COABE News
Part I: Federal Level Update - Appropriations
Dear COABE Members,
I am sending you a Federal Level Update in two parts; this is Part I. Part II will follow later this week.
On February 1, the White House submitted its FY11 budget proposal to Congress which means that, state grants would lose about $16 million from FY10.
The Department of Education indicates that this is an increase for programs of $30 million over FY09.
Art Ellison, Policy Chair of the National Council of State Directors of Adult Education, indicates this is an overall cut of $16 million from FY10 . The actual amounts should vary by state depending on whether the state is one of 19 that received an increase in FY10 to correct for a funding calculation error .
Is this an increase or a decrease for programs in FY11?
The President proposes to maintain $30 million of the $46 million originally added in FY10 that was to correct for the funding calculation error. Thus, if these budget amounts make it into the final appropriations bill, $30 million would be added to the funding formula, to be distributed among the 50 states, DC, and US territories. You may see a slight increase; however, it will be so small you may not notice it on a program level.
In the meantime, those 19 states that received the $46 million in FY10 would see cuts in FY11. Even if we held onto all $46 million that was added to the FY10 appropriations for FY11, it would go into the formula so that all states, not just the 19 that received the FY10 increase, would share the funds. This would still have the effect of lowering state grants of those 19 states for FY11.
In 2009, OVAE switched over to using the American Community Survey (ACS) for determining grants to states . While it is expected that federal grants to states will change yearly based on new survey data, these cuts are due to the change from using US census data to using the ACS. Nineteen additional states saw cuts due to the switch. According to Ellison, since OVAE cannot cut a state more than 10% in one fiscal year, states that were to lose more than 10% due to the switch will continue to see cuts this year. For example, MN is to lose 16% overall due to the switch to ACS; 10% was taken from 2009, another 6% will be taken from their 2010 appropriations. Thank you to Art Ellison for this information; we should know more soon, when OVAE releases estimated amounts for FY10 state grants.
Even Start was also zeroed out of the proposed budget and included in a new block grant as a part of the Elementary and Secondary Education Act reauthorization proposal. Even Start’s fate is unknown at this time.
Why does the President propose to increase National Leadership Activities funds?
The request for National Leadership Activities includes a $30 million increase to support a Workforce Innovation Fund. This Fund, if included in the final appropriation, is to be a collaborative effort between the Departments of Education and Labor to award competitive grants that encourage program innovations and improve outcomes for those who benefit from the Workforce Investment Act.
What’s important as we go forward?
This is where you come in. The President’s proposal is only the beginning of a year long process to determine funding levels for FY11. We must ensure that no state receives a decrease in federal funding from FY10 to FY11. Especially during a year when we may see WIA reauthorized, we will need additional funds to better serve the need and demand, while also aligning with the President’s Jobs and Community College initiatives.
Questions or Reactions to the Budget?
COABE is a member of the National Coalition for Literacy (NCL). The NCL has an Advocacy Blog where advocates can pose questions and get answers from NCL Members.
Post your reactions to the President’s proposed budget, or your questions, to the NCL Advocacy Blog. See COABE President Andy Tyskiewicz’s initial response there and add your own: http://blog.ncladvocacy.org/2010/02/reactionstofy2011proposedbudget/
More information will be posted soon in the Part II Federal Level Update.
Sincerely,
Jackie
Jackie Taylor
COABE Policy Chair
jackie@jataylor.net
Updated: June 8, 2010