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New Report Shows $1.5 Billion Cut In Federal Aid Planned
FOR IMMEDIATE RELEASE:
Wednesday, September 01, 2004
WASHINGTON, DC - Congressman Hoyer (D-MD) today expressed concern over a new report released by the Democratic staff of the House Budget Committee, which details the impact of the Bush Administration's plan to cut $1.5 billion in federal education assistance in 2006.
"Education must be one of our nation's top priorities," said Congressman Steny Hoyer. "But landmark education reforms that were supposed to support our schools have turned into an empty promise and a lost opportunity. States and school systems are reporting that they are not getting the additional resources they need, and that their fiscal problems are adversely affecting their ability to carry out this law. Limited funding already means that fewer of our children can get the financial help they need with college. Now, Republicans want to cut $1.5 billion from Title I, Pell Grants, Impact Aid, and rural education programs. That is not only unacceptable, but it is a disservice to our children and their parents, our teachers, and our school boards."
A White House memorandum of May 19 confirms that the President is planning a fiscal year 2006 budget that will cut $1.5 billion from education programs nationwide. The memo from the Office of Management and Budget clearly directs agencies to "assume accounts are funded at the 2006 level specified in the 2005 Budget database," which shows the spending levels in the President's budget for agencies and programs for 2005 through 2009. In that database, Department of Education funding for 2006 is cut by $1.5 billion from the President's 2005 requested level, with every education account taking its share of the cut.
The new report, released yesterday, shows the magnitude of those planned cuts in public school programs and in college grants.
"This cut would lower the average Pell Grant by $75, and deny thousands of children the early childhood education and care they need to succeed in school," continued Hoyer. "Additionally, the President's proposed budget could slash millions or even eliminate funds from the federal Impact Aid Program, which provides funding for schools with large numbers of military dependents. Congress established Impact Aid in 1950 to help school systems that are responsible for educating large numbers of military dependents but receive little or no tax revenue to cover the costs. Military base land is tax-exempt, and purchases at on-base stores are exempt from state and local sales taxes. In the five counties that I represent, over 25,000 students benefit from federal impact aid funding. These cuts will clearly have a significant impact by eliminating funding that schools rely on to operate - funds which other general education program increases will not replace.
"We have to do better. I call on the President and my Republican colleagues to make a committed investment in our children's future by fulfilling the promises of No Child Left Behind and ensuring that improving our system of education is as important to them as it is to the families throughout our country," Hoyer concluded.
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