69ý

Federal

‘Sequester’ Cuts Still in Place Amid Budget Wrangling

By Alyson Klein — March 21, 2013 4 min read
  • Save to favorites
  • Print
Email Copy URL

The U.S. Congress missed a chance last week to avert the automatic federal spending cuts known as sequestration when it passed legislation extending funding for all programs—including education—at current levels, minus a 5 percent across-the-board reduction.

Lawmakers’ decision means that the squeeze is likely to stay in place for the 2013-14 school year, for which districts are already preparing. President Barack Obama expressed dismay that Congress did not act to ward off the cuts when it finalized its spending bill fiscal 2013, which was approved on March 21. But he indicated he would sign the spending legislation, in order to prevent a government shutdown.

Meanwhile, dueling budget measures put forth by House Republicans and Senate Democrats for fiscal 2014, which starts on Oct. 1, make it clear that the long-term agreement on taxes, spending, and entitlement programs—that’s viewed as necessary to stop the cuts—is likely to remain elusive.

Sequestration, which affects both military programs and a range of domestic programs, was put in place as part of a deal to raise the debt ceiling, back in summer 2011. The prospect of the cuts was supposed to prod lawmakers from both sides of the aisle and the Obama administration to come up with a bipartisan accord on the nation’s fiscal future. The cuts are set to stay in place for another decade, unless lawmakers can figure out a way to stop them. They will have another chance to avoid the cuts when Congress must raise the debt ceiling, likely this summer.

Sharp Contrasts

Meanwhile, Democrats in the Senate and Republicans in the House released budget blueprints that contrast sharply when it comes to the future of the sequestration cuts–and education spending in general.

“The problem is that the roads are radically forking in different directions,” said Joel Packer, the executive director of the Committee for Education Funding, a lobbying coalition in Washington, which prefers the Senate Democrats’ plan.

The House GOP budget plan, written by U.S. Rep. Paul Ryan of Wisconsin, the chairman of the House Budget Committee, would seek to avert many of the cuts for military programs by shifting a greater share of the reductions to domestic spending programs, the category that includes education.

Mr. Ryan’s budget, which was approved by the House on March 21 on a largely party-line vote of 221 to 207 isn’t specific about what would happen to individual education programs, such as Title I grants, which target schools with disadvantaged students, and state grants for special education. But the plan does call on lawmakers to eliminate what it terms “duplicative” K-12 programs, particularly in the area of teacher quality.

“The current structure for K–12 programs at the [U.S.] Department of Education is fragmented and ineffective,” the Ryan budget states. “Moreover, many programs are duplicative and poorly targeted to students with the greatest needs.”

The Ryan budget also would have some major implications for federal student-lending programs. For instance, it would allow a planned hike in student-loan interest rates to go through, doubling the interest on federal student loans from 3.4 percent to 6.8 percent, according to an analysis by the CEF. That increase was slated to go into effect last summer, until both President Obama and Gov. Mitt Romney, then the presumptive GOP presidential nominee, called for halting the increase.

Congress was able to then pass a one-year extension of lending rates at the 3.4 percent level. However, it’s unclear whether the politics will be similar this time around: Mr. Ryan’s budget indicates that Republicans are likely to allow the increase to go through to avoid adding to the deficit.

Mr. Ryan’s budget also seeks to put the Pell Grant program, which helps low-income students cover the cost of college, on firmer fiscal footing, in part by eliminating the grants for students who attend postsecondary education less than half time, the CEF analysis found.

Senate’s Ideas

On the other hand, a plan authored by Sen. Patty Murray, D-Wash., the chairwoman of the Senate Budget Committee, would seek to put an end to the sequestration cuts through tax increases and reductions that would affect both military and domestic spending at roughly the same levels. Under Ms. Murray’s plan, domestic spending would steadily increase over time.

The Senate budget also calls for investments in key formula programs, such as Title I grants to districts and special education, as well as career and technical education programs, literacy, and mathematics and science education. It also calls for unspecified new investment in early-learning programs—which Mr. Obama emphasized in his State of the Union Address earlier this year.

On higher education, Ms. Murray’s budget would keep in place the current interest rate on federal student loans of 3.4 percent. And it doesn’t call for the same changes in the Pell Grant program spelled out in Mr. Ryan’s budget.

“Our budget also makes sure we aren’t reducing our fiscal deficit while increasing our deficits in education, skills, infrastructure, and innovation,” Ms. Murray said.

The Senate was expected to continue consideration of the Murray plan last week. However, it appears unlikely that the two plans will be merged into a single document to help guide congressional tax and spending decisions over the next year—leaving unresolved the question of how lawmakers will cope with continued spending cuts.

A version of this article appeared in the March 27, 2013 edition of Education Week as ‘Sequester’ Cuts Still in Place Amid Budget Wrangling

Events

School & District Management Webinar Crafting Outcomes-Based Contracts That Work for Everyone
Discover the power of outcomes-based contracts and how they can drive student achievement.
This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
School & District Management Webinar
Harnessing AI to Address Chronic Absenteeism in 69ý
Learn how AI can help your district improve student attendance and boost academic outcomes.
Content provided by 
School & District Management Webinar EdMarketer Quick Hit: What’s Trending among K-12 Leaders?
What issues are keeping K-12 leaders up at night? Join us for EdMarketer Quick Hit: What’s Trending among K-12 Leaders?

EdWeek Top School Jobs

Teacher Jobs
Search over ten thousand teaching jobs nationwide — elementary, middle, high school and more.
Principal Jobs
Find hundreds of jobs for principals, assistant principals, and other school leadership roles.
Administrator Jobs
Over a thousand district-level jobs: superintendents, directors, more.
Support Staff Jobs
Search thousands of jobs, from paraprofessionals to counselors and more.

Read Next

Federal Video Linda McMahon: 5 Things to Know About Trump's Choice for Education Secretary
President-elect Donald Trump plans to nominate former pro-wrestling CEO Linda McMahon to lead the education department.
1 min read
Federal The K-12 World Reacts to Linda McMahon, Trump's Choice for Education Secretary
Some question her lack of experience in education, while supporters say her business background is a major asset.
7 min read
Linda McMahon, former Administrator of Small Business Administration, speaks during the Republican National Convention on July 18, 2024, in Milwaukee.
Linda McMahon speaks during the Republican National Convention on July 18, 2024, in Milwaukee. McMahon has been selected by President-elect Trump to serve as as the next secretary of education.
J. Scott Applewhite/AP
Federal What a National School Choice Program Under President Trump Might Look Like
School choice advocates—and detractors—see a second Trump term as the biggest opportunity in decades for choice at the federal level.
8 min read
President Donald Trump listens during a "National Dialogue on Safely Reopening America's 69ý," event in the East Room of the White House, on July 7, 2020, in Washington.
President Donald Trump listens during a "National Dialogue on Safely Reopening America's 69ý," event in the East Room of the White House on July 7, 2020, in Washington. He returns to power with more momentum than ever behind policies that allow public dollars to pay for private school education.
Alex Brandon/AP
Federal 5 Things to Know About Linda McMahon, Trump's Pick for Education Secretary
President-elect Donald Trump’s selection, the former CEO of World Wrestling Entertainment has long spoken favorably about school choice.
7 min read
Small Business Administrator Linda McMahon speaks during a briefing at the White House in Washington on Oct. 3, 2018.
Linda McMahon speaks during a briefing at the White House in Washington on Oct. 3, 2018, when she was serving as head of the Small Business Administration during President Trump's first administration. McMahon is now President-elect Trump's choice for U.S. secretary of education.
Susan Walsh/AP