January 31, 1997

A Summary of S. 1, Safe and Affordable Schools Act, and S. 12, the Daschle-Kennedy Education Bill

S. 1, "Safe and Affordable Schools Act"

Title I: Safe and Drug-Free Schools Initiative

• School Choice: The Right to Learn in Safe Schools
• Provides children from low-income families who must attend unsafe schools with the option of attending safer schools.
• Authorizes $50 million for FY98 school choice pilot programs of which no more than 15% can be used for administration of the plan.
• Students assisted under this section shall remain eligible to continue receiving assistance for at least three academic years.
• These monies may be used to develop, establish, and operate programs that are designed to protect victims of, and witnesses to, incidents of elementary and secondary school violence, including programs designed to protect witnesses testifying in school disciplinary proceedings.
• Priority of aid will be given to programs that provide for the suspension, delay, or restriction of driving privileges of persons under the age of 18 who have a conviction, an adjudication in a juvenile proceeding, or a finding in a school disciplinary proceeding, involving illegal drugs.

Title II: State Education Flexibility Act

• State School Choice Programs:
• Amends ESEA to provide scholarships or vouchers to parents to select the public or private, including sectarian, school that the parent's child will attend.

• Same Gender Education:
• Amends ESEA to allow "education reform projects that provide same gender schools, as long as comparable educational opportunities are offered for students of both sexes.

• Merit Pay:
• Amends ESEA to allow "education reform projects that reward teachers, administrators, and schools with cash bonuses and other incentives for significantly improving the academic performance of their students."

Title III: Tax Incentives for Higher Education

• Bob Dole Education Investment Accounts(EIA)
• A single EIA may not be established for more than one individual per family. Families must establish a separate EIA for each child.
• No contribution will be accepted after the date on which the account holder attains age 18.

• Employer-Provided Educational Assistance
• Permanently extends the tax exclusion benefits of employer-provided educational assistance.
• Repeals limitation on employer-provided educational assistance for graduate level work including law, business, medical or other advanced academic discipline.

• State Pre-Paid Tuition Plans
• Repeals current law to make any pre-paid higher education disbursement tax free.

• Deduction for Student Loan Interest
• Persons shall be allowed to deduct, up to a maximum of $2,500, an amount equal to the annual interest paid on any qualified education loan.
• The maximum deduction is limited for persons with modified adjusted gross incomes above $45,000 ($65,000 in the case of a joint return).
• Deductions are allowed during the first 60 months (whether or not consecutive) in which interest payments are required.

• Work-Study Exclusion
• Excludes from gross income any monies received through Federal work study programs operated under Section 441 of the Higher Educational Act of 1965.

Title IV: Funding for Individuals with Disabilities Education Act (IDEA)

• The IDEA is authorized for "not less than" the following amounts:

FY98 $4,107,522 FY99 $5,607,522 FY2000 $7,107,522

FY01 $8,607,522 FY02 $10,107,522 FY03 $11,607,522

FY04 $13,107,522; and "such sums as may be necessary for each succeeding fiscal year."

Title V -- Adult Education and Family Literacy

• Adult education programs are authorized at $400 million for FY98, and such sums as may be necessary for each of the fiscal years 1999 through 2003.

• Eligible agencies must identify and develop "proposed quantifiable benchmarks to measure the progress" of: improvements in literacy skill levels; attainment of secondary school diplomas or general equivalency diplomas; placement in, retention in, or completion of, post-secondary education, training, or employment; and attainment of the literacy skills and knowledge individuals need to be productive and responsible citizens and to become more actively involved in the education of their children.

• National Institute for Literacy
• The Institute shall improve the quality and accountability of the adult basic skills and literacy delivery system.
• The Institute may award fellowships to outstanding individuals pursuing careers in adult education or literacy in the areas of instruction, management, research, or innovation.
• The National Institute for Literacy Advisory Board consists of 10 individuals appointed by the President, with the advice and consent of the Senate.
• Each member of the Board shall be appointed for a term of three years and may be appointed for no more than two consecutive terms.
• The Institute is authorized $10 million for FY98 and such sums as may be necessary for each of the fiscal years 1999 through 2003 to carry out this section.

• Demonstration Programs to Promote Literacy
• Provides in-service training for teachers, pre-service training for teachers, and training opportunities for parents, community volunteers, and other persons interested in obtaining language acquisition and systematic phonics skills for the purpose of improving their literacy or the literacy skills of children or other adults.
• Authorization of $100 million for FY98 and such sums as may be necessary for each of the four succeeding fiscal years.

• National Commission on Literacy
• The Commission shall consist of fifteen members -- the President, the Speaker of the House, and the Majority Leader of the Senate each appointing five members.
• The Commission shall examine matters including the following:
• requirements for prospective reading teachers studying at colleges of education; whether such requirements include obtaining knowledge about direct, intensive, and systematic phonics; a review of the available testing instruments; an assessment of experimentally unverified teaching methods; a review of medical and neurological aspects of reading; and a review of the cost of illiteracy to business and industry.
• Authorization for such sums as may be necessary for fiscal years 1998 through 2000.

S. 12, "Education for the 21st Century Act"

Title I: "The Higher Education Affordability Act"

• Hope Tax Credit: $1,500 per-year refundable tax credit for full-time students for their first two years of higher-education tuition.
• Part-time students are eligible for a maximum $750 credit per year.
• The tax credit (to be adjusted for inflation) is phased out between $50,000 and $70,000 adjusted gross income for single filers; for joint filers, phased out between $80,000 and $100,000 AGI.
• Only students with a cumulative "B" high school grade average will be eligible.
• $10,000 Tax Deduction: Provides a $10,000 tax deduction per taxpayer per year for college and graduate school tuition expenses.
• Income limits are the same as provided in the Hope Tax Credit.
• Student Loan Interest Deduction: Restores tax deduction equal to interest paid on student loans.
• Same income limits as Hope Tax Credit.

Title II: "Educational Facilities Improvement Act"

• Federal Subsidy for School Repair: Provides $5 billion to pay up to 50 percent of the interest costs (80 percent subject to DoE waiver) on state and local bonds used to finance school construction, renovation, and repair.
• $1 billion is set aside for direct payments from the Secretary of Education to not more than 100 of the poorest school districts across the nation. The Secretary will have discretion to use this funding for an additional 25 districts he determines to have "extraordinary needs."

Title III: "America Reads Challenge Act"

• Parents as First Teachers Challenge Grants: Establishes two grants (with combined funding of $300 million) to be awarded to state and local agencies, or "private agencies" that support national and regional "parent networks" that disseminate information designed to help parents teach their children to read.
• Challenging America's Young Readers: Provides $1.5 billion for states to employ reading specialists for tutoring outside of regular school hours.
• National Service Volunteers: An additional $1 billion in Americorp funding is available for tutoring in reading programs conducted by trained "volunteers."

Title IV: Investing In Technology For The Classrooms

• Sense of the Senate: SoS to provide $1.8 billion for education technology over FYs 1998-2002. (Current funding under Title III provides $200 million in FY 1997 for education technology.)
• Authorizes $5 million in grants for FY 1998 (and such sums as necessary for FYs 1999-2002) for "Educational Technology Clearinghouses."