2008 Budget: A Mix of Winners and Losers
Controversial Upward Bound experiment halted, and some MSIs win in earmarks.
By Charles Dervarics
For higher education, Congress’ long-awaited omnibus 2008 spending bill is a decidedly mixed bag with a few victories and some unexpected setbacks.
The bill contains $145 billion for education, health and employment programs — $3 billion more than the president’s original request, but $5.6 billion less than the level in a plan vetoed by the White House in November. Unable to muster a two-thirds vote for a veto override, the Democrat-led House and Senate cut spending to make the bill more palatable to President Bush, who then signed the measure Dec. 26.
Typical of the mixed year-end result was funding for Pell Grants. To meet the new lower spending targets, the final budget bill cuts back the top grant from $4,310 to $4,241.
Yet, in classic Washington style, such a cut actually won’t take effect. That’s because Congress and the president last summer approved the College Cost Reduction Act, which has $18 billion in new spending separate from the budget bill. As a result, the maximum Pell Grant actually will increase to $4,731 next year.
Such budget moves allowed Congress to protect other higher education programs from cuts or outright elimination. For example, supplemental education grants to needy students would continue to receive funding, with a budget allotment of $757 million in fiscal 2008. President Bush had proposed terminating the program.
