Improving American Schools: A National Perspective.

Overview & Synopsis

Although the amount of federal aid available directly to secondary schools is small, cutbacks in federal aid can have a significant impact on secondary education because several direct aid programs receiving major funding from federal sources affect secondary education indirectly. All education is also affected by federal tax deductions for state and local taxes, an indirect form of aid providing three times as much support for education as direct federal aid. In 1986 the Reagan Administration proposed eliminating these deductions and reducing direct federal spending on education by 15 percent. The proposed reduction in the federal budget for education continues a 5-year trend. The recently enacted Gramm-Rudman requirements complicate the picture by requiring substantial cuts from education. The constitutionality of these requirements remains unclear. President Reagan has also proposed using tuition tax credits to shift 400 million dollars to private schools and using Chapter 1 moneys to support a voucher program. A look at the history of education shows the necessity for a continued strong federal role in education, and a look at the current uses and effects of federal aid shows how detrimental cutbacks could be. (PGD)