
School Choice and Vouchers. School choice and voucher programs are widely
considered as an alternative to school reform. Such programs provide parents increased
control over the choice of schools attended by their children. These alternatives may
include: public schools within or outside of their own school district; schools operating
under a charter with public school authorities; or private schools through the use of
vouchers. Current programs for public school choice include Magnet Schools Assistance,
Public Charter Schools, and State Systemic Reform under the Goals 2000: Educate
America Act. In the 2 Session, consideration is anticipated to continue, with a possible
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focus on private school voucher proposals. In the 1 Session:
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proposals were considered
but not enacted (H.R. 1797 and S. 1502) for “tuition scholarships” for students from low-
income families in the District of Columbia for use in public or private schools. A proposal
(H.R. 2646) for education individual retirement accounts (Education IRAs) for elementary
and secondary education passed the House. Authority for using Elementary and
Secondary Education Act of 1965 (ESEA), Title VI funds for private school scholarships
was voted down by the House (H.R. 2746). For additional information: CRS Report 95-
344, Federal Support for School Choice: Background and Options, by Wayne C. Riddle
and James B. Stedman.
Charter Schools. Federal support has been increasing for charter schools, especially
under the Public Charter Schools program, whose funding has grown from $6 million in
FY1995 to $80 million in FY1998. Charter schools represent an innovative approach to
public schools where state regulatory requirements are sharply decreased in exchange for
increased responsibility and accountability for pupil outcomes. One-half of the states have
authorized such schools with varying degrees of autonomy and accountability. Issues
include the share of federal funds for such schools, the minimization of federal
administrative burdens through special waivers, and research to support increased
accountability for such schools. In the 1st Session: a proposal (H.R. 2616) passed the
House to increase the authorization for the Public Charter Schools program, and to

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increase support for schools in states providing financial autonomy to such schools. For
additional information: CRS Report 97-519, Charter Schools: State Developments and
Federal Policy Options, by Wayne Riddle, James Stedman, and Steven Aleman.
Reading. The FY1998 appropriations included $210 million for a child literacy
initiative to be spent only if authorizing legislation were enacted by July 1, 1998. President
Clinton’s “America Reads Challenge” has the objective of helping all children read
successfully by the end of the third grade, primarily through the use of trained volunteers
and tutors. The House has responded with a proposal that differs in some key aspects.
In particular, the President’s proposal includes a major role for AmeriCorps to recruit and
coordinate tutors; the House would emphasize professional development for teachers
without AmeriCorps. Other issues include the degree of emphasis on schools in low-
income areas, research and models for program implementation, and the extent to which
profit-seeking firms and parent-selected tutorial services would participate. In the 1st
Session: the House passed the Reading Excellence Act (H.R. 2614); the Administration
has given its qualified approval to that bill. For additional information: CRS Report 97-
972, Reading Instruction: New Federal Initiatives, by Wayne Riddle.
Voluntary National Testing. In the State of the Union Address of February 4,
1997, President Clinton proposed an initiative to encourage states and local educational
agencies (LEAs) to use new voluntary national tests specifically developed for 4 grade
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reading and 8 grade mathematics. These tests would be based on existing test
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administered by the National Assessment of Educational Progress (NAEP), and would
begin in 1999. The NAEP is the only nationally representative assessment of what school
children have learned, on a subject by subject basis. Opponents of the proposal have been
concerned with the lack of congressional input, challenged the necessity of such tests, and
feared that the tests indirectly would lead to inappropriate federal influence on state and
local curricula. These issues are anticipated to continue in the 2 Session, possibly during
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consideration of the NAEP reauthorization, which was previously authorized through
FY1997. In the 1st Session: language in P.L. 105-78 prohibits field testing or other
administration of the tests in FY1998, but allows test development and commissions a
series of studies of national testing issues by the National Academy of Sciences. For
additional information: CRS Report 97-774, National Tests: Administration Initiative,
by Wayne Riddle.
Educational Technology. Federal assistance for technology in education flows
through myriad channels such as grant programs administered by ED and other federal
agencies. Further, the implementation of the Telecommunications Act of 1996 is likely to
make telecommunications connections available to elementary and secondary schools at
substantially reduced rates. Congressional oversight is expected regarding expenditure and
implementation during the 105 Congress. Issues include the federal role in this fas
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evolving area; the role of technology in improving the quality of education; the integration
of technology into the curriculum; equity of access; and the multiplicity of programs
supporting new technologies in the schools. In the 1 Session:
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significant increases were
provided in FY1998 appropriations for several programs supporting educational
technology, and the Federal Communications Commission made rate reductions for
elementary and secondary services from between 20% and 90%, effective January 1, 1998.
For additional information: CRS Report 96-178, Information Technology and Elementary
and Secondary Education: Current Status and Federal Support, by James B. Stedman.

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Title I Allocations. The effects of updates by the Census Bureau of estimates of the
number of school-age children in poor families on the allocation formula may continue as
an issue for the Elementary and Secondary Education Act Title I program of grants to
local educational agencies for the education of disadvantaged children. Recent
amendments to the Title I program are being implemented, and will likely come under
scrutiny by the 105 Congress. Funding issues are anticipated to continue, particularl
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with regard to the extent of increased targeting of funds on LEAs with relatively high
levels of poverty, and schools with relatively higher poverty rates within LEAs. In the 1st
Session: P.L. 105-78 established 100% hold harmless levels for LEA Title I allocations,
temporarily limiting the further implementation of Census updates; no substantial changes
were made in the degree of targeting of funds for FY1998. For additional information:
CRS Report 96-380, Title I, ESEA: Current Status and Issues, by Wayne Riddle.
Block Grants. The Senate agreed to a floor amendment during consideration of the
FY1998 education appropriations that would have created an elementary and secondary
education block grant. The grant would have used funds appropriated elsewhere in the
bill and redirected them to a block grant for LEAs, for use as deemed appropriate by local
officials. The provision would have channeled approximately $13.4 billion from 51 other
programs into the block grant. The conference committee subsequently deleted the block
grant after the President threatened a veto. Nevertheless, the issues raised concerning the
multiplicity of federal education programs and the associated administrative burdens
imposed by them are anticipated to continue in the 2nd Session. In the 1st Session: the
Senate passed but the conference committee deleted an elementary and secondary
education block grant proposal prior to the enactment of P.L. 105-78 for FY1998
education appropriations. For additional information: CRS Report 97-893, Education
Block Grant in FY1998 Appropriations, by Paul M. Irwin and Wayne C. Riddle.
School Construction. According to several recent reports by the General
Accounting Office (GAO), the Nation’s elementary and secondary schools need substantial
repair and renovation, perhaps as much as $112 billion. Such repairs are traditionally a
state and local responsibility, but the size of the problem has resulted in increased
congressional attention. As part of the FY1998 budget request, the President made a
$5 billion proposal to subsidize interest costs for school construction. The Congress did
not enact this proposal, but the issue is expected to continue in the 2 Session. Questions
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may include the extent and type of federal assistance, whether to expand federal tax
benefits for state and local efforts, and whether to target assistance on certain schools,
such as those in high poverty urban districts. In the 1st Session: the Senate passed but
the conference committee deleted $100 million in FY1998 funds for school construction
grants already authorized under Title XII of ESEA; and the Taxpayers Relief Act of 1997,
P.L. 105-34, authorized tax credits for “qualified zone academy bonds” to be used for
school infrastructure. For additional information: CRS Report 95-1090, School Facilities
Infrastructure: Background and Funding in the 105 Congress
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, by Susan Boren.

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Other Issues in the 1st Session
Several education issues were considered during the 1 Session of the 105
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Congress
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that are not expected to receive as much attention during the 2 Session.
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Special Education. The Individuals with Disabilities Education Act Amendments
of 1997 was signed into law June 4, 1997, as P.L. 105-17. The legislation revised and
extended the Individuals with Disabilities Education Act (IDEA) which supports early
intervention and special education for children with disabilities. The amendments affected
the remedies schools have for disabled children who misbehave, the rights of such children
to special education services, limitations on the recovery of certain attorneys’ fees,
requirements for mediation and counseling prior to due process hearings, state and
substate allocation formulas, and state performance goals and assessments; new grants for
statewide special education reform were authorized. In the 2 Session, interest will likely
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focus on the regulations proposed to implement the amendments. For additional
information: CRS Report 97-535, Individuals with Disabilities Education Act
Reauthorization Legislation: An Overview, by Steven R. Aleman and Nancy Lee Jones;
and CRS Report 98-18, The Individuals with Disabilities Education Act: Department of
Education Proposed Regulations, by Nancy Lee Jones and Steven R. Aleman.
Education Tax Benefits. The Taxpayer Relief Act of 1997 was signed into law
August 5, 1997, as P.L. 105-34. The Act authorizes two new tax credits — the Hope
Scholarship Credit and the Lifetime Learning Credit — to help families pay for the
expenses of postsecondary education. It authorizes tax-exempt Education IRAs for
postsecondary education, and allows a new deduction for interest payments on qualified
education loans. The Act extended the exclusion for employer education assistance
through May 31, 2000, expanded the tax exclusion for student loan forgiveness, enhanced
the deduction for the contribution of computers to elementary and secondary schools, and
authorized tax credits for “qualified zone academy bonds” for public school facilities,
equipment, course materials, and training. In the 2
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be given to Education IRAs for elementary and secondary education, such as the proposal
included in H.R. 2646 that passed the House in the 1 Session.
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For additional
information: CRS Report 97-915, Tax Benefits for Education in the Taxpayer Relief Act
of 1997, by Bob Lyke; and CRS Report 97-852, Education Savings Accounts for
Elementary and Secondary Education, by Bob Lyke.
For Further Reading
For additional information on these and related issues, please see Education Issues
in the 105 Congress: A Checklist of CRS Products,
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CRS Report 96-941 L.