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ISTE Alert


Fiscal Year 2003 Appropriations Alert

House-Senate Conference Committee to Consider Cuts to Education Technology Programs

Although more than 4 months late, Congress is finally moving towards completion of FY03 appropriations: the House recently passed its version of an FY03 Omnibus Appropriations measure, which comprises eleven of the federal government's FY03 spending bills, including the bill that funds FY03 education programs; and the Senate has just wrapped-up work on its version of FY03 Omnibus Appropriations legislation. Both the House and Senate bills now head to a House-Senate conference committee, from which will emerge a compromise version of this Omnibus Appropriations bill. To become law, both Houses of Congress must pass this compromise version and the President must sign it.

While eagerly anticipated, this action on FY03 Appropriations may prove to be a mixed blessing for education technologists because the final compromise bill is likely to include funding cuts and/or eliminations in all major federal education technology programs. The House bill maintains funding at last year's rates for the large state education technology block grant program (i.e. $700.5 million), but eliminates funding for smaller education technology programs, including the Preparing Tomorrow's Teachers to Use Technology (PT3), the Star Schools, and the Community Technology Centers (CTC) programs. The House bill also provides no funding for the Regional Technology Centers (RTECs), which provide technical assistance to states and districts. The Senate's initial version of this bill represented some improvement over the House bill as it contained not only level funding for the education technology block grant but also funded all of the small technology programs at last year's levels. Thus, the initial Senate bill provided $62.5 million for PT3, $32.5 million for CTC, and $27.5 million for Star Schools. Additionally, the Senate bill level-funded the RTECs at $10 million.

The Senate's initial figures were altered significantly, however, during debate on the Senate floor. In order to preserve some funding for all programs, including the education technology programs, and to inject more than $6.7 billion in additional funding into Title I, special education, and the Title V state block grant program, the Senate agreed to offset these increases with 2.9% across-the-board funding cuts in all FY03 programs. [These offsets help ensure that the approved funding increases do not greatly raise the cost of the overall Omnibus Appropriations spending package.] On the positive side, the Senate's decision to infuse an additional $5 billion into the Innovative State Grant Program, from which the districts in each state will receive a formula allocation to be used for virtually any educational priority, could lead to states providing more funds for education technology. [Under the terms of the amendment, states will not be allowed to retain any of this new Title V money for their own purposes; they must send all funds received to the districts.] This additional cash for districts, though, is tied directly to cuts in funding to all other programs, including education technology. For instance, the state education technology block grant program stands to lose more than $20 million of its FY03 funding and the RTECs could lose nearly $1.7 million if the Senate's spending cuts are ultimately enacted. The other education technology programs would sustain 2.9% cuts as well. Moreover, with only 8 months remaining in this fiscal year, the burden of any cuts will be felt over a shorter time period than normal, rather than being amortized over a full year.  The conference is expected to be finished in early February, but it is unclear how the conference committee will resolve their differences.