Education Proposals in Trade Competitiveness Legislation

Improvement on America's competitive position in international trade is one of the major issues confronting the 100th Congress. Most legislative proposals have included provisions for increasing the funding levels for Federal education programs, expanding current programs, or authorizing new programs. The primary goal is to improve the productivity of the Nation's workers by raising the skill level of the workforce. Discussions about education's role i n addressing the competitiveness issue have included the contribution of education to productivity growth, comparisons of the educational achievement of American school children with that of their peers in other nations , the educational needs of illiterate adults , and the role of technology in education.

Order Code IB87108 EDUCATION PROPOSALS IN TRADE COMPETITIVEMESS L E G I S L A T I O H Updated May 4, 1988 by Paul M. Irwin and Wayne Riddle Education and Public Welfare Division Congressional Research Service SUMMARY ISSUE DEFINITION BACKGROUND AND ANALYSIS Background Role of Formal Education in Productivity Growth Educational Achievement of American Pupils Compared to That of Pupils in Other Nations Adult Literacy Technology and Education Issues Target Groups New Initiatives or Existing Programs Level of Funding National Priorities or State and Local Discretion Cost-Sharing Implications Established Research Universities or Developing Institutions Options and Legislative Proposals LEG1 SLATION CONCRESSIONAL HEARINGS, REPORTS, AND DOCUMENTS FOR ADD1 TIONAL READING NOTE: This issue brief was originally co-authored by K. Forbis Jordan, the former Senior Specialist in Education at the Congressional Research Service. EDUCATION PROPOSALS I N TRADE COMPETITIVENESS LEGISLATION Improvement o f h e r i c a ' s c o m p e t i ' t i v e p o s i t i o n i n i n t e r n a t i o n a l t r a d e i s one of t h e major i s s u e s c o n f r o n t i n g t h e 1 0 0 t h Congress. Most l e g i s l a t i v e p r o p o s a l s have i n c l u d e d p r o v i s i o n s f o r i n c r e a s i n g t h e f u n d i n g l e v e l s f o r F e d e r a l e d u c a t i o n programs, expanding c u r r e n t programs, o r a u t h o r i z i n g new programs. The p r i m a r y g o a l i s t o improve t h e p r o d u c t i v i t y of t h e N a t i o n ' s w o r k e r s by r a i s i n g t h e s k i l l l e v e l of t h e w o r k f o r c e . Discussions about education's r o l e i n addressing t h e competitiveness i s s u e have included t h e c o n t r i b u t i o n of education t o p r o d u c t i v i t y growth, c o m p a r i s o n s of t h e e d u c a t i o n a l achievement o f American s c h o o l c h i l d r e n w i t h t h a t o f t h e i r p e e r s i n o t h e r n a t i o n s , t h e e d u c a t i o n a l n e e d s of i l l i t e r a t e a d u l t s , and t h e r o l e of t e c h n o l o g y i n e d u c a t i o n . S e v e r a l i s s u e s a r e r e l a t e d t o e d u c a t i o n and p r o p o s a l s f o r t r a d e competitiveness. One i s t h e e x t e n t t o which e d u c a t i o n i s r e l a t e d t o t r a d e c o m p e t i t i o n , and a n o t h e r i s t h e c o n c e r n t h a t some of U n i t e d s t a t e s ' m a j o r t r a d e c o m p e t i t o r s o r t r a d e p a r t n e r s a r e more s u c c e s s f u l t h a n t h e U n i t e d S t a t e s i n some a s p e c t s o f e d u c a t i o n . In response t o these concerns, e f f o r t s have been made t o i d e n t i f y t h e t y p e s o f a d d i t i o n a l e d u c a t i o n a l programs and e x p e n d i t u r e s t h a t might most e f f e c t i v e l y improve t h e N a t i o n ' s r e l a t i v e trade position. For example, what k i n d s of programs s h o u l d be p r o v i d e d ; f o r whom s h o u l d t h e y be p r o v i d e d ; what l e v e l of f u n d i n g s h o u l d be p r o v i d e d ? O t h e r i s s u e s i n c l u d e t h e e x t e n t t o which programs s h o u l d a d d r e s s n a t i o n a l p r i o r i t i e s o r a l l o w S t a t e and l o c a l d i s c r e t i o n , t h e i m p l i c a t i o n s of c o s t - s h a r i n g r e q u i r e m e n t s on i n s t i t u t i o n s w i t h l i m i t e d r e s o u r c e s , and . t h e i m p l i c a t i o n s o f p r o v i d i n g f u n d s t o e s t a b l i s h e d r e s e a r c h u n i v e r s i t i e s , developing i n s t i t u t i o n s , o r a l l i n s t i t u t i o n s . C o m p e t i t i v e n e s s p r o p o s a l s i n t h e 1 0 0 t h Congress h a v e c o n t a i n e d a literacy training for adults; v a r i e t y of F e d e r a l e d u c a t i o n p r o p o s a l s v o c a t i o n a l t r a i n i n g programs; improvement of i n s t r u c t i o n i n m a t h e m a t i c s , s c i e n c e , o r f o r e i g n l a n g u a g e s a t a l l l e v e l s o f e d u c a t i o n ; r e p l a c e m e n t of o b s o l e t e 1 a b o r a t o r i e s and r e s e a r c h f a c i l i t i e s i n h i g h e r e d u c a t i o n i n s t i t u t i o n s ; development of p a r t n e r s h i p s between e d u c a t i o n a l i n s t i t u t i o n s and p r i v a t e b u s i n e s s e s ; and i n c r e a s e d u s e of e d u c a t i o n a l t e c h n o l o g y . Many of t h e s e p r o p o s a l s a r e c o n t a i n e d i n t h e c o n f e r e n c e r e p o r t on H.R. 3, t h e Omnibus T r a d e and C o m p e t i t i v e n e s s Act of 1988, which p a s s e d t h e House Apr. 21, and t h e S e n a t e Apr. 2 7 , 1988. Some a r e a l s o c o n t a i n e d i n t h e Augustus F. Hawkins-Robert T. S t a f f o r d Elementary and Secondary S c h o o l Improvement Amendments o f 1988, P.L. 100-297 ( e n a c t e d Apr. 28, 1988). -- ISSUE DEFIMITIOtt Education's role in improving the Nation's relative competitive position in international trade has become an integral part of many of the competitiveness initiatives in the 100th Congress. Concerns include the role of education in productivity growth, educational achievement of American school children compared with that of their peers in other nations, the educational needs of illiterate adults, and the role of technology in education. The principal public policy issues include the select ion of program participants (in-school youth, out-of-school underemployed and unemployed persons, or illiterate adults); new initiatives or existing programs; necessary level of funding; conflict between national priorities and State or local discretion; implications of cost-sharing requirements; and provision of funds to established research universities, developing institutions, or all institutions. BACKGROUND AND ANALY SIS The first section of this brief focuses on the contribution of education to productivity growth, the primary means by which education is assumed to influence American trade competitiveness. Next, the level and quality of American education is compared to the educational status of our major foreign trade partners and competitors, Brief discussions then address the issues of adult literacy and trade competitiveness, and the potential uses of instructional,technology to improve the efficiency of the education system. Next, selected policy issues regarding alternative education provisions in trade competitiveness proposals are analyzed. In the final section, the various education provisions in trade competitiveness legislative proposals in the 100th Congress are listed in summary form. This issue brief does not discuss ~ r a d eproblems in general, nor does it. address the issue of whether education, or trends in productivity growth, are primary causes or solutions to trade competitiveness problems. Further, the job training provisions in the various proposals are not discussed. (Additional discussions of trade and competitiveness may be found in the February 1987 CRS Review, CRS Issue Brief 87003, and CRS Issue Brief 87053.) Background The importance of education to employment, productivity, and economic growth has been stressed in many of the recent reports calling for the reform of American education. From the 1983 report of former Secretary of Education Bell's Excellence Commission, A Nation at Risk, to the 1985 report by the Committee for Economic Development's (CED), Investing in our Children, the consistent theme has been that the ati ion's education system must address the problems of high school graduates who lack the basic skills in reading, writing, and mathematics that are needed in certain jobs and training programs. The CED report indicated that businesses were being required to provide their employees with remedial training in the b a s i c s k i l l s , and c a l l e d upon t h e s c h o o l s t o d e v o t e a d d i t i o n a l a t t e n t i o n t o b a s i c s k i l l s and t h e improvement of t h e academic p e r f o r m a n c e of students. T h i s p o s i t i o n was s u p p o r t e d i n a 1987 r e p o r t f r o m t h e N a t i o n a l A s s o c i a t i o n of M a n u f a c t u r e r s (NAM); t h e c o n t e n t i o n was t h a t t h e q u a l i t y of t h e ati ion's l a b o r f o r c e had s u f f e r e d b e c a u s e o f i n a d e q u a c i e s i n t h e e d u c a t i o n a l s y s t e m , h i g h i l l i t e r a c y . r a t e s , poor math and s c i e n c e t r a i n i n g , h i g h d r o p o u t r a t e s , and i n a d e q u a t e t r a i n i n g and r e l o c a t i o n of d i s p l a c e d workers. The NAM r e p o r t a d v o c a t e d t h a t s t e p s be t a k e n t o r a i s e t h e s t a n d a r d o f minimum e d u c a t i o n t o e n s u r e t h a t a l l s t u d e n t s master t h e b a s i c s k i l l s n e c e s s a r y t o f u n c t i o n i n a t e c h n o l o g i c a l , h i g h l y c o m p e t i t i v e world. I n t h e c u r r e n t d i s c u s s i o n of American economic p r o d u c t i v i t y and t r a d e c o m p e t i t i v e n e s s , a p r i m a r y c o n c e r n h a s been what a c t i o n s , i f a n y , s h o u l d t h e F e d e r a l Government t a k e t o improve t h e N a t i o n ' s e d u c a t i o n a l system. The i n t e n t o f t h e s e a c t i o n s would be t o improve t h e c a p a c i t y of American w o r k e r s and t h e American economy. The d e s i r e d r e s u l t would b e a h i g h e r r a t e o f p r o d u c t i v i t y s o t h a t t h e United S t a t e s c o u l d compete more f a v o r a b l y i n i n t e r n a t i o n a l t r a d e by p r o d u c i n g goods and s e r v i c e s o f a given q u a l i t y a t a favorable price. Of c o u r s e , a v a r i e t y o f f a c t o r s , b e s i d e s t h o s e d i r e c t l y r e l a t e d t o t e c h n i c a l s k i l l s and worker a t t i t u d e , c a n i n f l u e n c e p r o d u c t i v i t y ( f o r example, management d e c i s i o n s o r t h e s t a t e o f r e s e a r c h and d e v e l o p m e n t ) . R o l e of Formal E d u c a t i o n i n P r o d u c t i v i t y Growth F o r m a l e d u c a t i o n may a f f e c t t h e e c o n o m y ' s g e n e r a l r a t e o f p r o d u c t i v i t y i n two major ways. F i r s t , i n c r e a s e d l e v e l s of q u a l i t y o r q u a n t i t y o f e d u c a t i o n r e c e i v e d by t h e N a t i o n ' s w o r k f o r c e c a n b e viewed a s i n c r e a s e s i n t h e q u a l i t y of t h e l a b o r i n p u t s i n t o t h e production process. I n t h i s c o n t e x t , b e t t e r - e d u c a t e d workers might be a b l e t o a c c o m p l i s h more d i v e r s e t a s k s o r t o a d a p t t o c h a n g i n g t e c h n o l o g i e s . Second, a c t i v i t i e s of educational i n s t i t u t i o n s , especially research i n higher education i n s t i t u t i o n s , r e s u l t i n advances i n knowledge. Research f i n d i n g s can l e a d t o more e f f i c i e n t p r o d u c t i o n p r o c e s s e s , and fewer i n p u t s may be r e q u i r e d f o r a g i v e n l e v e l of o u t p u t . T h i s l a t t e r p o s i t i o n on t h e r o l e of h i g h e r e d u c a t i o n i n improving American p r o d u c t i v i t y and t r a d e c o m p e t i t i v e n e s s i s d i s c u s s e d i n t h e 1985 r e p o r t of t h e P r e s i d e n t ' s Comnission on I n d u s t r i a l C o m p e t i t i v e n e s s ( G l o b a l C o m p e t i t i o n , The New R e a l i t y ) . Economists s u c h a s J o h n K e n d r i c k have a r g u e d t h a t , o v e r t i m e , e d u c a t i o n makes a s p e c i f i c p o s i t i v e c o n t r i b u t i o n t h r o u g h i n c r e a s e d p r o d u c t i v i t y i n t h e American economy. According t o K e n d r i c k , a d v a n c e s i n knowledge and c h a n g e s i n worker e d u c a t i o n and t r a i n i n g e a c h have made s i g n i f i c a n t c o n t r i b u t i o n s t o t h e t o t a l p r o d u c t i v i t y growth r a t e o f t h e American economy. O t h e r e c o n o m i s t s , such a s Edward Denison and Theodore S c h u l t z , have a l s o d e t e r m i n e d t h a t e d u c a t i o n , and e s p e c i a l l y a d v a n c e s i n knowledge, h a v e been major c o n t r i b u t o r s t o American economic growth. ' Economi s t s a l s o have a n a l y z e d t h e ways i n which i n c r e a s e d e d u c a t i o n might c o n t r i b u t e t o p r o d u c t i v i t y . I n 1981-82, a s e r i e s o f r e p o r t s from t h e N a t i o n a l I n s t i t u t e o f E d u c a t i o n concluded t h a t e d u c a t i o n c o n t r i b u t e d t o g r o w t h i n economic p r o d u c t i v i t y by i n c r e a s i n g t h e development and i n t r o d u c t i o n of innovations i n t o production processes, i n c r e a s i n g t h e c a p a c i t y of t h e l a b o r f o r c e t o a d a p t t o changes i n t h e work e n v i r o n m e n t , p r o m o t i n g t h e d i f f u s i o n of t e c h n o l o g i e s , i n c r e a s i n g t h e s i z e o f t h e l a b o r f o r c e , and s t i m u l a t i n g i n v e n t i o n s . From t h e s t a n d p o i n t of t h e i n d i v i d u a l c i t i z e n , t h e r e p o r t s contended t h a t e d u c a t i o n c o n t r i b u t e s t o h i g h e r incomes f o r w o r k e r s t h a t , i n t h e o r y , r e f l e c t i n c r e a s e d p r o d u c t i v i t y ; e d u c a t i o n a l s o c o n t r i b u t e s t o i n c r e a s e d worker h e a l t h , more e f f i c i e n t e d u c a t i o n of c h i l d r e n i n t h e home by t h e i r p a r e n t s , more e f f i c i e n t p e r s o n a l consumption c h o i c e s , and r e d u c t i o n s i n income i n e q u a l i t y and criminal a c t i v i t y . O b v i o u s l y , t h e r e l a t i o n s h i p of some of t h e s e f a c t o r s ( f o r example, more e E f i c i e n t p e r s o n a l consumption c h o i c e s ) t o t h e o v e r a l l l e v e l of p r o d u c t i v i t y i n t h e American economy i s l e s s d i r e c t t h a n t h a t of o t h e r s ( f o r example, i n c r e a s e d a d a p t a b i l i t y and t e c h n o l o g i c a l d i f f u s i o n ) . Some c r i t i c s have q u e s t i o n e d t h e a n a l y s e s of t h e e f f e c t s of e d u c a t i o n on p r o d u c t i v i t y growth. Regarding endr rick' s and D e n i s o n ' s e s t i m a t e s of t h e s p e c i f i c c o n t r i b u t i o n of e d u c a t i o n t o p r o d u c t i v i t y o r economic g r o w t h , t h e p r i m a r y c r i t i c i s m h a s been t h a t i m p e r f e c t i o n s i n b o t h t h e t h e o r y and p r a c t i c e of l a b o r m a r k e t s make i t i m p o s s i b l e t o measure p r o d u c t i v i t y on t h e b a s i s o f e a r n e d income. Another major c r i t i c i s m o f t h e s e and o t h e r a n a l y s t s h a s been t h a t t h e y have o v e r e s t i m a t e d t h e e f f e c t s o f e d u c a t i o n on p r o d u c t i v i t y o r economic growth by s u g g e s t i n g "non-measurable" mechanisms by which e d u c a t i o n might i n f l u e n c e p r o d u c t i v i t y ( f o r example, i n c r e a s e d d i f f u s i o n o f new t e c h n o l o g i e s ) . They s u g g e s t t h a t some o f t h e s e mechanisms a r e a s l i k e l y t o r e d u c e a s t o i n c r e a s e p r o d u c t i v i t y . For example, i n c r e a s i n g t h e s i z e o f t h e l a b o r f o r c e might r e d u c e t h e a v e r a g e l e v e l o f p r o d u c t i v i t y by b r i n g i n g more "marginal" w o r k e r s ( t h o s e who a r e r e l a t i v e l y u n s k i l l e d and u n p r o d u c t i v e ) i n t o t h e l a b o r f o r c e . F i n a l l y , some have contended t h a t t h e U n i t e d S t a t e s i s a l r e a d y o v e r i n v e s t i n g " i n e d u c a t i o n , o r t h a t c u r r e n t and f u t u r e t e c h n o l o g i c a l d e v e l o p m e n t s , and l a b o r market p r o j e c t i o n s , s u g g e s t r e d u c t i o n s i n worker e d u c a t i o n a l r e q u i r e m e n t s , n o t t h e i n c r e a s e s assumed i n t h e a n a l y s e s d e s c r i b e d above. For example, R i c h a r d Freeman and o t h e r s h a v e r e p o r t e d t h a t t h e economic r a t e o f r e t u r n t o c o l l e g e a t t e n d a n c e i n t h e U n i t e d S t a t e s h a s s u b s t a n t i a l l y d e c l i n e d , and have a r g u e d t h a t t h e N a t i o n h a s tto v e r i n v e s t e d " i n p o s t s e c o n d a r y e d u c a t i o n , l e a d i n g t o a growing d e g r e e of tt 8I underemploymentH of c o l l e g e g r a d u a t e s i n j o b s where such a l e v e l of e d u c a t i o n i s u n n e c e s s a r y . O t h e r s have a r g u e d t h a t t h e d e c l i n e i n t h e r a t e of r e t u r n t o c o l l e g e a t t e n d a n c e i n r e c e n t y e a r s r e f l e c t s o n l y t e m p o r a r y p r i m a r i l y t h e r e c e i p t of p o s t s e c o n d a r y d e g r e e s by demographic f a c t o r s t h e l a s t o f t h e "baby boom" p o p u l a t i o n c o h o r t , and r e l a t i v e l y slow economic g r o w t h i n t h e l a t e 1970s. Some o b s e r v e r s c o n t e n d t h a t c o n d i t i o n s a l r e a d y a r e c h a n g i n g , and t h a t t h e d e c l i n e i n t h e r a t e o f r e t u r n t o c o l l e g e a t t e n d a n c e has no long-term p o l i c y i m p l i c a t i o n s . -- Regarding s k i l l r e q u i r e m e n t s of f u t u r e j o b s , some h a v e a r g u e d t h a t increasing technological sophistication' i n production processes w i l l a c t u a l l y r e d u c e t h e s k i l l s r e q u i r e d of w o r k e r s ; f o r example, more s o p h i s t i c a t e d computer s y s t e m s may become e a s i e r t o u s e , a s some more c o m p l i c a t e d f u n c t i o n s a r e handled a u t o m a t i c a l l y . Also, most p r o j e c t i o n s of f u t u r e job growth e s t i m a t e t h e l a r g e s t numbers o f new j o b s w i l l be i n s e r v i c e o c c u p a t i o n s w i t h r e l a t i v e l y low s k i l l r e q u i r e m e n t s ( f o r example, j a n i t o r i a l s e r v i c e s , l i c e n s e d p r a c t i c a l n u r s e s , and s a l e s c l e r k s ) . CRS- 5 E d u c a t i o n a l Achievement of American P u p i l s Coapared t o T h a t o f P u p i l s i n Other Nations R e c e n t i n t e r n a t i o n a l a n a l y s e s of e d u c a t i o n s y s t e m s h a v e f o c u s e d p r i m a r i l y on c o m p a r i s o n s of e d u c a t i o n i n J a p a n and t h e U n i t e d S t a t e s . J a p a n i s w i d e l y viewed n o t o n l y a s one of America's m a j o r t r a d e p a r t n e r s o r competitors but a l s o a s being e s p e c i a l l y s u c c e s s f u l i n e d u c a t i o n a l t e r m s . T h i s s e c t i o n p r o v i d e s a b r i e f overview o f a v a i l a b l e i n f o r m a t i o n on c o m p a r a t i v e e d u c a t i o n a l achievement ( f o r a d d i t i o n a l d i s c u s s i o n , see CRS R e p o r t 86-683 EPW). -- q u a n t i t y and E d u c a t i o n may be viewed from two p e r s p e c t i v e s quality. Q u a n t i t y of e d u c a t i o n may r e f e r t o t h e a v e r a g e number o f y e a r s of e d u c a t i o n r e c e i v e d o r t h e amount of f u n d s a n a t i o n s p e n d s f o r education. I n terms o f t h e a v e r a g e number o f y e a r s o f f o r m a l e d u c a t i o n , Americans compare f a v o r a b l y t o most o t h e r n a t i o n s . According t o d a t a compiled by t h e United N a t i o n s E d u c a t i o n a l , S c i e n t i f i c , and C u l t u r a l O r g a n i z a t i o n (UNESCO) f o r 1982, t h e United S t a t e s i s among t h e w o r l d ' s h i g h e s t - r a n k i n g n a t i o n s i n t h e p r o p o r t i o n of i t s p o p u l a t i o n a t t e n d i n g s e c o n d a r y s c h o o l s , and i s by f a r t h e h i g h e s t among t h e m a j o r n a t i o n s i n t h e p r o p o r t i o n of i t s p o p u l a t i o n a t t e n d i n g i n s t i t u t i o n s o f p o s t s e c o n d a r y education. However, t h e s e p r o p o r t i o n s r e f e r t o e n r o l l m e n t i n e d u c a t i o n programs, n o t c o m p l e t i o n o f them. For example, a r e c e n t s t u d y by t h e U.S. Department of E d u c a t i o n ( J a p a n e s e E d u c a t i o n Today) found t h a t a l m o s t 90% of J a p a n e s e y o u t h g r a d u a t e from h i g h s c h o o l , compared t o a b o u t 71% o f American y o u t h . (The U n i t e d S t a t e s d a t a do n o t i n c l u d e t h o s e who e a r n h i g h school equivalency c e r t i f i c a t e s . ) F u r t h e r , t h e q u a n t i t y of i n s t r u c t i o n a l time r e p r e s e n t e d by a h i g h s c h o o l diploma may be s u b s t a n t i a l l y g r e a t e r i n some o t h e r n a t i o n s t h a n i n t h e U n i t e d S t a t e s , d u e t o l o n g e r s c h o o l d a y s and s c h o o l y e a r s i n such n a t i o n s a s Japan. The q u a n t i t y o f e d u c a t i o n r e c e i v e d by a n a t i o n ' s p o p u l a t i o n may a l s o be e x p r e s s e d a s t h e q u a n t i t y o f a n a t i o n ' s r e s o u r c e s d e v o t e d t o e d u c a t i o n , t y p i c a l l y measured a s t h e p e r c e n t a g e o f Gross N a t i o n a l P r o d u c t (GNP) s p e n t on e d u c a t i o n . According t o UNESCO, i n 1984 t h e United S t a t e s d e v o t e d 6.6% of i t s GNP t o e d u c a t i o n a t a l l l e v e l s . Among n a t i o n s w i t h d e v e l o p e d economies, t h i s p e r c e n t a g e was exceeded by o n l y Canada ( 7 . 4 % ) , Israel (8.441, t h e N e t h e r l a n d s ( 7 . 7 % ) , and Sweden ( 8 . 0 % ) . The p e r c e n t a g e o f GNP s p e n t on e d u c a t i o n was 5.7% f o r Japan. N a t i o n a l comparisons of t h e q u a l i t y of e d u c a t i o n t y p i c a l l y a r e e x p r e s s e d i n terms o f academic achievement on comparable t e s t s i n s u c h s u b j e c t s a s r e a d i n g , s c i e n c e , and m a t h e m a t i c s . The o n l y international o r g a n i z a t i o n t h a t h a s d e v e l o p e d and a d m i n i s t e r e d r e l i a b l e t e s t s of c o m p a r a t i v e achievement of e l e m e n t a r y and s e c o n d a r y p u p i l s i n a v a r i e t y of n a t i o n s i s t h e I n t e r n a t i o n a l A s s o c i a t i o n f o r t h e E v a l u a t i o n of E d u c a t i o n a l The I E A i n c l u d e s most e c o n o m i c a l l y d e v e l o p e d n a t i o n s , Achievement (IEA). a l t h o u g h v e r y f e w n a t i o n s w i t h communist governments, p l u s some developing nations. The IEA h a s a d m i n i s t e r e d t e s t s i n m a t h e m a t i c s , s c i e n c e , l i t e r a t u r e , r e a d i n g , c i v i c education, French a s a f o r e i g n l a n g u a g e , and w r i t i n g a t t h e e l e m e n t a r y and s e c o n d a r y e d u c a t i o n l e v e l ; b u t no c o m p a r a b l e t e s t s of t h e c o m p a r a t i v e achievement o f p o s t s e c o n d a r y p u p i l s o r g r a d u a t e s have been c o n d u c t e d . Except i n m a t h e m a t i c s and s c i e n c e , i n which s u b j e c t s I E A t e s t s have been conducted between 1982 and 1 9 8 6 , t h e most r e c e n t a v a i l a b l e IEA t e s t r e s u l t s a r e now more t h a n a d e c a d e o l d . O v e r a l l , t h e s c o r e s o f United S t a t e s ' p u p i l s on t h e I E A t e s t s have been r e l a t i v e l y h i g h e r t h a n t h e i n t e r n a t i o n a l a v e r a g e i n r e a d i n g and l i t e r a t u r e , and lower i n s c i e n c e , m a t h e m a t i c s , o r f o r e i g n l a n g u a g e s a t a l l age levels. On t h e l a t e s t a v a i l a b l e IEA t e s t r e s u l t s i n m a t h e m a t i c s , s c o r e s f o r U n i t e d S t a t e s ' s t u d e n t s a t a g e 13 were lower t h a n t h o s e f o r a l l b u t two o t h e r d e v e l o p e d n a t i o n s , and lower t h a n a l l o t h e r n a t i o n s f o r s t u d e n t s a t a g e 17. I n t h e r e c e n t I E A s c i e n c e t e s t s , t h e s c o r e s of b o t h b e g i n n i n g ( f i r s t y e a r ) and more advanced ( s e c o n d y e a r ) U .S, h i g h s c h o o l s t u d e n t s were w e l l below t h e i n t e r n a t i o n a l a v e r a g e f o r d e v e l o p e d countries a n d , more s p e c i f i c a l l y , below t h e a v e r a g e f o r s t u d e n t s i n i n t e s t s o f achievement i n b i o l o g y , c h e m i s t r y , and J a p a n and England physics. However, c o n s i d e r i n g a l l s u b j e c t s , a l l a g e l e v e l s , and t h e e n t i r e p e r i o d o v e r which IEA t e s t s have been a d m i n i s t e r e d (1964 t o t h e p r e s e n t ) , t h e o n l y i n d i v i d u a l nation with scores c o n s i s t e n t l y higher than t h e U n i t e d S t a t e s h a s been J a p a n . -- -- A t a l l a g e l e v e l s , s c h o o l s i n t h e United S t a t e s a p p e a r t o p l a c e g r e a t e r emphasis on t h e t e a c h i n g of r e a d i n g , and l e s s on m a t h e m a t i c s , s c i e n c e , o r f o r e i g n l a n g u a g e s , t h a n do s c h o o l s i n most o t h e r d e v e l o p e d n a t i o n s . T h i s c u r r i c u l a r emphasis i s c o n s i s t e n t w i t h t h e r e l a t i v e showing T h i s f i n d i n g may a l s o b e of U n i t e d s t a t e s ' p u p i l s on t h e IEA t e s t s . p a r t i c u l a r l y s i g n i f i c a n t b e c a u s e many of t h e t r a d e - r e l a t e d e d u c a t i o n p r o p o s a l s a r e f o c u s e d on t h e s u b j e c t s of m a t h e m a t i c s , s c i e n c e , and f o r e i g n l a n g u a g e s , u n d e r a n a s s u m p t i o n t h a t t h e s e s u b j e c t s a r e t h e o n e s most i m m e d i a t e l y r e l e v a n t t o p r o d u c t i v i t y growth and t r a d e c o m p e t i t i v e n e s s . Some r e p o r t s and a n a l y s e s have compared e d u c a t i o n i n J a p a n and t h e United S t a t e s . One s t u d y found t h a t t h e achievement l e v e l of J a p a n e s e p u p i l s was h i g h e r i n mathematics a t a l l e l e m e n t a r y g r a d e s , b u t t h a t American and J a p a n e s e achievement l e v e l s i n r e a d i n g were comparable. Other o b s e r v a t i o n s included t h e following: ( 1 ) t h e Japanese elementary c u r r i c u l u m d e v o t e s much more t i m e t o m a t h e m a t i c s , much l e s s t o r e a d i n g , t h a n d o e s t h e t y p i c a l ' American c u r r i c u l u m ; ( 2 ) a v e r a g e c l a s s s i z e i s s m a l l e r , and f o r m a l t e a c h e r q u a l i f i c a t i o n s a r e h i g h e r , i n t h e U n i t e d S t a t e s ; ( 3 ) J a p a n e s e p u p i l s spend much more of c l a s s t i m e a c t i v e l y engaged i n i n s t r u c t i o n ; and ( 4 ) J a p a n e s e p a r e n t s spend more time t u t o r i n g t h e i r c h i l d r e n and p u r c h a s e more e d u c a t i o n a l r e s o u r c e s f o r u s e a t home. I r o n i c a l l y , J a p a n e s e p a r e n t s were found t o b e l e s s s a t i s f i e d t h a n American p a r e n t s w i t h t h e i r c h i l d r e n ' s s c h o o l s and e d u c a t i o n a l performance. F i n a l l y , J a p a n e s e p a r e n t s tended t o a t t r i b u t e s u c c e s s i n s c h o o l p r i m a r i l y t o p u p i l e f f o r t , w h i l e American p a r e n t s p r i m a r i l y t e n d e d t o a t t r i b u t e success t o n a t i v e a b i l i t y . Comparative d a t a on t e a c h e r s s a l a r i e s i n J a p a n and t h e U n i t e d S t a t e s were r e p o r t e d i n a r e c e n t s t u d y p r e p a r e d f o r t h e U.S. Department of E d u c a t i o n (A Comparison of ~ e a c h e r s ' S a l a r i e s i n J a p a n and t h e U n i t e d S t a t e s , by S t e p h e n B a r r o ) . On a c o m p a r a t i v e b a s i s , t h e s a l a r i e s f o r J a p a n e s e t e a c h e r s were a p p r o x i m a t e l y t h e same a s t h o s e f o r t e a c h e r s i n t h e United S t a t e s . However, s a l a r i e s f o r J a p a n e s e t e a c h e r s were much h i g h e r i n r e l a t i o n t o s a l a r i e s f o r o t h e r occupations i n Japan. Thus, t e a c h e r s a r e much b e t t e r p a i d i n comparison t o o t h e r o c c u p a t i o n s i n J a p a n t h a n i n IB87 108 CRS- 7 05-04-88 the United States. Also, teachers appear to constitute a significantly higher proportion of total staff in Japanese public elementary and secondary schools (approximately 82%) than in United states- schools (62%). Total expenditures for public elementary and secondary education, per pupil enrolled, were approximately $2,400 in Japan in the 1982-83 school year, versus $2,726 for the United States. A recent report (Japanese Education Today) found the Japanese education system to be very successful in (1) producing a high average level of pupil achievement and high rates of pupil retention through high school; (2) providing "a high quality, well-balanced basic education;" ( 3 ) II motivating students to succeed in school;" (4) "using instructional time productively;" and ( 5 ) "sustaining serious attention to character development." However, this report was critical of the following aspects of education in Japan: (1) little attention to individual differences and needs; (2) "rigidity, excessive uniformity, and lack of choice"; ( 3 ) a degree of student alienation; and ( 4 ) a postsecondary sector that is less rigorous than Japanese elementary and secondary education, and offers relatively few post-graduate programs. Adult Literacy Recent studies suggest that some members of the American workforce have educational problems that have a negative effect on productivity and on competitiveness. Reports differ as to the extent to which the Nation's adults are able to read, write, speak, or comnunicate at a level sufficient to meet the needs of modern society; however, there is general agreement that a significant portion of the adult population does not possess either the basic or technical skills needed for many jobs. Problems with estimates of the number of illiterate persons include the lack of an accepted definition of illiteracy, and the lack of comparative data over time. Depending upon the definition, estimates of illiteracy, functional incompetency, and marginal incompetency range from 0.5% to 50% of the Nation's adult population. The consistent observations have been that the lack of basic or functional literacy skills holds back too many citizens from job mobility and improvement and also has many social and economic disadvantages for the Nation's efforts to maintain a competitive position in international trade. For example, adults with low levels of literacy or competency may have difficulty adapting to technological advancements in the workplace as well as in their daily lives (for additional discussion, see CRS Issue Brief 85167). Technology and Education Another issue is the current and potential impact of technological developments on education. Even though technological developments have contributed to many changes in American life, the 1986 school reform report from the National ~overnors' Association (Time for Results) indicates that the availability of technology has had little effect on the The report not only- has advocated greater use of technology in schools. school administrative procedures and instructional methods, but also has emphasized the need for research and development and for restructuring the s c h o o l s t o become more e f f i c i e n t and economical t h r o u g h t h e u s e of technology. O t h e r o b s e r v e r s contend t h a t i n - s c h o o l u s e of m i c r o c o m p u t e r s and o t h e r forms of t e c h n o l o g y w i l l i n c r e a s e t h e c a p a c i t y of g r a d u a t e s t o a d a p t t o t e c h n o l o g y i n t h e workplace. Possible technological applications t o education include personal c o m p u t e r s i n t h e c l a s s r o o m f o r s t u d e n t u s e , computer a s s i s t e d i n s t r u c t i o n , c o m p u t e r s f o r c l a s s r o o m r e s e a r c h p r o j e c t s , computers f o r a d m i n i s t r a t i v e t a s k s , l a s e r d i s k s f o r i n f o r m a t i o n s t o r a g e and r e t r i e v a l , and e d u c a t i o n a l television. The g e n e r a l c o n t e n t i o n o f Time f o r R e s u l t s i s t h a t g r e a t e r u s e o f e d u c a t i o n a l t e c h n o l o g y w i l l improve t h e q u a l i t y o f e d u c a t i o n , and t h e r e b y t h e o v e r a l l p r o d u c t i v i t y of t h e American economy. However, t h e r e i s l i t t l e r e s e a r c h e v i d e n c e c o n c e r n i n g t h e e x t e n t t o which new f o r m s of t e c h n o l o g y a r e e f f e c t i v e i n improving i n s t r u c t i o n . Issues The p r i n c i p a l i s s u e r e l a t e d t o e d u c a t i o n and t r a d e c o m p e t i t i v e n e s s i s what, i f a n y , a c t i o n s c a n t h e F e d e r a l Government t a k e t o improve t h e q u a l i t y of t h e at ion's w o r k f o r c e and t h e r e b y improve t h e N a t i o n ' s o v e r a l l competitive position. The f o l l o w i n g i s s u e s a r e r e l a t e d t o t h e e d u c a t i o n components o f t h e v a r i o u s c o m p e t i t i v e n e s s i n i t i a t i v e s i n t r o d u c e d i n t h e 1 0 0 t h Congress and t h e i r p o t e n t i a l impact on American e d u c a t i o n . T a r g e t Groups . I n t h e development o f p r o p o s a l s f o r e d u c a t i o n programs i n t h e t r a d e c o m p e t i t i v e n e s s p r o p o s a l s , one i s s u e l i k e l y w i l l be r e l a t e d t o which p o t e n t i a l l a b o r problem s h o u l d be a d d r e s s e d i n t h e e d u c a t i o n p r o p o s a l s . One a p p r o a c h might be t o p r o v i d e a d d i t i o n a l f u n d i n g t o e n h a n c e t h e at ion's r e s e a r c h and development c a p a c i t y by i n c r e a s i n g t h e number of s c i e n t i s t s and e n g i n e e r s w i t h p o s t g r a d u a t e t r a i n i n g ; t h i s would s u g g e s t g r a d u a t e and p o s t g r a d u a t e f e l l o w s h i p s and funded r e s e a r c h p r o j e c t s . An a l t e r n a t i v e might be t o improve t h e competency o f management o r s u p e r v i s o r y p e r s o n n e l ; t h i s would s u g g e s t t e c h n i c a l and management t r a i n i n g programs a t t h e b a c c a l a u r e a t e l e v e l . Programs might be implemented t o a d d r e s s t h e problems of unemployed and underemployed p e r s o n s who a r e o r s h o u l d be i n t h e workforce; t h i s would s u g g e s t t h e need f o r s h o r t - t e r m t a r g e t e d t r a i n i n g programs f o r t h e s e p e r s o n s . An o p t i o n might b e t o h e l p e n t r y - l e v e l p r o d u c t i o n workers d e v e l o p t h e b a s i c s k i l l s r e q u i r e d f o r t h e i r j o b s ; t h i s would s u g g e s t b a s i c s k i l l and e n t r y - l e v e l j o b t r a i n i n g programs i n h i g h s c h o o l s and p o s t s e c o n d a r y t r a d e and vocational schools. C o n s i d e r a b l e a t t e n t i o n h a s been g i v e n t o t h e need t o improve t h e q u a l i t y of e l e m e n t a r y and s e c o n d a r y e d u c a t i o n , e s p e c i a l l y i n m a t h e m a t i c s , s c i e n c e , and f o r e i g n langu'ages; t h i s would s u g g e s t a d d i t i o n a l F e d e r a l a i d f o r e d u c a t i o n a t t h i s l e v e l and i n t h e s e s u b j e c t s . S e v e r a l f a c t o r s may be c o n s i d e r e d i n making t h e p o l i c y d e c i s i o n s a s t o which problem t o a d d r e s s , o r which t a r g e t g r o u p s o r programs t o r e c e i v e F e d e r a l f u n d s . One q u e s t i o n might be t h e e x t e n t t o which t h e problem i s a n a t i o n a l o r a l o c a l problem. I f t h e problem i s n a t i o n a l i n s c o p e , l a r g e (Examples i n c l u d e l i t e r a c y amounts of f u n d s L i k e l y w i l l be r e q u i r e d . l e v e l s of a d u l t s and t h e l a c k of b a s i c s k i l l s on t h e p a r t o f y o u t h entering the labor force.) I f t h e problem i s l o c a l , a t a r g e t e d F e d e r a l program might be c o n s i d e r e d . (Examples i n c l u d e unemployment a s a r e s u l t of c l o s e d f a c t o r i e s o r t e c h n o l o g i c a l advancements.) However, t h e p o l i c y may be t h a t a n a t i o n a l program i s m e r i t e d b e c a u s e o f i t s c r i t i c a l i m p o r t a n c e i n e f f o r t s t o improve t h e c at ion's c o m p e t i t i v e n e s s . (Examples i n c l u d e s h o r t a g e s of s c i e n t i f i c r e s e a r c h p e r s o n n e l and o b s o l e t e s c i e n t i f i c equipment.) I f f i s c a l l i m i t a t i o n s a r e imposed, t h e n f u n d s may b e p r o v i d e d o n l y f o r t h e p r o g r a m ( s ) t h a t l i k e l y w i l l be most c o s t - e f f i c i e n t . U n f o r t u n a t e l y , no g e n e r a l l y a c c e p t e d r i g o r o u s , o b j e c t i v e method h a s been f o u n d f o r d e t e r m i n i n g t h e r e l a t i v e impact t h a t a d d i t i o n a l e x p e n d i t u r e s f o r d i f f e r e n t t y p e s of e d u c a t i o n , t r a i n i n g , o r r e s e a r c h would have on A m e r i c a ' s economic c o m p e t i t i v e n e s s . New I n i t i a t i v e s o r E x i s t i n g Programs When t h e Congress i s c o n s i d e r i n g a u t h o r i z i n g a "new" program i n r e s p o n s e t o a n a t i o n a l problem, one of t h e p r o c e d u r a l q u e s t i o n s i s w h e t h e r t o e n a c t a "new" program o r t o add t h e "new" a c t i v i t y t o t h e l i s t o f a u t h o r i z e d a c t i v i t i e s under a s i m i l a r c u r r e n t program. I f t h e "new" a c t i v i t y i s added t o a c u r r e n t program, s u c c e s s may be d e p e n d e n t upon t h e q u a l i t y o f t h e c u r r e n t program's management and t h e amount o f a d d i t i o n a l funds. I f t h e d e c i s i o n i s t o a u t h o r i z e t h e a c t i v i t y a s a "new" program, some b e n e f i t may be g a i n e d from t h e p u b l i c i t y r e s u l t i n g f r o m t h e i d e n t i f i c a t i o n o f a n a t i o n a l "problem" and enactment o f a F e d e r a l program, b u t s t a r t - u p o f t h e "new" program may be d e l a y e d b e c a u s e o f t h e need t o c r e a t e a new " o f f i c e " o r agency and employ s t a f f t o p l a n and a d m i n i s t e r t h e program. E x i s t i n g a g e n c i e s may be a b l e t o s t a r t t h e "new" a c t i v i t y more q u i c k l y and e f f i c i e n t l y w i t h o u t a d d i n g a d m i n i s t r a t i v e s t a f f , b u t e x i s t i n g s t a f f may n o t h a v e a h i g h l e v e l of commitment t o t h e "new" program and may m e r e l y a d a p t c u r r e n t programs and p r o c e d u r e s w i t h o u t a c t u a l l y c r e a t i n g a "new" program. Level o f Funding I n d e s i g n i n g a program t o s e c u r e maximum impact from t h e a v a i l a b l e f u n d s , t h e f u n d i n g l e v e l w i l l i n f l u e n c e d e c i s i o n s as t o t y p e of program. With l i m i t e d f u n d s , t h e c h o i c e may be t o u s e n a t i o n a l l y c o m p e t i t i v e g r a n t s f o r a s e l e c t e d number of d e m o n s t r a t i o n programs r a t h e r t h a n f o r m u l a g r a n t s t o S t a t e s and l o c a l s c h o o l d i s t r i c t s . P r o p o s a l s i n t h e r a n g e o f $500 m i l l i o n f o r c o m p e t i t i v e n e s s i n i t i a t i v e s i n e d u c a t i o n a r e r e l a t i v e l y small when compared w i t h c u r r e n t e x p e n d i t u r e s f o r a l l l e v e l s of e d u c a t i o n ; S e c r e t a r y of E d u c a t i o n Bennett has i n d i c a t e d t h a t t h e e s t i m a t e d e x p e n d i t u r e s ( f r o m a l l r e v e n u e s o u r c e s ) f o r a l l l e v e l s o f American p u b l i c and p r i v a t e e d u c a t i o n w i l l be $308 b i l l i o n f o r t h e 1987-88 s c h o o l y e a r . Optimal f u n d i n g l e v e l s w i l l be dependent upon t h e g o a l of t h e e d u c a t i o n programs i n t h e t r a d e c o m p e t i t i v e i n i t i a t i v e s . I f the i n t e n t is t o r e s t r u c t u r e t h e N a t i o n ' s e d u c a t i o n a l system, a major F e d e r a l program would be r e q u i r e d . I f t h e i n t e n t i s t o p r o v i d e programs t h a t w i l l a d d r e s s t h e s p e c i f i c e d u c a t i o n a l n e e d s o f t h o s e y o u t h and a d u l t s who a r e unemployed o r underemployed, o r who l a c k t h e b a s i c and t e c h n i c a l s k i l l s r e q u i r e d by many e m p l o y e r s , t a r g e t e d programs c o u l d be p r o v i d e d t h r o u g h a system of n a t i o n a l l y competitive d i s c r e t i o n a r y g r a n t s . N a t i o n a l P r i o r i t i e s o r S t a t e and L o c a l D i s c r e t i o n Most o f t h e t r a d e c o m p e t i t i v e n e s s p r o p o s a l s would a u t h o r i z e programs t o s e r v e s p e c i f i c p u r p o s e s and a l s o t o s e r v e s p e c i f i c s e c t o r s o f t h e population. With l i m i t e d f u n d s , one p u b l i c p o l i c y i s s u e i s t h e e x t e n t t o which F e d e r a l f u n d s s h o u l d be used t o a d d r e s s a l i m i t e d number o f s p e c i f i c p u r p o s e s ( n a t i o n a l p r i o r i t i e s ) , o r t o which S t a t e and l o c a l o f f i c i a l s s h o u l d b e g i v e n d i s c r e t i o n i n d e s i g n i n g programs t o meet broad F e d e r a l program o b j e c t i v e s . F o r example, one e d u c a t i o n a l o p t i o n would be t o p r o v i d e S t a t e and l o c a l o f f i c i a l s w i t h t h e d i s c r e t i o n t o s e l e c t f r o m o n e improvement of o r more o f t h e f o l l o w i n g a s t h e s i n g l e program emphasis b a s i c s k i l l s of s c h o o l c h i l d r e n , v o c a t i o n a l t r a i n i n g programs f o r underemployed and unemployed p e r s o n s who may be c u r r e n t o r p o t e n t i a l members of t h e w o r k f o r c e , b a s i c l i t e r a c y t r a i n i n g f o r a d u l t s , o r programs t o improve i n s t r u c t i o n i n m a t h e m a t i c s , s c i e n c e , o r f o r e i g n l a n g u a g e s i n e l e m e n t a r y , s e c o n d a r y , and h i g h e r e d u c a t i o n . An a l t e r n a t i v e would be t o d e s i g n a t e o n e o r more of t h e p r e v i o u s a r e a s a s t h e n a t i o n a l p r i o r i t y and t h e o n l y p e r m i s s i b l e u s e o f F e d e r a l f u n d s under t h e program. Under some c u r r e n t p r o p o s a l s , S t a t e o r l o c a l o f f i c i a l s would h a v e c o n s i d e r a b l e d i s c r e t i o n i n making d e c i s i o n s a b o u t p r i o r i t i e s i n a l l o c a t i n g f u n d s among t h e various authorized a c t i v i t i e s . A S t a t e o r l o c a l i t y might b e a b l e t o u s e a l l program f u n d s f o r one p r i o r i t y and p r o v i d e no f u n d s f o r o t h e r s t h a t might b e p e r c e i v e d t o b e h i g h e r n a t i o n a l p r i o r i t i e s . -- Cost-Sharing Implications To d e m o n s t r a t e a commitment of a n agency o r a comnunity t o a p a r t i c u l a r program and t o i n c r e a s e t h e amount of f u n d s f o r t h e program, a g e n c i e s might be r e q u i r e d t o p r o v i d e non-Federal f u n d s a s a p o r t i o n of t h e t o t a l f u n d s budgeted f o r a program. Requirements of c o s t - s h a r i n g , matching funds, o r p r i v a t e s e c t o r p a r t n e r s h i p s o f t e n a r e included i n t h e p r o p o s a l s f o r e d u c a t i o n programs i n t h e t r a d e c o m p e t i t i v e n e s s i n i t i a t i v e s . Even though such r e q u i r e m e n t s may have p o s i t i v e i m p l i c a t i o n s by s u g g e s t i n g l o c a l comnitment, t h e r e may be some d i s a d v a n t a g e s . One r e s e r v a t i o n i s t h a t s u c h r e q u i r e m e n t s may have a d i s c r i m i n a t o r y impact b e c a u s e g e o g r a p h i c a l a r e a s and i n s t i t u t i o n s w i t h l i m i t e d f i n a n c i a l r e s o u r c e s may h a v e d i f f i c u l t y m e e t i n g c o s t - s h a r i n g r e q u i r e m e n t s . A p r i n c i p a l c o n c e r n w i t h c o s t - s h a r i n g o r matching p r o v i s i o n s a s methods f o r f u n d i n g e d u c a t i o n a t a n y l e v e l h a s been t h a t s u c h r e q u i r e m e n t s o f t e n do n o t b e n e f i t t h e i n s t i t u t i o n s "most i n need;" t h o s e i n s t i t u t i o n s t y p i c a l l y do n o t h a v e t h e r e s o u r c e s r e q u i r e d t o meet t h e c o s t - s h a r i n g r e q u i r e m e n t . A l s o , i n some o t h e r g e o g r a p h i c a l a r e a s , c o s t - s h a r i n g p r i v a t e s e c t o r p a r t n e r s h i p s may n o t be f e a s i b l e b e c a u s e o f t h e s p a r s e p o p u l a t i o n , t y p e s o f i n d u s t r y and j o b s , weakened economic c o n d i t i o n s i n t h e a r e a , o r t h e a b s e n c e of a b u s i n e s s o r i n d u s t r y w i t h a n i n t e r e s t i n d e v e l o p i n g t h e partnership relationship. E s t a b l i s h e d R e s e a r c h I n s t i t u t i o n s o r Developing I n s t i t u t i o n s One c o n t i n u i n g i s s u e i s whether F e d e r a l g r a n t programs f o r r e s e a r c h and development i n h i g h e r e d u c a t i o n i n s t i t u t i o n s s h o u l d b e n e f i t programs i n a l l i n s t i t u t i o n s o r m a i n t a i n and enhance programs i n e s t a b l i s h e d research institutions. The G e n e r a l Accounting O f f i c e h a s r e c e n t l y r e p o r t e d t h a t 100 h i g h e r e d u c a t i o n i n s t i t u t i o n s r e c e i v e d 86% o f t h e t o t a l A common a s s u m p t i o n i s t h a t t h e s e F e d e r a l r e s e a r c h f u n d s i n 1984. e s t a b l i s h e d r e s e a r c h i n s t i t u t i o n s l i k e l y would b e t h e p r i n c i p a l b e n e f i c i a r i e s of f u n d s f o r u n i v e r s i t y - b a s e d r e s e a r c h . They r e p r e s e n t a The s m a l l p e r c e n t a g e o f t h e t o t a l ~ m e r i c a n h i g h e r e d u c a t i o n system. D i g e s t o f E d u c a t i o n S t a t i s t i c s , 1985-86 shows t h a t a v a r i e t y o f o t h e r i n s t i t u t i o n s perform t r a i n i n g and e d u c a t i o n f u n c t i o n s t h a t c o u l d be r e l a t e d t o c o m p e t i t i v e n e s s ; t h e y i n c l u d e 1200 community c o l l e g e s , 155 u n i v e r s i t i e s , and a b o u t 1900 o t h e r 4-year i n s t i t u t i o n s ( i n c l u d i n g most of Even t h e r e g i o n a l S t a t e u n i v e r s i t i e s t h a t were f o r m e r l y S t a t e c o l l e g e s ) . though a p o r t i o n o f t h e f u n d s might be s e t - a s i d e f o r t h o s e i n s t i t u t i o n s t h a t a r e n o t " c e n t e r s of e x c e l l e n c e , " most o f t h e r e s e a r c h and development f u n d s f o r program improvement l i k e l y would be r e c e i v e d by i n s t i t u t io'ns w i t h e s t a b l i s h e d r e s e a r c h programs i n t h e s c i e n c e s and m a t h e m a t i c s ; and d e v e l o p i n g , o r emerging, i n s t i t u t i o n s l i k e l y would r e c e i v e r e l a t i v e l y l i t t l e f u n d i n g u n d e r most p r o p o s a l s . Comnunity c o l l e g e s a n d ' 4 - y e a r b a c c a l a u r e a t e i n s t i t u t i o n s a l s o l i k e l y would n o t r e c e i v e f u n d s . T h e i s s u e of e s t a b l i s h e d r e s e a r c h i n s t i t u t i o n s o r d e v e l o p i n g i n s t i t u t i o n s i s r e l a t e d t o c o m p e t i t i v e n e s s i n i t i a t i v e s t h a t would p r o v i d e f u n d s t o h i g h e r e d u c a t i o n i n s t i t u t i o n s f o r r e p l a c e m e n t of o b s o l e t e l a b o r a t o r y r e s e a r c h equipment ( o f t e n r e f e r r e d t o a s " i n s t r u m e n t a t i o n " ) . Even though t h e r e i s g e n e r a l agreement a b o u t t h e need f o r t h i s t y p e of f u n d i n g , t h e f i n a n c i a l r e q u i r e m e n t s l i k e l y would be l a r g e i n terms of t h e l e v e l of f u n d i n g f o r F e d e r a l e d u c a t i o n programs. I n 1983 h e a r i n g s b e f o r e t h e House C o m n i t t e e on S c i e n c e and Technology, t h e e s t i m a t e d c o s t o f r e p l a c i n g o b s o l e t e l a b o r a t o r y i n t h e ati ion's " l e a d i n g u n i v e r s i t i e s " was between $ 1 b i l l i o n and $ 4 b i l l i o n . For a l l i n s t i t u t i o n s , t h e p o t e n t i a l c o s t would be g r e a t e r . For example, i n 1986, t h e House E d u c a t i o n and Labor c o r n i t t e e ' s r e p o r t on H.R. 4728 (H.Rept. 99-597) i n d i c a t e d t h a t t h e c o s t o f r e p a i r i n g o r modernizing mathematics and s c i e n c e l a b o r a t o r y equipment i n a l l u n i v e r s i t i e s and c o l l e g e s had been e s t i m a t e d t o be from $30 b i l l i o n t o $40 b i l l i o n . O p t i o n s and L e g i s l a t i v e P r o p o s a l s The t r a d e c o m p e t i t i v e n e s s i n i t i a t i v e s from t h e A d m i n i s t r a t i o n and t h o s e i n t r o d u c e d i n t h e 1 0 0 t h Congress have i n c l u d e d a v a r i e t y of p r o p o s a l s f o r F e d e r a l e d u c a t i o n programs. G r a n t s have been p r o p o s e d f o r ( 1 ) l i t e r a c y t r a i n i n g f o r out-of-school adults; (2) special vocational t r a i n i n g p r o g r a m s f o r u n d e r e m p l o y e d and unemployed p e r s o n s ; (3) improvement of e l e m e n t a r y and s e c o n d a r y e d u c a t i o n i n m a t h e m a t i c s , s c i e n c e , o r f o r e i g n l a n g u a g e s ; ( 4 ) g r a d u a t e f e l l o w s h i p programs f o r t r a i n i n g e l e m e n t a r y ' and s e c o n d a r y s c h o o l t e a c h e r s a s w e l l a s c o l l e g e f a c u l t y members; ( 5 ) improvement of h i g h e r e d u c a t i o n i n s t r u c t i o n i n m a t h e m a t i c s , s c i e n c e , and f o r e i g n l a n g u a g e s ; ( 6 ) r e p l a c e m e n t of o b s o l e t e l a b o r a t o r i e s and r e s e a r c h f a c i l i t i e s i n h i g h e r e d u c a t i o n i n s t i t u t i o n s ; ( 7 ) development of p a r t n e r s h i p s between e d u c a t i o n a l i n s t i t u t i o n s and p r i v a t e b u s i n e s s e s ; and ( 8 ) i n c r e a s e d c l a s s r o o m u s e of e d u c a t i o n a l technology. 1n' most c a s e s , t h e s e programs would be a d m i n i s t e r e d by e i t h e r l o c a l s c h o o l d i s t r i c t s o r higher education i n s t i t u t i o n s . LEG1SLATION NOTE: Only the H.R. 3 provisions for education are discussed here. Some of these provisions also have been incorporated in P.L. 100-297, the Augustus F. Hawkins-Robert T. Stafford Elementary and Secondary School Improvement Amendments of 1988, as described in CRS Issue Brief 87151, Federal Elementary and Secondary Education Programs: Reauthorization Issues. H.R. 3 (Gephardt et al.) Omnibus Trade and Competitiveness Act of 1988. Title VI, the Education and Training for a Competitive America Act of 1988, authorizes $670 million to be appropriated in FY88 for programs administered by the U.S. Department of Education (ED), $1.03 billion in FY89 for programs at the U.S. Department of Labor, $85 million in FY89 for the National Science Foundation (NSF) research facilities and science instrumentation programs, as well as the Worker Adjustment and Retraining Notification Act. Subtitle A (Elementary and Secondary Education) of Title VI authorizes for FY88: $175 million for mathematics and science education programs under Title I1 of the Education for Economic Security Act (EESA); $30 mill ion for workplace literacy partnerships grants; $25 million for English literacy grants; the establishment of a Federal literacy coordination office (with no additional funds); $20 million for the Foreign Language Assistance Act of 1988; $1 million for Presidential Awards for Teaching Excellence in Foreign Languages; $20 million for elementary and secondary education partnerships in mathematics and science under Title I11 of EESA; $10 million for the Education Partnerships Act of 1988; $20 million for the Star Schools Program Assistance Act; $50 million for the School Dropout Demonstration Assistance Act of 1988; $200 million for the Secondary Schools Basic Skills Demonstration Assistance Act of 1988; and amendments to the local allocation formula for the Drug-Free Schools and Cornunities Act of 1986 (with no additional funds). Subtitle B (Technology and Training) authorizes for FY88: the Training Technology Transfer Act of 1988 (with no additional funds); $2 million for instructional programs in technology education; a requirement that the National Diffusion Network gather and disseminate information for the replication of technical education programs (with no additional funds); $25 million for the basic program and $25 million for the special program for adult training, retraining, and employment development under the Carl D. Perkins Vocational Education Act ( Perkins Act) ; an additional $10 million for industry-education partnerships under the Perkins Act; $2 million for a technological literacy demonstration program; and $5 million for regional access demonstration programs for rural educational opportunities. Subtitle C (Higher Education) authorizes for FY88: $10 million for a student literacy corps under Title I of the Higher Education Act (HEA); $10 million for a college and university research facilities and instrumentation modernization program under HEA Title VII; an additional $7.5 million for minority science and engineering improvement under HEA Title X; $15 million for the operation of regional technology transfer c e n t e r s under HEA T i t l e X I I ; an a d d i t i o n a l $2.5 m i l l i o n f o r l i b r a r y t e c h n o l o g i c a l enhancement under HEA T i t l e 11; $5 m i l l i o n f o r c e n t e r s f o r i n t e r n a t i o n a l b u s i n e s s e d u c a t i o n under HEA T i t l e V I ; and a t e c h n i c a l McNair Postamendment t o t h e a u t h o r i z a t i o n o f t h e R o b e r t E. B a c c a l a u r e a t e Achievement Program under HEA T i t l e I V ( w i t h no a d d i t i o n a l funds). S u b t i t l e D (Employment a n d T r a i n i n g f o r D i s l o c a t e d workers) a u t h o r i z e s f o r FY89 $980 m i l l i o n f o r a r e v i s e d T i t l e I11 o f t h e J o b T r a i n i n g P a r t n e r s h i p Act (JTPA) and $50 m i l l i o n f o r a computerized S t a t e j o b banks system under T i t l e V of JTPA. S u b t i t l e E (Advance N o t i f i c a t i o n of P l a n t C l o s i n g s and Mass L a y o f f s ) a u t h o r i z e s t h e Worker Adjustment and R e t r a i n i n g N o t i f i c a t i o n Act. S u b t i t l e F ( U a t i o n a l S c i e n c e Foundation U n i v e r s i t y I n f r a s t r u c t u r e ) a u t h o r i z e s t h e N a t i o n a l S c i e n c e Foundation U n i v e r s i t y I n f r a s t r u c t u r e Act of 1988, i n c l u d i n g $85 m i l l i o n f o r FY89 f o r t h e NSF academic r e s e a r c h f a c i l i t i e s m o d e r n i z a t i o n program, and a s e p a r a t e c o l l e g e s c i e n c e i n s t r u m e n t a t i o n program ( s u b j e c t t o e x i s t i n g NSF a u t h o r i z a t i o n s and appropriations). H.R. 3 was i n t r o d u c e d Jan. 6 , 1987; r e f e r r e d t o more t h a n one c o m n i t t e e ; Comnittee on Education and Labor r e p o r t e d H.R. 90, amended a s 3 (H.Rept. 100-40, P a r t 5 ) ; House passed H.R. 3 , amended, p a r t of H.R. Apt. 30, 1987. S e n a t e v e r s i o n o f ' H;R. 3 i n t r o d u c e d June 24, 1987, a s S. 1420. Committee on Labor and Human Resources r e p o r t e d S. 406 ( ~ . R e p t . 100-73), w i t h p r o v i s i o n s s u b s e q u e n t l y i n c o r p o r a t e d i n S. 1420; S e n a t e passed H.R. 3 , i n l i e u of S. 1420, a s amended, J u l y 21, 1987. Conference r e p o r t ( ~ . ~ e p t 100-576) . a g r e e d t o by House, Apr. 21, 1988, and by t h e S e n a t e , Apr. 27, 1988. COtiGRESSIOW HEARINGS, REPORTS, U.S. AM) DOCIRIENTS Congress. House. Committee on Education and Labor. Report on H.R. 4728. May 12, 1986. 4 p. ( 9 9 t h Congress, 2d s e s s i o n . House. Report no. 99-597) ----- Trade and I n t e r n a t i o n a l Economic P o l i c y Reform Act of 1987. on H.R. 3, Apt. 6 , 1987. (100th Congress, 1st s e s s i o n . Report no. 100-40, p a r t 5 Report House. U.S. Congress. House. Committee on S c i e n c e and Technology. Subcommittee on S c i e n c e R e s e a r c h and Technology. 1984 N a t i o n a l S c i e n c e Foundation a u t h o r i z a t i o n (H.R. 2066). Hearings, 9 8 t h Congress, 1st s e s s i o n . Feb. 23, 25, and Mar. 1, 8 , and 10, 1983: 405-417. U.S. Congress. Senate. Committee on Labor and Human Resources. The e d u c a t i o n f o r a c o m p e t i t i v e America Act. Report t o accompany S. 406, J u n e 16, 1987. 4 1 p. (100th Congress, 1 s t s e s s i o n . S e n a t e . Report no. 100-73) - ' ----- Education for a competitive America act. Hearings, 100th Congress, 1st sessionr Mar. 23, 1987. 150 p. (S. Hrg. 100-79)U.S. Congress. Senate. Democratic Policy Comnittee. Economic competitiveness: promoting ~merica's living standard. September 1986. (99th Congress, 26 session. S. Print. 99-205) FOR ADDITIONAL READING Committee for Economic Development. Investing in our children: and the public schools. (New York) Coamittee for Development. Sept. 5, 1985. 105 p. business Economic DeBevoise, Wynn. The contribution of education to economic productivity. Clearinghouse on Educational Management. University of Oregon. 1983. 4 8 p. International Association for the Evaluation of Educational Achievement. The second IEA science study--U.S. Teachers College, Columbia University. 1987.. 53 p. ----- The underachieving curriculum, assessing U.S. mathematics from an international perspective. (Champaign, Ill.) 1987. 127 p. National Association of Manufacturers. (Washington) March 1987. 20 p. Competing in the global economy. National Comnission on Excellence in Education. A nation at risk: the imperative for educational reform. U.S. Department of Education. April 1983. 65 p. National ~overnors' Association. Time for results: report on education. (washington) August 1986. the governors' 1991 173 p. President's Commission on Industrial Competitiveness. the new reality. vol. 1. Washington, U.S. January 1985. 60 p. Global competition: Govt. Print. Off., U.S. General Accounting Office. University funding: patterns of distribution of federal research funds t o universities. G A O / R C E D - ~ ~ - ~ ~ B RFebruary . 1987. 54 p. U.S. Library of Congress. Congressional Research Service. literacy issues, programs, and options [by] Paul M. [Washington] 1985. (Updated regularly) CRS Issue Brief 85167 Adult Irwin. ----- Comparison of the achievement of American elementary and secondary pupils with those abroad, by Wayne Riddle. [Washington] Updated June 30, 1986. 39 p. CRS Report 86-683 EPW ----- A comparison of the education provisions in the omnibus trade bill, H.R. 3 , a s p a s s e d by t h e House and by t h e S e n a t e , by P a u l M. e t al. [Washington] J u l y 27, 1987. 33 p. CRS Report 87-634 EPW Irwin, ----- F e d e r a l a i d t o e l e m e n t a r y and s e c o n d a r y e d u c a t i o n : a side-by-side comparison of c u r r e n t law w i t h H.R. 5, a s p a s s e d by t h e House of R e p r e s e n t a t i v e s (The School Improvement Act of 1987) and by t h e S e n a t e (The Robert T. S t a f f o r d Elementary and Secondary E d u c a t i o n Improvement Act of 19871, by t h e E d u c a t i o n S e c t i o n . [Washington] J a n . 4, 1988. 214 p. CRS Report 88-41 EPW ----- I n d u s t r i a l competitiveness: d e t e r m i n a n t s , by Gary L. Guenther. CRS Report 86-535 E d e f i n i t i o n s , m e a s u r e s , and k e y [Washington] Feb. 3 , 1986. 27 p. ----- S t a t e a l l o t m e n t s f o r e d u c a t i o n programs under H.R. 3 , t h e omnibus t r a d e b i l l of 1987, as passed by t h e House and t h e S e n a t e , by P a u l M. I r w i n and Wayne R i d d l e . [Washington] Aug. 1 0 , 1987. 1 9 p. CRS Report 87-683 EPW ----- T r a d e [ b y ] George H o l l i d a y . CRS I s s u e B r i e f 87003 --------- [Washington] 1987. T r a d e , t e c h n o l o g y , and c o m p e t i t i v e n e s s [ Wa-shington] 1987. (Updated r e g u l a r l y ) CRS I s s u e B r i e f 87053 [by] (Updated r e g u l a r l y ) Wendy H e Schacht. V o c a t i o n a l e d u c a t i o n and p r o p o s a l s f o r t r a d e c o m p e t i t i v e n e s s , [Washington] Apr. 17, 1987. 19 p. P a u l M. I r w i n . CRS Report 87-340 EPW by