By Kathy Amoroso and Shannon Holmes
July 24, 2006

The Senate Appropriations Committee July 20 unanimously passed the Labor, Health and Human Services, Education, and Related Agencies spending bill (S. 3708) for fiscal year 2007. The $605.6 billion spending bill includes $142.8 billion in discretionary funding for the Departments of Labor, Health and Human Services, and Education.

Discretionary spending in the Senate bill is $1.3 billion more than was allocated in fiscal 2006 and $5 billion more than President Bush requested. It includes $11.6 billion for the Department of Labor, $64.2 billion for HHS and $55.8 billion for the Education Department.

FY 2006 Funding Level: $141.531 billion

FY 2007 President’s Request: $137.794 billion

FY 2007 Committee Recommendation: $142.800 billion

Labor Programs - $11.6 billion

Overall, the Senate measure appropriates $11.6 billion for Labor programs. This bill reflects a $55 million cut in funding for workforce investment programs, as compared to $150 million in cuts in the House appropriations bill, and does not include the House proposed $325 million rescission in WIA carryover of unexpended funds. The bill would fund the Adult and Youth programs below the House passed levels, but the proposed levels are above those proposed by the Administration. The Senate measure does, however, follow the House in increasing the funding for Dislocated Workers by $15 million.

On June 13, the House Appropriations Committee passed its version of the Labor-HHS-Education appropriations bill (H.R. 5647) by voice vote. There was no change to Department of Labor appropriations from the bill passed by a vote of 9-7 by the Subcommittee on Labor-Health and Human Services, Education and Related Agencies on June 7. The committee bill includes a $14.8 million total reduction in formula funding for Adult and Youth programs and a modest $15 million increase in Dislocated Worker funding.

There is grave concern in the local workforce system over report language in the House bill calling for a $325 million rescission for carryover of unexpended funds from Workforce Investment Act (WIA) programs. If enacted, the House language would enable the Department of Labor to determine which Employment and Training Administration programs, including all programs covered under WIA or the Employment Service, would be required to pay back their carryover funds. In light of cuts already facing the system, this rescission would have a drastic impact on workforce services currently being provided to residents across the country.

House Majority Leader John Boehner (OH) has refused to bring the Labor-HHS-Education spending bill to the floor because it contains an increase in the minimum wage. The House has passed all but this one out of its 11 spending bills.

With November mid-term elections, it is possible that an omnibus spending package will be passed that would include the Labor-HHS-Education appropriations. The leadership in both chambers is determined to pass individual spending bills, however the number of legislative days left on the calendar makes this difficult to do.

The Education portion of the Senate bill provides $55.8 billion for education programs. The Senate’s bill restores funding for some programs cut by the President’s budget proposal and level funds several critical programs.

Both Title I Grants to Local Education Agencies as part of the No Child Left Behind Act (NCLB) and Special Education Grants to states as part of the Individuals with Disabilities Education Act (IDEA) are level funded at $12.713 billion and $10.583 billion respectively. The Senate restores to level funding the Perkins Career and Technical Education programs (vocational education) at $1.296 billion that was zeroed out in the President’s budget.

The Senate funds the President’s American Competitiveness Initiative at $530 million. This is intended to improve our global competitiveness and includes such programs as Math and Science Partnerships for $195 million, Advanced Placement for $40 million, State Educational Technology Grants at $272.25 million and Foreign Language Assistance at $26.2 million.

Funding for reading programs is increased slightly to $1.1 billion for Reading First (elementary students) and $35 million for secondary students (Striving Readers). Teacher Quality State Grants are cut by $100 million to $2.747 which is $160 million more than the House, but $60 million less than FY 2006. This is in light of a new report detailing states and individual districts’ failure to meet NCLB requirements for highly qualified teachers in classrooms.

The Senate provides $12.607 billion for Pell Grants which keeps the maximum Pell award at $4,050 as compared to $13 billion and a maximum award of $4,150 passed by the House. Also, the Senate restored funding for GEAR UP to last year’s level of $303.4 million and provided total funding for TRIO programs at $828.2 which restores funding for Talent Search and Upward Bound at last year’s level.

Other programs obtaining restored funding that were eliminated in the President’s budget include Arts in Education at $36.5 million (a $1.2 million increase) and Civic Education at $29.1 million.

A manager’s amendment approved by voice vote directed the U.S. Department of Education to partner with bands such as the Oak Ridge Boys to teach American school children the national anthem. Mayors are already been in a working partnership with the Music Educators National Conference to promote this effort and it was kicked-off nationally in Miami with Mayor Manuel Diaz several months ago.

Related agencies that are included in the appropriations bill that have significant interest to mayors are the Corporation for National and Community Service at $876.5 million which is an increase of $25 million over the President’s request, and $400 million for the Corporation for Public Broadcasting.