[The Regulatory Plan and Unified Agenda of Federal Regulations] [Department of Education Regulatory Plan] [From the U.S. Government Printing Office, www.gpo.gov] DEPARTMENT OF EDUCATION (ED) 1994 Regulatory Plan The Department of Education is a new (1980) and relatively small agency with a vast and critical mission: to ensure equal access to education and to promote educational excellence throughout the Nation. For fiscal year 1995, the Department's regulatory plan focuses on the following priorities:Initiating a major restructuring of the complex Federal student loan program to achieve Presidential goals of increasing access to higher education while saving Federal education dollars; Fulfilling the President's commitment to reinvent the Federal role in education and to provide support and leadership to the national effort to overhaul the Nation's elementary and secondary education system; Implementing the President's initiative to establish a national framework within which States can create Statewide School-to-Work opportunities systems that provide American youth with the knowledge and skills to make an effective transition from school to further education and a first job in a high-skill, high-wage career; Promoting systemic reform in the Nation's elementary and secondary schools through implementation of the reauthorization of the Elementary and Secondary Education Act; and Expanding the consumer information available to students and student athletes to support informed educational choices. In carrying out these priorities the Department will strive to meet the Secretary's goals for providing more timely and efficient service to the Department's customers and for achieving more effective management of the Department and its programs. The Department is particularly committed to exploring alternatives to regulation, and to regulating only when necessary to achieve essential objectives. Existing regulations will be reviewed with a fresh perspective to determine whether they are necessary and clear and to eliminate burdensome requirements. The Department will continue to consult with the public, using regulatory negotiation and other innovative techniques to maximize public participation. Most recently, regulatory negotiation has been used successfully by the Department in developing regulations for the Federal Direct Student Loan Program and in achieving consensus on the guarantee agency reserves provisions of the Federal Family Education Loan Program regulations. The Office of Special Education and Rehabilitative Services has shared draft regulations through an electronic bulletin board. Also, before drafting regulations to implement reauthorizing legislation, the Department's Office of Bilingual Education and Minority Languages Affairs and Office of Educational Research and Improvement began outreach activities in the educational community to identify regulatory issues. The Department also coordinates with other appropriate agencies throughout the regulations development process. Examples in the coming year include coordinating programs under the School-to-Work Opportunities Act with the Department of Labor and coordinating regulatory actions supporting empowerment zones and enterprise communities with the Departments of Agriculture and Housing and Urban Development. The Secretary expects similar successful techniques to be used more extensively in the future. In accordance with Executive Order 12866, the Department is improving assessment of the costs and benefits of its regulations, recognizing that many Department regulations involve nonquantifiable costs and benefits. For example, in developing regulatory amendments for the State Vocational and Applied Technology Education Program (not included in this Regulatory Plan), the Department contacted State and local officials to ascertain the costs and benefits that would result if the proposed changes were adopted. The Department also arranged meetings with representatives from State and local governments and groups representing special populations to seek additional information on costs and benefits. Throughout the regulatory process, the Department proposes to be a laboratory for innovation and expects to be judged on how well it fulfills these objectives. Statement of Regulatory Priorities The U.S. Department of Education will have five major regulatory priorities in 1994: Federal Direct Student Loan Program The Federal Direct Student Loan Program is a high regulatory priority for the Department of Education because it is an important new Administration program, represents a significant investment of Federal funds affecting many American families, and involves complex regulatory processes including regulatory negotiation. The Student Loan Reform Act of 1993 established the Federal Direct Student Loan Program under the Higher Education Act of 1965, as amended. Under the Federal Direct Student Loan Program, loan capital is provided directly to student and parent borrowers by the Federal Government rather than through private lenders. Direct loans will account for 5 percent of the total new Federal student loan volume for academic year 1994-95, estimated to be more than $1 billion. Direct loans will increase to at least 60 percent of new student loans by academic year 1998-99. Direct lending will save taxpayers an estimated $4.3 billion through fiscal year 1998 (and $1 billion each year thereafter) by eliminating private-sector excess profits in the current student financial aid system and capitalizing on the Federal Government's ability to borrow at a lower interest rate. A streamlined system offering ``one-stop shopping'' will make borrowing and repayment easier for students. Students also will have an income-contingent repayment option that tailors their monthly payments to their income. As permitted by the statute, the Department has already published some interim standards and procedures to administer the program during the first year (1994-1995). School selection criteria and loan origination criteria for the second year (1995- 1996) have also been published. Other standards, criteria, procedures, and regulations to implement the program in the second and subsequent years are being developed through regulatory negotiation. Goals 2000: Educate America Act The Goals 2000: Educate America Act (Goals 2000), Pub. L. 103-227, enacted March 31, 1994, is the leading edge of this Administration's strategy to reinvent the Federal role in education and to provide support and leadership to the national effort to overhaul the elementary and secondary education system. Goals 2000 (1) codifies and expands the National Education Goals; (2) establishes the National Education Goals Panel and the National Education Standards and Improvement Council; (3) challenges States to develop content and student performance standards, opportunity-to-learn standards, and State assessments, and provides for development of national standards; (4) provides funding to support, accelerate, and sustain State and local improvement efforts in the system of education; (5) provides Federal leadership on the use of technology for educational programs; (6) provides authority to waive statutory and regulatory requirements that impede the ability of a State, local educational agency, or school to carry out State or local improvement plans; and (7) establishes the National Skill Standards Board to be a catalyst in stimulating the development and adoption of a voluntary national system of skill standards, assessment, and certification. The Department of Labor will administer the provisions relating to the National Skill Standards Board; the Department of Education will administer the remaining provisions. It is likely that regulations will be necessary to implement certain aspects of Goals 2000. However, Goals 2000 provides an ideal laboratory for employing alternatives to regulation whenever possible, in keeping with (1) the intent of the legislation to foster flexibility and innovation at the State and local level, (2) the spirit of Executive Order 12866 instructing agencies to promulgate regulations only where necessary, and (3) this Department's approach to regulation. School-to-Work Opportunities Act The School-to-Work Opportunities Act of 1993, Pub. L. 103-239, enacted May 4, 1994, establishes a School-to-Work Opportunities Initiative, to be jointly administered by the Departments of Education and Labor. This initiative establishes a national framework within which States can create Statewide School-to-Work Opportunities systems that provide American youth with the knowledge and skills to make an effective transition from school to further education and a first job in a high- skill, high-wage career. Under the initiative, the Federal Government provides ``venture capital'' to States and communities to stimulate the creation of Statewide School-to-Work Opportunities systems. These systems will build bridges from school to work that provide students with an integrated array of learning and employment experiences. Under the Act, School-to-Work Opportunities systems must include three core components: (1) work-based learning; (2) school-based learning; and (3) connecting activities. The work-based learning component provides students with a planned program of job training and experiences in a broad range of tasks in an occupational area as well as paid work experience and workplace mentoring. The school-based learning component includes a coherent multiyear sequence of instruction--typically beginning in the eleventh grade and ending after at least one year of postsecondary education--tied to the high academic and skill standards to be developed under the Goals 2000: Educate America Act. Finally, the connecting activities component ensures coordination of the work- and school-based learning components by providing technical assistance in designing work-based learning components, matching students with employers' work-based learning opportunities, and collecting information on what happens to students after they complete their program of studies. Since this initiative will be administered jointly with the Department of Labor, we are working closely with the Department of Labor to determine what regulations will be necessary for implementation. It is urgent that we move forward quickly on this initiative. As States and localities begin constructing School-to-Work Opportunities systems, our international competitors already have those systems and are moving to strengthen them. In order to ensure rapid and efficient implementation of the Act, we are also exploring possible alternatives to regulation. Elementary and Secondary Education Act Reauthorization (Part A of Title I of the Elementary and Secondary Education Act 1965) The Elementary and Secondary Education Act (ESEA) reauthorization would (1) reauthorize and restructure the elementary and secondary education programs of the Department of Education to make them better vehicles for helping all children achieve high standards; (2) direct greater Federal resources to the poorest schools and communities; (3) support education reforms underway in the States; (4) support sustained, intensive professional development in the core academic subjects for educators; (5) assist efforts to make schools safe and drug-free; and (6) provide increased State and local administrative flexibility, in return for greater accountability for successful education results. The ESEA is one of the Federal Government's largest investments in education. Assuming passage of this critical legislation, regulations may be necessary to implement many of the changes to the ESEA. In particular, regulations are likely to be necessary to implement changes to the Chapter 1 Program in Local Educational Agencies. Student Right-to-Know Act The regulations implementing the Student Right-to-Know Act would require institutions of higher education participating in any program authorized by Title IV of the Higher Education Act of 1965, as amended, to collect and disclose graduation and transfer rates to both current and prospective students. Institutions would also be required to report these rates to the Secretary. These proposed regulations will (1) assist students and their families to make more informed decisions about which institution a student should attend; (2) allow institutions to better evaluate the effectiveness of their programs; and (3) establish a uniform methodology for the collection of graduation and transfer rates. _______________________________________________________________________ ED--Office of Elementary and Secondary Education (OESE) ___________________________________________________________ PROPOSED RULE STAGE ___________________________________________________________ 24. GOALS 2000: EDUCATE AMERICA ACT Legal Authority: PL 103-227 CFR Citation: Not yet determined Legal Deadline: None Abstract: The Goals 2000: Educate America Act codifies and provides a framework for monitoring the attainment of the National Education Goals (through the National Education Goals Panel and the National Education Standards and Improvement Council); supports State systemic education reform; establishes the National Skill Standards Board; helps ensure safe schools; and reauthorizes the Department of Education's Office of Educational Research and Improvement. Statement of Need: No final determination has been made as to specific regulations that will be necessary to implement the new legislation, and which of these regulations will be the most significant. However, a preliminary analysis indicates that the regulations needed to implement Title II (National Education Reform Leadership, Standards, and Assessments) and Title III (State and Local Education Systemic Improvement) may warrant inclusion in the Department's 1994 Regulatory Plan. Title II of Goals 2000 authorizes grant programs to develop voluntary national opportunity-to-learn standards and to defray the cost of developing, testing, and evaluating State assessments for measuring student achievement against their content and student performance standards. Title II also authorizes a grant program to assist States in planning effectively for the use of technology in schools. Title III creates a program of grants to States to support, sustain, and accelerate State and local efforts to reform education so that all students can meet challenging State standards. The President has requested nearly $700 million for the Title III program for fiscal year 1995. This important new program will create a partnership between the Federal Government and State and local governments dedicated to promoting and sustaining the reforms that are needed in our Nations's schools. Alternatives: The Secretary believes that Goals 2000 offers an excellent opportunity for employing alternatives to regulation whenever possible, reflecting the intent of the legislation to foster flexibility and innovation at the State and local level. With respect to Title III, Goals 2000 authorizes the Secretary to waive certain Federal requirements that could hinder States and school districts from carrying out their school improvement plans. Anticipated Costs and Benefits: The regulations are expected to impose minimal requirements necessary to ensure the proper expenditure of Federal funds. A more exact estimate of the anticipated costs and benefits will be made as soon as the scope of the regulations has been determined. Risks: These regulations would not address a risk to public health, safety, or the environment. Timetable: _______________________________________________________________________ Action DFR Cite _______________________________________________________________________ NPRM 12/00/94 Final Action 03/00/95 Small Entities Affected: None Government Levels Affected: None Agency Contact: Paul G. Freeborne General Attorney Department of Education Office of the General Counsel 600 Independence Avenue SW. Room 5131, FB-10 Washington, DC 20202-2241 202 401-2884 RIN: 1810-AA72 _______________________________________________________________________ ED--OESE 25. PART A OF TITLE I OF THE ELEMENTARY AND SECONDARY EDUCATION ACT OF 1965 Legal Authority: 20 USC 2701 to 2731; 20 USC 2821 to 2838; 20 USC 2851 to 2854; 20 USC 2891 to 2901 CFR Citation: 34 CFR 200 Legal Deadline: None Abstract: Title I of the Elementary and Secondary Education Act of 1965, originally enacted as part of the War on Poverty, was landmark legislation that responded to the need for extra resources to equalize educational opportunities for children in high-poverty schools. Over the years, Title I has helped raise the performance of disadvantaged children, encouraged parents to become engaged in their children's schooling, equalized local expenditures in high-poverty schools with those of other schools in the district, and provided supplemental services. Statement of Need: By the early 1970s, the program had evolved into its current form-- small-group instruction in separate classes, most often focused on low- level skills in reading and arithmetic at the elementary school level. In 1993, over $6 billion is being provided to school districts to support extra educational services for over 5.5 million low-achieving children. Recent funding has averaged about $1,000 per participant. Title I helped to equalize educational opportunities and support a national focus on basic skills in the 1970s. During this period and most of the 1980s, for example, the gap in mathematics achievement between students in disadvantaged urban communities and more advantaged students narrowed substantially, according to the National Assessment of Educational Progress (NAEP). However, in recent years, progress has stalled, and NAEP indicates that the gap appears to be widening. Schools in very high-poverty communities, in particular, have shown little improvement. Children in high-poverty schools exhibit great need; yet their schools appear unable, for the most part, to provide the enriching instruction and support those children need to succeed at a level equal to other students and to meet challenging standards expected of all students. The ESEA reauthorization includes Title I (Federal grants to high- poverty areas), Title II (Dwight D. Eisenhower Professional Development Program, Technical Assistance Centers), Title III (technology research and development, demonstration projects), Title IV (safe and drug-free schools and communities), Title V (promoting school equity), Title VI (Indian education), Title VII (bilingual education), Title VIII (Impact Aid), and amendments to various other education laws. In accordance with the Department's program for review of existing regulations under Executive Order 12866 in conjunction with reauthorization, all of these regulations will be reviewed to determine whether they should be modified or eliminated. The most significant regulations affected by the reauthorization are those for the Chapter 1 Program in Local Educational Agencies in 34 CFR Part 200. The present Chapter 1 structure is not adequate to meet the National Education Goals and the high standards called for in the Goals 2000: Educate America Act. Rather than addressing each of the Chapter 1 structural problems individually, which could result in piecemeal changes, the Administration's proposal takes a new look at the program: what we expect it to do; how Chapter 1 fits into the entire effort of school reform; how it relates to the children's other educational experiences; how to provide the resources and assistance schools need to work effectively; and where responsibility for education lies. The proposed reauthorization would return the program to its original name of Title I, reaffirming the original intent of the program, yet radically transforming its structure. Alternatives: Following the enactment of reauthorization legislation, the Secretary will consider possible options to regulations in appropriate circumstances. Anticipated Costs and Benefits: To the extent regulations are necessary to implement part A of Title I, consistent with Executive Order 12866, they are expected to impose minimal requirements essential to ensure the proper expenditure of Federal Funds and efficient and effective operation of the program. A more exact estimate of the anticipated costs and benefits will be made after Title I reauthorization is enacted and the scope of the necessary regulations is determined. Risks: These regulations would not address a risk to public health, safety, or the environment. Timetable: _______________________________________________________________________ Action DFR Cite _______________________________________________________________________ NPRM 00/00/00 Final Action 00/00/00 Small Entities Affected: None Government Levels Affected: State, Local Agency Contact: Wendy Jo New Compensatory Education Programs Department of Education Office of Elementary and Secondary Education 400 Maryland Avenue SW. Room 4400, Portals Building Washington, DC 20202 202 260-0982 RIN: 1810-AA73 _______________________________________________________________________ ED--Office of Postsecondary Education (OPE) ___________________________________________________________ PROPOSED RULE STAGE ___________________________________________________________ 26. STUDENT RIGHT-TO-KNOW ACT Legal Authority: 20 USC 1092 CFR Citation: 34 CFR 668 Legal Deadline: None Abstract: These regulations would implement certain provisions of the Student Right-to-Know Act. This Act requires the disclosure by an institution of its completion or graduation rate on an annual basis. The act also requires enrollment information and completion/graduation rate information about the institution's athletes. Statement of Need: The Student Right-to-Know Act expands the types of consumer information that institutions of higher education must disclose. The regulations implementing the Act would require institutions of higher education participating in any program authorized by Title IV of the Higher Education Act of 1965, as amended, to collect and disclose graduation and transfer rates to both current and prospective students. In addition, institutions would also be required to report these rates to the Secretary. These proposed regulations will (1) assist students and their families to make more informed decisions about which institutions a student should attend; (2) allow institutions to better evaluate the effectiveness of their programs; and (3) establish a uniform methodology for the collection of graduation and transfer rates. Alternatives: Regulations are necessary to implement the statutory requirements. The Secretary has some flexibility with regard to the scope of the information required under the disclosure requirement. The Department, in conjunction with the postsecondary education community, has also developed a form for reporting graduation rate data. This form, once it is finalized, would simplify reporting for institutions, provide the Department with accurate and consistent data, and allow for more efficient compilation and comparison of the data when the Secretary publishes the information as part of the Department's report on the condition of education in the United States. On July 10, 1992, the Secretary published proposed regulations and received numerous comments from the academic community. These comments will be incorporated in a second set of proposed regulations. Anticipated Costs and Benefits: The costs associated with these regulations will be those for recordkeeping and disclosure of the information on graduation and transfer rates. In implementing the statutory requirements and providing information to consumers, the Secretary will work with the postsecondary education community to minimize costs for institutions to the extent possible. Risks: These regulations do not address a risk to public health, safety, or the environment. Timetable: _______________________________________________________________________ Action DFR Cite _______________________________________________________________________ NPRM 57 FR 30826 07/10/92 NPRM Comment Period End 08/24/92 NPRM 10/00/94 Final Action 03/00/95 Small Entities Affected: None Government Levels Affected: None Agency Contact: Paula Husselmann General Provisions Branch Department of Education Office of Postsecondary Education 400 Maryland Avenue SW. Room 4318, ROB-3 Washington, DC 20202 202 708-7888 RIN: 1840-AB44 _______________________________________________________________________ ED--OPE 27. FEDERAL DIRECT STUDENT LOAN PROGRAM Legal Authority: 20 USC 1087 et seq CFR Citation: 34 CFR 685 Legal Deadline: None Abstract: The regulations are needed to implement certain provisions of the Omnibus Budget Reconciliation Act of 1993. These regulations would establish standards, criteria, procedures and other requirements for participation in the Direct Loan Program in the 1995-1996 and subsequent academic years. Statement of Need: The Student Loan Reform Act of 1993 established the Federal Direct Student Loan Program under the Higher Education Act of 1965, as amended (HEA). See subtitle A of the Omnibus Budget Reconciliation Act of 1993 (Pub. L. 103-66, enacted August 10, 1993). Under the Federal Direct Student Loan Program, loan capital is provided directly to student and parent borrowers by the Federal Government rather than through private lenders as in the Federal Family Education Loan Program. The statute directs the Secretary to exercise discretion in the selection of schools participating in the program so that loans made under the program represent no more than 5 percent of new student loan volume for academic year 1994-1995, 40 percent for academic year 1995- 1996, 50 percent for academic years 1996-1997 and 1997-1998, and 60 percent for the academic year that begins in 1998. Regulations are necessary to establish the standards, criteria, and procedures to implement this program. For the first year of the program (1994-1995), to the extent reasonable and necessary for successful implementation, the Secretary is authorized to establish these standards, procedures, and criteria through a notice published in the Federal Register. Beginning with academic year 1995-1996, all standards, criteria, procedures, and other implementing regulations are required, to the extent practicable, to be developed through a negotiated rulemaking process (20 U.S.C. 1087g). Alternatives: In order to comply with the statutory requirement for negotiated rulemaking, the Secretary of Education and the Assistant Secretary for Postsecondary Education established the Direct Student Loan Regulations Advisory Committee which assisted in developing proposed regulations. The committee was composed of representatives of all the significantly affected interests and considered various alternatives in developing the regulations, including the need for any regulations at all. Anticipated Costs and Benefits: Regulations are needed to provide a framework for the Federal Direct Student Loan Program and implement statutory requirements. The regulations are expected to impose minimal requirements necessary to ensure the appropriate use of program funds and will not impose costly and excessive regulatory burdens or require unnecessary Federal supervision. Cost implications are among the considerations during regulatory negotiation. Risks: These regulations would not address a risk to public health, safety, or the environment. Timetable: _______________________________________________________________________ Action DFR Cite _______________________________________________________________________ NPRM 59 FR 42626 08/18/94 NPRM Comment Period End 10/03/94 Final Action 12/00/94 Small Entities Affected: None Government Levels Affected: None Agency Contact: Rachel Edelstein Program Specialist Federal Direct Student Loan Program Department of Education Office of Postsecondary Education 400 Maryland Avenue SW. Room 3022, ROB-3 Washington, DC 20202 202 708-9406 RIN: 1840-AC05 _______________________________________________________________________ ED--Office of Vocational and Adult Education (OVAE) ___________________________________________________________ PROPOSED RULE STAGE ___________________________________________________________ 28. SCHOOL-TO-WORK OPPORTUNITIES PROGRAM Legal Authority: PL 103-239 CFR Citation: None Legal Deadline: None Abstract: The School-to-Work Opportunities Act establishes a national framework for the development of a School-to-Work Opportunity system in every State to provide American youth with the knowledge and skills needed to make an effective transition from school to a first job in a high- skill, high-wage career or to further education and training. Statement of Need: Under the Act, Federal funds will be used as venture capital to stimulate State and local creativity in establishing statewide School- to-Work Opportunities systems. To promote this systemic reform, the Act would provide State and local participants with a substantial degree of flexibility to experiment, or to build upon and enrich current promising programs, in fashioning their systems. However, under the Act, all State systems must share certain common features and basic program components. Moreover, through the formation of partnerships among secondary and postsecondary educational institutions, public and private employers, labor organizations, government, community groups, parents, other key groups, communities will take ``ownership'' and responsibility for giving American youth access to high-level skills and meaningful employment opportunities. Programs funded under the Act will be jointly administered by the Departments of Education and Labor. The Act is also compatible with, and builds on, related State and local School-to-Work grant activities supported by both Departments under the current Job Training Partnership Act and the Carl D. Perkins Vocational and Applied Technology Education Act (Perkins Act). The Act authorizes an appropriation to the Secretaries of Education and Labor of $300 million for fiscal year 1995, and such sums as may be necessary for each of the fiscal years 1996 through 1999. Alternatives: Title V of the Act authorizes the Secretaries of Education and Labor to grant waivers of statutory and regulatory requirements of certain Federal job-training and education programs administered by the Departments of Labor and Education to all States (and through States to local partnerships) that have approved State plans. The purpose of the waivers would be to remove impediments to the ability of a State or local partnership to carry out an effective School-to-Work Opportunities Program. Title V also authorizes local partnerships that carry out programs under the Act in high-poverty schools to combine resources under certain education and job-training programs administered by the Departments in order to carry out ``schoolwide'' School-to-Work Opportunities Programs in these schools. In addition, Title V authorizes States with approved State plans to combine funds under this Act with certain funds under the Perkins Act and the Job Training Partnership Act to implement their statewide School-to-Work Opportunities systems. The Secretaries will consider appropriate alternatives to regulations, and they expect to fully utilize the flexibility permitted under the statute. Anticipated Costs and Benefits: If regulations are published to implement the Act, they would be expected to impose minimal requirements necessary to ensure the proper expenditure of Federal funds consistent with the School-to-Work Opportunities Initiative. A more exact estimate of the anticipated costs and benefits will be made as soon as the scope of implementing regulations, if any, incorporating the flexibility permitted under the Act, has been determined. Risks: These regulations would not address a risk to public health, safety, or the environment. Timetable: _______________________________________________________________________ Action DFR Cite _______________________________________________________________________ NPRM 00/00/00 Final Action 00/00/00 Small Entities Affected: Undetermined Government Levels Affected: State, Local Agency Contact: Ron Castaldi Department of Education Office of Vocational and Adult Education 400 Maryland Avenue SW. Room 4327, Switzer Building Washington, DC 20202 202 205-8981 RIN: 1830-AA14 BILLING CODE 4000-01-F