President Bush Delivers State of the Union Address

The President’s State of the Union Address this week covered a wide range of topics both domestic and international, from the war in Iraq to health insurance issues. Some plans and proposals included in his speech that could potentially affect education and workforce programs over the long-term include:

• A federal budget designed to eliminate the federal deficit in five years
• A reduction by half in the number and cost of earmarks by the end of this congressional session
• Reauthorization of the No Child Left Behind Act
• Immigration reform that would include a temporary worker program.

The Administration’s FY 2008 budget proposal will be released February 5th.

Continuing Resolution on FY 2007 Appropriations Set for House Vote on January 31st

Representative Steny Hoyer (D-MD), House Majority Leader, has indicated that the continuing resolution for the nine unfinished FY 2007 spending bills will most likely be taken up by the House next Wednesday. The House and Senate Appropriations Committees are working on finalizing the $463.5 billion bill, as various interests attempt to add funding for their constituencies.

The Labor/HHS/Education portion of the continuing resolution may be one of the few to get additional funding – possibly $2.3 billion more overall– which would get spending levels back to FY 2005 levels. Still, this amount would be $7 billion above the President’s FY 2007 spending request for Labor/HHS/Education. Observers say that additions to military and veterans’ health care spending could get much of the available money.

The resolution may face prolonged debate in the Senate with introduction of many amendments. The Senate plans to consider the resolution the week of February 5th.

Senate May Vote on Minimum Wage Bill Next Week

The minimum wage bill has faced a tougher course in the Senate than in the House, where the House passed its version with relative ease. Proposed amendments or attachments to the minimum wage legislation have included small business tax breaks, a limited Presidential line-item veto power, a repeal to income tax on Social Security for some seniors, an option that would allow private-sector workers to take compensatory time off in place of overtime pay, and others.

The Senate bill currently includes a package of tax breaks for small business. Senate Democratic leaders tentatively plan a vote on the final bill on Tuesday.

Senator Kennedy Introduces Bill to Ease College Tuition Burden

Senate HELP Committee Chairman Edward M. Kennedy (D-MA) introduced legislation this week that would help students and families facing high college tuition costs. The bill would triple the college tuition tax deduction, currently $4,000, to $12,000, and increase the maximum Pell Grant from $4,050 to $5,100. Borrowers’ loans would be forgiven after working ten years in the public sector. Monthly loan payments would be capped at 15% of the debtor’s monthly income. The bill would also include the gradual five-year reduction of the student loan interest rate that passed in the House last week. It also has incentives for colleges to administer loans through the direct lending program rather than through private lenders.

The legislation may be taken up alone, or it may be considered along with reauthorization of the Higher Education Act.

Intel Accepting Applications for 2007 Schools of Distinction Award

The 2007 Intel Schools of Distinction Program is focusing on two subject areas that are key to our nation's future—math and science. This year’s program will identify schools with learning environments that promote 21st century learning skills, such as digital literacy, problem solving, critical thinking and collaboration, as a benchmark for academic excellence in mathematic and scientific achievement.

Applicants must complete an on-line application. Six winners will be selected—one from each grade range, K-5, 6-8, and 9-12, in each of the two categories of math and science. Each winning school will receive a $10,000 cash grant from the Intel Foundation, as well as $150,000 in products and services from the program awards sponsors. One of the final six winners will be identified as the Star Innovator for 2007. This school will receive an additional $15,000 cash grant from the Intel Foundation, as well as supplemental services and products from the award sponsors. The deadline for applications is February 28, 2007.

For more information, see http://www.schoolsofdistinction.com.

JFF Releases Survey of Work Readiness Initiatives

Jobs for the Future (JFF) has recently released a report on work readiness certificates that have emerged in the United States in recent years. The report summarizes five work readiness certification programs, looking at factors such as target population, certification requirements, and geography. It also highlights issues that stakeholders should consider in determining which approaches would benefit their states’ unique demographics, economy, and political landscape. The report is available on the JFF website at www.jff.org.

Hawaii

In her State of the State Address this week, Governor Linda Lingle proposed creation of a $100 million Hawaii Innovation Fund along with a realignment of a state economy to emphasize innovation and development of a highly-trained workforce. Her proposals also include undergraduate scholarships for high-school students who complete a science, technology, and math (STEM) curriculum at academies to be created for STEM instruction; expanding STEM educational opportunities for sixth to ninth graders; ensuring wireless Internet access throughout the islands by 2010; and, moving state workforce development programs from the Department of Labor to the Department of Business and Economic Development. For more information, see http: //www.hawaii.gov/dbedt/innovation.

email: sewells@nawb.org

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