Federal funding for career and technical education

For the average man on the street or the average teacher in the classroom, federal funding for education can be a very complex thing created through an often-mysterious process. But with important legislation coming up for reauthorization in the next year, ACTE's government relations staff has offered to help us unlock some of that mystery.

Last year, when the Elementary and Secondary Education Act was reauthorized, it contained reforms within Title 1, which targets economically disadvantaged students through a formula that distributes funds through states to school districts, as well as other areas. ACTE advocated against vouchers and block grants, and the bill did not have them when it was signed into law on January 8, 2002.

Here is a look at what's now on the horizon for career and technical education with regard to federal legislation.

The Perkins Act

The Carl D. Perkins Vocational and Technical Education Act of 1998 provides funding for secondary and postsecondary career and technical education programs for July 1, 1999-June 30, 2004. It is scheduled for reauthorization by Congress in 2003.

The 2002 Legislative Handbook that was prepared for this year's National Policy Seminar by ACTE's government relations staff-director Nancy O'Brien and legislative assistant Alisha Dixon-- offers this explanation of Perkins funding allocations: "Perkins funds are provided to states that, in turn, allocate funds by formula to secondary and postsecondary schools. States receive two main grants under the Perkins Act, Basic State Grants and Tech Prep. States must distribute at least 85 percent of the Basic State Grant funds to local programs using either the needs-based formula included in the law or an alternate formula that targets resources to disadvantaged schools and students. States may reserve up to 10 percent for leadership activities and five percent (or $25,000, whichever is greater) for administrative activities. Of the 10 percent allocated for state leadership activities, states must reserve between $60,000 and $150,000 for services that prepare individuals for nontraditional training and employment and may reserve up to one percent for corrections."

O'Brien and Dixon also explain that, out of the 85 percent of funding earmarked for distribution to local schools, states may reserve 10 percent for needs not addressed by the formula. However, in order to qualify for this reserve set aside of funds, recipients must represent at least two of four types of areas:

* rural areas

* areas with high percentages of career and technical education students

* areas with high numbers of career and technical education students

* communities that lost funding because of changes in the secondary in-state distribution formula

The Perkins Basic State Grants provide program improvement support to secondary and postsecondary career and technical education programs. Eligible recipients include high schools, community colleges, technical colleges and area career tech schools. O'Brien states with pride that, "ACTE's advocacy efforts for increased funding for the Perkins Act have resulted in an $80 million increase-seven percent more-in funding for the Perkins Basic State Grants for fiscal year 2002."

For fiscal year 2003, ACTE, the American Association of Community Colleges (ACC) and the National Association of State Directors of Career Technical Education Consortium (NASDCTEc) have joined together in submitting their own funding request for the Perkins Act. They are urging Congress to appropriate a $225 million increase for Perkins Basic State Grants.

The 1998 Perkins reauthorization included a separate authorization for tech prep, which had initially received support through the 1990 Carl D. Perkins Vocational and Applied Technology Act. For 2002, tech prep received a $2 million increase, and the Tech Prep Demonstration Act continued to be funded at $5 million. Citing the need for skills provided by tech prep and the significant interest the Tech Prep Demonstration Program has created across the country, ACTS, AACC and NASDCTEc are asking for a $40 million increase for tech prep and a $5 million increase for the Tech Prep Demonstration Program.

Pell Grants

Pell Grants provide federal financial aid to low-income students for postsecondary education, and a May 2002 report from the National Center for Education Statistics found that the grants may help disadvantaged students graduate from college. The report, "Persistence and Attainment of Beginning Students with Pell Grants," states, "Although Pell Grant recipients who began their postsecondary studies in 1995-6 were at a comparative disadvantage in many ways and were less prepared academically than other beginning students, few differences in their rates of persistence were detected when compared to the persistence of nonrecipients."

ACTE, NASDCTEc and AACC are calling for a $500 increase in the Pell Grant maximum amount "to meet the postsecondary education needs of our nation's poorest students."

Workforce Investment Act of 1998

The Workforce Investment Act of 1998 (WIA) replaced the Job Training Partnership Act and marked the first major job training reform in more than 15 years. It provides for youth and adult job training programs as well as adult education and vocational rehabilitation programs. WIA established a delivery mechanism of state and local One-Stop systems that provide workforce investment activities. One-Stop systems offer information, advice, job search assistance and training to assist unemployed or underemployed workers in obtaining and keeping good jobs. By increasing the occupational skill attainment of its participants, WIA helps supply employers with a more highly skilled workforce.

Like Perkins, WIA is also scheduled for reauthorization in 2003. President Bush's fiscal year 2003 budget request proposes an overall cut of 12 percent in WIA funding.

TANF

The Personal Responsibility and Work Opportunity Reconciliation Act of 1996 reformed the welfare system by replacing Aid to Families with Temporary Assistance for Needy Families (TANF). TANF provides states with funding for the provision of welfare services. It is a block grant with a focus on moving recipients into work and turning welfare into a program of temporary assistance; preventing and reducing the incidence of out-of-wedlock births; and promoting stable two-parent families.

The Balanced Budget Act of 1997 amended TANF by adding $3 billion for a temporary welfare-to-work program administered by the U.S. Department of Labor. Welfare-to-work formula grants were awarded to states that were then required to pass 85 percent of their funds down to local private industry councils. Most of the councils became Workforce Investment Boards with the implementation of WIA.

Welfare-to-work funding authority ended in fiscal year 1998, although most grants continue into 2004. Reauthorization of TANF is currently underway, with the House having passed its version of reform legislation and the Senate working through the process.

The Importance of Federal Funding

O'Brien and Dixon note that the gap between the skills that Americans possess and those that our employers demand has been identified as a national security issue. The reasoning is that our economy would become increasingly dependent upon workers from other parts of the world if our industries must look to other countries to find skilled workers.

Federal funding provides the resources for the career and technical education that will help ensure a highly skilled workforce for our nation's businesses and industries, thus keeping our economy strong. Still, the demand for training in the most rapidly growing fields, such as information technology and health care, far exceeds the federal funding contribution.

According to the ACTE 2002 Legislative Handbook, "The federal contribution to career and technical education, just over $1 billion annually, supports innovation and expands access to quality programs. State and local funding for career and technical education, about $13 billion, supports the infrastructure and pays teachers' salaries and other operating expenses. Federal funds provide the principal source for innovation and program improvement."

Federal funds are available to states through the Perkins Act, but action is needed on the local level to ensure that they are used effectively. During a session on Perkins III at the ACTE convention last December, Ron Castaldi of the U.S. Department of Education advised that local administrators should be part of the crafting of the use for Perkins money, since the leverage will be at the local level.

O'Brien says that community leaders must also press state and local officials to make sure their schools are getting the help and equipment they need in order to offer quality career tech programs for all students.

Teachers have long advised their students that knowledge is power. Their own knowledge about federal funding will give career and technical educators the power to keep career tech programs strong. The more they understand about how the process works, the more effective they will be in securing support for their programs. And when they do receive federal money, they must be prepared to use the funds effectively at state and local levels.

For more information about federal funding for career and technical education, or to participate in advocacy efforts, contact the ACTE Government Relations Department at 800-826-9972 or visit www.acteonline.org/main/govrel.html. ACTE's National Policy Seminar also provides an important opportunity to become better educated about funding and legislative issues, so career and technical educators should give serious consideration to attending this event.