Update on FY11 Budget Cuts; Tech Prep Eliminated, BSG Cut

We learned yesterday afternoon from Congressional sources that the $138 million cut to CTE in the FY11 appropriations bill will be the total elimination of Tech Prep and an additional $35 million cut from the Basic State Grant. The rationale given was that the President had also proposed cutting Perkins in this FY12 budget. It seems that without Democratic or Republican support, we were a target during the tense negotiations last week.

In addition to the cuts to Perkins, we have learned that the following other programs have been cut or eliminated:

  • $90.5 million in cuts to the WIA Adult program;
  • $120 million in cuts to the Dislocated Workers program;
  • $96.5 million in cuts to the WIA Youth program;
  • $250 million in cuts to the Career Pathways Innovation Fund ($125 million in FY 2011 funds, plus a $125 million rescission of FY 2010 funds). DOL had released a solicitation for FY 2010 CPIF grant proposals earlier this year, but these funds are no longer available;
  • $31 million cut from adult education programs.

The bill would, however, fund a new $125 million DOL-administered “Workforce Innovation Fund” that would provide competitive grants to states or other partnerships for projects that “demonstrate innovative strategies or replicate effective evidence-based strategies” to strengthen and align the workforce system to improve participant outcomes.

Please note that in addition to the cuts listed above, the bill includes a 0.2 percent across-the-board reduction for all non-defense programs, which is not reflected in these totals.

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