Statistical Analysis Report:

Federal Support for Education: Fiscal Years 1980 to 1997

September 1997

Highlights

The federal government provides support for education well beyond programs funded through the Department of Education (ED). Federal support for education, excluding estimated federal tax expenditures,/1 was an estimated $100.5 billion in fiscal year 1997 (FY 97), an increase of $37.7 billion, or 60 percent, since FY 90. After adjustment for inflation, federal support for education increased 31 percent between FY 90 and FY 97 (see tables 1A and 1B, page 5).

For FY 97, on-budget federal funds for education programs were estimated to be $73.1 billion--an increase of 42 percent since FY 90 in current dollars or an increase of 16 percent after being adjusted for inflation. Off-budget support and nonfederal funds generated by federal legislation (predominantly postsecondary education loans) were estimated at $27.4 billion, a rise of 145 percent in current dollars between FY 90 and FY 97 and 101 percent in constant dollars (see tables 1A and 1B, page 5).

Between FY 80 and FY 97, after being adjusted for inflation, federal on-budget program funds for elementary and secondary education increased 18 percent; postsecondary education funds declined 28 percent; other education funds (which include funds for libraries, museums, cultural activities, and miscellaneous research) increased 71 percent; and funds for research at universities and university-administered research and development centers increased 41 percent (see table 2B on page 7).

Between FY 90 and FY 97, federal on-budget funds for elementary and secondary education increased 37 percent in constant dollars, other education funds increased 24 percent, research funds at colleges and universities well beyond programs funded through the Department of Education (ED). Federal support for education, excluding increased 3 percent, and postsecondary funds declined 7 percent (see table 2B on page 7).

In FY 97, ED outlays totaled $31.1 billion, reflecting an increase of 22 percent after being adjusted for inflation from FY 80 and an increase of 10 percent between FY 90 and FY 97. ED’s share of total federal on-budget education funds rose from 38 percent in FY 80 to 45 percent in FY 90 and 43 percent in FY 97 (see figure 2, page 8 and table 3, page 9).

Almost 58 percent of federal education support, excluding estimated federal tax expenditures, went to educational institutions in FY 97. Another 19 percent was used for student support. The remaining 23 percent went to banks and other lending agencies, libraries, museums, and federal institutions (derived from tables 7A and 7B, pages 16–17).

Schools and colleges derive 10 percent of their FY 97 revenues from the federal government, with the remaining revenues coming from state and local governments, individuals, and private organizations. Of the estimated $564.2 billion in direct expenditures by schools and colleges in FY 97, revenues from federal sources amounted to $57.9 billion and revenues from other sources amounted to $506.3 billion (see tables 9A and 9B, pages 22–23).

The estimated federal share of expenditures of educational institutions declined from 14 percent in FY 80 to 10 percent in FY 90 and FY 97. Among elementary and secondary educational institutions, the federal share declined from 12 percent in FY 80 to 7 percent in FY 90 and 8 percent in FY 97. Among institutions of higher education, the federal share declined from 18 percent in FY 80 to almost 14 percent in FY 90 and FY 97 (see tables 9A and 9B, pages 22–23).

FOOTNOTE:

[1] Definitions of federal tax expenditures and other technical terms are in the Definitions section of this report on page 29.

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For more information about the content of this report, contact Tom Snyder at Tom.Snyder@ed.gov.