Advocate Online

From Capitol to Campus

Congress has passed its budget blueprint for spending for the coming fiscal year and, as expected, education, including higher education, did not fare well.

Spending for defense and homeland security, coupled with the administration's desire to give further tax cuts to the tune of some $70 billion next year alone, left domestic discretionary programs with insufficient funds to pay for programs and services at current levels.

A provision approved by the Senate, led by Senator Ted Kennedy (D-MA) that might have provided an additional $5.4 billion for higher education and career and technical programs, did not make it into the final budget agreement.

The next step is for appropriators to use this budget to determine funding for specific programs.

On the downside, the budget assumes the elimination of 48 education programs and cuts in scores more. A glimmer of hope is the recommendation of a $100 increase in the Pell Grant maximum. Though it's a bright spot, the increase is just a recommendation, and unless appropriators can find the money for it, it won't be done. This could mean greater cuts to other education programs.

In another positive development for the Pell Grant program, the budget assumes that the shortfall of $4.3 billion that has accumulated over the past several years will be wiped off the books.

But there are big cuts in line for student loans, which are targeted for savings of $7 billion over 5 years. These savings in student loans could come at the expense of lenders who could get reduced subsidies, or students through increased costs, or a combination of both.