[House Hearing, 114 Congress] [From the U.S. Government Publishing Office] EXAMINING THE POLICIES AND PRIORITIES OF THE U.S. DEPARTMENT OF EDUCATION ======================================================================= HEARING before the COMMITTEE ON EDUCATION AND THE WORKFORCE U.S. HOUSE OF REPRESENTATIVES ONE HUNDRED FOURTEENTH CONGRESS SECOND SESSION __________ HEARING HELD IN WASHINGTON, DC, FEBRUARY 24, 2016 __________ Serial No. 114-39 __________ Printed for the use of the Committee on Education and the Workforce [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Available via the World Wide Web: www.gpo.gov/fdsys/browse/ committee.action?chamber=house&committee=education or Committee address: http://edworkforce.house.gov ______ U.S. GOVERNMENT PUBLISHING OFFICE 98-731 PDF WASHINGTON : 2017 ----------------------------------------------------------------------- For sale by the Superintendent of Documents, U.S. Government Publishing Office Internet: bookstore.gpo.gov Phone: toll free (866) 512-1800; DC area (202) 512-1800 Fax: (202) 512-2104 Mail: Stop IDCC, Washington, DC 20402-0001 COMMITTEE ON EDUCATION AND THE WORKFORCE JOHN KLINE, Minnesota, Chairman Joe Wilson, South Carolina Robert C. ``Bobby'' Scott, Virginia Foxx, North Carolina Virginia Duncan Hunter, California Ranking Member David P. Roe, Tennessee Ruben Hinojosa, Texas Glenn Thompson, Pennsylvania Susan A. Davis, California Tim Walberg, Michigan Raul M. Grijalva, Arizona Matt Salmon, Arizona Joe Courtney, Connecticut Brett Guthrie, Kentucky Marcia L. Fudge, Ohio Todd Rokita, Indiana Jared Polis, Colorado Lou Barletta, Pennsylvania Gregorio Kilili Camacho Sablan, Joseph J. Heck, Nevada Northern Mariana Islands Luke Messer, Indiana Frederica S. Wilson, Florida Bradley Byrne, Alabama Suzanne Bonamici, Oregon David Brat, Virginia Mark Pocan, Wisconsin Buddy Carter, Georgia Mark Takano, California Michael D. Bishop, Michigan Hakeem S. Jeffries, New York Glenn Grothman, Wisconsin Katherine M. Clark, Massachusetts Steve Russell, Oklahoma Alma S. Adams, North Carolina Carlos Curbelo, Florida Mark DeSaulnier, California Elise Stefanik, New York Rick Allen, Georgia Juliane Sullivan, Staff Director Denise Forte, Minority Staff Director C O N T E N T S ---------- Page Hearing held on February 24, 2016................................ 1 Statement of Members: Kline, Hon. John, Chairman, Committee on Education and the Workforce.................................................. 1 Prepared statement of.................................... 3 Scott, Hon. Robert C. ``Bobby'', Ranking Member, Committee on Education and the Workforce................................ 4 Prepared statement of.................................... 6 Statement of Witnesses: King Jr., Hon. John B., Acting Secretary, U.S. Department of Education, Washington, DC.................................. 7 Prepared statement of.................................... 9 Additional Submissions: Rokita, Hon. Todd, a Representative in Congress from the State of Indiana: Letter dated February 24, 2016 from Consumer Bankers Association (CBA)...................................... 33 Questions submitted for the record by: Allen, Hon. Rick, a Representative in Congress from the State of Georgia....................................... 67 Barletta, Hon. Lou, a Representative in Congress from the State of Pennsylvania.................................. 65 Byrne, Hon. Bradley, a Representative in Congress from the State of Alabama................................... 66 Bishop, Hon. Michael D., a Representative in Congress from the State of Michigan............................. 65 Carter, Hon. Buddy, a Representative in Congress from the State of Georgia....................................... 66 Foxx, Hon. Virginia, a Representative in Congress from the State of North Carolina............................ 66 Fudge, Hon. Marcia L., a Representative in Congress from the State of Ohio...................................... 66 Chairman Kline........................................... 63 Messer, Hon. Luke, a Representative in Congress from the State of Indiana....................................... 81 Mr. Rokita............................................... 67 Thompson, Hon. Glenn, a Representative in Congress from the State of Pennsylvania.............................. 68 Walberg, Hon. Tim, a Representative in Congress from the State of Michigan...................................... 69 Secretary King's responses to questions submitted for the record..................................................... 70 EXAMINING THE POLICIES AND PRIORITIES OF THE U.S. DEPARTMENT OF EDUCATION ---------- Wednesday, February 24, 2016 U.S. House of Representatives Committee on Education and the Workforce Washington, D.C. ---------- The committee met, pursuant to call, at 10:03 a.m., in Room 2175, Rayburn House Office Building, Hon. John Kline [chairman of the committee] presiding. Present: Representatives Kline, Foxx, Roe, Thompson, Walberg, Salmon, Guthrie, Rokita, Heck, Messer, Byrne, Brat, Carter, Bishop, Grothman, Curbelo, Stefanik, Allen, Scott, Hinojosa, Davis, Grijalva, Courtney, Fudge, Polis, Wilson of Florida, Bonamici, Takano, Jeffries, Clark, Adams, DeSaulnier. Staff Present: Janelle Belland, Coalitions and Members Services Coordinator; James Forester, Professional Staff Member; Emmanual Guillory, Professional Staff Member; Tyler Hernandez, Press Secretary; Amy Raaf Jones, Director of Education and Human Resources Policy; Nancy Locke, Chief Clerk; Dominique McKay, Deputy Press Secretary; Brian Newell, Communications Director; Krisann Pearce, General Counsel; Jenny Prescott, Professional Staff Member; Clint Raine, TFA Fellow; Alex Ricci, Legislative Assistant; Mandy Schaumburg, Education Deputy Director and Senior Counsel; Emily Slack, Professional Staff Member; Alissa Strawcutter, Deputy Clerk; Juliane Sullivan, Staff Director; Tylease Alli, Minority Clerk/Intern and Fellow Coordinator; Austin Barbera, Minority Staff Assistant; Jacque Chevalier, Minority Senior Education Policy Advisor; Denise Forte, Minority Staff Director; Christian Haines, Minority Education Policy Counsel; Brian Kennedy, Minority General Counsel; Saloni Sharma, Minority Press Assistant; Michael Taylor, Minority Education Policy Fellow; and Arika Trim, Minority Press Secretary. Chairman Kline. A quorum being present, the Committee on Education and the Workforce will come to order. Good morning, everyone. I want to extend a warm welcome to the acting Secretary of Education, John King, who is with us to discuss the policies and priorities of the Department of Education. Dr. King has been at the helm of the Department since January and was recently nominated by the President to serve as the next Secretary of Education. And congratulations on your nomination, Dr. King. We understand this is the beginning of a busy week for you on Capitol Hill, back to the aforementioned nomination. You graciously agreed to join us today to speak broadly about the Department's priorities, and you will return tomorrow to discuss, specifically, the Department's efforts regarding the Every Student Succeeds Act. Replacing No Child Left Behind was a leading priority of this committee for many years. We are eager to learn how the Department plans to implement the new law in a way that adheres to the letter and intent of the law. While that's a conversation we will have in more detail tomorrow, it does reflect in some ways on today's hearing. In fact, as we consider the work that lies ahead this year, there are two lessons we can learn from our efforts to improve K-12 education. First, the American people want commonsense reforms that empower individuals, not Federal bureaucrats. Families across the country face a number of difficult challenges, including stagnant wages, rising college costs, and a lack of full-time jobs. Unfortunately, the response by many in Washington is to call for more government, more programs, more spending, more rules, more regulations. We've tried this top-down approach for years, and it really hasn't worked. It's time we look for other opportunities to provide more authority and flexibility to the States and local communities while also ensuring a more limited and accountable Federal Government. Second, we have shown what's possible when we work together in good faith for the common good. We saw a problem, agreed the status quo wasn't working, and came together to enact a practical solution. Both sides brought to the table very different ideas and principles, but we were able to hold onto our principles and still find common ground. Because we did, we delivered real results for the American people, and they expect similar results in the months ahead. It's for these reasons many of us are disappointed with the President's budget request. It would provide the Department with tens of billions of dollars in new spending to create and administer new entitlement programs as well as numerous new competitive grant programs that put the Department in charge of picking winners and losers. This additional burden to the taxpayer would not provide students and families a more efficient, effective, and accountable agency. Instead, these dollars would be used to grow an already bloated bureaucracy. No doubt these proposals are well intended, but they will ultimately divert limited taxpayer resources away from existing services that are vitally important to low- and middle-income families. The American people aren't interested in continuing the same failed policies, but that's precisely what this budget would do. It doubles down on the false hope that the Federal Government can create the opportunity and prosperity families desperately need. We know there's a better way. We recently proved there's a better way. There are a number of issues that deserve our attention, such as expanding access to an affordable college education, improving career and technical education, and the successful implementation of our recent reforms to K-12 education. Dr. King, I hope we can work together on these and other important issues in a way that builds on our recent success by placing less faith in the schemes of Washington and more faith in the American people. With that, I will now recognize Ranking Member Scott for his opening remarks. [The statement of Chairman Kline follows:] Prepared Statement of Hon. John Kline, Chairman, Committee on Education and the Workforce From welfare and health care to early childhood development and support services for older Americans, the policies the Department of Health and Human Services oversees affect the lives of millions of Americans. Conversations like this one are vitally important as we work to ensure the department is acting in the best interests of taxpayers and those in need. As we examine what programs and policies are working, and which ones are in need of improvement, I hope there are a number of areas where we can find common ground. Of course, there are also areas where we will ultimately agree to disagree, and perhaps the most prominent example is the president's health care law. As has been the case for nearly six years, this flawed law continues to hurt working families, students, and small businesses. It's still depressing hours and wages for low-income workers, still making it harder for individuals to receive the care they need, and still driving up health care costs. One Emory University professor recently wrote that his family's health-insurance premium is now their biggest expense - even greater than their mortgage. Before the health care law went into effect, this man was able to cover his entire family of four for less than $13,000. Now, the cost of insuring just him and his wife is nearly $28,000. That's right - twice the cost to cover half as many people. In fact, paying more for less is becoming a hallmark of the health care law. Over the years, Republicans have put forward a number of health care reform ideas, ones that would expand access to affordable care and lead to a more patient-centered health care system. We will continue to do so, because we firmly believe the president's health care law is fatally flawed and unsustainable, and more importantly, because we believe the American people deserve better. Again, I suspect we will have to agree to disagree, but as I mentioned, there are areas where I am hopeful we can find common ground. (More) Head Start, for example, currently supports nearly one million children at a cost of more than $9 billion annually. It's an important program for many low-income families. However, concerns persist that it's not providing children with long-term results. We both agree changes need to be made, but so far, we have different ideas on what reform should look like. The department is in the process of fundamentally transforming Head Start through regulations that will have serious consequences for the vulnerable families this important program serves. We, on the other hand, have outlined a number of key principles that we believe will strengthen the program based on feedback we collected from parents and providers. I look forward to discussing where we might be able to find middle ground and work together so that these children can have the solid foundation they need to succeed in school and in life. I'm also hopeful that we can work together to ensure changes to the Preschool Development Grants Program are implemented as Congress intended. The Every Student Succeeds Act reformed the program to help states streamline and strengthen early learning efforts. To accomplish this goal, Congress moved the program from the Department of Education to HHS, which already oversees the bulk of early learning programs. As you take on this responsibility, Secretary Burwell, please know we intend to stay engaged with the department to ensure a successful transition. Finally, the department is also responsible for helping states to prevent and respond to child abuse and neglect, specifically those outlined in the Child Abuse Prevention and Treatment Act or CAPTA. As I'm sure you're aware, this law provides states with resources to improve their child protective services systems - if they make a number of assurances concerning their child welfare policies. It's come to our attention that some states are making these assurances without putting the necessary policies in place. Yet, not a single state is being denied federal funds. A Reuters' investigation recently revealed the shocking and deadly consequences of this neglect and cast serious doubts as to whether basic requirements of the law are being met and enforced. In light of this tragic report, we wrote to you to better understand the department's process in reviewing and approving state plans under CAPTA, and I'd like to continue that discussion today. It's clear that the current system is failing some of our country's most vulnerable children and families, and something has to change. As you can see, we have quite a bit to cover today. These and other issues are vitally important to the men and women we serve, and we have a responsibility to ensure they are serving those individuals in the best way possible. ______ Mr. Scott. Thank you, Mr. Chairman, for holding the hearing today. And I know some of my colleagues were taken aback when the House and Senate Budget Committees declined, apparently for the first time ever, to invite the administration to give testimony about the President's budget request for FY 2017. I'm glad we have taken a better approach to the annual budget process in this committee, and I know that there are things in this budget that we can agree on and others that we won't agree on. That doesn't mean we shouldn't talk those issues out. I'm glad, Mr. Chairman, that we're having an opportunity to do that today. I want to welcome the acting Secretary here today as well. We will be seeing a lot of him this week as we hold another hearing tomorrow on the implementation of the Every Student Succeeds Act. Although he will only be in the Department for about a year, that has the potential of being a very transformational year in that it comes at the time when we oversee early learning, elementary and secondary education, and higher education in this country. I know he's up to the challenge, and I look forward to his testimony today. Our Nation's budget reflects its priorities. I think it's safe to say that the budget request we have before us today from the Department is proof that education remains a top priority for the Obama administration. This year's request includes an additional $1.3 billion, a 2 percent increase, for programs at the Department of Education. At the same time, through a combination of savings from both spending and revenue sides of the budget, the administration's overall budget request reduces the deficit from 3.3 percent of GDP to 2.6 percent. Mr. Chairman, the request we have before us is, therefore, proof that we can increase the amount we spend on education in a responsible way without running higher deficits. The Federal investment in education is a crucial component of our national strength and competitiveness in the 21st century. That investment begins in early childhood, and this year's request continues to prioritize early childhood education. We can and should provide high-quality early childhood education for all 4-year-olds, and this budget continues to call for us to do just that. The budget requests builds on the bipartisan work we did on ESSA, and most programs in the bill are at or above the levels authorized in that law. The budget includes multiple programs designed to reduce the cost of higher education, with particular focus on first-generation and low-income students. I had the honor of working with the Department last year on its America's College Promise proposal to make 2 years of community college the new norm for all students. I was happy to see that the budget request this year reflected modifications we worked on together to include first-generation students and minority-serving institutions as beneficiaries from the ACP program. The budget request recognizes that investing in teachers and lifting up the teaching profession is essential in improving educational outcomes nationally. If we are going to ensure that every child in every classroom has a highly effective teacher, we have to build pathways to train those teachers and school leaders and provide incentives necessary for them to take the most challenging positions where they are most needed. Now, there are some questions I have about some of the choices made in the budget. I believe we should do more to increase the maximum Pell Grant award and help to defray the cost of higher education, especially when we make a sizable profit off student loans. There are certain programs authorized on the ESSA that receive 30 percent or higher increases over negotiated authorization levels. On the whole, I support the President's budget, especially when compared to the alternative. And I say that because the alternative has yet to present itself. For some reason, the Speaker has chosen to expedite the budget process this year, but we still haven't seen the actual proposal from the majority. Last year's majority proposal included $103 billion in cuts in education over 10 years. That translated into significant cuts in Title I, funding for the Individuals with Disabilities Education Act, cuts in Head Start, cuts in Pell Grants. And if the choice is between a Republican budget like last year's and the President's request, I'll take the President's request. This budget season we will have tough choices to make as the Congress, choices that reflect our values. I think this budget request we have before us strikes the right balance and recognizes that money we spend on education comes back to the country many times over. We need to make crucial investments today if we expect to lead the world on education for decades to come. So, Mr. Chairman, thank you, and I yield back. [The statement of Mr. Scott follows:] Prepared Statement of Hon. Robert C. ``Bobby'' Scott, Ranking Member, Committee on Education and the Workforce Thank you Chairman Kline for holding this hearing here today. I know I, along with many of my colleagues, were taken aback when the House and Senate Budget Committee Chairmen declined, for the first time ever, to invite the Administration to give testimony about the President's budget request for FY 2017. I'm glad that we have taken a more civil approach to the annual budget process in this committee. I know that there are things in this budget request that we agree with and others that we won't agree with, but that doesn't mean we shouldn't talk those issues out, so I'm glad Mr. Chairman, that we are having an opportunity to do that today. And I want to welcome Acting Secretary King here with us today as well. We will be seeing a lot of him this week as we hold another hearing tomorrow on the implementation of the Every Student Succeeds Act (ESSA). Although he will only be at the Department for a year, that has the potential to be a very transformational year when it comes to how we oversee early learning, elementary and secondary education, and higher education in this country. I know that he is up to the challenge, and I look forward to his testimony today. A nation's budget reflects its priorities. And I think it is safe to say that the budget request we have before us for the Department of Education is proof that education remains a top priority for the Obama Administration. This year's request includes an additional $1.3 billion, a 2% increase, for programs at the Department of Education. At the same time, through a combination of savings from both the spending and revenue sides of the budget, the administration's overall budget request reduces the deficit from 3.3% of GDP to 2.6%. Mr. Chairman, the request we have before us today is proof we can increase the amount we spend on education in a responsible way without running higher deficits. Federal investment in education is a crucial component of our national strength and competitiveness in the 21st century. b That investment begins in early childhood, and this year's request continues to prioritize early childhood education. We can and should provide high-quality early childhood education to all four-year- olds, and this budget continues to call for us to do just that. b The budget request builds on the bipartisan work we did on ESSA and most programs in that bill are at or above levels authorized in that law. b The budget includes multiple programs designed to reduce the cost of higher education, with a particular focus on first-generation and low-income students. I had the honor of working with the Department last year on its America's College Promise (ACP) proposal to make two years of community college the new normal for all students. I was happy to see that the budget request this year reflected modifications we worked on together to include first-generation students at HBCUs, Hispanic Serving Institutions, AANAPISIs, and other Minority Serving Institutions as beneficiaries from the ACP program. b The budget request recognizes that investing in teachers and lifting up the teaching profession is essential to improving educational outcomes nationally. If we are going to ensure that every child in every classroom has a highly effective teacher, we have to build the pathways to train those teachers and school leaders, and provide the incentives necessary for them to take the most challenging positions where they are the most needed. Now, there are some questions I have about some of the choices made in this budget. I believe that we could do more to increase the maximum Pell Grant award and help defray the cost of higher education, especially when we make a sizable profit off of student loans. There are certain programs authorized under ESSA that receive 30% and higher increases over negotiated authorization levels. But on the whole I support the President's budget, especially when compared to the alternative. I say that because the alternative has yet to present itself. For some reason, Speaker Ryan has chosen to expedite the budget process this year, but we still haven't seen a proposal from the Majority. Last year's Republican budget proposal included $103 billion in cuts to education over 10 years. That translated to significant cuts in Title I funding, funding for the Individuals with Disabilities Education Act, cuts to Head Start, and cuts to Pell Grants. If the choice is between a Republican budget like last year's and the President's request, I'll take the President's request any day of the week. This budget season we will have tough choices to make as a Congress, choices that will reflect our values. I think this budget request we have before us strikes the right balance, and recognizes that money we spend on education comes back to the country many times over. We need to make crucial investments today if expect to lead the world in education for decades to come. Thank you Mr. Chairman and I yield back. ______ Chairman Kline. I thank the gentleman. Pursuant to Committee Rule 7(c), all members will be permitted to submit written statements to be included in the permanent hearing record. And without objection, the hearing record will remain open for 14 days to allow such statements and other extraneous material referenced during the hearing to be submitted for the official hearing record. Chairman Kline. It's now my pleasure to introduce our distinguished witness. Dr. John B. King, Jr. is the acting Secretary for the U.S. Department of Education. He was named acting Secretary of the Department of Education last month. Prior to this, he served as a principal senior adviser to the Department performing the duties of the deputy secretary. And as I mentioned earlier, he has now been officially nominated by the President of the United States. And it is my understanding that the Senate, in fact, is going to have a hearing tomorrow afternoon on that nomination. We wish you good luck with that. Let me ask you now, Dr. King, to please stand and raise your right hand. [Witness sworn.] Chairman Kline. Let the record reflect Dr. King answered in the affirmative -- as by the way, has every witness that we have ever asked to do that. Before I recognize you to provide your testimony, let me just briefly remind you and everybody about the lighting system. For many of us up here, this is our first hearing in this completely renovated hearing room, and we're, perhaps, a little disoriented and maybe even awed. I think maybe Mr. Brat is still lost. I'm not sure. Oh, no, that's not what you were - - I thought you were talking. Dr. King, I'll ask you to here, in just a minute, to give us your testimony. The timer will come on there in front of you, which indicates you have 5 minutes, but as I indicated to you earlier, I have never, never gaveled down a witness for going -- certainly, not a Secretary or acting Secretary -- for going somewhat over. But if you can limit those remarks, then we can get into questions and answers. Each member here will be given 5 minutes to ask questions and get answers. And I will be a little bit more demanding on my colleagues' time than yours. So, Dr. King, you're recognized. TESTIMONY OF DR. JOHN B. KING, JR., ACTING SECRETARY, DEPARTMENT OF EDUCATION, WASHINGTON, D.C. Mr. King. Thank you very much. Good morning. Chairman Kline, Ranking Member Scott, and members of the committee, thank you for inviting me to discuss the Department's 2017 budget. I look forward to building on our bipartisan collaboration as we implement the Every Student Succeeds Act and solve important challenges in public education. This first year, we are focused on three principles: first, ensuring every child has the opportunity to earn an excellent education; second, supporting our Nation's teachers and elevating the teaching profession; and, third, improving access, affordability, and completion in higher education. These principles, along with my own experiences working in public education, inform the ideas in our 2017 budget proposal. Before joining the Department, I led the New York State Department of Education and served as the managing director of Uncommon Schools, a network of high-achieving charter schools. I began my career as a high school social studies teacher and cofounded one of the highest-performing middle schools in Massachusetts. I'm also the proud parent of two public school students, and these experiences inspire every decision that I make at the Department. While this budget is focused on the challenges ahead of us, I also want to acknowledge the remarkable gains we are seeing. High school graduation rates are at an all-time high and dropout rates are falling. We have the largest and most diverse classes enrolling and completing higher education. The numbers of African American and Latino college students are up by more than a million since 2008. The Department's 2017 budget builds on that progress in important ways. It would strengthen formula programs at the heart of the Every Student Succeeds Act and invest in next- generation high schools and career and technical education. It ensures that our youngest learners get a strong start in school through President Obama's landmark Preschool for All initiative and capitalizes on teacher leadership by helping them achieve their ideas in the schools where they are needed most, and brings computer science to every classroom in this country. Through the new Stronger Together program, we would help school and district leaders create more high-achieving, socioeconomically diverse classrooms and schools. All students benefit from learning with classmates from different economic backgrounds, and all students should have that opportunity. The programs in our 2017 budget would also make higher education more affordable and help more students earn their college degrees. America's College Promise would make community college free for all students, an idea that is proving its potential in communities from Tennessee to Long Beach, California. This budget would also drive innovations in Pell Grants by supporting students that take summer classes and at least 15 credits per semester and reward institutions with high completion rates. We need new strategies for helping students earn their degrees, and through First in the World and the HBCU Innovation for Completion Fund, we would help colleges translate their ideas into better outcomes for their students. This budget leverages local leadership, the source of strength of our Nation's education system, to help more students succeed. But I also know that there are places where leaders are not living up to their responsibilities. Last year, I visited a community where five local schools had become socioeconomically and racially isolated and under- resourced failure factories, to borrow a term from a local newspaper. There, we met desperate families, dejected teachers, and students that questioned whether the adults in their lives really care. I contrast that visit with the excellent schools I've seen in communities from Houston to Wilmington to Miami. I've met countless engaged students who know that, thanks to the educators in their lives, their destiny will not be determined by where they were born. The Department's 2017 budget would support local and State- led efforts to create many more places where students know their education and their future is in their own hands. I look forward to discussing these ideas with you in more detail and would be happy to answer your questions. Thank you. [The testimony of Mr. King follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Chairman Kline. Thank you, Dr. King. Less than 5 minutes. I don't know that you get any extra points for that, but well done. I had discussed this very briefly with you before. It's been a nagging concern, I guess, to me, year after year. When we look at the President's budget year after year, there is little or no increase suggested in funding for IDEA, and this year turns out to be the same thing. If I look at the President's budget, I can give many examples here, the budget proposes a new billion-dollar mandatory program called Respect: Best Job in the World. It proposes $120 million for a new Stronger Together grant program, requests 80 million for a new Next Generation High Schools program, proposes $2 billion, and $4 billion over 3 years, for a new mandatory Computer Science for All Initiative, proposes $100 million for a new Computer Science for All development grant program, and so forth. My point is that the budget is full of new programs. And the discussions I used to have with Mr. Miller, when he was here, when these new program ideas would come up, I would ask him: Why do you want to propose a new program which will be chronically underfunded? And I'm sort of asking you the same thing. Year after year and in this budget, it's new program, new program, new program. They are always competing with each other for funding, and they are competing with IDEA. In countless school visits, roundtable meetings, discussions I've had with superintendents, principals, teachers, parents, and I ask them, ``What's the most important thing that the Federal Government can do to help you?'' the answer is always, from every one of them, step up to the Federal Government's commitment to fund special ed. We were supposed to be providing 40 percent of the new funds that would be required under IDEA for the new requirement to take care of special needs kids. We've never gotten half that. And this budget brings it down from almost half, working down to about 16 percent. Can you please just explain why, why you, why the President, why somebody thinks it's more valuable to create new, untested programs that are going to be underfunded than it is to meet this commitment? Mr. King. I appreciate the question, Congressman. The budget is really focused on the priorities that I described, equity and excellence for all students, investing in teaching, and lifting up the teaching profession, and doing more to ensure access, affordability, and completion in higher education. As we invest in those priorities, we were careful to stay within the constraints of the budget caps that were agreed to last year and to ensure that this is a budget that actually reduces the deficit over the long term. And so within those constraints, we tried to prioritize those programs that we think would best accelerate our meeting those goals. But we are deeply committed to students with disabilities and ensuring opportunity for them. Students with disabilities would benefit from the programs that are in this budget. We maintain the increased investment from the 2016 budget, and actually increase spending in the Part B and Part C IDEA programs. Chairman Kline. Well, we're just going to continue to disagree here. It seems to me -- continues to seem to me -- that we would be a whole lot better to set as our first priority meeting the commitment that's been out there for, what, now over 40 years, and we can't seem to do it. And school after school after school, district after district says that's the most important thing. And yet, this budget has created all of these new programs, which are, yes, you stay within the caps, but that means you're taking money from what could be, and I would argue, should be going to special ed. Okay, I yield back. Mr. Scott. Mr. Scott. Thank you, Mr. Chairman. Dr. King, in your written testimony, you talk about research and evidence and data. Can you explain how the budget develops the appropriate data base and evidence to appropriately guide education policy? Mr. King. Yes, absolutely. We are deeply committed to the principle that we need more evidence-based decision-making in education. If you look at education versus other sectors, we spend in education something like less than one half of 1 percent on research and development. In other areas of our economy, that number can be as high as 20 percent spent on research and development. So we need more investment there. This budget prioritizes that in a few ways. We propose an increase in funding for IES, so that they can engage in important research projects, fund important research projects across the country. We call for an increase in the education, innovation, and research grant programs so that we can fund efforts at the local level and State level to develop an evidence base around what works, particularly for our highest-needs students. And we propose restoring funding for the First in the World grant competition, which is focused on building an evidence base around initiatives at the higher education level that ensures students get to completion. And as a companion to that, we have the HBCU Completion Innovation Fund proposal that we think will help Historically Black Colleges and Universities build an evidence base there around best approaches to ensure that students don't only start, but actually finish college. Mr. Scott. Thank you. And speaking of minority colleges, throughout the South there are consent decrees dealing with the effects of segregation of schools before the 1960s. Does your budget have sufficient funding for you to review those consent decrees to see if they are complied with and to address segregation in public schools generally? Mr. King. Let me first say that HBCUs play a hugely important role in American culture. I think it's often underappreciated how critical the role of HBCUs is in preparing teachers for the country, a diverse teacher workforce, how critical the role of HBCUs is in preparing African American doctors, African Americans graduating with STEM degrees. So we want to make sure that the HBCU sector is a thriving one. That's why we invest in the HBCU Innovation Fund. HBCUs, as you know, figure prominently in the America's College Promise proposal, allowing students to go to HBCUs using America's College Promise funds. We also ask for an increase in the staff at the Office of Civil Rights. And the Office of Civil Rights is currently working, as you know, on several issues related to those consent decrees and States' allocation of resources to their Historically Black Colleges and Universities. But one of our very real challenges in the Office of Civil Rights is a huge increase in the number of civil rights complaints that we are investigating and closing with communities and institutions, but we have not had the necessary staff. And so many of those complaints take longer to resolve than would be ideal. On the broader point of segregation, I would say the budget calls for an increase in the magnet schools program, which is directed at communities that have either existing court orders or agreements around desegregation, but the budget also calls for an investment in Stronger Together, which would foster locally led, locally defined, voluntary efforts to increase socioeconomic integration in schools, because we want our schools to be places where students experience the kind of diversity that they will experience in the workforce. Mr. Scott. Thank you. Flint, Michigan has made national news because of the lead poisoning in the water. Has your Department developed a plan or are you developing a plan to address the educational challenges created by this lead exposure? Mr. King. We are very engaged in Flint. What's happened there, I think, is shameful and tragic. And it's very important that all agencies participate in helping the community in Flint respond to the situation. So we've been in close contact with the school districts and the regional providers of educational services in Flint, providing technical assistance, helping them identify how they can use existing resources to respond to the needs. We've had folks on the ground meeting with folks in Flint, visiting with parents and educators. We are working with a cross-agency team to identify what would be most useful going forward. And we certainly will look forward to working with this committee, and with your staff in particular, on how we ensure that the Federal Government supports the community of Flint. Chairman Kline. I thank the gentleman. Just to alert all of my colleagues, Dr. King has a hard stop at 12:30. We will honor that. So that means I will be dropping this gravel pretty quickly if you go over the 5 minutes. Let's see. Dr. Roe, you are recognized. Mr. Roe. Thank you, Mr. Chairman. Dr. King, good luck on your confirmation. I'm from the great State of Tennessee. We do fund our colleges based on graduation rates, not on heads and beds. And we also have provided free community college and technical college. As you know, we've had the greatest gains in K through 12 than any State in the Union. People should be looking at that. What I want to talk about today with you, and I really want to work with the Department on this, and probably you have read this, but Dr. Nick Zeppos at Vanderbilt has ``Recalibrating Regulations of Colleges and Universities.'' I'm just going to go over a few things quickly about the incredible costs that are placed on colleges to comply with Federal regulations. Basically, regulations that, for instance, in 1997, at Stanford University, 7.5 percent of the tuition was to comply with Federal regulations. In Vanderbilt University, in 2014, 11 percent, or $150 million, that's $11,000 per student, just to comply with Federal regulations. That's one of the ways we could have more money, is to decrease the amount of regulatory burden we placed on these colleges and universities. Thirty- three percent increase in the last 10 years in compliance officers in colleges. And this is public data. Regulations are overly complex. In at least one case, a guidance document meant to clarify uncertainty led to more confusion. In 2011, a ``dear colleague'' on Title IX responsibilities for sexual harassment contained all these complex mandates, and then when they had to explain just that, it was a 53-page document that people had to go through. The colleges are required to have selective service registration. Not that these are not important, but this is something a college probably shouldn't be doing. Voter registration requirements, peer-to-peer file sharing, foreign gift reporting. I mean, on and on, I could go on and on. Timely. Let me give you this one. In May of 2013, Yale University was ordered to repay financial aid funds based on the Department of Education audit undertaken in 1996. The University of Colorado received a similar demand based on a 1997 audit. And even though the universities appealed in a timely fashion, it took 17 and 16 years, respectively, for the Department to act. That's ridiculous, and it's expensive, because they are, again, doing all these things. 2004, the Department investigated Yale for the Clery Act reporting violation, that's sexual harassment on campus, 2001 and 2002, but the fine wasn't issued until 2013. So I could go on and on with that. Another thing is a barrier to innovation, these requirements are. Vanderbilt gave up its online programming because of the extensive requirements in several States. In North Carolina, they just threw the hat in. And in California, the State of California projected the cost of developing and implementing a new data system required to meet regulatory requirements at $233 million just for California alone. That would have much been better than IDEA or other things that we could have spent money on. As we have all said, the resources are limited. So I want to work with you. This is a great document. Have you read this document? Mr. King. I've seen it, yes. Mr. Roe. It really gives a lot of great ideas. I'm going to let you answer. Mr. King. So I share your commitment to making sure that the resources that are going to the higher education sector are going to students. Of course, we want our students to be safe and supportive while they are in school and able to go on to graduate and prepare for what's next. Some of the recommendations in there are things that we are working on. As you know, we have a Pell experimental site focused on competency-based education where we are working with several higher ed institutions to foster innovation. We've got an effort with Pell dual enrollments to foster innovation around partnerships with high schools. In our higher ed institutions, we've made some changes to the financial aid process. Mr. Roe. I don't mean to interrupt you, but how old are your children now? Mr. King. Nine and 12. Mr. Roe. Okay. Well, I have three that have graduated from college. And, sadly, a University of Tennessee grad has got to say one got an MBA from Vanderbilt. That's hard for me to confess, but I will. But how when you start writing a check to a university, how can you, when you write an $11,000 a year per student just to comply with Federal regulations that is really not much benefit to the student, when you start writing that check, it's going to be different. I've written those checks, and I want you to think about that. I seriously want to work on reducing this regulatory burden. I think it's hugely important. Mr. King. Yeah, I share that priority. I'm still paying my student loans. I share that priority. And so I think we can work together on that. We certainly think in this next year there are places where we can make progress on some of the items mentioned in that report. I do want you to know we are working on some of them already and have implemented some of those recommendations. Mr. Roe. Thank you. I yield. Chairman Kline. The gentleman's time has expired. Mr. Hinojosa. Mr. Hinojosa. Thank you, Chairman Kline. I have some prepared remarks here, and I want to certainly ask the questions. Dr. King, thank you for coming to speak to our committee, and it's a pleasure to hear your education priorities on this 2017 budget that is certainly going to be discussed the rest of this month and maybe longer. But I want to say that in seeing the materials that were given to us by staff, I am very concerned. You made the statement that the HBCUs are a very important component of higher education, and I have been one of the strongest supporters of HBCUs. In fact, as chairman of the Congressional Hispanic Caucus, I met with the Black Caucus and the Hispanic Caucus leaders, as well as the Asian Pacific, and we came to an agreement that we were going to all work together to help all minority-serving institutions. But in looking at your proposed budget here, increasing 245 million for strengthening HBCUs, and seeing the increase in the student population of HSIs, the numbers that are enrolling since 2010 with the reconciliation of higher education went up 30 percent, and yet you have nothing in here increasing the investment in both the HSIs and the Asia-Pacific colleges and universities as we requested of President Obama when we met with him at the White House. And furthermore, you have to realize that if we don't speak up, I don't think that the government and, certainly, the Congress is going to increase it, because we had to fight for 20 years to get the kind of increases we got in 2010. Now, HSIs were reduced 2 years ago in their Federal investment, and I'm very concerned, and you need to explain to me why you left out the other two groups. Mr. King. So let me say, first, HSIs, MSIs generally, I think, play a critical role in the education system-- Mr. Hinojosa. I agree with you. Mr. King. -- and are often a path to opportunity for first- generation college students who otherwise might not have access to those opportunities. In the America's College Promise proposal, MSIs are well represented. So if students, hard-working students were to pursue degrees at 2-year or 4-year MSIs, they would be eligible for the America's College Promise funding. The First in the World fund includes a set-aside for MSIs and HBCUs at 30 percent, the First in the World fund, that's $100 million that's targeted towards completion, efforts to improve the evidence base around completion. And then the innovation fund, Completion Innovation Fund, is also for MSIs and HBCUs. So we've reflected MSIs in several places. We were constrained in our approach to this budget by-- Mr. Hinojosa. If I can interrupt you just a minute, because the time is running out. In the last 4 years we have shown great improvement in graduation rates, in enrollment in higher education, and graduation, even, at the colleges. And so we need for your Department to not only pay attention to these three that I mentioned, but also the tribally controlled colleges, because they are certainly not being even considered and given the moneys that they need to bring their graduation rates up. So, again, I look forward to another round of questions, but know that we want to work with you and your staff, and that I believe that the regulations that were put in to make schools accountable is needed, especially Title IX, for women to be able to have the moneys so that they can have their sports. We put on a big, big fight back in 1998 here in this committee, and, finally, we did not allow them to remove Title IX, because there were some that were complaining about that regulation. And there's other things that are necessary by the Federal Government for them to show us, the schools and the colleges, the accountability and how they are using that money and if it's working. Chairman Kline. The gentleman's time has expired. Mr. Thompson. Mr. Thompson. Thank you, Chairman. Dr. King, thank you so much for being here. Good luck, best wishes, for your confirmation process with the Senate. Mr. King. Thank you. Mr. Thompson. Dr. King, in this year's budget request, your Department has proposed to level fund the only Federal investment in career and technical education, the Carl D. Perkins Act State grant program, and instead you propose $75 million for a new competitive grant program that your Department estimates will only benefit 5 to 25 programs throughout the country. It speaks to the same question that the chairman started out with of, really, making sure that we're serious about what we know works, what we have been doing, versus creating new programs have so much uncertainty attached to them. The same week that you made this proposal, your Department highlighted the fact that many career and technical education programs have waiting lists of students who want to enroll in quality CTE programs but cannot because programs simply lack the capacity to meet this increasing demand for career and technical education. Why has the Department of Education continued to propose new, untested grant programs that come with tremendous certainty -- also, I would argue, you know, favors bigger programs that maybe have more capacity for grant writing compared to especially those in underserved urban or rural areas -- that would only benefit, as the Department's own analysis has shown, only a handful of programs, the number being 5 to 25 as estimated by the Department of Education, at the expense of the Nation's foundational support for CTE via the Perkins Act? Mr. King. Congressman, I appreciate the question. I am a huge supporter of career and technical education. And when I was commissioner in New York, one of the things we focused on was expanding access to career and technical education, and particularly strengthening the partnerships between high schools, employers, and also higher education institutions so that students were prepared for success when they graduated. We see the Next Generation High Schools program in that context, a way to cultivate innovation in career and technical education. We know that there's a need for more CTE programs that are focused on 21st century jobs. There are CTE programs around the country that are looking for resources to offer new types of programs that respond to new demands in advanced manufacturing or in high-tech industries. So we see the Next Generation High Schools programs as an opportunity to spur that kind of innovation and build an evidence base around what works, but believe strongly in the Perkins program, hope, actually, that there's an opportunity for a discussion on reauthorization of the Perkins CTE Act and an opportunity to ensure that we foster innovation, that we have the teachers that we need. You know, when I talk to superintendents, one of the challenges is finding teachers in the CTE fields, particularly high-demand new fields, emerging fields like computer science and tech-related fields. So CTE would benefit from a variety of the programs that are here. We've got a billion-dollar investment in making teaching the best job in the world. We think that will help us to attract teachers to the CTE fields that are in high demand today. So to be clear, this budget invests in CTE because we believe strongly in it. Mr. Thompson. Well, it invests to the benefit of 5 to 25 programs across the Nation. So I really don't think it invests broadly in the futures of a significant number of kids. I think there's a better way to do it. I have a question on whether the administration has changed its perspective. In April 2012, the administration released a blueprint for the reauthorization of the Perkins Act, which I agree with you, I think it's incredibly important. I look forward as this committee's work goes forward that we get that done. But what the administration put forward is viewed by many, by stakeholders, as overly prescriptive. Has the administration's vision for a Perkins reauthorization changed since then? Because if your proposal is to level fund it this year, it seems like, perhaps -- well, let me just focus on the question being overly prescriptive. And, specifically, one key stakeholder group I didn't hear you mention was business and industry. I mean, I would encourage you to use the same principles that this body, this committee did with the Workforce Innovation Opportunity Act, with the Every Student Succeeds Act, where we pushed local control, local authority, more flexibility by those on the ground, decision makers, versus being overly prescriptive from Washington. Mr. King. Yeah. Eager to work with you on this. I think the principles from the blueprint are the principles we think are important, investing in innovation, ensuring that we have the teacher workforce that we need. Close partnerships with employers. One of the projects I worked on in New York, I am very proud of, was a partnership in IBM launching a school called P-TECH in Brooklyn where students graduate with a high school diploma, associate's degree, first in line for a job with IBM. We replicate that-- Chairman Kline. I hate to interrupt, Dr. King, but the gentleman's time has expired. We're doing the filibuster-up-to- 10-seconds-left trick, folks. We can't do that. Dr. King has a hard stop. Mr. Grijalva. Mr. Grijalva. Thank you, Mr. Chairman. And thank you for being here, Dr. King. I appreciate it very much. And best of luck on your confirmation. In this President's budget we once again see an increase in the funding for charter schools. And given all the discussion that goes back and forth on that concept, whether it's for- profit or public charters, that we've seen in the past, one of the questions that I have, that I think is something that I think lags behind in the effort to increase the funding at a time when some of the categorical programs are losing funding and traditional public schools are losing funding, how will the Department ensure that there's some really basic accountability to these entities? How will these entities communicate to students and parents that make the choice to enter a charter school, everything from financial disclosure, what is proprietary and not in terms of the entities that run these, and regulatory issues, the public's right to know, public disclosure, public meetings, so that people can attend and know what is outside of a financial boardroom but is in a public setting? These are questions I think that as we move forward in the initiatives of this administration on charter schools that lagging behind is the taxpayer accountability as to how this money is being used. And what do you propose in that area in general? And before you answer, let me just indicate to you, Dr. King, let me associate myself with Mr. Hinojosa's comments relative to minority-serving institutions as a whole. Sir? Mr. King. Thanks. So ultimately charters we see as one path to innovation among many. And so this budget invests in magnet schools, invests in the Stronger Together socioeconomic-integration initiative, invests in the Charter School Program. What's most critical is we need that innovation to get better outcomes. Despite the progress we've made as a country, despite having the highest graduation rate we've ever had, we still see significant achievement gaps. And there are places where high-performing charters, high-performing magnet schools, strong socioeconomic-integration efforts are making a real difference for student outcomes, but, of course, that needs to come along with the accountability. In our Charter School Program, we are focused on helping States strengthen their authorizers. The quality of charters in a given State is very closely tied to the quality of the charter authorizers. Are those authorizers holding the schools, the school leaders, accountable to the charter agreement? Are they ensuring transparency-- Mr. Grijalva. Should there, Dr. King, be a basic template, though, disclosure, financial, posting of meetings so that people can attend, limiting what is proprietary and not in terms of financial issues and salary issues that are questions people ask, but there's always that wall? Do you think there should be a basic template at the very minimum? Mr. King. Yeah. There are set of requirements for participation in the Federal Charter School Program around authorizer practices. Some of the issues that you are raising are often dictated by State law. But for our Charter School Program, for participation in that grant program, there are a set of expectations. And, look, we have to acknowledge that there are places where authorizers should be doing a much better job. There are States where low-performing charters, charters with poor financial track records are allowed to continue to operate even though they are not living up to their charter, and in those places the authorizers should intervene to close those schools. Mr. Grijalva. I yield back, Mr. Chair. Chairman Kline. I thank the gentleman. Mr. Walberg. Mr. Walberg. Thank you, Mr. Chairman. And thank you, Secretary, for your willingness to come today. I want to ask questions about a program that you are now responsible for, caring for, and undertaking. It's a program that I must admit right from the get-go I don't support. I think it is ill-advised. It is top-down management of a set of indicators that I don't think we can do effectively from the Federal level, and that's the College Scorecard. Is the goal of the College Scorecard, in your mind, to determine which colleges and universities are legitimate? Mr. King. So the goal of the Scorecard is to provide information to students, to parents, and to institutions. In the work to develop the Scorecard, we did a lot of listening, to students, to higher ed institutions, to the civil rights communities, to advocacy organizations for students, to understand the kinds of information that would better inform student-- Mr. Walberg. Which I think indicates -- and forgive me for jumping in, but the chairman has made it very clear we are only going to have a set time -- but indicates to me you have a lot of parameters to deal with, which makes it very difficult to manage that from top down when we have accrediting institutions, when we have schools themselves, when we have the responsibility of individuals, parents, students, to do the research necessary to find which schools work. In my district, Hillsdale College, for instance, it's not a school that has had a low success rate. According to Kiplinger, U.S. News & World Report, Forbes, Princeton Review, it's rated as one of the top liberal arts colleges in the world, and yet it's not included in the Scorecard, simply because it takes no Federal or State moneys, and so it doesn't come into some of the plans where you will pick information from. But it also comes in some of the rating institutions or recording institutions that you do take from, but they are not included. I don't think that's accurate, to portray Hillsdale College simply because it's not in the Scorecard, it's probably not worthy of people going to the school. Do you? Mr. King. We're working with the higher education community to make sure that schools that weren't included in the first round of the Scorecard have the opportunity to be in the Scorecard. But it's important to note, the Scorecard is not a rating system, in that we don't have rankings of the schools. Mr. Walberg. Are they affecting the rating system? Mr. King. It's information, it's a transparent system of information about the schools. Now, people can use that information. And one of the things we did, we were careful to do in the development of the Scorecard, was make it possible for others to access the data, protecting student privacy, being able to assess the data to create other tools that might inform students about things like how much does the typical student leaving the school have to pay in student debt, how much does the typical student leaving the school earn. We think those are important things for students to be aware of. Mr. Walberg. Yeah, but those -- you bring up an important point as well. We have another three schools in Michigan here that reported either just simply the average annual cost or nothing at all, and yet they are included in this point. I go to one of my alma maters -- one of my alma maters -- storied, historic, world renowned -- and I say this out of truth, not just because I graduated from it -- but the Moody Bible Institute of Chicago. Over 3,000 students that go there. Average annual cost is very low, because every student that goes is received on a tuition-paid scholarship. Graduation rate significantly high, 75 percent or better. But no data available for salary. Why? These are missionaries. These are pastors. These are missionary pilots that go out. They are not going to make a lot of money. In fact, in most cases they have to raise their own. And yet that's included in this Scorecard. All that to say, I'm not sure this -- though it's rather expensive to produce, it puts a lot of information out, and yet I think it's misleading as well. And I'm not sure that the Federal Government should be involved in putting out something that, as you say, is not a rating system, but it becomes a rating system. It's impossible not to be a rating system when that type of information is included, and it's not incomplete - - it's not complete. It's incomplete. Mr. King. Again, we feel like the transparency for students about the information we do have is important and can inform decisions. I was in a high school a few weeks ago, sitting with students who were using a tool called Pell Advocates that relies on the information from the Scorecard, and it was a high-need-type school in the district, and you could see students realizing that schools they thought were out of reach for them because their sticker price is so high, realize that, no, in fact, they could go to that school because of the financial aid that was available. And I saw students literally change their mind about what they thought was possible for them because of that information. That strikes me as a worthwhile effort. Mr. Walberg. It would be good to be complete and accurate information. And I yield back. Chairman Kline. The gentleman's time has expired. Ms. Fudge. Ms. Fudge. Thank you very much, Mr. Chairman. And thank you, Dr. King, for being here. Certainly, I am confident that the Senate will see your stellar qualifications and confirm you, so we are just going to claim that. I too do want to just agree with my colleague, Representative Grijalva, about my concern of accountability for charter schools. Obviously, I'm from the State of Ohio, where our State purposefully, knowingly, sent misleading information to the Federal Government about our charter schools. So I know what it's like. Dr. King, last year, Congressman Gibson, Senators Portman and Warner, and myself introduced the Go to High School, Go to College Act, which allows students in dual enrollment in early college programs to access Pell Grant dollars while still in high school. In October 2015, the Department announced a pilot program to allow high school students the opportunity to access Federal Pell Grants to take college courses through dual enrollment. What funding is in the fiscal year 2017 education budget for early Pell and dual-enrollment programs, and what is that status of the Department's pilot program? Mr. King. Thanks for the question. So we think there's tremendous opportunity in allowing higher ed institutions to innovate around serving high school students. And, you know, I've seen many high schools around the country where students who may not have thought college was possible for them have that experience of taking college classes in high school, and it changes their expectations for themselves and their life trajectory. That's the reason we are committed to the Pell dual- enrollment experimental site. We are going and make sure that we can find that experimental site within existing Pell dollars. We put out a request for applications from institutions. That closed a couple of weeks ago. We are reviewing those applications from institutions, and we expect there will be a number around the country that begin this work, and we'll build an evidence base around dual enrollment. Ms. Fudge. I don't want to cut you off, Dr. King, but the time is running. So, indeed, there is no additional funding. Mr. King. That's right. We are doing this experimental site within existing Pell dollars. Ms. Fudge. Okay. Now, the early Pell pilot program appears to exclude tuition-free programs. Is that accurate? Mr. King. No, it's that we see this is as an investment in expansion. And so what we've tried to say is the dollars here have to be used to expand access to dual-enrollment programs. Ms. Fudge. Okay, Dr. King. The FY 2017 budget request funds for the creation of a new American Technical Training Fund, which will provide competitive grants to support evidence-based tuition-free job training programs in high-demand fields. I am certainly one that does not believe in competitively funding very many things. Could you tell me, even though I know that there is a clear need to fund these programs, what plans does the Department have to address the issue for the entirety of our Nation's workforce, not just those who can write a grant? Mr. King. So we think it's important that we build more programs that are targeted towards either folks who are low income or folks who are unemployed so they can get access to jobs training and education. Ms. Fudge. Which are the people who generally can't write grants very well? Mr. King. Well, so these would be the higher ed institutions themselves would seek these grants in partnership with employer partners and create programs that would serve those low-income students, those unemployed students, help them get the skills they need to get good jobs. Now, this is a competitive grant program, $75 million. But then, we also have proposed, in partnership with the Department of Labor, a $5 billion investment in programs that would serve disconnected youth, programs that would serve folks who are unemployed, programs that would provide summer jobs and first jobs for high-need students. So we see this effort as part of a broader commitment across the Federal Government to ensuring that folks who want opportunity can get that opportunity. Ms. Fudge. But the competitive grants are still the way you think it should be done? Mr. King. Well, that's what we propose on the discretionary side in this specific program, trying to operate within the budget caps. But as I said, with the Department of Labor, we proposed $5 billion in three different programs that are focused on expanding job training and education programs for low-income adults and those who are unemployed. Ms. Fudge. As my time is running out, the average student debt is about $35,000 a person right now. And you don't need to answer it at this point, but I would like an answer at some point. What funding request are you or have you made to help students better manage their loan repayment so they can have a quality of life they worked so hard for when they went and got a college education? You don't need to answer it, if you would, please, respond. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Ms. Fudge. I yield back, Mr. Chairman. Chairman Kline. I thank the gentlelady. Mr. Salmon is recognized. Mr. Salmon. Thank you. Welcome, Dr. King. Mr. King. Thank you. Mr. Salmon. It's no secret that over the last few years the Department's taken several steps to aggressively target particular sectors of higher education. One such step was the creation of an interagency task force on for-profit institutions. Proprietary institutions play an extremely important role in delivering postsecondary education to nontraditional students, and I'm very concerned that the Department is unjustly staining the reputation of the entire sector. What does the interagency task force on for-profits seek to accomplish? How does the Department attempt to justify operating the task force without transparency? And how can the Department further justify favoring one sector over another? Mr. King. So to be clear, our goal in the higher education sector generally is to ensure that we protect both the interests of students and the interests of taxpayers. We've got to make sure that students have access to good information when they enroll in a school, they get the support they need to graduate, and that taxpayers can be confident that schools are using taxpayer dollars to support students. The interagency work on that task force is focused on ensuring that where there are bad actors -- and there are some -- where there are bad actors, there's an intervention to change that behavior and to ensure that student interests are protected. We recently announced the addition of an enforcement unit at the Department within our Federal student aid team focused on bad actors. It's not specific to one sector. That could be a nonprofit, could be a for-profit, could be a public institution. But if an institution isn't following the law, isn't serving students well, we think it's important for there to be an intervention. Mr. Salmon. I agree that bad actors should be dealt with appropriately, whether they're in the private sector or whether they're in the public sector. And I'll just throw a couple statistics that come off of the Department's College Scorecard. San Antonio College, which is a public university, has a graduation rate of 8 percent. The University of Maryland, University College, a public university, has a graduation rate of 4 percent. The West Coast University, Los Angeles, which is a for-profit university, has a graduation rate of 85 percent. And the Cambridge Institute of Health and Technology, a for- profit university, has a graduation rate of 87 percent. So there are really good actors and bad actors in both the private and the public sector. And I just want to make sure that as we go forward, that those students that are participating in public universities, that your care and concern for them is as great as it is for the students of private universities. Mr. King. Absolutely. It's a diverse sector, and I think part of what those statistics point out is how much work we have to do as a country on the issue of completion. And when we think about the students who struggle to pay back their debt, it's often the students who start but don't finish, and then they're trapped in this cycle. They can't get a good job because they don't have a degree, but they also can't pay back their debt. And so many of the proposals in our budget are focused on that issue of completion, including in our public institutions. The America's College Promise program really requires a set of commitments to completion-focused policy changes in States that would participate. Mr. Salmon. I want to shift to student loans. My son-in-law is a dentist now and graduated from Case Western dental school in Ohio. His first year he took out a pretty significant student loan and then decided, ``nuts to this,'' and he joined the Army. They paid for the other 3 years, and he served 3 years as an Army dentist. Now, this year that he took out for a student loan, the repayment rate under a government monopoly student loan process, the Federal Government basically has a monopoly on all student loans now, but the repayment percentage is 9 percent. Nine percent. And when he told me he wanted to investigate refinancing it, he found out that it was against the law. As I started talking to different folks about this, I come to find this disparity, that graduate students actually pay a higher percentage on their government monopoly student loans than undergrad, even though their repayment rates are far higher and the risk associated with graduate-level programs is far less. In a private sector loan, they would be given a much lower rate, but since it's a government monopoly loan, it's higher. I come to find out that the reason that they pay those exorbitant rates and they can't refinance is that that's actually revenue to the State. It's a hidden tax. And I would just encourage all of my colleagues to really take a second look at this. These monopoly loans from the government aren't all they're cracked up to be and they're really penalizing a lot of families. Chairman Kline. The gentleman's time has expired. Ms. Wilson. Ms. Wilson of Florida. I'm happy to welcome you here today, Dr. King. It was my pleasure to host you this past Friday for Miami-Dade County's My Brother's Keeper Action Summit. It was an honor to show you how our community leaders, elected officials, and education community have committed themselves to uplifting our young people. I find myself very moved by your personal story. It is truly a testament to the power of education. And I look forward to working with you in the future to ensure we promote and protect educational opportunities for our youth. I know you are exceptionally qualified to be the Secretary of Education because you were a principal. I commend the President for submitting a budget that seeks to expand access to a quality education and ensure our children are college and career ready. I have a couple of questions for you, and thank you. During the ESSA conference committee, I was able to push through an amendment that created an additional use of new Student Support and Academic Enrichment Fund so schools can establish and improve the dropout and reentry programs that give potential dropouts the support they need. The President's budget does not fully fund this new block grant at the fully authorized levels. Has the Department proposed flexibility to ensure LEAs can fund varied strategies to support learning, including dropout prevention and reentry? Mr. King. So first, Congresswoman, thank you for the opportunity to join you in Miami for the My Brother's Keeper event. Thank you for your leadership in the community around ensuring that our young people are safe and have educational opportunities. We think there's tremendous opportunity as States and districts move forward with implementation of the Every Student Succeeds Act for districts to invest in smart strategies aimed at reducing dropout rates, ensuring safe and supportive environments for students, ensuring that students have access to a well-rounded education. In Title IV, we increase the funding. The programs that were covered by Title IV in the `16 budget were at about $278 million. We increase that to $500 million in our budget. But we were, again, operating within the constraints of the budget caps and trying to make sure that we addressed the President's priorities within those budget caps. But we do think those are hugely important programs and think there's great opportunity for LEAs to address student needs. Ms. Wilson. Thank you. I also want to know if you can speak to how the President's budget takes steps towards training and attracting more diverse school leaders. Mr. King. Hugely important issue. You know, if you look at our public schools today, the majority of the students in the Nation's public schools today are students of color. And yet only about 18 percent of our teachers are teachers of color. Only 2 percent of our teachers are African American men. And so we have work to do as a country to ensure a diverse teacher workforce. The President's budget includes a proposal around a Teacher and Principal Pathways innovation grant program that would be a grant that teacher preparation and school leader preparation programs could leverage to make efforts to improve diversity. We know, for example, in some communities paraprofessionals are a place where there's much more diversity than among the teaching staff. And if there was an opportunity to provide coursework and training and to see those paraprofessionals as future full-time teachers, you could add to your staff diversity. There are other places around the country where we see districts struggling with recruiting bilingual teachers to meet students' needs. And so this Pathways initiative would be another opportunity. There's also room, we think, for States and districts to use Title II dollars for programs that would support the effective diverse teacher workforce that we need. Ms. Wilson. Okay. Can you speak more about proposals to support strong early education programs, including kindergarten? Mr. King. Yeah. Early education is a top priority for the administration. As you know, the President believes deeply that early education can be the key to getting students off on the right track as they start their education. The budget includes Preschool for All with the goal that all students would have access to high-quality preschool programs, particularly those students who are most at risk. The budget also includes an increase for the Preschool Development Grant program that now will be managed in partnership with Health and Human Services. That program is already increasing the number of high-quality early learning slots. And one of the signature elements of our Preschool Development Grants program and our Race to the Top -- Early Learning Challenge program, for both of those initiatives, has been the requirement for good collaboration around transitions to kindergarten. We really see preschool not as separate from the K-12 system, but as a part of the K-12 system. It's really about building a quality P-12 pipeline. Chairman Kline. The gentlelady's time has expired. Dr. Foxx. Ms. Foxx. Thank you, Mr. Chairman. And thank you, Mr. Secretary for being here. I have several questions for you. I'd be happy for you to answer with any time that's remaining, but will ask for a written response for questions you're not able to answer here today. I'm very concerned about what's happening within your Department's Office for Civil Rights and its impact on college campuses across the country. For too long the OCR has gone around Congress by legislating a new mission, and I'm deeply concerned about the office's legitimacy and effectiveness on these issues and the potential negative impact on students and institutions. The office has used the Dear Colleague letter process, an implied threat of investigation that would result in the loss of Federal funds as a way to require action by institutions. Anything that can result in an expensive and protracted investigation should be established by Congress through law. And I'm very concerned that a number of the office's actions encroach on our constitutional authority to make laws. The office should follow the regulatory process that provides ample time for notice and comment. There are significant issues that should be addressed by stakeholders before the Department makes a unilateral decision on how to address certain issues. And, again, individual circumstances matter greatly. To that end, these are questions. How many of the Dear Colleague letters that have been issued over the past 6 years were reviewed to determine they should have been submitted for notice and comment? How many of those letters have had notice and comment period prior to issuance? Who makes that determination? Who's consulted about these significant changes prior to the letters being written? I'd also like to know what you plan to do to ensure this process is reformed to give all relevant stakeholders time to weigh in to ensure any new rules are the best way to prevent discrimination in our schools and on campus. Further, the Office of Civil Rights is busy touting how many sexual assault cases it has opened, but the number of cases isn't as important as providing justice in each individual case. Many are concerned that the office's current approach is counterproductive to reaching a just resolution, as well as being costly and efficient. How were these cases brought to the Department? How many of the cases before the office have been closed? How long does it take to close these cases? And are you publishing that information along with the findings in each case while ensuring that you're protecting student privacy? And last, the President's budget includes a sizeable increase in funding for student aid administration. However, at a November hearing we heard testimony that FSA is not meeting its statutory obligations to be accountable for its operations or meet its mandated planning and reporting requirements. How do you plan to ensure FSA is acting as an effective partner with institutions as its PBO status requires? So I welcome you to answer these. But I also would like a written response to any you're not able to answer, by March 1. Thank you very much. Mr. King. Thank you, Congresswoman. Certainly our staff can follow up with yours on some of the details here. Just broadly on the first point, on the Office of Civil Rights. Our goal in the Office of Civil Rights is to ensure that the rights of students are protected and that our campuses, whether it's our K-12 schools or our higher education campuses, are safe and supportive environments for all students. We think protecting students, both female and male students, against sexual assault has to be a part of how we ensure that our campuses are safe and supportive environments. The Dear Colleague letters that we issue do not have force of law. They are not, from our perspective, the same, clearly, as a statute or a regulation. But they are an attempt to provide clarity for the field and to answer questions that we get. Ms. Foxx. Is it not true, though, that the campuses feel they have the force of law and that there is a strong intimidation tone to those letters that you're issuing? Mr. King. The letters generally try to do two things. One is to clarify how the Department interprets existing law and regulation to provide clarity. And also to provide models of best practice, examples of best practice. And so that's the goal with which we approach Dear Colleague letters. When we do regulations, we follow the public comment process or the negotiated rulemaking process and gather public comment. Often the Dear Colleague letters are referencing existing statutes or regulations that went through the comment process. Ms. Foxx. Well, I look forward to getting the detailed responses to the questions that I've asked. Thank you very much. Mr. King. Thank you. Chairman Kline. The gentlelady yields back. Ms. Bonamici. Ms. Bonamici. Thank you, Mr. Chairman. Congratulations, Dr. King, on your nomination. I wish you an expeditious path through that process. I know today is budget and tomorrow is Every Student Succeeds Act. But I want to for a moment follow up on Ms. Wilson's comments about the Student Support and Academic Enrichment Grant program. You know, we authorized $1.65 billion for these formula block grants, but the Department budget requests only about a third of that amount and also proposes making the grants competitive. The distribution formula was designed to protect against some of the concerns of consolidating programs. So I'm concerned about that. So I have a two-part question. First, can you talk about the disruption that could be caused by making these grants competitive? There's a lot of potential from these formula grants to sustain meaningful changes. And second, I appreciate the challenges of designing a budget that adequately funds programs. But I must tell you, I'm currently circulating a letter to my colleagues urging their support in an attempt to fully fund this program at its authorized level. So are you confident that these additional dollars, if we are successful in that request, will be put to good use in our local school districts? So the concern about the disruption and will these dollars be put to good use. And I do want to save time for a higher ed question quickly. Mr. King. Thanks for the question. You know, I believe very strongly in the programs that Title IV is intended to support, whether it's school counseling or the work to ensure that school environments are safe and supportive or the work to ensure that students have access to a well-rounded education that includes the arts and physical education or access to advanced coursework, like AP classes. So that's hugely important, and we think States and districts have the opportunity to make good use of those Title IV dollars. As I mentioned earlier, our proposal is an increase over the funding that was in the four prior grant programs in `16. And so it is a significant increase. We think $500 million is a good start. Again, we were working, as you reference, within the budget agreement caps. Certainly look forward to working with you on this question and with this committee as the budget process moves forward. The priorities behind Title IV are ones that we share. I think one of the challenges in administration will be ensuring that the grants are of sufficient size that districts can make good use of them to support exactly the intended programs. Ms. Bonamici. I appreciate that. We've seen -- I've seen over my years, though, that the competitive grant process oftentimes puts smaller rural districts and underfunded districts at a disadvantage. Moving on to higher education, first in response to Mr. Salmon's comments on student loans, I want to remind him that Congress, we, set the interest rate. So I know my side of aisle's certainly willing to work with him and all of you on that side of the aisle to lower those rates so that the Federal Government isn't profiting off of repayment. So I also, like you, had student loans. I worked my way through college. And last Congress I introduced the Opportunities for Success Act, I'll be reintroducing, to provide resources for low-income college students to participate in meaningful internships. So I'm really interested in the President's budget proposal for directing workstudy aid to students most in need. So if you could address that. And also I wanted to mention a bipartisan effort I'm leading to give student loan borrowers the option to have their income information automatically certified for income-based repayment plans. And my hope is that the Department will work with my office and the IRS to make it easier for borrowers to choose to have their loan payments automatically based on their income. So can you talk about your commitment to this effort, please, as well as that workstudy aid issue? Mr. King. Sure. So let me say the challenge that we have as a country is for sure helping -- one of the major challenges we have is helping students think through how to manage their student debt. It's one of the reasons we have been focused on the income-based repayment plans for direct loans so that we can cap the amount of money that students need to pay at 10 percent of their discretionary income so that students can manage their debt. It's one of the reasons we think it's so important to have good information for students at the outset about their options, about the cost of their degree, about their likely income when they leave a particular program. We are very interested in working with you on issues around workstudy. Workstudy can be transformative for students, both in terms of the ways that it helps them to make their way through college, but also workstudy is supporting students doing very important public service activities on many campuses, allowing students to really engage with the community outside of their university. Many students can trace why they became a teacher or why they went into public service to experiences they had through workstudy. So hugely important program. Eager to work with you on that. And certainly eager to work with you on how we make the income-base repayment program as efficient as possible and increase participation in that program as much as possible. Ms. Bonamici. Okay. I look forward to working with you. Thank you. Yield back. Thank you, Mr. Chairman. Chairman Kline. Gentlelady yields back. Mr. Rokita. Mr. Rokita. Thank the chairman. Acting Secretary King, thanks for being here today. I'm currently chairing the kindergarten to 12th grade subcommittee, and look forward to working with you. Just so know, my office is always open, the phone's always available for you. That's the relationship I had with your predecessor, and I offer it to you here publicly. Mr. King. Absolutely. Mr. Rokita. A little bit of housekeeping to start off. I was intrigued by Mrs. Foxx's line of questioning and appreciated the March 1 deadline that she offered to get written answers to her questions. I want to be clear for the record that you agree that that's a reasonable deadline to get written answers back. Mr. King. I think so. I mean, I think our staff should consult with hers on some of the-- Mr. Rokita. Could you take 5 seconds right now and ask your staff if any questions she asked were unclear to them, because I know they're going to help writing the response, and relay those concerns to the microphone now? Mr. King. No, it's just that we don't have our OCR team here, and I want to make sure that we -- the OCR team keeps very careful documentation of their cases. I just want to make sure that we have adequate time to respond fully. Mr. Rokita. So do you doubt you can make the March 1 deadline? Mr. King. We will endeavor to meet the March 1 deadline. But again, I want to make sure that our team consults on the specifics of the questions. Mr. Rokita. Do you feel any of Mrs. Foxx's questions were unclear? Mr. King. It's a question of whether we can gather all of the specific material that she's interested in by March 1. Mr. Rokita. Okay. But the questions were straightforward and reasonable? Mr. King. The questions were reasonable. Mr. Rokita. Okay. Thank you, Doctor. I also wear the hat -- or the curse -- of being vice chairman of the Budget Committee, and so I'm very interested in today's hearing from a couple of those perspectives. I see that your administration has been proclaiming that the budget adheres to the budget agreement reached by the previous Speaker last fall, I believe in October. Yet it includes over $6 billion for new mandatory spending programs in 2017 alone. Now, just two of those programs that we touched on a little bit so far, Preschool for All and the College Promise programs, are estimated to increase the deficit by $127 billion over 10 years -- $127 billion over 10 years alone. So I find it hard to understand how that adheres to any kind of budget agreement. This was my initial reaction: How does that adhere to any budget agreement when we blow up the numbers that way? So then you dig a little deeper, and I realized how you did it. These programs, you moved them into mandatory spending versus discretionary spending. And of course the heart of the agreement was on the discretionary side. And for those watching at home or wherever you may be tuning in, it's sort of a confusing concept, not to us, but to others, mandatory versus discretionary. Of course the appropriations process is all discretionary spending. The budget is discretionary spending. Congressman Rokita and the rest of us here, we all vote on whether to dial up those numbers or dial down those numbers. But what doesn't get touched and what is the majority of our Federal spend every year and what is a majority of our $19 trillion in debt is the mandatory side. So as I read your budget request, you're simply -- you're taking $127 billion in terms of new spending, put it into mandatory programs, so we can't touch it unless we reform that underlying program, which we did in the Every Student Succeeds Act, and we'll probably talk more about that tomorrow. But you see the switch that I'm talking about here. People would call it a gimmick. And this is your first time here in this capacity on the Hill. You don't want to start off that way. Did you have a hand in writing this budget? Mr. King. The President's budget overall not only stays within the caps agreed to on discretionary spending, but the budget overall reduces-- Mr. Rokita. Yeah, I just said that. Sir, no, I'm sorry, let me interrupt you. I just said that. Yes. It agrees to the discretionary side of things by blowing up the mandatory side, including a $127 billion increase in spending over 2 years on your two programs, Preschool for All and College Promise. So my question was, did you write this budget? Mr. King. Again, the President proposes for the budget overall tradeoffs that ensure that the budget overall, including mandatory spending-- Mr. Rokita. Let's not start off like this. I know you're new. You can easily say that Arne Dunkin wrote -- helped the President write this. Did you have a hand-- Mr. King. I was actively involved in the conversations, as was the entire team at the Department, working closely with OMB to ensure-- Mr. Rokita. Do you think that's a responsible way to budget, to move stuff from the discretionary side into the mandatory side and then proclaim that you're adhering to an agreement? Mr. King. Again, the budget as a whole actually would reduce the deficit. Each program that is proposed on the mandatory side also has a pay-for-- Mr. Rokita. You're about ready, you've been nominated, to hold the reins of an agency that spends billions of dollars, and there's a tremendous amount of responsibility that goes with that, as you know. Did you agree to move $127 billion of new spending from the discretionary side out of the appropriators' hands and out of the budget's hands to a mandatory side of spending? Mr. King. This budget commits to programs that we think are hugely important for the country. Preschool for All, as you know-- Mr. Rokita. Thank you. Thank you, Chairman. I yield back. Chairman Kline. The gentleman yields back. Ms. Clark. Ms. Clark. Thank you, Mr. Chairman. And thank you, Mr. Secretary, for being here today. I want to turn towards the preschoolers and early education, and specifically parts B and C of the IDEA Act. As you know, they are absolutely critical to addressing the needs of our young children from birth through age 5 who experience learning challenges, including, you know, they provide support for preschools as well as State infrastructure for early screening, referral, and intervention. I was delighted to see a modest increase. You know these programs could use even more, but we are grateful for the Department in doing that. Can you address the priorities in the area of early education, but specifically for young children with disabilities? Mr. King. Yeah. So hugely important role for preschool and students' long-term success. And we think that's hugely important for students with disabilities and for all students. We do propose an increase in part B and C, and that is a place where we tried to increase IDEA funding. But I would say the Preschool for All proposal, which would move us towards universal access, particularly for our highest need students, to quality public preschool, would serve students with disabilities quite well. And we think it's important that where possible we have inclusive preschool environments. And ensuring that access to preschool is available would allow more communities to create inclusive preschool environments where preschool students with disabilities are in the classroom with general education preschool students. Over the long term, I think there's more that we can do as a country to support early identification. The earlier we intervene with students, the better off we'll be. I know there are proposals on the Health and Human Services side around Head Start and so forth. But in terms of the education budget, I think the combination of Preschool for All, the increase for Preschool Development Grants, which are jointly administered with HHS, and the part B and C increases all reflect our deep commitment to preschool. Ms. Clark. Wonderful. Thank you. I also wanted to ask you and follow up on some of my colleagues' questions around year-round Pell grants, which I am certainly hearing from my community colleges in Massachusetts are critical. And as we are looking at curriculum for community colleges really with an emphasis on stackable certificates, so that our students can get to that first job, I wonder how you see sort of -- do you see any tension with your On-Track Pell Bonus potentially between encouraging students to take a certain number of credit hours versus getting that initial certificate that may allow them to start on a career path quickly? And some of the issues that I've heard coming up are really the need for flexible ways that students can sign up for class time, whether that be a longer class that doesn't meet as frequently or a Saturday class, so that they can provide for their families while furthering their education. I just wonder if you could address that. Mr. King. Yeah. So, you know, college completion is hugely important to how we ensure America's long-term economic competitiveness, and it is critical to solving some of our challenges around student debt. And what we know from evidence around the country is that programs that help students get to completion can have a significant impact on graduation rates. We know that there are programs -- for example, when I was in New York, at City University of New York, a support program that they have called ASAP for students who are in community college literally doubled the completion rate. A small number of supports for students doubled the completion rate from about 20 percent to 40 percent for Pell-eligible students, ensuring that they would get to a degree. So these proposals build on an evidence base. We know that if students have an incentive to take more credits, increases the likelihood that they'll complete. It's a small incentive that we're proposing, $150 a semester, to encourage students to take 15 credits. We know that campuses around the country, University of Hawaii is an example of this, that have committed to these 15-credit initiatives have then had to examine exactly the issues you're describing. Do students have access to the courses that they need each semester? Are there creative ways to schedule those courses? That's why we also propose an institutional bonus for campuses that do a good job improving their completion rates for Pell students, because often institutions can structure their program design, the counseling they provide to students to increase completion rates. And then summer Pell builds on that as well. We know that if students can stay on track and take those extra summer courses, they are much more likely to graduate. But you're right. We've got to do this all with attention to making sure that we maintain space for innovative program design on the part of institutions-- Chairman Kline. The gentlelady's time has expired. I want to advise all my colleagues that I'm going to limit time to 4 minutes so that everybody has a chance to engage in the discussion and we can still meet the commitment to Dr. King to get him out of here by his hard time. And, Dr. Heck, we're going to start with limiting you. You're recognized. Mr. Heck. Thank you, Mr. Chair. And thank you, Secretary, for being here. I represent the Clark County School District in southern Nevada, which is the fifth-largest school district in the country, which presents its own unique challenges. But one of the bright spots that we have is our career and technical education programs, which provide for very engaged students, passionate teachers, and much higher graduation rates than the general population. CTE has that ``hold harmless'' provision in it that was based on 1998 funding levels, which disproportionately impact States that experienced rapid growth, like Nevada, in the ensuing 18 years. A prior budget proposal would have shifted money from CTE to another program, which would have then invoked the ``hold harmless'' provision. I was glad that proposal was not followed and has not reappeared. But I remain concerned about that provision. Can you tell me what ideas you have to ensure adequate and equitable distribution of CTE funding to all States based on current populations and need? Mr. King. I'm certainly open to working with you on that. As I had indicated earlier, we're hopeful that there will be a reauthorization of the Perkins CTE Act, and I think that would create an opportunity for discussions about allocation of resources. And also ways that we spur innovation. You know, in New York, one of the ways that we were able to stretch the CTE dollars was working through regional providers that were serving multiple districts. And that allowed us to pool students, pool resources, and create CTE programs that were more cost effective. So I think there's an opportunity in that reauthorization discussion to get at exactly this issue. Mr. Heck. I appreciate your willingness to work with me on that. Also, last year I introduced a bipartisan Simplifying the Application for Student Aid Act with Reps. Roe, Polis, and Pocan. The important legislation would require the Secretary of Education to allow students to use their tax information from 2 years prior to fill out their FAFSA earlier. That would provide a quicker response to students and therefore give them more time to make important decisions about their college education. Last year, the Department announced that it would use its current authority to allow students to use that older data. While, obviously, I agree with the concept and will continue advocating for it, I'm concerned that the transition year, where the same income year will determine two award years, will cause confusion for students and burden for institutions. Can you clarify for me how you will treat conflicting information during the transition and explain when you will provide schools with the detailed instructions for how to do so given the October 1 implementation date? Mr. King. And we're working to provide additional guidance to schools. As you say, the prior-prior approach would apply beginning next October, apply to all students. But there is flexibility built into our student aid system for students aid administrators at campuses to look at if there have been changes in a student's circumstances. Because of course, even as we move towards the prior-prior year tax return driving the aid calculation, if a student's parent has lost a job or a parent has passed away, we want there to be flexibility, and student aid administrators would maintain that flexibility to adjust awards based on that additional information. Mr. Heck. Thank you very much. Mr. Chair, I'll yield back the balance of my time, pointing out that I was able to get two questions in. Chairman Kline. You are my hero, sir. The gentleman yields back. Mr. Polis. Mr. Polis. Thank you, Mr. Chairman. Well, I have three questions for the Secretary. And I'll give them all to you, and then hopefully you'll have time to respond. First of all, thank you so much for coming before us and thank the Obama administration for putting forward a great budget in this area. I especially want to thank you for the administration's proposed funding increase for the Charter School Program requested at $350 million. As you know, the administration also supported the recent omnibus bill that had an increase of $80 million of plus-up for fiscal year 2016 funding for charter schools, and I'm pleased to see the support will continue under your leadership. My three questions are, first, open education. Last year, the Department indicated that access to open education resources would be a priority for the Department's Office of Education Technology. We see great opportunities to save students money on textbooks, particularly at the higher ed level, and I'd like you to address how the President's budget request continues the Office of Ed Tech's commitment to increasing access to open resources and ensuring materials created with grants from the Department are available to the public under an open license. That's the first one. Second question, a few people have addressed, have brought up the importance of summer Pell. I want to lend my voice to that. I spoke with students in Boulder and Fort Collins at CSU and CU about access to Pell Grants in the summer. I was hoping you could briefly address how the administration's request for funding summer Pell is important for students and your plans in that area. And then finally, dual enrollment. We're very excited in Colorado, we found that a student is 23 percent more likely to attend college if they took dual-enrollment classes in high school. That is a class that is offered usually through a community college for college credit. It's a great way to get low-income kids or first-generation college-goers to access college, sometimes even earn an associate's degree concurrent with their high school degree. What is the Department doing and what can the Department do to support the growth of these programs, and what can Congress do to ensure that more students have access to dual-enrollment programs and access to low-cost or no-cost for-credit college courses while they're in high school? Mr. King. Great. Thank you, Congressman. So on the issue of open educational resources, we think there's a huge opportunity for savings and sharing -- sharing of best practice, savings to schools and to students. And that's true of K-12 and higher ed. There are some very interesting efforts around the country around open educational resources to lower the costs of textbooks for students at the higher ed level. Certainly at the K-12 level, lots of opportunities for sharing between educators across the country. We have a regulation out that we just closed public comment on that would require grantees, Federal grantees, to make their resources available in an open way. We're reviewing that comment now and are excited about that effort. Summer Pell, I think, can be transformative for students. Great examples around the country of the ways in which helping students get to completion faster, manage their time better as they work towards completion can improve outcomes. We think Summer Pell will help with that. We've built that into our budget proposal and see it in conjunction with the institutional bonus for schools that improve completion rates for Pell students as part of a multiprong strategy to improve completion rates. And then on the issue of dual enrollment, we've got a Pell experimental site on dual enrollment. We've just received applications from institutions around the country, higher ed institutions, to use Pell for high school students to pursue dual-enrollment classes. We're excited about that effort. The research base on dual enrollment is very strong already, and we will build that evidence base with this experimental site. But there's also an opportunity in our proposed Next Generation High School initiative for schools to use a dual-enrollment approach. Mr. Polis. And we're in my last 10 seconds, and I'd appreciate a future follow-up. I just want to encourage you to consider that a realistic way to deliver on the President's commitment to make community college free is through our K-12 system and through concurrent enrollment. And I hope that you can see that as, you know, one of our most realistic ways to actually make that happen. Chairman Kline. The gentleman's time has expired. Mr. Polis. Thank the gentleman. I look forward to your responses. And I yield back. Chairman Kline. Mr. Guthrie. Mr. Guthrie. Thank you, Mr. Chairman. Thank you, Mr. Secretary for being here. Appreciate you being here today. We've received some reports that the Federal Student Aid, FSA, and the Office of Postsecondary Education, OPE, do not always communicate effectively, and, in general, most offices within the Department are siloed from each other, which harms coordination and efficiency. This came to a head in November when former Secretary Duncan sent a memo to FSA and to OPE instructing them to find a better process for communicating effectively in regards to accreditation issues. How did this communication become so ineffective it required a memo from the head of the agency? And then what are you doing within the Department to make the communication practices effective overall, better overall? Mr. King. Two important parodies for me in this year are continuing to strengthen the efficiency of management of the Department and improving our efforts to ensure that the higher ed sector delivers access, affordability, and completion. The accreditation work is in that context, where we want to make sure that we are transparent about the information on the process that accreditors follow, we want to make sure that accreditors are doing a good job fulfilling their responsibility as part of the accountability for higher ed institutions. We worry that institutions like Corinthian which, you know, failed -- Corinthian was accredited all the way through its failure as an institution. And so we've got to make sure that accreditors are paying close attention to institutional performance. That memo was issued in that spirit, to try to ensure that we work together across the agency to strengthen the process for monitoring and supporting accreditors, and we're going to continue that work. We've also got legislative proposals, happy to share those with you, on how we might improve the process for accreditors. Mr. Guthrie. Thank you. And I believe Dr. Foxx had asked a question at the end of her time and didn't have time for a response. And just to remind you, because I know you've had a lot of questions since then, she asked: How do you plan to ensure FSA is acting as an effective partner with institutions as its PBO status requires? Mr. King. One of the proposals in the President's budget is for an increase in staffing at Federal Student Aid. We see that the loan portfolio is growing. So we've got to make sure that we have the staff that we need to support that portfolio. We are working with a variety of contractors, including servicers, to try to improve the student borrower experience. We will soon recompete the servicer contract, which will be an opportunity to strengthen how servicers work with borrowers. I mentioned earlier, we launched a new enforcement unit focused on ensuring that where there are bad actors, whether it's in the for- profit, non-profit, or public sector, that we have a strategy to investigate and intervene. So we have a number of initiatives underway to strengthen the experience of students and institutions working with the Federal Student Aid system. Mr. Guthrie. Thank you for your answers, and congratulations on your selection. We look forward to working with you over the next year. And I yield back 40 seconds. Chairman Kline. You also are my hero. Gentleman yields back. Ms. Adams. Ms. Adams. Thank you, Mr. Chair. And, Dr. King, thank you for testifying today and for speaking with the Bipartisan HBCU Caucus a few weeks ago. It was a pleasure to have you there and to know that we have a bipartisan group of members on both sides of the aisle who are very interested in this issue. I'm encouraged as well that you will do well with your confirmation, and congratulations. As you know, and many of my colleagues know, HBCUs have been a priority of mine for a while. So I was pleased to see the new HBCU/MSI Innovation for Completion Fund, and within it the First in the World Program and the support for HBCUs. So could you talk a little bit more about the decision to create the program and support for HBCUs and ways that the Department can work to address the funding discrepancies that have historically existed for these schools? Mr. King. Yeah. Thank you for your question. And thank you for the opportunity to meet with the Bipartisan HBCU Caucus. We think one of the critical issues that we need to work on as a country is completion, ensuring that students who start are able to finish school. We know there are examples around the country, including HBCUs and MSIs, of smart initiatives to provide counseling to students, to help students figure out the right course selection, to help students think about internship opportunities that will expose them to possible career choices that might shape their course selection, just-in-time small grants to help students manage some of the financial challenges that come up in the day-to-day of their lives, student support services where students may be struggling with challenging life issues, whether that's domestic violence in a relationship or issues of food insecurity. So we know that those programs can help improve completion, and when students get their degree, they are in a much better position to be successful in the economy and to pay back any debt that they may have. First in the World was funded for 2 years, and there are a number of grants, including to HBCUs and MSIs around the country, that are showing early signs of promise around improving completion through support services for students. We think that's an important program to continue and needs to have a set-aside for HBCUs and MSIs because of their critical role in the economy and our culture. Similarly, the HBCU/MSI Innovation Completion Fund is designed to be targeted to HBCUs and MSIs that want to help build an evidence base around what works to help students get to completion. Ms. Adams. Okay. Let me ask you another question which has to do with the decision the administration made 5 years ago to cut $10 million from the Ronald E. McNair Postbaccalaureate Achievement TRIO program, which prepares low-income first- generation minority students for graduate studies. And so I understand that at that time the administration made the decision to support efforts to improve STEM-based programs and to help the Nation address the decline in our country's STEM- trained graduates by focusing on students earlier in the pipeline. So the direct result was the loss of the opportunity for future scholars to pursue a graduate degree, which included the program at Dr. McNair's and my alma mater, North Carolina A&T, which sits in my district. Given that Congress afforded a $60 million funding increase to TRIO last year, will you consider restoring this program? Mr. King. Yeah. We look forward to working with you on this. We are pleased that there's funding there to continue the McNair program at the prior level. I would say that the TRIO programs have a hugely important role on our campuses. TRIO programs are a key part of the supports for first-generation college students. We have a number of staff members and leaders at the Department who were themselves beneficiaries of TRIO programs. And so we think that's hugely important and look forward to working with you on implementation. Chairman Kline. The gentlelady's time has expired. Mr. Messer. Mr. Messer. Thank you, Chairman. Congratulations, Dr. King. It's great to have you here. I want to start with a thank you and then a request for help. The thank you comes with your predecessor and your team back in September, the Federal Department of Education was very helpful to charter schools in Indiana. And I sent a letter in late September, that you may well be aware of, where it was determined that there were $2.3 million in cuts to Indiana's public charter schools, and at a time when you didn't have similar cuts to the other public charter schools. In immediate response to that letter, the Indiana Department of Education reached out to the Federal Department of Education, and you guys very clearly and very quickly told them that their calculations were wrong and that they needed to do something about it. In fact, you set up a meeting in late September of those principals to charter schools, the State Board of Education and the Indiana Department of Education, to discuss that. So thank you. Thank you for your prompt action there. Now, this was where my request for help comes in, because since that time there's been radio silence. You know, it's not fair that we would penalize public school students who choose to go to charter schools. And if we care about these kids, we need to do something about it. And so I have a couple quick questions. One, are you aware of whether the Federal Department of Education has had any follow-up with the Indiana Department of Education on this issue? Mr. King. We are still in conversation with the Indiana Education Department and expect resolution of the issues. My understanding is that they realize that their calculations were in error, that they are intent on correcting them, and certainly we can update you on that. Mr. Messer. So they responded in September in response to your advice that they had made the error. The Indiana Department of Education and the State's public charter school organizations say they haven't had any contact. So could you commit to me that you will work again to bring these principals back together to work on this issue? Mr. King. Happy to do that. My understanding is that our team has been consulting with the Education Department on the necessary corrections. And I'll make sure that we follow up with you and figure out the best next steps. Mr. Messer. And to be clear, if those follow-ups have happened, the public charter school organization has had no further follow-up. Mr. King. Got it. Mr. Messer. And my understanding is the State Board of Education as well. And then lastly, you know, we're now 5 months later. We're approaching the end of the year. Do you have any sense of when these schools -- and most importantly, the students they serve -- can count on getting that funding? Mr. King. My understanding from the team is that it's imminent, but I will make sure that our team updates you and your staff on that. Mr. Messer. Okay. Thank you very much. Again, congratulations in this new appointment. You've done a very impressive job today, frankly, of answering on a wide variety of issues. And looking forward to the opportunity to work with you. Mr. King. Thank you. Mr. Messer. Thank you. And I yield back a minute, 2 seconds, Chairman. Chairman Kline. My absolute hero. Mr. Takano. Mr. Takano. Thank you, Mr. Chairman. Mr. Secretary, good morning, I guess. With all the destruction of students' financial futures caused by big predatory for-profit colleges, and with so many of the students now claiming fraud and demanding debt relief that could cost taxpayers billions of dollars, with mounting law enforcement investigations of these same companies, and with some of these companies themselves in irresponsible, precarious financial shape, does the Department think it makes sense to keep sending these companies billions of our taxpayer dollars and sending our students there? Are you taking a harder look at the continued eligibility of some of these companies for Title IX aid? Mr. King. So our task is both to protect the interests of students and taxpayers. We are very concerned about bad actors, and where we've identified bad actors, we have acted. For example, there's a set of schools, the Mariano schools in California, that were recently -- Marinello Schools, sorry -- that were recently closed as a result of enforcement actions that were taken. We're going to continue to do that. We have proposed in this budget $13 million for our enforcement unit. We are directing existing resources towards that enforcement unit and will grow the capacity of that enforcement unit. Mr. Takano. I'm glad to hear that. I hope I can maybe talk with you about, you know, just what schools are under review. I'm very concerned about what happened. I'm going to move on to the topic of Corinthian. Prior to its collapse, Corinthian Colleges, Inc., faced countless lawsuits and investigations by the SEC, the CFPB, many State attorneys general, and others. Corinthian has since faced two enforcement actions by the Department itself and lost its lawsuit to the CFPB. But to date, despite staggering evidence that the fraud at Corinthian was endemic across the chain, the Department has only granted relief to less than 1 percent of the affected students and only those who attended a single school, Heald College. When is the Department going to act to make good on former Secretary Duncan's promise that students would get, quote, ``every penny of relief they're entitled to under the law,'' end quote? Mr. King. Yeah. Our Special Master Joe Smith is working through the requests for relief that we have currently. One of the key elements in the requests for relief is evidence of a State law violation, and so we've got to work through the requests that we have so far. I think the amount that's been granted in relief is now somewhere near $28 million already. But we'll continue to work through that effort as quickly as possible. We also have a regulation process underway, a negotiated rulemaking process underway around borrowers defense that will allow us to set up, we think, more efficient procedures for these issues going forward, because we do want to make sure that where students have been wronged, that they are made whole as quickly as possible. Mr. Takano. Well, many students have been defrauded and deceived, and there's a lot of bad actors in the industry. Don't you think, you know, that the gentleman from Arizona, my colleague's citation of graduation rates can be superficial and even, I think, deceptive in terms of how they portray, I think, a false comparison between graduation rates of a for-profit college, depending on the program and the accreditation of that school, and what goes on in a more general setting at our public community colleges and universities. Mr. King. One of the challenges in the sector is that in many cases institutions are running a multitude of programs. And some of their programs may have strong outcomes, others may not. We know that we have institutions that sometimes misrepresent the evidence of their graduation rates. And that's one of the reasons why our enforcement work is so important. Mr. Takano. So we should be skeptical about an 87 percent or an 85 percent -- I mean, we'd have to look at the particular institution. Mr. King. Any institution's graduation rate, I think, we have to make sure that they have the evidence to back that up and that it's consistent across programs. Mr. Takano. My time is up. I'm sorry. Mr. Chairman, I thank you. Chairman Kline. The gentleman's time has expired. Ms. Stefanik. Ms. Stefanik. Thank you, Mr. Chairman. Dr. King, thank you for joining us today. I wanted to focus my question on higher ed. The district I represent in the north country in New York State, I consistently hear from students, financial aid administrators, concerned parents that our financial aid system is overly complex and nonintuitive. And I believe that instead of confusing students, our aid system should enable individuals to quickly attain the skills necessary to work and to contribute to our economy. Which is why last year, along with my colleagues, Mr. Curbelo and Mr. Hinojosa, I introduced the Flexible Pell Grant for 21st Century Students Act. And I thank you for your positive comments on the year-round Pell bill. And I also want to thank my colleagues, Ms. Clark and Mr. Polis, for their positive comments on year-round Pell, and I encourage them to cosponsor this bill. Not only does this bill encourage students to complete their degrees at an accelerated pace, but the bill also directs the Secretary to provide annual financial aid reports to Pell students to help them make the right financial decisions for their unique situation. So my question for you is, in the year ahead, how do you intend to ensure that we are providing all students with the necessary counseling, especially those most in need as they navigate postsecondary education with a very complex student loan repayment program? Mr. King. Helping students to make good decisions about their course-taking, their borrowing, is critical. And then once students have left school, making sure that they have good advice and counseling around how to manage their debt is critical. A number of things in this budget that I think work towards that. Certainly summer Pell, the bonus for students who are taking 15 or more credits will help in that direction. The institutional bonus for institutions that ensure their Pell students actually graduate and complete, I think that institutional bonus will cause institutions to provide more of just the kind of support services and counseling that you're describing. We are taking steps at Federal Student Aid to try to simplify the process. We have made the FAFSA form itself simpler. We've made more information available online through the College Scorecard. We're moving on October 1 to an earlier launch date for the FAFSA and also to the use of prior-prior tax return to simplify the process of providing tax information. So there are good steps underway, I think, in the Department, but I look forward to working with you. I think there are some changes in law that we could make that would make the process even more transparent. I should also say this budget includes a simplification of income-based repayment, and certainly interested in working with you on that as well. Ms. Stefanik. Thank you very much. I look forward to working with you and the administration on this issue to simplify a very complex program that is causing significant heartburn to students and parents and administrators at our higher ed institutions. Thanks. I yield back. Chairman Kline. Very impressed with the cooperation here. Mrs. Davis, you're recognized. Mrs. Davis. Thank you, Mr. Chairman. And thank you, Dr. King, for being here and for taking on this critical leadership position. I wanted to ask you particularly about teachers. I'm afraid I'm doing double duty here today, so I was in another committee. It's my understanding that you haven't spoken too much about teachers today, and we know that they're absolutely critical in a student's achievement and personal future. One of the issues that's critical is around teacher diversity and making sure that people understand why this is important. So perhaps you could address that. The other is in California, particularly, we're looking at a teacher shortage that's significant. And many retired teachers understand why that's true. And, in fact, a recent article basically said that most retired teachers would never recommend to their kids that they become teachers. Now, that's something that we have to be very concerned about. And sometimes people see this, I think, as a State issue, a local issue, one that the Federal Government ought not be involved in. So I wonder if you could address that as well. And then in terms of teacher professionalism initiatives, what are the key initiatives that you would like to not just engage in, but you would like to see your time in office that really raises the professionalism of teachers? What are the current programs? What more -- what can be done? Because as we all know, teachers are concerned that if they take on some of the leadership roles within schools that they would be taken out of their classroom even, and those are dedicated teachers who don't want to do that. Mr. King. Yeah. Thanks. Mrs. Davis. I'm sorry. A little bit of time to address it. Mr. King. Thanks for the question. This is a hugely important issue. I am very worried about the ways in which the tone around teaching, I think, over the last decade has led folks to feel blamed or attacked. I think it's scary for the country that young people are less interested in the teaching profession. So we have got to change that. That's one of my priorities for this year, is to try to lift up the teaching profession. I was a teacher. My parents were teachers. I get the role that teachers play in kids' lives. The President's budget includes a proposal called Best Job in the World that would dedicate a billion dollars of resources to a variety of initiatives around supporting teachers. That includes increases in the Teacher Incentive and School Leader Incentive Fund, because we think it's important that we attract highly effective teachers and principals to high-need schools. We think it's important to create resources for schools, create collaboration time for teachers. Often, you know, when you talk to teachers about what's frustrating about the job, the lack of time for collaboration with colleagues to improve instruction, to support students, is a major issue, a major working conditions issue. This billion-dollar investment would help to address that. We also dedicate resources towards Teacher and Principal Pathways, because we think we need innovation in teacher prep and school leader prep to make sure that we have a diverse workforce that's well prepared for the diverse classrooms of the 21st century. And we also are planning at the Department a number of efforts to try to lift up teacher leadership from the classroom. We've got the Teach to Lead program, and that's funded in the budget. It's a small amount of money, $10 million, but that would help provide grants to teachers around teacher-led projects to improve their schools and districts. And then we also are doing work at the Department to try to lift up the issue of teacher diversity. We worry a tremendous amount about the lack of diversity in many places, and we want to make sure that districts and teacher prep programs and school leader prep programs are committed to recruiting diverse students. Mrs. Davis. I hear all that, and I think that's great. I think on the other hand we need -- it is about resources, it's about critical mass. So I would just encourage that as we're looking at that we need to make sure that we have enough momentum going on in schools to really be able to demonstrate what a great difference it makes if it's done correctly. Mr. King. That's right. Chairman Kline. The gentlelady's time has expired. Mr. Grothman. Mr. Grothman. Obviously, student debt is a huge problem out there. Are you in favor of allowing students to refinance their debt at a lower interest rate? Mr. King. We'd be interested in working with you on that. Through our Income-Based Repayment program we've tried to focus on for direct loans and showing that we can cap the amount of discretionary income that students are required to pay. But certainly open to talking about other strategies that would allow students-- Mr. Grothman. Well, I'm just saying across the board. I don't like this idea of penalizing people, you know, penalizing certain people. Do you think it would be a good idea just in general to say we can refinance debt? Mr. King. I think if there are ways that we can help students to consolidate debt and take advantage of some of the existing direct loan programs, including the income-based repayment, I think that's something that we should explore Mr. Grothman. It's something I'd like to do. And we're, obviously, going to go into a very difficult budget right now. I realize, you know, a certain level has been agreed to, but we also have a dip in the economy. So income's not going to come in as quickly as we said. President Obama has proposed particularly huge mandatory spending increases, and even a 2 percent increase in your budget here. Do you have any suggestions of things you don't feel are as necessary in your proposed budget if we have to pare it back, particularly if we have to pare it back to allow students to refinance? Mr. King. We think that investments that are in this proposed budget will actually produce long-term savings. You know, if you think about the benefits of preschool for all, for example, we know that students who are in high-quality preschool are less likely to end up needing remedial services later. So that is a strategy, yes, it's an upfront investment, but over the long run will have a strong return on investment. Mr. Grothman. So your idea would be greater in debt now, but down the road it's going to pay for itself 20 years from now or something. Mr. King. It's the idea that if we make these investments in preschool, in the skills that students would get through community college experiences, funded through America's College Promise, that the long-term return to our economy justifies those initial investments. Mr. Grothman. Okay. A lot of your investments are in 4-year college. In my district, I am finding a lot of people, perhaps egged on by people giving them student loans or Pell Grants, are spending a significant amount of time going to a 4-year college and later on they wind up going back to a tech school because their degree, their 4-year degree, was not helpful at all. Do you have any proposals out there in which maybe we could prevent these kids from wasting their time in the first place and they can go or be pushed immediately into some sort of education in which they could get a job rather than wasting, to a certain extent, taxpayers' money, but also their own money and time in getting a degree that's not helpful? Mr. King. One of our challenges, I think, in the higher ed sector generally is how do we help students make good decisions about the relationship between their choice of school, choice of degree, and their long-term earnings. It's one of the reasons we think the College Scorecard provides helpful information to students, because it gives them the sense of the likely earnings that students would have leaving a particular school. Mr. Grothman. I don't mean to cut you off, but my chairman is going to bang the gavel. Do you agree that there are many people going for a traditional degree today who would be better off not going for that degree? Mr. King. You know, I think it's a broader question of whether our students are choosing the degree that makes the most sense for their life plan, and that's where I think the College Scorecard could be helpful. It's also where the institutional bonus for Pell completion rates would be helpful, because then institutions would be incentivized to provide more counseling for students on just these issues. Mr. Grothman. Right. Do you feel guilty if you've given a large student loan to somebody and they don't get a decent job and have to go back maybe to a tech school 5 or 6 years later? Does that make you feel guilty? Mr. King. I think as a country we have to be very aware that we have so many students who, A, are starting but not finishing, which is a huge challenge, and that there are students who are finishing and then not able to be successful in the 21st century economy. It's one of the reasons why the President's budget invests in efforts, joint efforts between education and labor to make sure that we are getting students into programs that help give them skills that will allow them to compete in the 21st century economy. Chairman Kline. The gentleman's time has expired. Mr. Bishop. Mr. Bishop. Thank you, Mr. Chair. Mr. Secretary, thank you for being here today. Thank you for your testimony. You certainly have outlasted the rest of the committee. Congratulations on that. I have just one question, in fact, and I wanted to get your input, if I could, on the Department of Labor's proposed overtime rule and really your input as to what I've been hearing from a lot of folks in the education community that it would have a dramatic effect on higher ed all the way down to our local school districts. Just specifically, I've heard from a number of small colleges in my home State of Michigan about the potential negative impacts of this new rule. One college, very small, 1,700 students, told me they could face up to a million-dollar increase in costs per year under this new rule. There are other examples across the country. As I looked into the issue, I found the university system of Maryland, for example, estimates that they could see an increase in costs of up to 40 million in just the first year. The University of Florida, which has 12 universities in all, faces a cost of 62 million annually -- $62 million. Community colleges in Iowa estimate that this rule would have raised -- could have raised their costs in 2016 so far up to $12.6 million. That's just in the first quarter. There are so many examples, and I won't get into all of them because we have limited time, but it's of great concern. I should note that the rule will also have negative impacts on school employees. Many of them will be reclassified as hourly employees to try and deal with this rule. That would be considered by most as a demotion. The rule would also limit opportunities in the workplace, such as flexible schedules and career development. And, obviously, too this has a huge impact on the other side too, increasing costs for colleges and universities at all levels, and that trickles all the way down to everybody who's got to pay for colleges, students, parents, and it's really having a hugely devastating effect. And I'm not certain that this was intended to be the case, but I do know that it is the case, and I just wondered if you could give me some of your thoughts about the proposed rules and some of these issues that have been raised. Mr. King. Yeah. I mean, I would defer to my colleagues at the Department of Labor on the specifics of the rule. I would say as a general matter, whether it's issues around overtime or paid leave or minimum wage, I think at the end of the day investing in our workforce results in a stronger middle class that in the end then allows for more resources for higher education, for early education, for K-12 education. So in the long run, I think those kinds of efforts to protect employees and protect the interests of employees are important to the overall economy. But, again, I would defer to my colleagues at the Department of Labor on the specifics of the rule. Mr. Bishop. But can you at least acknowledge that there are, clearly, issues that have been raised and might be a real concern? These might be unintended consequences, but, in fact, they are legitimate concerns raised by colleges and universities and local school districts? Mr. King. I think colleges and universities, like other employers, need to develop strategies that make sense for their employees and for their long-term-- Mr. Bishop. That's why they raise the issue, because they're trying to do that but they have limited dollars. And all I want is to raise the issue with you to make sure that it's on your radar screen so that you might have an opportunity to speak with Secretary Perez on the issue, because it's a real concern. And these are people that, obviously, you have jurisdiction over. They are both students, they are teachers, they are colleges and universities, and it's important. I just wanted to raise it to your attention. I see my time is up, Mr. Chairman, so I yield back. Chairman Kline. The gentleman yields back. All members have had a chance to engage in the discussion, so we are getting ready to close. And I will yield to Mr. Scott. Mr. Scott. Thank you, Mr. Chairman. I look forward to working with the Secretary as we address the challenges of early childhood education, elementary and secondary, and affordability of higher education. Mr. Chairman, we had spoken earlier about the situation in Flint, Michigan, and the Secretary, the Department is developing an appropriate response. There are a lot of things that need to be done. For example, early childhood education, the Individuals with Disabilities Education Act. A lot of early intervention can go a long way into mitigating the problems. And we need to make sure that we have a specific educational response so if we can do an emergency supplemental, we'll know what needs to be in it for the programs under our jurisdiction. So, Mr. Chairman, thank you for inviting the Secretary. I yield back. Chairman Kline. I thank the gentleman. I'd just a note, I'm sorry, obviously, people, all members here are rushing between hearings. Ms. Bonamici was talking about how Congress sets the student loan interest rates. It is true that in a bipartisan way, working with the administration, the Obama administration, a formula -- Congress was involved in creating a formula. But as you know, the rates are determined now by the market. Congress doesn't sit here and decide with a Ouija board, or whatever they used to do, what those interest rates ought to be. I just want to be clear about that. I want to thank you, Dr. King, for being here today. And I really do appreciate your willingness to come back tomorrow and letting us really get into a discussion of the Every Student Succeeds Act. Great interest to us and to you and to the Department and I think to people across the country, because we're already starting to hear from stakeholders in our States and districts. So we're really looking forward to that. And, again, good luck to you tomorrow afternoon as you move to the wrong side of the Capitol for those discussions. There being no further business, the committee stands adjourned. Mr. King. Thank you. [Questions submitted for the record and their responses follow:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] [Whereupon, at 12:09 p.m., the committee was adjourned.] [all]