Copyright© 2000 by School Services of California, Inc.

November 9, 2000

Federal Budget Talks Stalled

After inability to reach final agreement on the 2001 federal budget package last week, Congress and the White House opted to delay further budget negotiations until after the November 7 election. One of the final bills holding up completion of the budget is the Labor/HHS/Education appropriations bill. According to federal sources and news reports, negotiations held on the last week of October resulted in agreement on several education proposals, however, talks failed to resolve details of other aspects in the bill.

The good news is that agreement appears to have been reached on most of the major education proposals. While the details are still sketchy and the appropriations levels will not be final until the Labor/HHS/Education appropriation bill is signed by the President, federal representatives for the California Department of Education reveal that the final deal is likely to include:

• An increase of $1.6 billion for IDEA (Part B) - translating to a minimum of $160 million for California
  
• A total of $1 billion (or approximately $100 million for California) for school renovations, with language that allows states to use up to 25% of the funds for special education or technology
  
• A $1.4 billion set aside for class size reduction (approximately $140 million for California) with language allowing states to use up to 25% of the funding for professional development
  
• $150 million nationwide to offset the Title I hold harmless provision

Additionally, the proposed agreement on federal education funding includes increased funding for after-school programs and Pell grants. The main education issue still outstanding is a proposed tax credit for school construction, which will now likely be resolved in a tax bill rather than the education appropriations bill.

Congress is expected to resume negotiations following the election and, more than likely, after the Veteran's Day holiday.

--Nancy LaCasse