CREW v. Dept. of Education: Regarding Reading First: 9/5/2008 - Final Supplemental Production

Page 1 Page 1 of 2
Whitney, Miriam
From: Whitney, Miriam

Sent: Thursday, August 30, 2007 8:46 AM
To: McKee, Patricia; Parker, Pilla; Weinstein. Rachel; Chandler, Tanielle; Fennell, Rosemary
Subject: FW: Legislative update f~r Wednesday, August 29
Hi~ all - FYI (House bill on NCLB reauthorization, Title I programs).
Here’s what the House bill summary says about the EO programs in Title I:
Title I, Part B - Student Reading and Literacy Skills Improvement Grants
Title I, Part B, includes the law’s literacy programs, including Reading First, which provides
assistance to States and local educational agencies in establishing scientific research, based
reaxting programs for all children in kindergarten through grade thxee and Early Reading First,
which enhances reading readiness fdr children in high poverty areas, and where there are high
numbers of students who are not reading at grade level. The title also includes the Even Start
Family Literacy Programs, which provides literacy services to parents and their children in order
to b~ak cycles of low literacy. The text of Title I, Pat B, will be provided at a later date.
---Origina! Message----
From: Riddle, Paul
Sent: Thursday, August 30~ 2007 8:04 AM
To: Adams, Carolyn; Allen, Pamela; Anthony, Edward; Bannerman, Kristin; Battle, Sandra; Beaton, Meredith;
Bergeron, David; Berry, Hugh; Betka, Sue; Bowen, Jennifer; Bowers Connie (Bowers, Connie); Boyd, Betty;
Brad]w, Jennifer; Brannon, Ruth; Brown, Cynthia; Brown, Morgan; Brown, Paul; Buckley, Jacquelyn; Butler,
James; Campbell, Ellen; Cariello, Dennis; Carpentier, Julian; cassell mary (cassell, mary); Cavort, Deborah;
Charboneau, Lynette; Cichowski, Carol; Clark, Harrison; Clark, Lily; CohemBoyer, Gilt!an; Cole, Allison L.; Conaty,
Joseph; Conneely, Nancy; Cook, Sandra; Corwin, Thomas; Craig, Susan; Cromer, Nola; Davis, Anselm; Davis,
Julia; Di!lard, Sarah; Dorfman, L--’ynthia; Douglas, Michelle; Dowling, Maureen; Edwards, Lynda; Eiden, Lee; Eitel,
Robert S.; English, James; Esters, Lorenzo; Evers, Bill; Fan’!s, Amanda; Freeman, Catherine; Fro!d, Steve;
Gamette, Cheryl; Garza, Norma; Gentles, Virginia; Gill~ Wanda; Goetz, Braden; Goniprow, Alex; Grant, Catherine;
Gribble, Emily; Grimes-Crump, Ruth; Guard, Patty; Halaska, Terrell; Hall, Madlyn; Hammond, Cynthia; Hammond,
Pelrce; Hanson, Randy; Hatada, Tori; Haubert, WIIIlam; Hausman, Jess!ca; Haynes, Leonard; Hess, Jane; Hlggins,
Shannan; Hill, Paula; Holloway, Michael; Honeysett, Adam; Isett, Christine A.; Jacobs, Martha; ]ameela Akbad
(Jameela_Akbarl@omb.eop.gov); Jeffrey, Scott; Jenkins, Harold; Johns, Laura; Johnson, Jeff D; Johnson,
PAT~CIA; Johnson, Rogers; Jung, Britt; Justesen, Troy; Kanter, Lisa; Kaye, Rebecca; Kelley, Thomas; Kempe,
Andrew; Klenk, Jack; Knight, Phyllis; Knudsen, William; Kreppel, Stacy; Kuhl, James; Lahring, Karl; Lauer, Kristen;
Leonard, Jene[Je; Leos, KatNeen; Lewis, Robert; Lira, Jeanette; Link, Philip; Maddo×, Lauren; Nadzelan, Dan;
Mall(o, Melinda; March, Grog; McDermott, Edn; McFadden, Elizabeth; McGinnis, Colleen; McGrady, Bill; McGrath,
Jack; r, lcGrath, John; McKay, Linda; McNeece~ Erin; McniL’t, Townsend L.; Menon, Shayam; Mesecar, Doug; Miller,
Meredith; Mitchelson, Mary; Horan, Frances; Moran, Mary; Morfft, Jess!ca; Nell Danberg (OMB); Nick Lee; Pollard,
Daniel; Porter, Tara; Price, Angola; Rhoads, Kelly; Rigling, Kay; Robinson, Robin; Rooney, Patrick; Rose,
Christine; Rosenfelt~ Phil; P.ewe Dave (Rower Dave); MaL-~a-Barrera, Romanita; Oliver, Iris; Price, Angie;
Sampson, Vincent; Sasser, Tracey; Schagh, Catherine; Schaumburg, Amanda; Scheessele~ Marc; Schulz, Eric;
Scott, Brandon; Sheehy, Jennifer; Simon, Ray; Skandera, Hanna; Skelly, Thomas; Smith, Megan; Sootier, Emily;
stack kathy (s~ck, kathy); Stephenson, Todd; Stettner-Eaton, Bobbi; Stutz, Robert; Tabor, Tiffany; Tatbert, Kent;
Taylor, Jeff; Templeman, Led; Thompson-Hoffman, Susan; Tisher, Stephan; Watkins, Tiffany; Welborn, Camille;
Waxier, Rob; Whitehurst~ Grover; Whitney, Miriam; Wiener, Susan; Wilhelm, Susan; Wilson, Linda; Winche!l,
Susan; Winters, Deborah; Wolfe, Chri~ne; Wolff, Brenda; Woodsome, James; Wooley, Kitty; Worthen, Maria;
4-/9/2008
Page 2 Page 2 of 2
Wrennt Jane; Wurman, Ze’ev; Yates, Amanda; Zaniewskil Marta

$~l~je~; l_eglslatJve update for Wednesday, August 29
4/9./2008
Page 5 Page ] of I
Whitney, Miriam
From: Whitney, Midam
Sent: Thursday, JuDy 19, 2007 5:32 PM
To: McKee, Patricia
Subject: FW: legislative update for Tuesday, July 17
See blurb on Even Start funding (rejected Plaits (R-PA) proposed amendment to increase ES by $50 million
through reductions to other programs.
---Original Message ....
From; Riddle, Paul
Sent: Wednesday, July :[8, 2007 :[2:15 PM
To: Adams, Carolyn; Allen, Pamela; Anthony, Edward; Bannerman, Kristin; Battle, Sandra; Beaten, Meredith;
Bergeron, David; Berry, Hugh; BeCka, Sue; Bowen, Jennifer; Bowers Connie CBowers, Connie); Boyd, Betty;
Bradley, Jennifer; Brannon, Ruth; Brown, Cynthia; Brown, Morgan; Brown, Paul; Buckley, ]acquelyn; Butler,
James; Campbell, Ellen; Carlello, Dennis; Carpentier, Julian; casse!l mary (cassell, mary); Cavort, Deborah;
Charboneau, Lynette; Cichowski, Carol; Clark, Harrison; Clark, Lily; Cohen-Boyer, Gillian; Cole, Allison L.; Conaty,
3oseph; Conneely, Nancy; Cook, Sandra; Corwin, Thomas; Craig, Susan; Cromer, Nola; Davis, Anselm; Davis,
Julia; Dillard, Sarah; Dorfman, Cynthia; Douglas, Michelle; Dowling, Maureen; Edwards, Lynda; Eiden, Lee; Eitel,
Robert S.; English~ James; EsterS, Lorenzo; Evers, Bill; Fahy, Gerard; Farris, Amanda; Freeman, Catherine; Freid,
Steve; Garnette, Cheryl; Garza, Norma; Gentles, Virginia; Gill, Wanda; Goetz, Braden; Gonlprow, Alex; GranL
Cathedne~ Gribble, Emily; Grimes-Crump, Ruth; Guard, Patty; Halaska, Terrell; Hall, Marilyn; Hammond, Cynthia;
Hammond, Rein:e; Hanson, Randy; Hatada, Tori; Haubert, William; Hausman, ]essica; Haynes, Leonard; Hess,
Jane; Hlggins, Shannan; Hill, Paula; Holloway, Hichael; Honeysett, Adam; Isett, Christine A.; 3acobs, Hattha;
~ameela Akbari (]ameela_Akbari@omb.eop.gov); Jeffrey, Scott; Jenkins, Harold; Johns, Laura; 3ohnson, Jeff D;
Johnson, PATRIC:[A; Johnson, Rogers; ‘]ung, Britt; _]ustesen, Troy; Kanter, Lisa; Kaye, Rebecca; Kelley, Thomas;
Kempe, Andrew; Klenk, Jack; Knight, Phyllis; Knudsen, William; Kreppel, Stacy; Kuhl, .]ames; Lahring, Karl; Lauer,
Kris~en; Leonard, ]enelle; Leos, Kathleen; Lewis, Robert;, Lim, Jeanette; Lin Liu (Lin_Liu@omb.eop.gov); Link,
Philip; Haddox, Lauren; IVladzelan~ Dan; Malico, Melinda; March, Grog; McDermott, Erin; McFadden, Elizabeth;
McGinnis, Colleen; HcGrady, Bill; McGrath, Jack; McGrath, John; McKay, Linda; McNeece, Erln; Mcnitt, Townsend
L; Henon, Shayam; Mesecar, Doug; Miller, Heredi~; Hitchelson, Mary; Moran, Frances; Moran, Mary; Morffi,
~essic~; Nick Lee; Pollard, Daniel; Porter~ Tara; Price, Angela; Quarles, Karen; Rhoads, Kelly; RigJing, Kay;
Robinson, Robin; Rooney, Patrick; Rose, Christine; Rosenfelt, Phil; Rowe Dave (Rowe, Dave); Ma1:ta-Barrera,
Romanita; Oliver, [rls; Pdce, Angle; Sampson, Vincent; Sasser~ Tracey; Schagh, Catherine; Schaumburg,
Amanda; Scheessele, Marc; Schulz~ Eric; Scott, Brandon; Sheehy, Jennifer; Simon, Ray; Skandera, Hanna; Skelly,
Thomas; Smith, Megan; Soeder, Emily; slack kathy (stack, kathy); Stephenson, Todd; Stettner-Eaton, Bobbi;
Slut:z, Robert; Tabor, Tiffany; Talbert, Kent; Taylor, Jeff; Templeman, Lori; ThompsDn-Hoffman, Susan; "Fisher,
Stephan; Watkins, Tiffany; Welborn, Camille; Wexler, Rob; Whitehurst, Grover; Whitney, Miriam; Wiener, Susan;
Wilhelm, Susan; Wilson, Unda; Winche!l, Susan; Winters, Deborah; Wolfe, Christine; Wolff, Brenda; Wc,~dsome,
James; Wooley, Kitty; Worthen, Maria; Wrenn, Jane; Wurmani Ze’ev; Yates, Amanda; Zaniewski, Harta
S~bject: legislative update for Tuesday, July t7
4/9/2008
Page 8
Whitney/, Miriam_
From: Melanie_Kadli¢@omb.eop.gov
Sent: Monday, January 12, 2004 9:33 AM
To: Lesiak, Mary Anne; Whitney, Miriam
Subject: ERF approva!
ATT53909.txt pic01389.pc:x pic28775.pcx Microsoft Word

FYI,
Forwarded by Melanie Kadlic/OMB!gOP on 01/12/2004 09:36
(Embedded image moved to file: pic01389.pcx) Melanie Kad!ic

01/G6/2004 04:50:25 PM
Record Type: Record
To: "Axt, Kathy" <Kathy.Axt@ed.gov>

cc:
bcc: Records Management~EOP
Subject: Re: Generic (Document .!ink: Melanie Kadlic)
(Embedded
image moved "Axt, Kathy" <Kathy.Axt@ed.gov>
to file: 01/06/2004 03:22:24 PM
pic28775.pcx)
Record Type: Record
To: Melanie Kadlic/OMB/EOP@EOP
Subject: Generic
Page 9
(See attached file: El~g~b~lity A,doc)
Page 1
Page 10
EARLY READING FIRST PROGRAM
PRE-APPLICA TION FORM A
APPLICANT ELIGIBILITY
Each application mus~ be $~bmiffed by one or more entities that quali .fy as an elioble
applicant, and must include this completed form. ©he or more eligible applicarits may have
other parmers; however, tbe fl.sca/ agent must be one of the eligible apph?ants h’sted on this firm, Eligible
applicants are the following.
I. One or more local educational agendes (LEAs) that ate eligible to receive a subgrant under
the Reading Fret program (title I, pa~t B, subpart 1, ESE&).
o One or more public or private o:~ganizafion.s or agencies (including faith based organizations)
located in a community se.tved by an e~ble L~a,.. Unless ,_he public or private owamzafion
is a preschool program applying on its own behal.f, it must apply on bdaalf of one or mote
programs that serve pze.schoot-age children (such as a Head Start program, a clxild care
p~ogram, a family litezaW pzog~am such as Even Start, ot a lab schoo~ at a university).
3. One or more of the eligible LEAs, applying in collabo~cation with one or mo~e of the dig4ble
organizations or ~gencies.
.r~sgz-actioz, s:. Com~kte lhe fom by fllli~g in the name and address
the middle mlumn, indicate the ~pe of a/Fpti~aat b~ checking lhe apflmpriate box. In th* right cdumn, !i,! the digib/e
LEA i~ whtch the &plica,~t ix locat, d. Th~ list of d~’bk ~ and th& CCD tD ~’umbers can beJaund at the
Ear~ Readiag First web.~te
NAME AND ADDRESS TYPE OF APPLICANT ELIGIBLE LEA IN WHICH

OF ELIGIBLE APPliCANT (CHECK ONE) APPLICANT IS LOCATED
~n~&d¢ C’CZ~ ID number)
/orated ia an ea~ibk LEA t/,~t opera,s

or mott pre~¢boolptw’ams or is app~,bg
bebMf of one or mor~ p~sgboo/ pvogram~
D-1
Page 11
,,...W.hitne~/, Miriam
From: McKee, Patricia
Sent: Friday, May 02, 2003 1:11 PM
To: Lesiak, Mary Anne; Kadlic, Melanie: Lazo, Laura; Sligh, Do~s; Johnson, Tanielle
Cc: Whitney, Miriam
Subject: FW: 1810 ACTIVE COLLECTIONS
.....Original Message .....

From: Woo%en, William
Sent: Friday, May 02, 2003 9:55 AM
To: Burket~, }{ugh; Garcia, Bernard; Goniprow, Alex; Haynes, Cleveland;
Johnson, Anna; Laster, Charles; Martin, Cathie; McKee, Patricia;
Mitchell, Carol J; Smith, Audrey; Stevenson, ZollJe; Stonehill, Robert;
Wilhelm, Susan
Subject: FW: 1810 ACTIVE COLLECTIONS
Thank you.
..... Original Message .....

From: Rudolph, ~im
Sent: Friday, May 02, 2003 9:15 AM
To: Wooten, William
Subject: FW: !8!0 ACTIVE COLLECTIONS

From: oira_docket@omboeop,.gov [mailto:oira._docket@omb.eop.gov]
Sent: ?riday, May 02, 2003 7:47 AM
To: Joe_Schubarr@ed,gov
Cc: Ki~Rudolph@ed.gov; Stephanie_Valentine@ed.gov
Subject: 1810 ACTIVE COLLECTIONS
ACTIVE INFORMATION COLLECTIONS AS OF 04/30/2003

APPROVED UNDER THE PAPERWORK REDUCTION ACT 02 MAY 2003
Office of Elementary and Secondary Educacion
OMB NUMBER EXP. DATE

TITLE ANNUAL ANNUAL
FO~4 NUMBERS RESPONSES HOURS COSTS(in
thousands)
1810-0021 04/30/2006
1,240 17,340 $0
Indian Education Formula Grants to Local Educational
Agencies (LF~As)
84.060A ED-506
1810-O036 02/28/2005
1,061,320 531,211 $0
Applications for Assistance (sections 8002 and 8003) impact
Aid Program
ED-4019
1810-0054 01/31/2004
90 2,1-80 $0
Application for the High School Equivalency Program (EEP)
Page 12
and College Assistance Migrant Program (CAMP)
(1890-0001) (KA)
1810-0060 04/30/2005
3,052 ~,224 $0
~hnual Report of Children in State Agency and Locally
Operated Institutions for Neglected and Deli.nqueDt Children
ED-4376
18~0-0540 05/31/2003
30 450 $0
Application for the Even Start Family Literacy Program -
Indian Tribes and Tribal Organizations
CFDA#84.258
1810-0576 10/3!/2005
52 18, !60 $0
Consolidated State Application
1810-0581 05/31/2003
33,759 2,586,428 $0
State educational agency local educational agency, and
school data collection and reporting under ESEA, Title
Part A
1810-0614 06/30/2003
14,452 134,768
consolidated State Performance Report and State Self-~eview
1810-0620 09/30/2005
25 200 $0
State Agency Use of Alternative Method to Distribute Title
I Funds to LEAs with Fewer Than 20,000 Total Residents
1810-0622 09/30/2005
52 2,080 $0
SEA Procedures for Adjusting ED-Determined Title
Allocations to Local Education Agencies (L~As)
1810-0634 05/31/2003
23 552 $0
~eading Exc~llence Act Performance Report (KA)
C.FDA#84o33H
i810-0646
4,552 4,830
Applica~ion Package for the REAP Small, Rural School
Achievement Program
8~.358A
1810-0648 07/31/2005
57 3,306 $0
Application for State Grants for Reading First (KA)
CFDA#84.357
1810-0652 05/31/2005
1,500 45,000 $0
Application for Improving Literacy Through School Libraries
Grmnt Program
84.364
1810-0653 06/30/2005
112 $0
State Progress Report - School Renovation° IDEA, and
Technology Grants Program {KA)
84.352A
Page 13
1810-0654 10/31/2004
932 140332 $0
Early Reading First Program Federal Register Notice
Znviting Applications, arid Application Packet
84,359
1810-0655 01/31/2006
240 19,20’0 $0
Local-Flex Application (~A)
1810-0656 12/3i/2005
I0O 200 $0
FY 2002 Native Hawaiian Education Council
84.362B
1810-0657 08/31/2003
438 1,454
impact Aid Discretionary ConsZruction Grant Program
84.041
1810-0660 02/28/2006
21 13,440 $0
State-Flex Application (KA)
1810-0662 05/31/2003
43 19,925 $0
Migrant Education Program (MEP) Final Regulations Sections
200.83. 200.84 and 200.88
CFDA-84.011
1810-0663 01/31/2006
51 612 $0
Information on Students Served by McKinney-Vento Homeless
Assistance Act Subgrants
CDF#84.!96
AGENCY TOTALS:
ACTIVE ANNUAL ANNUAl, ANNU~
REPORTS RESPONSES HOURS COSTS
(in thousands)
22 1,122,085 3,420,004 $0
END Or REPORT
Page 14
Whitney/, Miriam
From: Riddle, Paul
Sent: Wednesday, April 02, 2003 2:24 PM
To: Whitney, Miriam
Cc: Hansen, Randy
Subject: FW: OMB request re: Committee Markup on HR1261 Workforce, Reinvestment and Adult
Education Act of 2003
Importance: High
Adobe Portable Adobe Portable Adobe Portable Adobe Portable

Document. Do~urne~ Document

From: Hansen, Randy
Sent: Tuesday, April 0!, 2Q03 1:30 PM
To: Jones, C. Todd; Pasternack, Robert; D’Amico, Carol; Wilson, Joanne
Cc: Wilson, Linda; Petty Chittum, Loretta; March, Greg; Meeder, Hans;
Bonnet, Daniel; Rovins, Michele; Horton, Amy; Wolfe, Christine; Benbow,
Susan; Kristy, Jack; Cichowski, Carol; Jones, Long, a; Talbert, Kent;
Rosenfelt, Phil.; Craig, Susan; Goetz, Braden; Brown, Cynthia; Douglas,
M~chel!e; Bowen, Jennifer; Riddle, Paul; Eshbach, R~seann; Corwin,
Thomas; Frice, Deborah; Manning~ James; Toma!is, Ronald; Bergeren,
David; Jenkins, Harold; Rosehfelt, Phil; Mason, John; Harris, Lisa;
Charbonsau, I,yn~tte
Subject: OMB request re: Committee Markup on HRI261 Workforce
Keinvestment and Adult Education Act of 20C3
importance: High
Thank you.
Importance: High
......Original Message .....

From: Constance J. Bowers@omb.eop.gov
[mailto:Constance J. Bowers@omb.eop.gov]
Sent: Tuesday, April 01, 2003 12:23 PM
To: dol-soi-leg@dol.gov; ogc_]egislation@sd.gov; .~rm~hhs.gov;
justice.lrm@usdoj.gov; ocl@ios.do~.gov; ODCLCA.LRM.SSA@ssa.gov; ilr@do.treas.gov;
HUD LRM@hud.gov; valrm@mail.va.gov; usdaobp~ieg@obpa.usda.gov; CL.qM@doc~gov;
sba~ter@nifl.gov; LRM@cns.gov;
EEOC.OCLA@EEOC.gov; legteam@oge.gov; ola@opmogov;
johnson@access-boar~.gov; dot.legislation@ost.dotogoV; info@jwod.gov;
ich@hudogov
Cc: James_C._Capretta@omb.eop.gov; Karen S. Dooley@omb~eop.gov;
Larry_R._Matlack@omb.eopogov; Maureen Walsh@omb.eop~gov;
Katrina A. McDonaid@omb.eop.gov; Step[en G. Elmore@omb.eop.gev;
Carole_Kitti@omb.eop.gov; Melissa N. Benton@omb.eop.gov;
Kathryn. B. Stack@on~b.eop.gov; Daniel I. Werfel@omb.eop.gov;
Lin Liu@omb.eop÷gov; David_Rowe@omb.eop.gov;
Jac[ A. Smailigan@omb.e0p.gov; Joanne_Cianci_Hoff@omb~eop.gov;
Michele Ahern@omb.eop.gov; Me!issa M. Seeley@omb.eop.gov;
WHGC LR~@oa.eop.gov; OVP LRM@oa~eopogov; NEC_LRM@oa.eop.gov;
CEA_~RM@oa.eop.gov; Philip J. Perry@omb.eop.gov;
Matthew J. Schneider@omb.eopogov; Rosalyn J. Rettman@omb.eop.gov;
Page 15
David_Dunn@opd.eop.gov; Terrell L. Halaska@opd.eopogcv;
Diana L. Schacht@opd.eop.gov; Jess_Sharp@opd.eop.gov;
Elizabeth So Dougherty@opd.eop.gov; Troy_Justesen@opd.eop.gov;
John F. Morrall III@omb.eopogcv; Lauren~¢~ittenberg@omb.eopogov;
Lauzen C. Lobra~o@omb.e0p.gov; Ellen J. Balis@omb.eop.gov;
Pamula L. Simms@omboeop.gov; Atria Little@omb.eop.gov;
Sarah G. Horriqan@omb.e0p.gov; Jus~ine F, Rodriguez@o~b.eopogov;
Kirsten A. Chadwick@oa.eop.gov; Mazthew Kirk@oa.eop.gev;
Amy_Lo_Call@om~.eop.gov; Alejandra O. C~ja@omb.eop.gov;
Toni S. Hustead@omJu.ecp.gov; Shalini M. Benson@omb.eop.gov;
Adrienne C. Erbach@omb.eop.gov; Francis S. Redburn@o~.eop.gov;
James F. Jordan@omb.eop.gov; Janet E. Irwin@omb.eop.gov;
Ann Kendrall@omb.eop.gov; Mark S. Ferrandino@omb.eop.gov;
Mat~ew C. Blum@omb.eop.gov; Sheila_Conley@om~.eop.gov;
Hal M. Tran@omb.eop.gov; Thomas Reiily@omb.eop.gov;
J~dy_C._Lin@omb.eop.gov; Anne_H~iligenstein@oa.eop.gov;
Kimberley_S._Luczynski@omb.eop.gov; Lisa B. Fairhall@omb.eop.gov;
Randolph M..Lyon@omb.eop.gov; Steven M. Mertens@omb.eop.gov;
Keith J. Fontenot@omb.eop.gov; Lillien S. Spuria@omb.eop.gov;
Ingrid M. Schroeder@o~.eop.gov; ~ichard_E._Green@omb.eop.gov;
Irene Kho@omb.eop.gov; James J. Jukes@omb.eop.go.v;
Constance J. Bowers@omb.eop.gov
Subject: L?i~ CJBI6 - - Committee Markup on HRI261Work£orce Reinvestment
and Adult. Education Act of 2003
IAttached are two files containing text:

(b)(5I) If) Committee Amendment in the Natur~ of a Substitute(!89 pages)
(See attached file: HKI261 WIA E&W Substitute.pdf)
(2) Amendments to Substitute (i0 pps) adopted by the Committee
(See attached file: wia cmttee amendments. PDF)

NOTE: You may also access the Committee’s website to obtain te×t e].ectrenically, and
suggest you ~eriodicaliy do that to see if the official Co~.T~nittee report is available.
(b)(5)
That si~e is:
http:/!edworkforce, house.gov/markups!108th/fc/hr1261 !3?.7~main.htm
LRM ID: CJBI6

EXECUTIVE OEF!CE OF THE PRESIDENT
OFFICE OE MANAGEMEN~ AND B~DGET
Washington, D.C. 20503-0001
Monday, March 31, 2003
LEG£SLATIVE REFEFdAAL M~MORANDUM
TO: Legielative Liaison Of£i~er - See Distribution below
FROM: Ingrid M. Schroeder (for) Assistant Director for Legislative
R~ference
OMB CONTACT: Constance J. Bowers.
PHONE: {202)395-3803 FAX: {202]395-6148
SUBJECT: Committee Markup on HRI261 Workforce Reinvestment and Adult
Education Act of 2003
DEADLINE: 2:00 p.m. Tuesday, April 8, 2003

Page 16
l
(b).(5)
tWO files containing text:
A~ached are
(i) Committee /~mendment in the Nature of a Substitute[189 pages)

(See attached file: HRI261 WIA E&W Substitute.pall]
(2) Ar~ench~ents to Substitute (i0 pps) adepzed by the Committee
(See attached fi!e: wia cmttee amendments. PDF)

NOTE: You may also access the Committee’s ~ebsite to obtain tex~ electronica!ly, and
,sugqest you periodically do that to see if Zhe official Committee report is available.
~)(~~J That site is:

http://edworkforce.house.gov/markups/lOSth/fc/hr1261/327main,htm
DISTRIBUTION LIST
AGENCIES:
062-LABOR - Robert A, Shapiro - (202) 693-5500
030-EDUCATION - Jack Kristy - (202) 401-8313
052-HEALTH & HUM3%N SERVICES - Sondra S, Wallace - (202} 690-7773
061-JUSTICE - Jamie E, Brown - (202) 514-21eI
059-IN~ERIOR - Jane Lyder - {202) 208-4371
ll0-Social Security Administration - Robert M. Wilson - (202) 358-6030 1IS-TREASURY -
Thomas M, McGivern - (202) 622-23!7 054-HOUSING & URBAN DEVELOPMENT - Camille Acevedo -
(202) 708-1793 129-VETERANS AFFAIRS - John H. Thompson - (202) 273-6666 007-AGRICULTURE -
Jacquelyn Chandler - (202) 720-1272 025-COMMERC~ - Michael A. Levitt - (202) 482-315i 079-
National Institute for Literacy - VACANT - (202) 233-2033 024-Corporarich for NaLionai and
Community Service - ~atherine Dudley Hoehn ~ (202) 506-5000 031-Equal Employment
Opportunity Commission - He Joan Ehrlich - (202) 663-4900 088-Office of Government Ethics
- Jane Ley - (202) 208-8022 092-Office of Personnel Management - Harry Wolf - (202) 606-
1424 Ol6-Architectural and Transportation BBrriers Compliance Board - Nanhleen Roy Johnson
- (202) 272-0041 i].7 & 340-T~ANSPORTATION - Tom Herlihy - (202) 366-4687 09H-Committee for
Purchase From Blind or Severely D&sabled - John Heyer - (703)
603-0665
057-Interagency Council cn the Homeless - Mary Silvei~a - (202) 708-4663
FOP:
James C. Capretta
Karen S. Dooiey
Larry Matlack
Maureen Walsh
Katrina A. McDonald
Stephen G. Elmore
Carole Ki~ti
Melissa N. Benton
Kathryn B, Stack
Daniel I. Werfel
tin Liu
David Rowe
Jack A. Smalligan
Jeanne Cianci Hoff
Michele Ahem
Melissa Me Seeley
WHGC LRM
OVP LRM
NEC LRM
CEA LRM
Philip Jo Perry
Matthew J. Schneider
Rosalyn J. Rettman
David Dunn
Terrell L. Halaska
Diana L. Schach~
Page 17
Jess Sharp
Elizabeth S. Dougherty
Troy Justesen
OFBCI LRM
John F. Morrall III
Lauren Wit~enberg
Lauren Lobrano
Jay P. Lefkcwitz
Ellen J, Balls
Pamela L. Si,~ns
Atria Little
Sarah G. Horrigan
Justine F. Rodriguez
Kirsten A. Chadwick
Matthew Kirk
Amy L. Call
Alejandra O. Ceja
Toni S. Hustead
Shalini M. Benson
Adrienne C. Erbach
Francis S. Redburn
James F. Jordan
Janet E. Irwin
Ann Kendrall
Mark S. Ferrandinc
Mathew C.
Paul Bugg
Sheila Conley
Hal M. Tran
Thomas Reilly
Judy C. Lin
Anne Heiligenstein
Kimberley S. Luczynski
Lisa B. Yalrhall
Randolph M, Lyon
Steven M. Mertens
Keith J. Fontenot
Lillian S. Spuria
Zngrid M. Schroeder
Richard E. Green
irene Kho
James J. Jukes
LRM ID: CJBI6 SUBJECT: Commi.ttee Markup on HRI261Work~orce Rein.vestment and
Adult Education Ac£ of 2003
RESPONSE TO
LEGISLATIVE REFERRAL
MEMORANDUM
If your response :o this request for views is short (e,g., concur/no comment), we prefer
that you respond by e-mai! or by faxing us this response sheet.
You may also respond by:
(I) calling the analyst/attorney’s direct line (you will be connected to voice mail if
the analyst does no: answer); or
(2) faxing us a memo or letter.
Please include the LRM number and subject shown above,
TO: Constance J. Bowers Phone: 395-3803 Fax: 395-6148

Office of Management and Budget
FROM: (Date)
(Name)
(Agency)
(Telephone)
The following is the response of our agency to your request for views on %he above-
captioned subject:
Concur
No Objection
Page 18
No Comg.ent
See proposed edits on pages
Other:
FAX RETURN of pages, attached to this response sheet
Page 23
March 25, 2003 ~4:41 PM)

F:\VS\032503\032503.00,2
Page 26
March 2.5, 2003 (4:41 I’M)

F~VS~O32503\O32503.0Q2
Page 28
Wh,!t, ne~/, Mir!am

From: Whilney, Miriam
Sent: Monday, January 27, 2003 !1:59 AM
To: Lesiak, Mary Anne
Subject: FW: ERF/ECEEPD -
...... Original Message ......

Sent: Monday, January 27r 2003 11:58 AM
To: Cunningham, Marlene; Depew, Ken
Subject: ERFiECEPD -
Thanks, - Miriam
..... Original Message*
From: Lesiak, Mary Anne
To: Whitney, Miriam
Subject: RE: Faith-based office
(b)(5)
mal
.....Original Message ......
From: ~nitney, Miriam
Sent: Monday, January 27, 2003 I1:45 AM
To: Lesiak, Mary Anne
Cc: Kadlic, Melanie
Subject: Faith-based office
Importance: High
Mary Anne- (b)(5)
Miriam
IThanks, -
..... Origina! Message .....

To: Rodriguez, Blanca
Cc: Whitney, Miriam
Subject: FW: 1890-0014 OMB NOT[CB OF ACTION
Importance: High
<< File: OMB ~anagement Work Plan final as approved bv Deputy Secretary December 6,
Thanks for your help!

mal
From: Porter, John
To: Williams, Bryan; Gillespie, Charlotte; Lesiak, Mary A[me; Marlow,
DonnaMarie; Adler, Sheryl
Cc: Horton, Amy; ~ndell, Eric; Modzeleski, Bill; La Pointe, Richard
Subject: FW: 1890-0014 OMB NOTICE OF ACTION
Page 29
Importance: High
Dear representatives of the CTCr Carol White Phys Bd, Mentoring, Early Reading First and
Migrant Ed program,
OMB has approved the use of a new survey form regarding the participation level of
in the department’s programs. This form must be used in the programs for which you are
responsible for all competitions in FY 03. You may consult with Blanca Rodriguez and her
staff in the Grants Policy and Oversight Office regarding the details of how to include
this form in the application package. See the OMB approval below,
On another note, your offices are responsible for faithfully implementing the Department’s
Strategic Plan particularly Goa! 6.6 regarding the Faith-Based and C~%munity Initiative.
You are also responsible for implementing the Management Agreement between OMB and the
Department regarding the Faith-Based and Community Initiative ("0MB Management Agreement")
and complying with Executive Orders of the President of the United States. A copy of the
OMB Management Agreement and a url for the Executive Order is attached for your reference.
The OMB Management Agreement was discussed at a meeting of al! of the Chiefs of Staff and
comments were entertained. This Management agreement, was vetted within the Department and
approved by the Deputy Secretary on December 6, 2002. I(5)(5)
I am willing to be flexible to enable these programs to achie%te the goals of the program
in the best manner possible. However, I am under a duty to make sure that the Strategic
Plan, OMB Management Agreement and Executive Orders of the President are imp.lamented ~D
the programs listed above. <5)(5)
We had a very successful implementation of this initiative in your programs last year and
you may recall how Secretary Paige commended you for this at the meeting I arranged.
John Porter
URL for the Executive Order: http : //w~. whitehouse, guy/news/releases/2002/12/20021212-
6.html

From: Art, Kathy
To: Porter, John; Laurel, Ju].ie
Co: Rodriguez, Blanca; Tressler, John
Page 30
This survey has been approved. Please note the terms of clearance below.
From: oira_docket@omb.eop.gov [mailto:oira_docket@omb,eop.gov]
Sent: Friday, January 24, 2003 8:48 AM
To: Joe_Schubart@ed.gov
Cc: Karen_F._Lee@omb,eop.gov; Kim_Kudolph@ed.gov;
Stephanie_Valentine@ed,gov
Subject: 1890-0014 OMB NOTICE OF ACTION
NOTICE OF OFFICE OF MANAGEmeNT AND BUDGET ACTION
Joe Schubart 01123/2003

Offic~ of Chief Information Officer
Department cf Education
7th and D Streets
washington, DC 20202-4651
In accordance with the P~perwork Reduction Act, OMB has
taken the following action on your request for approval
of a new information co].lec’tion received on 12/17/2002.
TITLE: Survey on Ensuring Equal Opportunity for Applicants
AGENCY FORM NUMBER(S): None
ACTION : APPEOVED WITH CH~GE
OMB NO,: 1890-0014
EXPIRATION DATE: 01/31/Z006
BURDEN: RESPONSES HOURS COSTS(S,000)
Frevious
New 17,000 1,360 0
Difference 17,000 1,360 0
Program Change i~360
Adjustment 0 0
TE~MS OF CLEARANCE:
SEE PAGE 2 FOR TE~RMS OF CLEAF@~NCE
NOTICE OF OFFICE OF MANAGEMENT AND BUDGET ACTION

PAGE 2 OF 2
OMB NO.: 1890-0014 01/23/2003
TERMS OF CLEARANCE:
Approved as revised and sent to OMB on 1/17/03, This form is
approved for government-wide use. ~ny grant-making agency
that intends to use the survey form must either !) submit a
change worksheet (83-C) to revise the OMB approval of their
grant application package to include the survey form and
account for the additional burden imposed by the form; or
3
Page 31
2) obtain it~ own 0MB number for the survey by submit~.ing
an agency-specific information collection request under the
OMB Authorizing Official Title
Donald R. Arbuckle Deputy Administrator, Office of

Information and Regulatory Affairs
Page 32
Whitney/, Miriam
From: CunnJngham, Madene
To: Whitney, Miriam; Depew, Ken
Subject: RE: Eady Reading First/Early Childhood Educator notices
Miriam --I(b)(5)
To: Depew, Ken; Cunningham, Marlene
Subject: Early Reading First/Zarly Childhood Educator notices
Importance: High
~en and Marlene -!(b)(5)
IThanks. - Miriam

Sent: Monday, January 27, 2003 ii:03 AM
To: Kodriguez, Blanca
Co: Whitney, Miriam
Subject: FW: 1890-0014 OMB N~CE OF ACTION
Importance; High
.i, J(b)(5)

mal
From: Porter, John
Sent: Monday, January 27, 200.3 10:44 AM
To: Williams, Bryan; Gillespie, Charlotte; Lesiak, Mary Anne; Marlow,
Cc: Horton, Amy; Andell, Eric; Modzeleski, Bill; La Pointe, Richard
Importance: High
Dear representatives of the CTC, Carol White Phys Ed, Mentoring, Early Keading First and
Migrant Ed program,
OMB has approved the use of a new survey form regarding the participation level of FBCOs
in the department’s programs. This form must be used in :he programs for which you are
responsible for al! compezitions in FY 03. You may consult with B].anca Kodriguez and her
staff in the Grants Policy and Oversight Office regarding Zhe details of how to include
this form in the application package. See the OMB approval below.
Strategic Plan particularly Goal 6.6 regarding the Faith-Based and Community Initiative.
Department regarding the Faith-Based and Community initiative ["OHB Management Agreement")
OMB Management Agreement and a uri for the Executive Order is attached for your reference.
The OMB Management Agreement was discussed at a meeting of all ef the Chiefs of Staff and
Page 33
comments were entertained. This Management agreement was vetted within the Department and
approved by the Deputy Secretary on December 6, 2002.
Ib)(5)
I am willing to be flexible to enable these programs to achieve the goals of the program
in the best manner possible. However, i am under a duty to make sure that the Strategic
Plan, OMB Management Agreement and Executive Orders of the President are implemented in
the p_~oqra~~ listed (b)(5)
We had a very successful ~mp~ementation o~ this initiative in your programs last year and
you may recall how Secretary Paige co~ended you Zor zhis at the meetinq I arranged. ~
John Porter
URL for the Executive Order: http://www.whitehouse.gov/news/re!eases/2OO2/12/2OOfl212-
6.html

From: Axt, Kathy
To: Porter, John; Laurel, Ju!ie
Cc: Rodriguez, Blanca; Tressler, John
Subject: FW: ~890-0014 OMB NOTICE OF ACTION
From: oira docket@omboeop.gcv [mai!to:oira_docket@omb.eop,gov]
Sent: Friday, January 24, 2003 8:48 .~
To: Joe Schubart@ed. gov
Cc: Kar~n F. Lee@omb.eop,gov; Kim_Rudolph@ed.gov;
Stephanie_V.alentine@ed.gov
NOTICE OF OFFICE OF MANAGEMENT ~4D BUDGET ACTION

Office of Chief information Officer
Page 34
Department of Education
7th and D Streets SW.
Washington, DC 20202-4651
In accordance with the Paperwork Reduction Act, OMB has
of a new information collection received on 12/i7/2002o
ACTION : APPROVED WITH CHANGE
OMB NO,: 1890-00!4
EXPIRATION DATE: 01/31/2006

Previous 0 0 0
New 17,000 1,360 0
Program Change 1,360 0
Adjustment 0 0
TERMS OF CLEARANCE:
SEE PAGE 2 FOR TERMS OF CLEAPJ%NCE

PAGE 2 OF 2
OMB NO.: 1890-0014 0!/23/2003
TERMS OF CLEARANCE:
Approved as revised and sent to OMB on 1/17/03. This form is
approved for government-wide use, Any grant-making agency
that intends to use the survey form must either I) submit a
change worksheet {83-C) to revise the OMB approval of their
grant application package to include the survey form and
account for the additional burden imposed by the form; or
2) obtain its own OMB number for the survey by submitting
an agency-specific information ccliection request under the

Donald R, Arbuckle Deputy A~ministrator, Office of
Page 35
Whitney’, Miriam
From: Roddgu~z, Blanca
To; Lesiak, Mary Anne; Wagner, George; Cotton, Julius
Cc: Whitney, Miriam; Laurel, Julia
Subject: RE: 1890-0014 OMB NOTICE OF ACTION

Sent: Monday, January 27, 2003 11:03 ~
To: Kodriguez, Blanca
Cc: Whitney, Miriam
Subject: FW: 1890-00!40MB NOTICE OF ACTION
Importance: High

mal
...... Original Message .....
From: Porter, John
Sent: Monday, January 27, 2003 !0:44 AM
To: Williams, Bryan; Giilespie, Charlotte; Lesiak, Mary ;Lnne; Marlow,
Co: Horton, ~2.y; Andell, Eric; Modzeleski, Bill.; La Poinre, Richard
Subject: ~: 1890-0014 OMB NOTICE OF ACTION
Importance: High.
Dear representatives of the CTC, Carol White Phys Ed, Mentoring, Early Keading First and
Migrant Ed program,
OMB has approved the use of a new survey form regarding the participation level of FBCOs
in the department’s programs. This form mus~ be used in the programs for which you are
responsible for all competitions in FY 03. You may consult with Blanca Rodriguez and her
staff in the Grants Policy and Oversight Office regarding the details of how to include
this form in the app!icaZion package. See the OMB approval below.
Strategic Plan particularly Goal 6.6 regarding the Faith-Based and Co~unity Initiative.
Department regarding the Faith-Based and Community ]initiative ["OMB Management Agreement")
OMB Management Agreement and a ~r! for ~he Executive Order is attached for your reference.
The OMB Management Agreement was discussed at e meeting of all of th@ Chiefs of Staff
comments were entertained. This Management agreement was vetted within the Department and
approved by the Deputy Secretary on December 6, 2002.
Page 36
b)(5)
I am willing to be flexible to enable these programs to achieve the goals of the program
in the best manner possible, However, I am under a duty to make sure that the Strategic
Plan~ OMB Management Agreement and Executive Orders of the President are implemented in
the Droqrams listed above. ’/~\/~\
We had a very successful implementation of this Initiative in your programs last

year and yo,n may recall how Secretary Paiqe commended VOU for this at the meetinq I
" (b)(5)
John Porter
UEL for the Executive Order: http:/!%~cw.whitehouse.gov/news/releases/2002/12/200212!2-
6,html

From: Axt, Kathy
To: Porter, John; Laurel, Julie
Co: Rodriguez, Blanca; Tressler, John
..... Original Message

From; o±=a_docket@omb.eop.gov [mailto:oira_docket@omb,eop.gov]
Sent: Friday, January 24, 2003 8:48
To: Joe S~hubart@ed,gov
Cc: Karat F. Lee@omb.ecp.gov; Kim_Rudolph@ed.gov;
Stephanie Valentine@ed,oov
Subject: i890-0014 OMB NOTICE OF ACTION
NOTICE OF OFFICE OF MANAGEmeNT AND BUDGET ACTION
Joe Schubart 0112312003

Office of Chief information Officer
DeparZment of Education
Page 37
of a new information collection received on 12/17/2002.
AGENCY FO~ NUMBEB(S): None
ACTION : APPROVED WITH CHANGE

OMB NO,: 1890-0014
Previous 0 0 0
New 17,000 1,360 0
Program Change ],360 0
Adjustment 0 0
TERMS OF CLF~~RANCE:
SEE PAGE 2 FOR TERMS 0£ CLEAPANCE
NOTICE OF OFFICE O£ MANAGEMENT AND BUDGET ACTION

PAGE 2 OF 2
NO.: 1890-0014 01/23/2003
TERMS OF CLEARANCE:
Approved as revised and sent to OMB on 1/17/03. This form is
approved for govexnment-wide use. Any grant-making agency
that intends to use the survey form must either ]) submit a
change worksheet (83-C) to r~vise the OMB approval of their
gran~ application package to include the survey form and
account for ~he additional burden imposed by the form; or
2) obtain its own OMB nua~ber for the survey by submitting
an agency-specific information collection request under the
PRA.
OMB Authorizing uff=c:al Title

Information and Regulatory AfFairs
Page 44
Whitney/, Mir!am ,
From: Axt, Kathy
Sent; Tuesday, January 14, 2003 4;18 PM
TO: Whitney, Miriam; Lesiak, Mary Anne
Subject: FW; 1810-0654 OMB NOTICE OF ACTION
Here it is. you have been approved via a change sheet and the reduction hours are below.
From: oira_docket@omb.eop.gov [mailto:oira._docket@omb.eop.gov]
Sent: Tuesday, January 14, 2003 2:46 PM
To: Joe_Schubart@ed.gov
Cc; Karen F. Lee@omb.eop,~ov; Kim_RudolphSed,gov;
Stephanie_Vaientine@ed.gov
Subject: 1810-0654 OMB BOT!CE OF ACTION
NOTICE 0£ CHANGE

Office of Chief Information Officer
in accordance with the Paperwork Reduction Act, OMB has
made the following change(s).
OMB NO.: 1810-0654
T!TLS: Early Reading First Prograza Federal Register
Notice Inviting ApplJ.cations, and Application
Packet
AGENCY FOruM NUMBER(S): 84,359
The following items have been changed:

ITEM PREVIOUS VALUE NEW VALUE
Nbro Respondents ~00 932
Total Responses 900 932
Percent 0 % 4 %
Tota! Hours 18~000 14~332
Hours Difference 6,000 -3,668
Program Change 0 -3,668
Adjustment 6,000 0
Donald R. ArbuckZe Deputy A~ministrator, Office of

Page 45
Wh~iriam
From: Axt, Kathy
Sent: Monday, June 03, 2002 7:03 AM
To: Whitney, Miriam; Bethel, Tracy
Subject: FW: t810-0654 OMB NOTICE OF ACTION
See change of exp. date. It would be 10/31/02.

From; OIRA DOCKET@omb.eopogOV [mailto:OIKA_DOCKEY@omb.~op.gov]
Sent: Friday, May 31, 2002 4:21 ~M
TO: Joe_Schubart@ed. gov
Co: Karen F. Lee@o[mb.eopogov; Kim_Kudoiph@ed.gov;
Stephanie~Valentine@ed.gov
Subject: i810-0654 OMB NOTICE OF ACTION
NOTICE OF SHORT TERM EXTENSION
Joe Schubart 0513012002

Washington, DC 2020Z-4651

made the following sh~rt t~rm ~tension.
OMB NO.: 1810-0654

TITLE; Early Reading First Program
Federal Register Notice Inviting
Applications, and Application Packet
AGENCY FORM NUMBER (S) : NONE

The expiration date has been changed as follows:
PREVIOUS EXPIRATION DATE NEW EXPIY%ATION DA~E
08/2002 10/2002
The agency is reminded that it should have in place an

intern~l ~lanning process so that completion of the public
notification and comment period required by 5 CFR !320
occurs prior to an information collection’s expiration date.
Agencies should submit non-emergency extension requests
sufficiently prior co expiration dates te allow for a 60 day
period of OMB review.

Donald R. Arbuckle DepuZy A~inistrator, Office of
Information and ~egulatory Affairs
Page 46
Whitney/, Miriam
From: Axt, Kathy
Sent: Tuesday, May 28, 2002 4:34 Pka
To: Whitney, Miriam; Bethel, Tracy
Cc: McKee, Patricia
___Here is the approval document.

(b)(5)

From: OIRA DOCKET@omb.eop.gov ~mallto.OIRA
Sent: Tuesday, M~y.28, 2002 11:55
To: Joe Schubart@edogov
Cc: Kar~n F. Lee@omb.eop.gov; Kim_~udolph@ed.gov; Stephanie_Va!entine@ed.gov
Joe Schubart 05/28/2002

7th.and D Streets SW.
Washington, DC 20202-465!
In accordance with the Paperwork Reduction Act, OMB has taken the following action on your
request for approval of a new information collection received on 05/01/2002.
TITLE: Early Reading First Program. Federal Register
Notice Inviting Applications, and Application
Packet

ACTION : APPROVED WITHOUT CHANGE
OMB NO.: 1810-0654
BURDEN: ~S£ONSES HOURS COSTS~$,000)

Previous 0 0 0
New 900 12,000 0
Differe~.c~ 900 12,000 0
Program Change 12~000 0
Adjustment 0 0
TERMS OF CLEARANCE; None
Do.n~id R. Arbuckte Deputy Admir~istraLor, O~f_[ce of

Information and Regulatery Affairs
Page 47
Whitne~/~, Miriam
From: Axt, Kathy
Sent: Monday’, April 08, 2002 7:08 AM
¯ To: Whitney, Miriam; McKee, Patricia
Cunningham, Marlene
You may have received this from Rim already, b~t just in case...
Marlene -- notice can be sent to the Fed. Reg.if not done already. RIMG approves
publication. , ....
.....Origina! Message .....
From: OIRA DOCKET@omb.eop.gov [mailto:OI.RA_DOCKET@omb.eop.gov]
Sent: Friday, April 05, 2002 i0:00 AM,
To: Joe Schubart@ed.gov
Cc: Kar~n_F,_Lee@omb.eop.g0v; Kim_Rudolph@ed.gov;
Stephanie Valentine@ed.gov
Subject: [810-0647 OMB NOTICE OF ACTION

Office of Chief Infor~tion Officer

taken the £o%l.owing action on your request for approval
of a new information collection received on 02/20/2002.
TITLE:- Early Rea~J.ng First Applicant Eligibility

ACTION : APPROVED
’{~OMB NO~: 1810-0647
’EXPI~.TION DATE: 08/31/2002 b)(2)
BURDEN RESPONSES BURDEN HOURS BURDEN COSTS
Previous 0 0 0
New 52 104 0
Differenc~ 52 !04 0
Program Change 104 0
Adjustment O 0.
TERMS OF CLE~-KANCE: None
NOTE: The agency is required ~o display the OMB control

nu~er and inform zespondents of its lega!
significance (se~ 5 CFR 1320.5(b)).

Information and R~gul~to.ry Affairs
Page 48
Whitney, Miriam
(b)(5)
Original Message
Sent: Thursday, M~rch 07, 2002 4:14 .PM

To: Chris. DohertySed.gov; Sandi,Jacobs@ed,gov
Cc: mcassell@omb.eop.gov; kflee@omb.eop.gov
Subject:
__Chris, Sandi --!(b)(5)
Karen
Karen F. Lee
Office of Information and Regulatory Affairs
Do You Yahoo!?
Try FREE Yahoo! Mail - the world’s greatest free email!
http:i/mai!.yahoo.com/
Page 49
OMB Passback 3,/6/02

Page 1
From: Anne_Heiligenstein@who.eop.gov
Sent: Wednesday, August 28, 2002 9:07 AM
To: Openshaw, Mary Laura
Cc: Andrea_G,_Ball@who.eop,gov; liza.mcfadden@myflodda.corn; Sonya_E.
_Medina@who.eop,gov
RE: Florida Summit -- Oct 1
Attachments: pic 16219.pcx
Thank you again, Mary Laura, and look forward to working with you.
(£mbedded
image moved "Openshaw, Mary Laura"
to file: <MaryLaura. Openshaw@fldoe,or~>
pic16219,pcx) 08/28/2002 08:25:17 AM
Record Type: Record
To: Anne Heiligenstein/WHOiEOP@EOP, "Openshaw, Mary Laura"

<MaryLaura. Openshaw@fldoe.org>
cc: Andrea G. BalI/WHO/EOP@EOP, "McFadden, Liza"
<liza,mcfadden@myf!Grida,com>, Sonya E. Medina/WHOiEOP@EOP, "McCain,
Diane" <Diane.McCai~@fldoe.org>
Subject: RE: Florida Summit -- Oct i
Anne,
Thanks so much for the input. We are thrilled that Mrs. Bush is willing to help us bring
the national perspective to F!orida and to have the chance to showcase some excellent
examples of research-based practices with othez Floridians.
Dr. Susan Landry is an excellent fit with some Florida ties - -she is currently working
with our ELLM project at the Universit2 of North Florida (The ELLM project is very similar
to Dr. Landry’s Circle project).
As the Florida point person for Reading First~ i have worked with Asst.
Secretary Neuman, and will approach her first, but thanks for the s~ggestion of Dr, Ramey
in the event Dr. Neuman is unavailable.
Thanks again for the help, and ! will send you a "close to final as possible" content
agenda by Friday. Let me know if you need any other information on the s~mmit.
Page 2
Mary Laura

From: Anne_Heiligenstein@who.eop.gov
[mailto:Anne_Heiligenstein@who.eop.gov]
Sent: Tuesday~ August 27, 2002 7:58 PM
To: Openshaw, Mary Laura
Cc: Andrea G. Ball@who.eop.gov; liza.mcfaddenSmyflorida,com; Sonya Eo Medina@wbo.eop.gov
Subject: Re: Florida Summit -- Oct 1
Mary Laura,
Thank you for sending the draft outline for the Ready to Read, Ready to Learn"
early childhood education summit on October ist, Mrs. Bush is looking forward to her trip
to Florida.
Clearly, Florida has a number of high-quality early, childhood programs and we are familiar
with the excellent research work done by Dr. Chris Loni~an.
b)(51
26
Page 5
To: David_Dunn@opd.eop.gov
Subject: memo
(b)(5)
Page 1
Nonresponsiv
From: Neuman, Susan
Sent: Thursday, Januapj 17, 2002 7:51 PM
To: aryan, Beth Ann
Subject: RE: RE: leachers.
hope to, b~L will check with tree-susan

From: Bryan, Beth Anrl
To: Neuman, Susan
Sent: 1/17/2C02 2:3~
Subject: RE: RZ: teachers
~ill it be ready by the beginning of March?? SA

From: Neuman, Susan
Senz: Th~rsday, January 1], 2002 1:2~ BM
To: Bryan, Beth A,~n
Subject: RE: RE: Leachers
we’re gettin~ out a hroch\ire cn early reading fixst; and readin{ first.
we don’t have any other ,ioo,J ~i~atezia! (other ~ban published pi.eces that
i’ve done cr russ has done !.n our previous, lives] yet, susan
From: Bryan, Beth i~n
Sent: ’L’hursday, January 17, 2002
?o: Keuman,
S.~hject: Ew: RE: teachers
Do wa have any pub piec£s on e97].y childhoed or ~eachex p£e~, coming out?
We need to prepare those ASAP. ~A
Sezht from my BlackBerry W~reless HandheLd (w~.,m,.’.BlackBerry.net)

From: Sarah E. Youssef@opd.,=op.gov <Sarah E. Youssef@opd.ecp.gov>
TO: Bryal%, Bet~] Ann <BethAnn. Brynn@ed.gov>
Serif:: ’lh,/ Jab 17 Ii:22:26 2002
S~bject: RE: teacher~
not; on reading (that’s alreao.y been done)¯ but on early ,~hildhood or

te~..chJ ng
m,-_th,:~ds or &nythinq like that.
Page 2
Nonresponsi L
F~om: Sarah E. Youssef@opd.eop.gov
Sent: Thursday, January 31, 2002 11:52 AM
To: Neuman, Susan
Subject: RE: teacher document
~nternet HTML Intemet HTML
(b)(5)
’, Smb~ dded
image moved
LO file: 0.L,,’31/:!(~02 " ] : 26:06 Al’,l
pic26(]C~, pox )
Record ~ype : Reco_’d
To; ,~a.
~ ~ 8h E. zoussez/.~,_~D~E_P~EOP
Subje,,:l..; R:5: teacher documer~t
sarah, ycu forget early reading firs:--$75 million d.:.:.]]ars (same amount fsr
ncx: year as we[])and its ...mp~,.=szs cn pra/essional devoiomment and quality
teaching.
(b)(5)
..... Original Me_’~_£ ~ g ~_ .....

[-~:~m:: Sarah E. You~,sef’@o~d.eop.gov [mailto:Sarah E,
Sen~: Wedne~’day, Jan~ar? 30, 2002 2:20 PN
To.; Susan. N~uman@~d.
Subject: teachor doc~me:~t
(b)(5)
1
Page 3
(b)(5)
~See attached file: ’£eacner Inltiatives.doc)

Page 4
INonresponsive
From: Sarah E. Youssef@opd.eop,gov
Sent: Friday, March 22, 2002 8:16 PM
To; Susan.Neuman@ed.gov
Carolyn.Snowbarger@ed,gov
Subject: resume
Sus:~n, I receivsd from a trusned =fiend the resume of a woman from Georg~.a who
has a Master’s d~.gree in readimg~ has done some cor~su].tJng in :he state, and is
eager to help out on the Reading First effort. I don’: Know wh÷<her yo,, all need
any help i.~ the regions or whether Ics~ put her in to~ch ~.~i:h the apm~opriate
reg-’_or~al ~irectcr, bt~t 7 wonld love to get her pl~gged in. I can send her r~sume
over if you like just let me know the fax #.
Yh&nks, and co.ngra~ulatioes on the lon~ r.egotiatin9 process being over.

Page 5
Nonresponsive
From; Neuman, Susan
Sent: Tuesday, March 26, 2002 11:06 PM
To: Bryan, Beth Ann
Subject; RE: allington
poor

From: Bryan, Beth ~m
To: N~ummn, Susan; ’groverw@ed.gov’; ’lyznr@hd01.nichd.nih.gov’; ’John. Danielson2@ed. gov’;
’margaret m._spellingsgopd.~op.gov’
Sent: 3/2~/2~02 9:54 PM
Subject: ~: allington
Support as usual from ,bur favorite guy.
e - ~ Handhold (ww~z. SlackBerry.net)

Sent from my BlackBerry W~~-r~l~s~
..... Origina.L Message .....

5"tom: dcarnine <dca~nineSoregon.uoregon.edu>
To ; Betb_~uan.Bzvan@ed. guy <Be=bAnn. Bryan~ed. gov>
Sent : Tue Mar 2 6 13 : [~0 : 37 2002
Subject: ali inqton
>
>
Original Message,
l>~t : Yuesday, March 26, 21]fl2 8 " 57
]
>To: AE~A-C@asu. euu
>Subject: Rs: AE~ ANNUAL MZgTING> U.S. Smc o~ Educ Rod P;zige to Address
>
>
>Will Secretary paiqe be offezin~ an explanation for why recen£ :.ISDO£
>publications are mis[epresentin9 the findings of the national Reading
Panel?
>Will he be announcing a plan to destroy the few h~ndred tho~sand copies
of
>~ut Reading First? That document wonderfully illustrates the tziumuh of
>ideo].oqy over evidence. ?rehaps only the abstinence education
provides
>a :gore cleaz~:ut example cf the a@itiniszratior,’s .[..~ck of intcze$g
what
>research mi,Thg have to o.f~fer educational poiic~aking.
>Dick AllJngtcc
>University cf Florida
>
>AE~A Division C: Learning and Ir:st~-uction Forum
> AE~% Hom~ ?age cn the World Wide Web: http:i/www, aera.net
> List Service Info http://lists.asu.edu/cgi-bin/wa
> %o cancel y<:u:r subsc~’iption addm’ess an em~il message to
> LISTSERV@ASU,EDU containin9 cn.].y the message UNSUB AEPA-.C
> Address pxohl~:~<s w:.th your subscriptior, te: sh~pherd~asu.edu
Page 8
From: Holly_A._Kuzmich@opd.eop.gov <Holly_A._Kuzmich@opd.eop.gov>

From: Holly_A._Kuzmich@opd.eop.gov <Holly-A._Kuzmich@opd.eop.gov>
Date: Jan 03, 2003, 01:34.’46 PI~I
To: Neuman, Susan
Subject:. RE: Read~ Fi£s!
Susan, will it be public by the event on Wednesday?
{Embedded
image moved "Neuman, Susan" <Susan.Neuman@ed.gov>
to file: 01/03t2003 08:54:16 AM
pic2596&pcr,)
Record Type: Record
To; Holly A. Kt~zmichiOPI3/’EOP@EOP
Subject: RE: Reading First
holly, we have decided to go ahead to approve virginia, and use our careful
monitoring plan to scrutinize their roll out. thanks, susan
---Original Message---
From: Holly._A._Kuzmich@opd.eep.gov [rnailto:Holly A, Kuzrnich@opd, eop.gov]
Sent: Thursday, January 02, 2003 2:36 PM
To: susan.neuman@ed.gov
Subject: Reading First
Susan-
b)(51
Page 9
Nonresponsive
From: Holly_A._Kuzmich@opd.eop.gov
Sent: Friday, January 03:2003 8:59 AM
To: Neuman, Susan
A1"1"133741 .l:xt. pic1156q.p~

i’l- update the info for next
(Embedded
image moved "Ne:m~ar’:, Susar:" <Susan. Neuman,}ed.gov>
61/{33/2003 08:5.4:16
pic11564.pcx)
Record Type: Record
HcJ .iv A. F,~.:Tmi
CC :
Subject: RE: P..ead:ng First
holly, we have decided to .30 ahead tc approve virginia, and use our careful
monit0~’inq plan ~o sczutinize :[-:,air roll out. thanks, susan
From: Hc.!l.v A. Kuzmich3opd,~up.gov [mailto:!olly A. Kuzmich@opd.eop.gcv]

Serf_: Thuzsday~ January {]2, 2003 2:36
TO ; SUS~P., ~e!]~a~@e~ .
(b)(5)
Page 10
Nonresponsive
From: Lyon, Reid G. (NICHD)
Sent; Tuesday, March 26, 2002 tl :18 PM
To." ’P, ethAnn. Brya n@ ed .gov’; ’s us an.neuman @ed. gov’; ’grover.wh iteh urst@ed.gov’
Subject: Re: Fw: allington
Actually Put F~eadir,.g First does a very good ~cb of representing the findings
Sent from mv BlackH:erry W±reless Handhold (w.;,w,BlackBerry =t"
..... O=iq ir’,a i Mess~g¢

From: F.’,ryaP~, Beth Ann <~-ethAnn. Bryan@ed. g,:,v>
To: Neuman, Susan <Sus~n,Neuma.-..@ed.gov>; ’grov=~rw@ed,.~ov’ <groverw@edoqov>;
Lyon, R~id G. (NICHD) <lyonr@exchange.nih,qov>; ’John. Dr, nie!son2@ed,gov’
<John. Danie!son2@ed.gev>; ’margaret m. spellings@opd.eep.gov’
<margaret m. spelllngs@opd.eop.t]ov>
Se=~t: Tu~. Mar 26 21:54:09 2002
Subject: Fw: ai!i~gton
SupporL as usual, from our fa,;orike guy. BA

Sent fro[~ n~[~, Black~er-ry Wireless Ha~!dheld (w~.~w. BlackBerry.net)
..... Original "-,loss age ......

From: dcarnine <d’aarnine@ore~2on,r]orcgon.edu>
To’. £e:hAnn. R[:yan@ed,qcv <Be<hA~]n,8zyan@ed,gov>
Sent: ~ue Mar 26 L3:3(]:37 2002
Subj ~ct: al’_ington
Origina! Message .....
9Sent.: ~uesday, March 26, 2002 8:57 AM

>To: AEP~_-C@asu. edu
.>Zub]mct: Re: AE[~. AN~UAL MEETING> U.S, Sec of Zd~.~c Rod 8aiqe to Address
>~RA
>~ill Secretmry paigc be offeri~g ~m explanation for why recent USgOE

>publications are :~<isrepresenting the findings uf the naL~onal Re,~ding
>Will he h~ announcing a pla~ to destroy :h8 few hundred thousmnd co~ies of
>Put F.ead!ng First? That document wonderf~lily illustrates the triumph ,:,f
>ideology over evidence. P:ehaps only the abstin~,nce education issue
prcvid,£~
>a m:.~e c]earcut ex£mple of L}-,e administration’s lack of inLerest in what
>resmarch [~ight have to offer cdueational pc-l~cymaking.
>
>Dick Allin,~ton
>Unive:’:~:] ty of F[.orida
~~ ...................................................................
> AE~:i Home ?age on the World Wide Web: hLtp;iiwww.aera.ne:
> LisL. Servic~ I~qf,:. httl~,:i,"lisL$.ssu.eduicgi-bin!wa
> To cgncel yu, ur subscription address a~ umail message
;" LISTSERV@ASL:.EDU cot:raining only :.h~ message UNSUB AEPJ~-C
Page 11
Address problems ~,"ith youz s~..~bscriptio~ to: shepher,d@asu.edu
Page 12
NonresponsiveI
Frol~: Holly_A._Kuzmich@opd.eop.gov
Sent: Friday, January 03, 2003 8:59 AM
To: Neuman, Susan
ATT133741.b<t
Thanks for letting me know, Susan. I’l! update the info for next
week.
(E~bedded
image moved "Neuman, Susan" <SusanoNeuman@ed.gov>
to file: 01/03/2003 08:54:16 AM
picl1564.pcx)
Record Type: Record
Holly A, Kuzmich/OPD/EOP@EOP
cc:
holly, we have decided to go ahead to approve virginia, and use our careful
monitoring plan to scrutinize their roll out. thanks, susan
From: Holly. A, Kuzmich@opd.eop,gov [mailto:Holly A. Kuzmich@opdoeop,gov]
Sent: Thursday, January 02~ 2003 2:36 PM
To: susan.neum.an@ed.gov
b)(5)
Page 1 Page 1 oi"2
From: Gina Burkhardt [Gina.Burkhardt@ncrel.org]

Sent: Tuesday, October 08, 2002 4:36 PM
president@whitehouse,gov; Rod,Paige@ed.gov; MargareLspellings@opd.eop,gov;
Holly_kuzmiuh@opd.eop.gov; 8usan,Sclafani@ed,gov; Grover.Whitehurst@ed.gov;
Eugene,Hickok@ed.gov; CaroI.Chelemer@ed,gov; Gregory.Dennis@ed.gov;
sureed@doe.state.in.us; senator@kennedy.senate,gov:; mailbox@gregg.senate.gov;
john.boehner@mail.house.gov; George.Miller@mait,house.gov
C¢: hershman@nekia.org; Sandi DiCola
Subject; Recognition
October 8, 2002
Dear President George W. Bush

And Secretary Rod Paige:
And there are. creative things you can do with the accountability system, such as what they’re doing in
Indiana. -President George W. Bush
And Indiana has really hit a home run with their system that giv’es new meaning to full disclosure -Rod
Paige, U. S. Secretary of Education.
NCREL, the North Central Regional Educational Laboratory serving fine seven Midwest states of
Illinois, Indiana, Iowa, Michigml, Minnesota, Ohio and Wisconsin, is pleased to learn of your personal
and pos~ tire response to Indiands Accountability System for Academic Progress (ASAP).
The recognition generated by ASAP gratified everyone engaged in its development, More importantly,
its practical use in the field to support learning for all students in hadimia is proof of its value and our
accomplishments,
The ASAP Web site a{lows districts, schools, and communities to (1) look at disaggregated achievement
patterns for ethnic: minority, limited-English-proficient, and low-income students; and (2) compare
¯ student performance to districts or schools with similar student populations.
ASAP is the result of support from NCREL to ~e Indiana Department of Education. In addition to
funding the initial pImlning efforts that led to ASAP, we supported its development by maintaining a
close and active consultant rel~onship with Gary Wallyn, who led Indiana’s ASAP development
effort. Our mutual efforts received the active encouragement of Indiana’s Superintendent of Public
Instruction Dr. Suetlen Reed. NCREL and the Indiana team deve!oped thevision of what ASAP could
be by sharing the expertise we gained in developing simhlar tools in other midwestern states. This
sustained effort has pioneered a practical and effective set of tools through which educators and
community members can realize their school irrtprovenlent goals.
In the Midwest region, NCRgL-supported school improvement Web sites include the lllinois School
419/2008
Page 2 Page 2 of 2
~£p~_e_m_.e.nt (ILSI) site, the Wisconsin Information Network for Successful Scho..o...l_s (W-INNS), and
Minnesota’s Colmecting Learning and Accountability for Students and Schools_ (CLASS). Each of
these, like ASAP, mirrors NCR~L’s commitnlent to assisting educators with the resources they need to
improve educational opportunities and academic success for all of our children.
NCREL has operated a regional educational taborato~7 for over 15 years, Our successes and
accompIishments are numero~as and represent tile level of effor~ that must be undertaken in an
educationai research and development organization. Our constituents depend on these efforts help them
appIy research and tectmology to the practice of teaching and learning.
Thank you again for the recognition. I look tbrward to working with you to establish mechanisms for
expanding the work we do at NCREL.
Si~erely,
C~na Burkhardt
CEO and Executive Director
NCREL
Cc: Dr. G. Russ Whitehuxst, OERI

Dr. Eugene Flickok, OESE
Dr. Susan Sclafani, U.S. Department of Education
Dr. Suellen Reed, indiana State Department of Education
Holly Kuzanich, Domestic Policy Council
Margaret Spellings, Domestic Policy Advisor
Congressman Miller
Congressman Boehner
Senator Kenn edy
Senator Crregg
C~rol Chelemer, OERI
Gregory Derails, OER[
4/9/2008
Page 3
From: Chris Gaylor [Intern@ccsso.org]

S~nt; Thursday, July 31, 2003 1:48 PM
To: B, Skladany; Beth Ann Bryan; Carol Damico; Daniel Langan; David Dunn; Grover Whitehurst;
Gwenda Mannweiler; J, Thomas; Jim Hunt; John Danielson; Julie Garrison; Laude Rich; M.
Casserly; Margaret Spellings; Nina Ress; Robert Pasternack; Rod Paige; S, Feldman; Sandy
Kress; Scott Jenkins; Susan 8clafani; Terri Rayburn; Tori Ha~ada; William Hansen
Subject: Press Release: NCLB Focus of Third Annual NCPE Conference: CCSSO & NCPE Partners
Discuss High Performance
Attachments: Untitled Altachment; NEWSonNCPEandCCSSO2,doc
Untitled Attachment N EWSonNCPEandC

~SO2.doc (6D KB,..
Page 4
CCSSO
NEWS
COUNCIL OF CHIEF STATE SCHOOL OFFICERS
One Massachusetts Avemle NW, Suite 700, Washington, DC 20001

Phone (202) 408-5505 Fax (202) 408-8072
www.ccsso,or~
Contact: G. Thomas Houlihan For immediate release

Cotmcil of Chief State School Officers
(202) 336-7002 or ton~h@ecsso.org
Contact: Judy S. Phillips

North Carolirm Partnership for Excellence
(9 l 9) 469-8390 or jphillips@doekpoint.net
NCLB Focus of Third Annual North Carolina

Partnership for Excellence Partners Conference
Council of Chief State School Officers and NCPE partners discuss ways to
support high performance in schools by changing the system of education
Stevenson, WA, July 24, 2003 - Today, educators, policy makers, andbusiness leaders,
from 10 states, concluded their annual partner’s conference that examined the ways in
which school systems, working with the North Caroliaa Partnership for Excellence
(NCPE), have begun to implement quality innovations in an effort to chaage the way
schools do business. "If’No Child Let~ Behind is to become a m’~ity, there is no question
that we in the education conummity must change the system of education as we know it,"
said G. Thomas Houlihan, Executive Director of the CCSSO. Program participants used
NCLB as the springboard for their two-day meeting citing the new federal legislation as a
prime reason to change the way schools operate in order to ensure student success.
Page 5
Sandy Kress, chief architec! of the legislation and a key education advisor to President
Bush, discussed the bill’s history and its overwhelmingly strong hi-partisan support.
"This is not a Republican or Democratic bill," Kress told participants. "It is a bill that
congress and the president agreed was in the best interests of our nation’s children." He
agreed that there may be differences of opinion in the bill’s implementation, but the
principle of ALL students reaching high standards is one that everyone can agree on.
Participants also heard from Mississippi schools’ Chief, Henry Johnson, who shared how
Mississippi has begun efforts to transform the state’s department of education using the
Baldrige c.ritefia. Johnson cited NCLB as a key driver in trmasfomflng the system into
one that delivers te~hnical assistance to the state’s local school districts and not just
acting as a compliance monitor.
Participants shared promising state, local, and classroom applications of the high
performance model, which many agreed would be useful in their efforts to ’~ign their
daily work to the new federal legislation. "If my classroom instructional methods aren’t
aligned to the district and state standards, how are the students in my class ever going to
reach proficiency?" said Kimbefly McArthy, a tuiddle school teacher from Garret, IN.
Other participants shared similar sentiments, including several board melnbers from the
Camas, WA School District who discussed their board’s efforts at implementing the
Baldrige criteria for the 4,400-student district. "We’ve invobced everyone in this
process," said Ellen Burton, a parent and member of the Carnas leadership team, which
has begtm implementing the high performance model in the district. "We’ve spoken to
the community, to teachers, pxincipals and business partners. They’ve told us tiffs is what
they want Camas Schools to be. When NCLB came along, instead of having to start from
scratch, we already had our vision of how to get our students to proficiency - it makes
perfect sense."
Joan Warner, a teachex from Enloe High School in Raleigt~ NC, recognized as one of the
top 100 schools in the country, presented an honest and inspiring message about
implanting Baldrige Principles and the High Performance Model at the high school level.
She stressed emphasizing core values, teamwork, action plans and students being
responsible for their own learning.
Principal Bonnie Bryant and teachers Tanmaie Key and Stephanie Watlaee presented an
emotional and passionate message about how their school, Bellamy Elementary, in
Wilmington, NC, is striving for school improvement, performance excellence, and
implementing a classroom learning system.
Judy Philips, the Chief Executive Officer of NCPE, presented findings fi~m a five-year
research study involving their 40 North Carolina school system partners. NCPE is
working with and documenting the ’break through performance’ of those school systems
who are implementing the Baldfige and ttigh performance criteria. "We know schools can
continually improve, but to meet the demands of NCLB, schools must demonstrate
breakthrough or signif’tcant performance over time. We have evidence that we’re making
a difference and want to make sure all schools have the opportunity to succeed as these
Page 6
schools have." Houlihan added, "If we truly believe in the concept that all means all,
then we have to look at ways to ensure that we move al! kids to proficiency. And all of
us here today believe using the high performance model is one of the ways we can meet
.the demands of No Child Left Behind."
On the Interact:
Council of Chief Sate School Officers, www.ccsso.or.~
North Carolina Partnership For Excellence, http:iiwww.ncpe-online.org
-30-
The Council of Chief State School OJficers (CCSSO) is a nationwide, nonprofit

organization of public officials who head departments of elementary and xeconda~
e&~cation in the states, the District of Columbia, the Department of Defense Education
Activity and five U.S. e~xtra-statejurisdicttons. CCSSO provides leadership, advocaO, and
technical assistance on major educational issues. The CozmciI seeks members’ consensus
on major educational issues and expresses their views to civic and professionat
organizations, federal agencies, Congress and ~he public.
The North Carolina Partnership Jbr Excellence (NCPE) is a nonprofit, private-public

partTtership created to support e.dsting school system partners and to create additional
supportive networks involving business, higher education, school ~ystems, and local
communities. NCPE encourages partnerships with national, sta~e, and toeat
organizations to improve education in North. Carolina.
Page 7
Gilchrist, Robin
From; Dunn, David [David_Dunn@opd.eop.gov]
To; Gilchrist, Robin
Cc: Kuzmich, Holly A.
Subject: FW: invites for our Reading First Event
Robin~ you have not met holly yet - you need to, she is oreat! ~zaL she works ~ith me

From: Kuzmich, Holly A.
Sent: Friday, May 07, 2004 5:35 FM
To: Robin.Gilchres:@ed.gev; Rich, Laurie
Subjecz: invites fcr our Reading First Event
We had a phone call yesterday with Anne Radice and told her we w~ a draft invite
We’ve got several hundred seats to fill~ so ~e

can give several to each group.
(b)(5)
Thanks-
Holly Kuzmich
202-456-5~77
Page 8
Gilchrist, Robin
From: Dunn, David (David_Dunn@opd,eop.gov]
Sent: Tuesday, September 07, 2004 3:01 PM
To: Gil~hrist, Robin
Subject: RE: NCLB Exf.ra Credit: Early Reading First Is Helping 1"o "Level 1he Playing Field"
Yeah~ I .~ent a note to BA, I suspect ,she will be calling anyway.. ,Have you looked at
No~e~s,6_ .... .................... /
Origina! Message
ve .....
From; Gilchrist, Robin [mailto:Robin.Gilchrist@ed.gov]
SenT: Tuesday, September 07, 2004 2:55 PM
To: Spellings. Margaret M.; Dunn, David
Subject: FW: NCLB Bxtra Credit: Early ~.ea(Jing First Is Helping To "Level the Playing
Field"
N6nresladii~;i .......... : ............................. !- .e

are highlighting NCLB sucuesa from an article that ran on Jimmy
ve ~{~ipatrick’s www. educationnews, org about Ca-thy Davis’ s successful Early
Reading First project in Round Rock ISD. I just had to pass this along.

From: O.S. Department of Education
To: U.So Department of Education
Subject: NCLB Extra Credit: Early Reading Finest Is Helping To "Level the
Playing Field"
U.S. Department of Education

Office of Pubiic Alfairs, News Branch
400 Maryland A~e., S.W.
Washington~ D.C. 20202
NO CHILD LEFT BEHIND

EXT.% CREDIT
September 7, 2004
Early Reading First !s Helping To "Level the Playing Field"
No Child Left Behind’s Early Reading First grant program
supports preschools and early childhood education providers, especially
those who serve children from low-income families, so that they can
become preschoo! centers of educational excell~nce and the children they
serve wii! arrive at kindergarten with the ~oondational skills necessary
to become successful readers. The fallowing are excerpts from an a~t~cle
on EducationNews.org highlighting the progress of a Texas preschool
program ~hat is funded by an Early Reading First grant:
"Sebastian Wren, the Program Associate for Reading at the
Southwest Educational Development Laboratory in Austin, Texas, ha~ been
personally involved with INSPIRED, a very successful pro-school and
day-care project in Round Rock Independent School District, Round Reck,
Texas. Wren recently concluded, ’Although they started out with
different performance levels, by the end of the year, African American
students, Caucasian students, and Hispanic students were performing
approximately equally. Thus, there is some evidence that the INSPIRED
project is helping to ’level the playing field’ for disparat~ groups of
students.’"
"Wren has su~u~arized the project as follows: The ~.reliminary

l
Page 9
assessments to ascertain individual reading and language skills were
collected in the winter of 2003-2004. The pro-school and day-care
teachers participating in the Round Rock INSPIRED project then received
a substantia! amount of training in instructional activities that
support the deve!opment of early reading and language skills. By the end
of the school year in 2004, students had made substantial gains in the
various reading-related skills that were sssessed. A total of 259
students were tested both in the winter and spring of the 03-04 school
years Jn a variety of regding-relate.J taskst including name writing,
concept of word, print knowledge, alphabet knowledge, verbal memory,
rhyme awareness, and beginning s~und awareness ....
"Approximately half cf the students who participated in the

03-04 INSPIRED Project were Hispanic, and in the winter, Hispanic
students performed more poorly than Caucasian students on most of the
reading-related tasks. By spring, both Caucasian students and Hispanic
students had made significant gains, but the Hispanic students had made
more dramatic gains, closing the gap ~ith the Caucasian students. ~he
same is true of the A~rican American students who made up 11% of the
student population."
Catherine Davis is the coordinator for INSPIRED. She

participated in the following
Q ~ A:
"Question #I: What is the background on the grant and whaz are
Uhe expectations from the district?"
"Answer #I: Round Rock Independent School District was one of
thirty grant8 awarded in cycle two of the Early Reading First program.
... As with all Early Reading First grants our goBl is to provide
intensive reading instruction that is grounded in scientifically based
reading research as acknowledged by the National Reading Panel’s report.
We expect the children participating in our program will be ready to
start kindergarte[~ as well as if not better thHn their more economically
advantaged peers. We want our children to learn to remd on schedule."
The complete texu of this article and Q & A is available online
at: http://www.educa~ionnews.org/inspired-a-project-insplred-by-nclbohtm
Page 10
Fw: Student Loans (2) Page 1 of 3
Private - Spellings, Margaret

From: Zinsmeister, Karl [Kad_Zinsmeister@who.eop.gov]
Sent: Friday, April 11, 2008 8:48 AM
1"o; Private - Spellings, Margaret
Subject: RE: Student Loans (2)
Done. ]’hanks.
From: P.rivate_.-.Speflings~Marga~et-[mai~to,;/,, : " -

(b)(2) ~ent: Friday, April 11, 2008 8:43 AM
To-" Zinsmeister, Karl
~ubje~; Fw: Student Loans (2)
Please share with jess and john

Sent from my BlackBerry Wireless Device
.... Original Message ....

l=rom’. Anderson, Chris~
To: Cariello, Dermis; Aud, Susan; Davis, Jim; Skandera, Hanna; Leonard, Elissa; Holowink, Victoria; Duna, David; Ewart,
J~tlie; Ten’ell, Julie; Rosenfelt, Phil; Ridgway, Mareie; PJtts, Elizabeth; Hapes, Brerma; Earling, Eric; Tucker, Sara Martinez;
Men.roe, Steplumie; MacGuidwin, Katie; Wurman, Ze’ev; SmJth~ Va[arie (SRR); McGrath, John; Kuzmich, Holly;
Scheessele, Marc; Mcnitt, Townsend L.; Flowers, Sarah; Young, Tracy; Mesecar, Doug; Truong, Anh-Chau; Lepore, Kristen;
Eite|, Robert S.; Zoellick, Todd; Jones, Diane; Colvin, Kelly; Tourney, Liam; Tada, Wendy; Gagland, Lavin; Co]m, Kristine;
Moran, Robert; Hatada, Tori; Talbert, Ketrt; Keeling, Alycyn; Colby, Chad;. Scott, Kelly; Robb, Carl),; Sentance, Michael;
Cblouber, Pattie[a; Briggs, Kerri; Evans, Wendy; Private - Spellings, Margaret; Casarona,. Emily; Morffi, Jessica; Hancock,
Anne; Foxley, Donna; Evers, Bill; Dmylrenko, Orysia; Sehaumburg, Amanda; Maddox, Lauren; Beaton, Meredith;
Andersou, Christ)’; Yudof, Samara; O]dham, Cheryl; Gribble, Emily; Crisp, Patrieia
Seat: Fri Apr ] 1 08:00:30 2008
Subject, Student Loans (2)
Lenders Drop Out Of Student Loan Market (AP)
U.S. Looks At Buying Student Loans (UP1)
Lenders Drop Out Of Student Loan Market (AP)
Lenders Take Fedemlty Backed Student Loans OffTheir Books, Government Scurries, Worries
By Marcy Gordon, Ap Business Walter
<bttp:#biz.yahoo.eon~ap/O3OglO!student loan .squeeze.htm!?> AP, April 1 i, 2008
WASHINGTON (AP) - Lenders are dropping out of the federally backed student loan business in droves, fleeing an
envh’onment squeezed of cash because of the credit mmch.
The call for government action is getting louder, just as the pile of loan applications gels higher on the desks and kitchen
tables of students headed to college next year.
Forty-six student lenders have stopped making federally guaranteed student loans, either temporarily or permanently.
Distress in the $330 billion market for auction-rote securities in recent months has rippled into the student loan market, and
several states have suspended their college loan programs. The 46 lenders accounted for 12 percent of the federally backed
4/30~2008
Student Loans (2) Page 11 Page 2 of 3
student loan market, according to FinAid.org, a Web site focused on student tending.
Companies including Wa~hinOon Mutual Inc., Sovereign Ban¢orp Inc,, College Lo~ Corp., CIT Group lnc., NorthStar
Education Finance lnc., HSBC Bank USA and Zions Bancorp have stopped issuing federally guaranteed student loans in
recent weeks. And s~te agencies in iowa: Michigan, Montana and Pennsylv~mia have suspended college loan programs.
The major federal student loan program is providing an estimated $50 billion in loans to 6.4 million students in the current
academic year.
Against the backdrop of the housi~g and t-mancial market turmoil and the S30 billion federal rescue of stricken investment
bank Bear Stearnz Cos., politicians are making the case that access to education, like homeownership, is a vital social goa!
that deserves protection.
"There is a growing concern ha Congress," said Sarah FIanagan, vice president of government relations at the National
Association of Independent Colleges and Universities. "We don’t know if we’re over the hump, or if this is going to be a
crisis."
This week, Rep. Paul Kanjor~ki, D-Pa., proposed legislation designed to pump money temporarily into the student loan
market.
Kanjorksi’s bill would permit the 12 regional banks that make up the Federal Home Loart Bank wstem to invest their surplus
fimds in zecttr[~es backed by student loans and to accept such securities as collateral, The bankz also would be able to m~.ke
money available to the ban.ks and thrifts in their regions for ~udeat loans.
Another House bill, sponsored by Rep. George Miller, D-Calif., was utmaimously adopted Wednesday and sent to the House
floor by the Education Committee, which he heads. It would give the Education Department temporary authority to buy up
loans from student lenders to ensure their access to copiwl. In the Senate, Sen. Edward Kermedy, D-Mass., chairman of the
committee de~ling with education, has proposed similar legislation.
Kanjorski, a key member of the House Firtan¢ial Services Committee and 31 other lawmakers or-both parties recently asked
the Federa! Rczerve -- which orchestrated the Bear Stearns rescue -- to inject c~h into the student loan market by using a
special leading operation. But Fed Chabrnan Ben Bernanke responded in a letter that since a shaky student loan market
doesn’t threaten the financial system, it’s not the central bank’s job to steady
No studenl has been unable to get a Joan - a fact pointed out by Education Departmem officials and some education experts.
Wi~ some 2,000 lenders partic.ipating in the Federal Family Education Loan Prog~ram, other lender~ have been able to jump
in when affev-’ted lenders stopped making loans, they say.
"There’s an alarmist overreaction0" said Barmak Nassiriar~. associate executive director of the American Association of
Collegiate Registrars and Admissions Officers.
But lawmakers want a contingency plm. And after pressing Education Department officials for details of one at a recent
hearing, they’ve got one. Education Secretary Margaret Spellings says she is providing a safety act ia the event the
government’s help is needed. Kerme~"s bill would allow the Education Deparlanenl to use government funds to ~nance
student loans.
~e recent squeeze on student lending is tied to trouble ha the market for auction-rate securities, about $80 billion of which is
made up ofbtmdles of student loans. Shtee some of these investments are backed by troubled bond insurers, investors have
been reluctant ~o buy the securities, swain~ng the student lenders that sell them to raise case.
The entire student loan industry has been under pressure for some time, however. Student loan legislation that took effect last
October halved the interest rates on federally backed s~dera loans, but paid for that by ctrtting $20 bitlion in federal subsidies
to student lenders. In addition, rising delinquencies starting last year on student loans became a problem -- especially for
private studenl loans, those ~tat are not backed by the government and have higher interest rates that are not capped.
Sallie Mac, the nation’s largest student lender, said earlier this year it would cut back on its pcivate loans to students it
betieves have a lesser chance ofgraduathtg. Another challenge for parents is that home prices are sinking in much of the
country, making it harder ~o tap into home equity to pay luit[on bills.
With all of these changes afoot, parents evaluathtg financial ~id packages this spring shouldn’t delay in deten~tning how
much they need to borrow, said Vince Pecora, director of financial aid al Towson University in Maryland. "Typically
4/30/2(108
Page 12
Fw: Student Loans (2) Page 3 el3
families wait longer than we wold like to assets the amount of additional assistance" they will need, he said.
SaNe Mac, fore, ally known as SLM Corp., has been ro~ked by financial losses, a failed buyout and management stress, yet a
$30 biltion credit it secured from major banks earlier Ibis year insulates it some from the atiction market turmoil.
Also insulated are big banks-- like Citigroup Inc., Bank of America Cerp., JPMorgan Chase & Co, Wachovia Corp. and
Wells Fargo & Co. -- for which studant lending is a small comer of their overall business.
For them, the departure of other lenders could be a potential boon.
AP Business Writer Alan Zibel contributed to this report.
U.S. Looks At Buying Sla~dertt Loans (UPJ)
<htrp://.wyv.w.upi..e~m.~NewsTmck;Business/2~/~4[~/us-~ks-~t-buying-student~ans/8~2~/> UPI, April I l, 2008
WASHINGTON, April 10 (UPI) --The U.S, Department of Education may be authorized to purchase federally guaranteed
studenl loans to restore stability in the lending program, officials said.,
Federally guaranteed loans have become harder to find, as many lenders have dropped out oft.he business in recent weeks,
The Washington Post reported.
The House Education Committee, chaired by Rep. George Miller, D-Calif., approved a measure Wednesday that would allow
the Education Department to purchase loans. Sen, Edward M. Kermedy, D-Mass., has introduced a similar bit[ in the Senate.
"The turmoil in the credit markets has become a crisis," Kenned)’ said. "The question for Congress is how to prevent it from
becoming a crisis for students."
Since October, when a cut in federal subsidies for student loan leaders took effect, 12 percent of lenders of federally
guaranteed loans have dropped out of the business, the Post reported.
The problem escalated when the auction-rate securities market, a critical source of funding, collapsed this winter,
In purchasing loans, the Department of Education would add liquidity to the market, helping lenders weafi~er through the
economic downturn,
"This is the equivalent of a hurricane coming, and staging food and water at the site," Education Secretary Margaret Spellings
said.
4130/2008
Page 13

From: Private - Spellings, Margaret
Sent: Monday, March 31, 2008 3:49 PM
To: ’estefanik@who.eop,gov’
Subject: Fw: WH summit on faith-based schools agenda
Attachments: WH faith-based schools Agenda 3-27-08 (2).doe
(b)(5)
Page 21 Page 1 of 3

Sent: Monday, February 25, 2008 10:42 AM
To: ’Kaplan, Joel’; ’Sullivan, Kevin F. (WHO)’; ’Zinsmeister, Karl’
Subject: FW: Kevin Carey = Hero
(b)(6) ..................................
Sent: Monday, February 25, 201:}8 9:41 AM
TO: Private- Spellings, Nargaret
Ec: Tucker, ,Sara (Restricted); Dunn, David; Oldham, Cher,/I; Schray, Vickie
$ubject: Kevin Carey = Hero
TIIE CHRONICLE OF HIGI’IER EDL-CAT[fJX
Commentary
http:l/chronicle,com/weekly/v54/i25/25aO3802.htm
From the issue dated February 29, 2008
We Need to Sever the Iron Bond Between

Price and the Perceived Quality of
Colleges
By KEVIN CAREY
This month the U.S. House of Representatives voted to commit billions of new dollars 1~ student financial aid
and impose a spate of new regulations on colleges and universities, all in the name of holding down the ever-
growing cost of higher education. Unfortunately, the House also deep-sixed the onty new program coming out
of Washington that might actually restrain costs on a long-term basis: the secretary of education’s recent push
to focus institutional accreditation on student learning.
That’s because the college-cost crisis is fundamentally not about a tack of money --it’s about a lack of
information. And the Washington higher-education lobby seems bound and determined to keep certain kinds of
higher-education information firmly under wraps.
In passing a new version of the federal Higher Education Act, the House expanded eligibility for Pell Grants.
tightened federal regulation of pdvate student loans, increased transparency in textbook pricing, and required
colleges to report how much of their endowments lhey spend on student financial aid. -[hat came on the heels
of the multibillion-dollar expansion of student aid and the reduction in student-loan interest rates passed in 2006
and 2007. The House also required that institutions with the biggest tuition increases be publicly identified and
forced to create "quality-efficiency task forces" charged with finding oul why the college made the decision it
iust made. Such an unprecedented federal intrusion into college pricing and institutional management reflects a
growing frustration among lawmakers across the political spectrum with the seemingly endless cost increases
4/30/2008
Page 22 Page 2 of 3
in higher education.
But none of those provisions will do much to lower prices for students in the tong run. While increased Poll
Grants and reduced interest rates will undoubtedly help many needy students afford college -- an extremely
worthwhile goal -- they also amount to throwing more public dollars into an industry with a bottomless appetite
for funds.
The "shaming" function of identifying price increasers wil! be both perverse and ineffective, essentially
rewarding institutions that increased tuition before the law went into effect while unfairly tarring institutions that
raise tuition for legitimate reasons. With a college degree now.an unquestioned requirement for high-paying
jobs, and few ways for new competitors to enter the traditional four-year market, there seems to be no practical
limit to how much colleges can boost prices. In trying to fix the problem by focusing, on simple prices and
available financial-aid resources, Congress is fighting a battle with rising costs that it ran never win.
Th~ missing element here is value: price as it relates to qualib/. Because there are no public, easily compared
measures of how well individual institutions educate their students, the denominator of the value equation is
missing. As a result, price and qualib/in higher education are assumed to be th~ same., lnstJtutions looking to
climb the prestige ladder have a clear, time-tested formula to follow: Raise as much money as possible from
every source available, and spend it on ,,. pretty much anything.
The fact that increased prices go hand in hand with more-selective admissions is all the better, since that leads
to increased status, wealthier alumni, and higher rankings in U.S. News & World Report. In a normal market,
businesses can cut prices to attract more customers. In the higher-education market, colleges have found that
cutting tuition reduces demand, because the lower price signals lower prestige -- and thus value -- to
prospective students. Ten percent of the U.S. News rankings are based on spending per student, which means
that a college that became more efficient and passed part of the savings on to its customers in the form of
reduced prices would see its status decline. Unsurpdsiagly, that hardly ever happens. If, by contrast, higher-
education leaders had access to information that allowed them to lower or restrain pdces while independently
confirming their quality to the market, they would have muGh stronger incentives to disengage from the
pricedsetectivi~/arms race and focus on value insteed.
The only long-term solution to the cost crisis in higher education, therefore, is to sever the iron bond between
price and perceived quality. That’s one of the reasons Secretary of Education Margaret Spellings has spent the
last two years pushing for more transparency in higher-education outcomes and a greater focus on teaching
and learning -- first through the recommendations of the Commission on the Fulure of Higher Education, and
then through an effort to get accreditors to enforce some kind of objective standard of academic quality. That is
wholly reasonable. Taxpayers provide tens of billions of dollars to colleges and universities through financial aid
and tax preferences, It is not too much to ask that their voluntary system of quality assurance include some
kind of credible process for ensuring that those dollars are well spent -- or at least not very badly spent.
Currently, the odds that a college or university will lose its accredil~tion for purely academic reasons are even
lower than the odds that it will reduce prices over the long term, i.e., virtually nit.
But the accreditors and the powerful Washington higher-education lobby have pushed back with a vengeance,
supporting legislative language -- now enshrined in the version of the Higher Education Act that will soon be
the basis of final negotiations between the House and the Senate -- that would prohibit the secretary from
trying to ensure that higher education’s principal process for quality control actually focus in a meaningful,
objective way on sludent learning, Elsewhere in the bill, there is language-- also backed by influential
members of the higher-education lobby -- that would prevent the de partment from modernizing its system of
collecting institutional data to include privacy-protected student information.
The pattern is clear: Every time the Department of Education tries to act on its obligation to provide the public
with information that might raise uncomfortable questions about institutional quality, higher-education lobbyists
push to make it illegal,
To be sure, some higher-education organizations are making good-faith attempts to embrace the ideals of
¯ ansparency and accountability, like the voluntary system of accountability recently sponsored by the National
Association of State Universities and Land-Grant Colleges and the American Association of State Colleges and
Uniwrsities. Others, however, have drawn a line in the sand at precisely the point that matters most whoa it
4/30/2008
Page 23 Page 3 of 3
comes to restraining costs: public, comparable measures of quality. Unfortunately, those organizations appear
to be carrying the day on Capitol Hill.
Nobody wants a No Child Left Behind Aut for higher education. Any process of reporting information must
reflect the rich diversity and best ideals of higher leaming. But in the end, the only way to confront the rising
costs that are increasingly putting college out of reach for low-income and middle-income families is to create a
higher-education market where price and qualibi aren’t seen as one and the same.
Escalating pdces aren’t just bad for students; they erode public support for colleges and universities while
provoking bad public policies like the "efficiency task forces." if the higher-education lobby gets its way on
accreditation and public information dudng this reauthoriz~tion of the Higher Education Act, it’s a sure bet that
the next one will feature more of the same: reduced access for students and diminishing support for higher
education. The nation needs more, not less, of both.
Kevin Carey is the research aod policy manager at Education Sector, an independent think tank in Washington.
hitp:!,’¢h ronicle.co m
Section: Commentary
Volume 54, Issue 25, Page A38
c_q~.y_ri~ © 2008 by The Chronicle of ~h~.r. Education

Subscribe I About The Chronicle ~ Conta.c._t us I Terms of use I Privacy_polic.v.
Delicious ideas to please the pickiest eaters. Watch the video on AOL Li~
4/30/2008
Re: ACC meeting Page 24 Page 1 of 4
From: Johnson I11, Clay [Clay_Johnson_lll@omb.eop,gov]

Sent: Wednesday, February 13, 2008 10:t9 AM
To; Private - Spellings, Margaret
Subject: RE: ACC meeting
I(b)(5)
13 ~ [ ~ ’tFrOm’ -Private-- Spelfingsi-h’rarga ret~ ...................

~ / t ~ t~t~ Wednesday, ~brua~ 13, 2008 ~ ~
To: Johnson tlI, Clay
Subj.: Re: ACC mee~ng
(b)(5)
Sent from my BtackBerrg Wireless Device
..... Original Message ....

From: Johnson HI, Clay <Clay_Johnso1LIIl@omb,eop.gov>
To: Private - Spellhags, Margaret
Sent: Wed Feb 13 09:36:31 2008
b)(5) I
From: Private- Spellings, Mm’garet [mailto;](b) (2)

Sent: Wednesday, February 13, 2008 9:35 AM
To: lohnson lII, Clay
Subject: Re: ACC meeting
b)(5)
Sent fi’om my BlackBerry Wireless Device
---Original Message- ....

From: Johnson IH, Clay <Clay_Jolmso~__lII@omb,eop.gov>
To: Slack, Kath~’n B. <Kathryn. B. Stack@omb,eop.gov>
CC: Shea, Robert J. <Robert J, Shea@omb.eop.gov>; Brown, Dustin S. <Dustin_S,_Brown@omb.eop.gov>
Sent: Wed Feb 13 08:58:10 2008
4/30/2008
(b)(5)
From: Stack,. Kathrya~ B.

Sent: Tuesday, February 12, 2008 7:21 PM
To: Johnson III, C]ay
Cc: Shea, Robert J.; Brown, Dustin S.
b)(5)
4/30/2008
(b)(5)
From: Johnson I[!, Clay

Sent: Tuesday, February 12, 2008 5:31. PM
To: Stack, Katltryn B.
Subject: ACC meeting
(b)(5)
4/30/2008
Page 27 Pag~ 4 of 4
4/30/2008
Page 28 Page I of 2

From: oosjbb [cosjbb@who.eop.gov]
Sent: Wednesday, February 06, 2008 9:43 PM
To; Private - Spellings, Margaret
Cc: Singh, Michael G.; Wilmoth, Benton M.
Subject; FW: letter to Mr. Joshua Bolten From Dubai
(b)(51
Josh
From= l~lten, ]oshua 8,

Sent-’ Wednesday, February 06, 2008 9:30 PH
To; ’Elias Bou Saab’
~3c-" Sutphin, Paul R; Singh, IVlichael G.; Wilmothl Benton
Subject: RE; letter to Hr..Joshua Bolten From Dubai
Dear Nr. Bou Saab,
Thank you for your kind note and your invitation to Secretary Spellings to speak at AUD’s
commencernenL in May. I will pass the invitation on to her directly, with my encouragement to
attend if her schedule permits -- particularly In light of the warm hospitality we enjoyed and the
exciting dynamism we experienced during President Bush’s visil: to the UAE last month.
Best regards,
Joshua Bolten
From: Elias 8ou Saab [mailto:ebouSaab@aud.edu]

,Sent; Wednesday, February 06, 2008 7;53 AM
1"o= i~lten, Joshua B,
tJc; Sutphin, Paul R
Subject; letter to Mr, 3oshua Bolten From Dubai
Dear Mr. Bolten,

It was certainly a great pleasure meeting you in Dubai during the Middle East Tour; we truly enjoyed the privilege
of having spent some time with President Bush and was able to have some discussions at Burj AI Arab.
I would like to take this opportunity to reiterate what we briefly spoke about regarding Secretary Margaret
Spellings and our interest in the "Spellings Report". We believe that Secretary Spellings would be of great
inspiration to us and we would most certainly benefit from her expensive experience and her proven leadership in
education reforms.
4/30./2008
Page 29 Page 2 of 2
As such, we are ~honored 4o officially invite Secretary Spellings to be the Keynote ,Speaker at the eleventh
commencement exercises of The American University in Dubai on Monday, May 19th 2008.
The university’s community appreciates her personal successes and supports her in her quest to "Leave No Child
Behind’. Our selection committee has unanimously agreed that Secretary Margaret Spellings most decidedly
personifies the values we seek to embrace.
Hosting Secretary Spelling in Dubai would not only honor us, but would in our opinion add more value to the
growing relationship be~een our two regions.
For your reference, forrner Keynote Speakers have been President William Jefferson Clinton, Secretary James
Baker, US Congressmeln Ray Lahood, Senator George Mitchell and US formal presidential candidate Steve
Forbes etc..
As in the past, the ceremony will be held under the patronage and presence of His Highness Sheikh Mohammed
Bin Rashid AI-Maktoum, Vice President and Prime Minister o1’ the United Arab Emirates and Ruler of Dubai.
I look forward to seeing you again and I reiterate how delighted the University community would be to host
Secretary ,Spellings at our most important yearly function.
Warmest regards from Dubai and hope to hear back from you soon.
Elias N. Bou Saab
Executive vice Presider~t
The American University in Dubai
T÷971 4 3t8 3110
F +871 4 399 8500
~:,a....u_d. edu
4130/2008
Page 30
Pr~ivate - Spellings, Mar~taret

From: Private.- Spellings, Margaret
Sent: Friday, February 01, 2008 3:06 PM
To: ’kzinsmeister@who. eop.gov’
Subject: Fw: AP Stoh/just posted on Budget
Sent from my BlackBerry Wi~eless Device

From: Yudof, Samara
To: Private - Spellings, Nargaret
Sent: Frl Feb 01 15:02:40 2008
Subject: Fw: AP Story just posted on Budget
Sent from my BlackBerry Wireless Handhold
..... Original Message ......

From: Colby, Chad
To: Dunn, David; Gribble, ~ily; Yudof, Samara; Maddox, Lauren; ~uzmich, Holly; Skandera,
Hanna; Skelly, Thomas
CC: Ridgway, Marcie; Bsaton, Neredith
Sent: Fri Feb 01 14:07:06 2008
Subject: AP Story just posted on Budget
By NANCY ZUCKERBROD
AP Education Writer
WASHINGTON (AP) - In a year when many federal programs are in line for hefty budget cuts,
President Bush is asking Congress to largely !ears education alone, and seeking more money
for a controversial reading initiative.
The White House budget proposal being sent to Congress cn Monday ~sks la~akers to sign
off on nearly $60 billion for education programsr according to a copy of the Education
Department budget obtained Friday by The Associated Press. The amount e~aals what is being
spent this year~ without an increase to keep pace with inflation~
~mong Bush’s proposals for the upcoming budget year: a push for Congress to restore $600
million lawmakers cut from a reading program that serves low-income children.
The program, called Reading First, recently has received favorable reviews from state
officials and others. But it also has been criticized by feder~l investigators for
conflicts of inherest and mismanagement.
Education Secretary Margaret Spellings said in a telephone interview Friday that there
were problems with the program initially but that they had been addressed and that reading
gains were being made by students served under the initiative.
The ach~inistr~tion also is renewing a push for a $300 million propos~l that would allow
poor students ~o transfer to bett~r public schools outside their district or to private
schools, if their schools failed to meet benchmarks under the 2002 No Child Left Behind
law or had low graduation rates.
Democrats are staunchly opposed to using federal dollars for private school vouchers and
have rejected similar administration proposals in the past.
Spellings said it’s unfair to force kids to stay in txoubled schools. "’When th÷y are
broken Chronically, we have to do something different,’’ she said.
Title I grants, the main source of federal funding for poor students, would get $14.3
billion, about a 3 percent increase from this year, under the administration’s proposal.
About half of the nation’s schools, and qwo-thirds of elementary schools, receive Title [
funding.
The administration proposes %o spend ~bout $~1.3 billion for special education services
for students with disabilities, an insre~se of ro,lghiy $330 million.
A program tkat helps fund merit-pay plans for teachers who boost student ~est scores would
Page 31
double, from about $i00 million to $200 million. Teachers unions oppose linking paychecks
to student scores.
In all, the administration is seeking to eliminate 47 education programsr to ~ave about
$3.3 bi!lion. The administration says the progr_ams are too small to have a national
impact, aren’t effective for other reasons, or get money from other sources.
They include programs to encourage arts in schools, bring low-income students on trips to
Washington, and provide mental health services.
"’Obviously, cuts are dafficult to make,’’ Spellings said. "’But I think this is a
responsible budget that sets priorities and that is aligned with the core mission and the
core ~ocus of No Child Left Behind.’’
The Education Department also administers programs that help students and their families
pay for college.
The presidenc is asking Congress to approve an increase of about $2.6 billion for the Peli
Grant program for low-income college studen%s. He is seeking to eliminate other programs,
including the Perkins Loa~ prograal, ~vhich provides low-intexest loans to needy students.
Chad Colby
Office of Communications and Outreach
~2~2~ 4~1-44N1
Page 32
Priva, te - Spellings, Mar~lar,e~

Sent: Sunday, January 06, 2008 3:43 PM
To: ’Kevin_R_Suliivan@who, eop. gov’
Subject: Re: Statement on No Child Left Behind - Chicago, illinois #10
b)(5)
Page 38
Sent: Thursday, November 01, 2007 7:21 PM
To: ’catherine_martin@who.sop.soy’
Subject: Fw: Houston Chronicle (Ounharn): Spellings hints at possible run for statewide office in Texas
Sent from my BlackBerry wireless Device

: ..........
Sent; Thu Nov 01 19:19:38 2007
Subject: Ew: Houston Chronicle (Dunhaml: Spellings hints at possible r~n for statewide
office in Texas
Sent from my BlackBerry Wi~eless Device

From: Yudof, Samara
To: Private - Spellings, Margaret; Dunn, David; Kuzmich, Holly; Mcnitt, Townsend L.;
Maddox, Lauren; Halaska, Terrell
Sent: Thu Nov 01 18:~7;55 2007
Subject; Houston Chronicle (Dunham): Spellings hints at possible run for statewide office
in Texas
Nov. I, 2007
Spellings hints at possible run for statewide office in Texas By RICHARD
Copyright 2007 Houston Chronicle Washington Bureau WASHIHGTON -- Education Secretary
Margaret Spellings today opened the door -- at least a crack -- to a potential run for
statewide office in Texas following the conclusion of Fresident Bush’s second term in
2009.
"I haven’t ruled anything in or out, honeszly," Spellings, ~ho grew up in Houston, told a
breakfast meeting with reporters. "I love public service
I love my state."
Spellings, 89, who has been Bush’s closest adviser on education issues for
13 years, is a potential c~ndidate for Texas governor, comptroller or U.S.
Senate.
The governor’s job is next up for election in 2010, as is the comptroller’s spot. The
state’s senior senator, Kay Bailey Hutchison, already has announced that she will not run
for re-election im 2012 and could leave the seat earlier if she decides to run for
governor in 2010.
While Spellings appeared willing to muse publicly about her political future, she stopped
well short of committing to any campaign effort until after Bush lea~es office in 15
months.
"All of those sorts of th~ngs are light years away," she said. "I am busy until noon on
Jan. 20, 2009."
The ~epublican field for 2010 has yet to take shape, though Hutchison, second-term Gov.
Rick Perry and Lt. Gov. David Dewhurst are potential powerhouse contenders for governor.
The comptroller’s job could open up if incumbent Susan Combs decides to seek higher
office.
Democrats are talking up Houston Mayor Bill White as their best shot at. regaining the
governor’s mansion after 16 years of £epub!ican domination.
White, heavily favored for re-election on Tuesday, has said he is focusing on governing
the city.
A~0ng the possible GCP candidates to replace Hu[chison in the Senate are Railroad
Commissioner Michael Williams, former Tszas Secretary of Stat~ Roger Williams, Co.~!~s or
Perry.
Page 39
Spellings, a folksy, blunt-spoken public figure who graduated from Sharpst0wn High School
and the University of Houston, is the driving force behind the Bush’s administration’s No
Child Left Behind school reforms. She served as the president’s chief domestic policy
adviser for four years before replacing former Houston school superintendent Rod Paige as
Education Secretary in 2005.
While she has never run for public office before, she said TOday that such a prospect is
intriguing.
"Yes, it’s an option," she said. "Everything’s an option."
After Bush leaves office, she said she will "re~t up and get clear about what !’m going to
do next." She said she would like to "make a little money"
and joked about taking a job "to represent th~ ~nack food associaZiOr," if she did not stay
in the field of education.
If she decided to pursue public office, S~ellings would be helped by her ties to the Bush
political operation, her close friendship i~ith Republican political guru Karl Rove and the
relationships she developed during her years as a staffer in the Texas Legislature and
Governor’s Office.
But the Houstonian faces cha~lenges in a Republican primary, when she could be vulnerable
to attack from hard-line conservatives who re~ent her penchant for bipartisanship and her
occasional political partnerships with liberal Democrats such as Sen. Ted Kennedy, D-
Mass., and House Education Committee Chairman George Miller, D-CaiLf.
"She’d ha~e a very tall mountain to clin~" to win over conservatives, s~id Cathie Adams,
president of the Texas Ea@le Forum. "It would be a hard sel!.
Washington, D.C., doesn’t play very well in Texas."
Cal Jillson, a political science professor at Southern Methodist University, said
Spellings "has a positive reputation coming out of her job," but is politically unknown to
gr~ssroots Republicans.
"There is no question that she would start with very lindted name recognition," he said.
"She’d be lucky if 10% of voters could identi~7 her."
richard.dunham@chron.com
Page 40 Page l of 8

From: Young, Tracy D. [TracLD._Young@who.eop.gov]
Sent: Wednesday, August 29, 2007 6:42 PM
To: Private- Spellings, Margaret; Dunn, David; Kuzmich, Holly; Mcnitt, Townsend L; Halaska,
Terrell; Maddox, Lauren; La Force, Hudson
Young, Tracy D.; Beaton, Meredith
Subject: NOLA visit update and remarks ! list of meeting folks
Attachments: 8 29 07 White House Fact Sheet.pdf
Nonresponsive
Excerpt: ...But let me talk about the school system. There is nothing
more hopeful than a good school system. And I firmly believe that
excellence in education is going to be the leading edge of change for
New Orleans. Margaret Spellings, who is the Secretary of Education,
understands this concept...
THE WHITE HOUSE
Office of the Press Secretary

(New Orleansr Louisiana)
For Immediate Release August 29, 2007
REMARKS BY THE PRESIDENT

ON REBUILDING EFFORTS IN NEW ORLEANS
Dr. Martin Luther King, Jr. Charter School

for Science and Technology
New Orleans, Louisiana
9:40 A.M. CDT
THE PRESIDENT: Madam Principa!, thank you for having us, Laura
and I are honored to be here. During the moment of reflection, it is
a time to ask for the Almighty’s blessings on those who suffered,
4/30/2008
Page 41 Page 2 of~
those who lost a loved one, and remember that there’s always a more
blessed day in the £uture. And that’s what we’re here to celebrate,
a more blessed day. And there’s no better place to do so than in a
place of hope, and that’s the school. And so we’re honored that you
would welcome us. We love being with your teachers and your
students. Thanks for being here.
Governor, thanks for coming. Governor Kathleen Blanco is an

educational reformer. She has done what leaders are supposed to do -
- when she sees a problem, address them head on, and pass law and
budget necessary to achieve educational excellence. And you’ve done
so, Governor. I congratulate you for your leadership.
I’m proud to be with the Congressman. Jeff, [sic] thanks for

coming. You care deeply about the students of this district, and
we’re glad you’re here.
I do want to thank Don Powell for joining us. Don is the

recovery man who represents the White House and the administration
here in Washington -- from -- in Louisiana from Washington. And I
thank you for your service.
i appreciate the state education Superintendent Pastorek.

Superintendent, thanks for coming. He’s got a vision of excellence
for the schools in New Orleans and for Louisiana. He shared that
vision with us earlier.
I appreciate Paul Vallas, Superintendent here in New Orleans,

for his willingness to take on this challenge. He doesn’t view it as
a problem, he views it as an opportunity. I first met Paul in
Chicago, where he was an advocate then like he is today of high
expectations and strong accountability to make sure every child
learns.
I appreciate Hilda Young, Sister Finnerty -- she’s the

Superintendent of the Catholic School System here. I thank all the
teachers, students and parents who’ve joined us.
Hurricane Katrina broke through the levees, it broke a lot of

hearts, it destroyed buildings, but it didn’t affect the spirit of a
lot of citizens in this community. This spirit can be best reflected
when you think about a principa! who refused to allow a school to be-
destroyed by the flood, and worked hard to not only rebuild the
building, but keep the spirit alive. Or it can be reflected in the
fact that teachers commute. We met a 7th grade teacher today who
commutes 30 miles every day to be able to impart knowledge and to
share wisdom with students who will be leading New Orleans in the
future.
And so it’s -- my attitude is this: New Orleans, better days
4130/2008
Page 42 Page 3 of 8
are ahead. It’s sometimes hard for people to see progress when you
live in a community all the time. Laura and I get to come -- we
don’t live here, we come on occasion. And it’s easy to think about
what it was like when we first came here after the hurricaner and
what it’s like today. And this town is coming back. This town is
better today than it was yesterday, and it’s going to be better
tomorrow than it was today. And there’s no better place to find that
out than in the school system.
First, I do want to thank our fellow citizens for their

generosity when it comes to helping New Orleans and the Gulf Coast
rebuild. The citizens of this country thus far have paid out $114
billion in tax revenues -- their money -- to help the folks down
here. And I appreciate the Governor. Last night we went to -- we
had a nice dinner here in New Orleans -- by the way, have yet to
recover. (Laughter.) Dooky Chase’s. If you want to eat a lot of
good food, go there. But during that dinner, the Governor expressed
her appreciation to the taxpayers of ~erica. In other words, the
taxpayers and people from all around the country have got to
understand the people of this part of the world really do appreciate
the fmct that the American citizens are supportive of the recovery
effort.
Of the $114 billion spent so far -- and resources allocated so

far, about 80 percent of the funds have been disbursed or available.
And, of course, Don and I will try to work through the bureaucracy in
Washington, just like folks down here are trying to work through the
bureaucracy to make sure that there are adequate plans for the
money. And so we’re working through this kind of collaborative
effort of federal, state and local folks working together to make
sure that taxpayers’ money is spent wisely on priorities.
But there’s been a commitment, and a strong commitment. A lot

of people down here probably wondered whether or not those of us in
the federal government not from Louisiana would pay attention to
Louisiana or Mississippi. In other words, it’s one thing to come and
give a speech in Jackson Square; it’s another thing to keep paying
attention to whether or not progress is being made. And I hope
people understand we do, we’re still paying attention. We
understand.
One of Don Powell’s jobs is to make sure that the federal

government understands the hurdles that remain for recovery. One
hurdle was the levee system; We fully understand that New Orleans
can’t be rebuilt until there’s confidence in the levees. It’s one
thing to plan; it’s another thing to convince people that the levees
will work. And there’s been a lot of effort by the Army Corps of
Engineers. As a matter of fact, Don Powell announced t5e other day
that we’re going to complete work to complete storm and flood
protection infrastructure to a hundred-year protection level by
413012008
Page 43 Page 4 o1:’8
2011. And that’s a commitment, and it’s an important commitment to

make.
we’re also going to fund a $1.3 billion network of interior

drainage projects to ensure the area has better hurricane
protection. In other words, there’s federal responsibilities; the
levee system is the federal respQnsibi!ity,~ and we’ll meet our
responsibility. And obviously we want to work together with the
state and local governments, as well. Obviously it’s a collaborative
effort.
One of the things that Kathleen and I have been working on a

long time is wetlands restoration in order to provide more protection
for the folks dowm here. We got a good bill out of the Congress and
there’s an opportunity now for Louisiana to have the cash funds
necessary to begin a serious and substantive wetlands restoration
program.
I appreciate the fact that AI Gonzales was down yesterday,

talking about how the federal government can help on local law
enforcement matters. I firmly believe local law enforcement is just
that -- local. It requires a commitment by the local folks to hold
people to account for crime. But the federal government can help.
And so A1 was down yesterday, announcing and opening a family justice
center to help the victims of domestic violence. The VA is going to
build a medical center in downtown New Orleans as part of the federal
commitment to helping people here recover.
And so I come telling the folks in this part of the world that
we still understand there’s problems and we’re still engaged. And
Don will continue to make sure that we listen and respond when
possible.
But let me talk about the school system. There is nothing more
hopeful than a good school system. And I firmly believe that
excellence in education is going to be the leading edge of change for
New Orleans. Margaret Spellings, who is the Secretary of Education,
understands this concept. The government has provided Louisiana with
more than $700 million in emergency education funds to help not only
the public school system, but also the parochial school system. And
that’s money well spent. It’s money spent on construction, it’s
money spent on creating incentives for teachers to return, it’s money
incent to make sure children who went to other school districts --
those school districts got reimbursed. It was good money spent,
because education needs to be the number-one priority of the state,
just l£ke Kath!een Blanco has made that the priority.
New Orleans is about to open 80 schools -- nearly 80 schools

this fall. That’s a remarkable achievement -- nearly half of which
happen to be charter schools. I believe in freedom to manage and
4~0Q008
Page 44 P~,~e 5 of 8
accountability to make sure everybody learns. And that’s the essence

of the charter school movement: freedom to manage, but
accountability to make sure no child gets left behind~
And that’s the spirit of the Superintendent -- both

Superintendents here. They believe in high expectations and
measuring. It’s what I call challenging the soft bigotry of low
expectations. If you don’t believe that somebody can learn you’ll
set low expectations. If you believe every child can learn you’ll
raise the expectations and then you’ll insist upon measurement to
make sure that each child is tracked, that we disaggregate results.
That’s a fancy word for making sure that we understand whether or not
each schoo! is meeting certain standards, and then help for those
that aren’t, changes for those that aren’t, and praise for those that
are. And we’re at MLK and we’re here to heap praise. (Applause.)
This is the first public school to open in the Lower Ninth

Ward. It is a tribute to volunteers, concerned parents and citizens
who care about education. It is a tribute to the fact that there’s
teachers who taught in makeshift classrooms during renovations -- in
other words, they care about the b~ildings, but they care more about
education and were willing to teach no matter what the circumstances
may be. And it’s a tribute to a principal who had a clear vision.
{Applause.) So we’re here to herald excellence and to thank the good
folks in this community for supporting this school, with the
understanding that this school, is one of the great beacons for hope.
I want to thank the educational entrepreneurs who’ve joined us,

those who are in the process of helping find new teachers. Teachers -
- there was a great concern, obviously, when the schools were
reopening, whether or not there would be enough teachers. And people
responded. People responded to the call to help provide at a
grassroots level the support necessary to encourage people to teach.
Teach NOLA is such an example. If you’re interested in being a
teacher from around the country, get on the Internet on Teach NOLA
and you’ll find opportunities to come here to New Orleans to teach.
We’ve got somebody from Washington who came down to help rally
support for the school system. Teach For America is active in this
community. The charter school system, by the way, spawns all kinds
of different opportunities for people to be involved with schools.
think of KIBP McDonogh 15 School. It’s a high standard school. It
is a school that says, if there are rules that prevent us from
teaching we’ll try to figure out how to get around them, because what
matters more than anything is teaching the child.
I was impressed that when they got in the school system, when
they first got going in this particular school, they extended the
school day with class every other Saturday. They said, what does it
take to catch up? What do we need to do to meet standards? And the
4/30/2008
Page 45 Page 6 ofg
principa! -- the former principal pnt it this way: "It took a

hurricane to speed up and really jump-start the reform efforts in New
Orleans." In other words, the hurricane was disastrous for many
reasons, but it also gave a great opportunity for a new way forward,
seized by the Governor and the Superintendents and the principals, by
the way.
Laura and I care a lot about the libraries. That’s why we’re
dedicating books. We’re proud to be a part of the rebuilding of this
library. Laura has got a foundation and has established the Gulf
Coast Library Recovery Initiative, all aiming to make sure that these
libraries are stocked with books. You ought to apply to her
foundation, by the way. (Laughter and applause.) I think you’ll
have a good opportunity. I’ll try to work it for you. (Laughter.)
I’ii never forget, one time when i was governor of Texas, a

woman looked at me and she said, "Reading is the new civil right."
It had a profound impact on the policies that we have pursued since
I’ve. been in public office, and Laura has pursued as a lifelong
reader. And that person was right. We’ve got to star~ making sure
those youngsters can read at grade level and stay reading at grade
level. No better way to send the message that that is a commitment,
hy making sure the libraries are stacked.
I want to share a story with you about a woman named Rebecca

Jeanfreau, who’s here. Where are you, Rebecca? There you go, thanks
for coming. She was a Boston architect. She studied to become an
architect and was in a firm. But she is from New Orleans. And she
started thinking about the community she loved. And so she said, "I
need to act and I’m ready to act." And she came back to be a
teacher. She left a promising career as an architect to come back to
a community that is dear to her heart.
It’s that spirit, by the way, that is going to allow me to

predict with certainty New Orleans’ better days are ahead for the New
Orleans people. Z mean, this is -- and there are stories like
Rebecca all over this community, people who have heard a call to come
back and help. No better way to help, by the way, than to teach.
But there are all kinds of different ways people can help the
people of New Orleans and the Gulf Coast recover. You can contribute
to the NGOs or the local organizations that are still helping heal
hearts. You can help with sending books to schools. You can get on
websites to determine where the needs are. If you’re a citizen of
this country who cares about making sure this part of the region
fully recovers, please participate. Please find a way to help and
continue to do so.
So, Governor, I’m honored you’re here. Laura and I are thrilled
to be in this ~chool. We’re really pleased that MLK S~hool has given
4/30,’2008
Page 46 Page 7 of 8
us an opportunity to herald excellence. We care deeply about the

folks in this part of the world. We ask for God’s blessings on the
families who still hurt and suffer. And we thank God for the
recovery efforts that thus far have taken place.
Thank you for your time. (Applause.]
END 9:55 A.M. CDT
THE WHITE HOUSE

(New Orleans, Louisiana)
For Immediate Release August 29, 2007
Event Backgrounder:
The President and Mrs. Bush participate in a Meeting with Louisiana
Education Leaders
BACKGROUND
The President and Mrs. Bush will meet with Louisiana Education
Leaders at the Dr. Martin Luther Kirlg, Jr. Charter School for Science
and Technology in New Orleans, Louisiana.
The Dr. Martin Luther King, Jr. Charter School for Science and
Technology is the first public school to reopen in the Lower Ninth
Ward since Hurricane Katrina, and was re-dedicated in a ceremony on
June i0, 2007. The visit and meeting will allow the President mnd
Mrs. Bush an opportunity to see how New Orleans is being rebuilt
after Hurricane Katrina. During his Statement at the school, the
President will highlight the importance of education in rebuilding
the city.
PARTICIPANTS
Chairman Don Powel!, Federal Coordinator, Office of Gulf Coast

Rebuilding
Governor Kathleen Blanco
Cengressman William Jefferson
Doris Hicks, Principal, Dr. Martin Luther King, Jr. Charter School
for Science and Technology
Hilda Young, President, Friends of King Board
4130/2008
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Page 48
Privala. ,, ,,,,,_ - S p eli ings, Margaret
From: Zinsmeister, Karl [Karl_Zinsrneister@who.eop.gov]
Sent: Thursday, August 09, 2007 12:26 PM
To: Private - Spellings, Margaret
Kaplan, Joel
Subject: RE: Accountability 101: State Colleges Prepare To Measure Their Own Performance (WSJ)
Margaret: I’ll _forward on, Nonresponsiv~~a,~ks fo_~ :hi~k.~~g of

~arZ
...... Origina! Message .....
Thursday, August 09, 2007 Z2:23 PN

To: Zinsmeister, Karl; joeld.kaplan@omb.eop.gcv
Subject: FW: Accountability i01: State Colleges Prepare To Measure Their Own Performance
(wsJ)
Wanted to make sure you saw..
..... Original Message.
¯ ]\~nt: Thursday, August 09, 2007 6:09
To: scott m. stanzel@who.e0p.gov; cheryl.oldham@who.eop.gov; kristin.conklin@who.eop.gov;
vickie.schray@who.eop.gcv; Tucker, Sara (Restricted}; Manning, James; Beaton, Meredith;
Briggs, Kerri; Ruberg, Casey; Colby, Chad; Williams, Cynthia; Dunn, David; Dorfman,
Cynthia; Dunckel, Denise; Evers, Bil!; Gribble, Emily; Kuzmich, Holly; La Force, Hudson~
Lenders, ]hzgela; MacGuidwin, Katie; Maddox, Lauren; 9rivate - Spellings, Margaret;
McGrath, John; Mesecar~ Doug; Moran, robert; Neale, Rebecca; Oldham, Cheryl; Reich, Heidi;
rob Saliterman; Yudof, Samara; Sch~essele, Marc; Haiaska, Terrell; T~ner, Jana; Mcnitt~
Townsend L.; Young, Tracy; Ditto, Trey; Tucker, Sara Martinez; Wurman, Ze’ev
Subject: Accountability I0~: State Colleges Prepare To Measure Their Own Performance (WSC)
Accountability i01; State Colleges Prepare To Measure Their Own Ferforz~ance August 9,
2007; Page A2 The ~merican medical and higher-education systems regularly boast, with some
justification, that they are the best in the world, But in recent years they have been
forced to confront tough questions: How do we know we’re getting our money’s worth? How do
you know you’re doing such a good job? Is there some way to measure your performance that
the rest of us can understand?
In health care, publicly available measures of quality are increasingly common. Some were
forced on doctors and hospitals by insurers. Some were promoted by those ~-ho want
Americans to shop for health care the way they shop for cars. Some were pushed by insiders
looking for levers to improve qila!ity. Then the spotlight moTed to colleges.
President B~Sh’s education secretary, Margaret Spellings, and Texas investor Charles
Miller, whom she picked to lead a co~miss.i0n on colleges, beat the higher-education
establishment with a bat. Having imposed testing on K-12 schools through the No Child Left
Behind Act, Ms. Spellings and Mr. Miller a few years ago began pushing colleges to measure
and report performance. "If the academy doesn’t do it," Mr.
Miller says, "it’s going to be done for them."
Colleges have, so far, successfully fought laws or regQlations that prescribe testing. But
they know they need an offense. Now the state schools -- the National Association of State
Universities and Land-Grant Co!leges (big research universities) and the 2~erioan
Association of State Colleges and Universities (the rest of them) -- are about to take a
significant step.
(Full disclosure: The NatiQnal Association’s president is Peter McPherson, who is also
chair~an of the board of now Jones & Co., publisher of this newspaper.l The state schools
are designing a template for college Web sites that, for those that opt to use it, shows
in standard format: (i) details about admission rates, costs and graduation rates to make
comparisons simple;
(2) results from surveys of s~udents designed to measure sazisfaction and engagement, and
(3) results of tests given to ~ representative sample of students to gauge not hew smart
they were when thsy arrived, but how much [hey learned about writing, analysis and
problem-solving between freshman and senior years. The last one is the biggie,
Participating schools will use one of three LosEs to gauge the performance of students
handle. One test, the Collegiate Learning Assessment, gives students some circumstance and
a variety of information about it, and asks for short essays (no multiple choice) on
solving a problem Or analyzing a scenario. Under the state schools’
proposed grading scale, ?0% of the schools will report that students did "as expected,"
given their SATs. ~ additional 15% ~ill report they did better 0r much better than
expected, and 15% will report students did worse or much worse than expected. Even Mr.
Miller is
impressed: "They’re focused on the right thing, doing it ~he right way,"
he says. It was a ~orced conversion for many. "l don’t think this would have occurred
without external pressure for greater transparency and accountability," says William
Kirwan, chancellor of Maryl@nd’s university system- There are issues.
Faculties remain suspic~ous that this is a step toward slavishly teaching tc the test or
constraining what they can teach. Available tests are young and not completely proven.
Persuading students, particularly seniors, to take the tests and take them seriously is
challenging. Many private colleges, less sccustomed to scruniny from legislators~ argue
that no test can meaningfully measure what’s going on in institutions that range from
smal! church colleges to Ivy League powerhouses. But for~er classics professor Wo Robert
Connor, now head of the Teagle Foundation, which is hel~ing finance the state schools’
effort, says: "A year ago, or eyed SiX months ago~ the idea ef greater accountability had
little traction in higher education. The status quo was just fine. Now a consensus seems
to be emerg~ngo..that colleges and universities need to provide more information about the
outcomes." Dan Fegel, presiden~ of the University of Vermont ~nd an early advocate for
greater accountability, argues that all this is a necessary response to widesprmad public
concern "that higher ed costs a lot and nobody is sure it’s really worth it."
But be argues that isn’t the sole reason: "We have a profound ethical obligation to ensure
that our students learn most things that we are trying to teach them." (That’s a hmrd one
for skeptical faculty to
rebut.) Lawrence Summers, Harvard University’s former president, is also a fan. Not only
are these measures "a counterweight to what is otherwise the overwhelming tendency for
universities to be accountable only to their faculties," but they are crucial to
self-improvement: "Unless you have some way of noticing when you are doing a better job of
educating, you’re not likely to do a better job of educating," he says. Assessing
individual performance, of course, isn’t new to universities; that’s what exams are
supposed to do. But measuring a college’s performance and publishing the results is a
chenge, one nhat might prod the best higher-ed system in the world to get better. "Few
universities sit still with consistently bad football teams," Mr.
Summers says. "Why should they sit still with consistently bad results in educating and
satisfying students?" Write to David Wessel at capital@wsj.c0m
Take the Internet to Go: Yahoo!Go puts the Internet in your pocket:
mail, news~ photos & more.
http:/imobile.yahoo.eom/gc?refer=IGNXIC
Page 50
.Private- Spel!,!n,~,s, Margaret , .......

From: Pdvate - Spellings, Margaret
To: Joel Kaplan ~Kaplan@who.eop.gov)
Subject: FW: Accountability 101: State Colleges Prepare To Measure Their Own Performance (WSJ)

From; Private - Spellings, Margaret
TO: ’Zinsmeister, Karl’; ’joel~,kaplan@omb.eop.gov’
Subject: FW: Accountability 101: State Colleges Prepare To Measure Their O~in Performance
(WSJ)
Wanted to m~ke sure you saw..

From: katherine mciane [mailto:
Sang: ~hursday, August 09, 20¢
To: scott m. stanzel@who.e0p.gov; cheryl.ol~qam@who.eop.gov; kristin.conklin@who.eop.gov;
vickie.schray@who.eop.gov; Tucker, Sara (Restricted); Manning, James; Beaton, Meredith;
Brigqs, Kerri; R~berg, Casey; Colby, Chad; Williams, Cynthia; Dunn, David; Dorfman,
Cynthia; Dgnckel, Denise; Zvers, Bill; Gribble, Emily; Kuzmich, Holly; La Force, Hudson;
Landers, Angela; MacGuidwin, Katie; Maddox, Lauren; Private - Spellings, Margaret;
McGrath, John; Mesecar, Doug; Moran, Kobert; Neale, F.ebecca; Oldham, Cheryl; Reich, Heidi;
rob Saliterman; Yudof~ Samara; Scheessele, Marc; Halsska, Terrell; Toner, Jana; MC~itt,
Townsend L.; Young, Tracy; Ditto, Trey; Tucker, Sara Marti~ez; wurman, Ze’ev
Subject: Accountability 101: State Colleges Prepare To Measure Their Own Performance (WSJ)
Accountability 1Ol: Sta~e Colleges Prepare To Measure Their Own Performance August 9,
2007; Page A2 Yhe ~erican medical and higher-education systems regularly boasu, with some
justification, that they are the bes~ in the world. But in recent years they have been
forced to confront tough questions: How do we know we’re getting our money’s worth? How do
you know you’re doing such a good job? Is there some way to measure your performance tha~
the rest of us can understand? In health care, publicly available measures of quality are
increasingly common. Some were forced on doctors and hospitals by insurers. Some were
promoted by those who want .~m~e~iean~ to shop for health care the wa~ they shop for cars.
Some were pushed by insiders lookisg for levers to i~prove quality. Then the spotlight
moved to colleges.
President Bush’s education secretary, Margaret Spel!inq~, and Texas investor Charles
Miller, whom she picked tO lead a ~o~mission on colleges, beit the higher-education
establishment with a bat. Having imposed testing on K-12 schools through the No Child Left
Behind Act. MS. Spellings and Mr. Miller a few years .ago began pushing colleges to measure
and report performance. "If the academy doesn’t do it," Mr.
Miller says, "it’s going to be done for them."
Colleges have, so far, successfully fought laws or regulations thac prescribe testing. But
they know they need an o2fense. Now the state schools -- the National Association of State
Universities and Land-Grant Colleges (big research universities) and uhe ~erican
Association of State Colleges and Universities (the rest of them) -- are about to take a
s~gnificant step.
(Full disclosure: The Nationa! Association’s president is Peter McPherson, Hho is also
chairman of the board of Dow Jones & Co., publisher of this newspaper.) The sta~e schools
are designing a template for college Web sites that, for those that apt to use it, shows
in standard format: (]) data±is about ach~ission rates, costs and graduation rates to make
comparisons simple;
(2) results 2rum surveys of students designed to measure satisfaction and engagement, and
(3} results of tests given to .a representative sample of students to gauge not how smart
tkey were ~en they arrived, but how much they learned about writing, analysis and
pr0blem-solving between freshman and senior years. The last one is the biggie.
Participating schools will use one of three tests to gauge the performance of students
with similar entering SAT scores at tasks that any college grad ought to be able to
handle. One test, the Collegiate I,earning Assessment, ~ives students same circumstance and
Page 51
a variety of information abouL it, and asks for short essays (no multiple choice) on
solving a problem or analyzing a scenario. Under the state schools’ proposed grading
scale, 70% of the schools will report that students did "as expected," given their SATs.
An additional 15% will report they did better or much better than expected, and 15% will
report students did worse or much worse than expec~el. Even Mr. Miller is
impressed: "They’re focused on the right thing, doing it the right way," he says. It was a
forced conversion for many. "I don’t think this would have occurred without external
pressure for greater transparency and accountability," s~ys William Kirw~n, chancellor of
Maryland’s university system. There a~e issues.
Fsculties remain suspicious that this is a step toward slavishly teaching to the test or
constraining what they can teach. Ava±lable tests are young and not completely proven.
Persuading students, p~rticular!y seniors, to take the tests and take them seriously is
challenging. Many private colleges, less accustomed to scrutiny from legislators, argue
that no test can rseaningfully measure what’s going on in institutions thee range from
small church colleges to Ivy League powerhouses. But ~ormer classics professor W. Robert
Connor, now head of the Teagle Foundation, which is helping finance the s~ate schools’
effort, says: "A year ago, or even six months ago, the idea of greater ~ceountability had
little traction in higher e~uca[ion. The status que was just fine. Now a consensus seems
to be emerging...that colleges and universities need to provide mere information about the
outco~eso" Dan Fogel, president of the University of Vermont and an early advocate fox
greater accountability, argues that all this is a necessary response to widespread public
concern "that higher ed costs a lot and nobody is sur~ it’s really ~¢orth i~."
But he argues that isn’t the sole reason: "We have a profound ethica! obligation to ensure
that our Students learn most things that we are trying to teach them." (That’s a ha~d one
for skeptical faculty to
rebut.) L~wrence Su!~r~ers, Harvard University’s fo~mer president, is also a fan. Not only
are these measures "a counte~eigh~ to what is otherwise the overwhelming tendency for
universities to be accountable only to their faculties," but they ~re crucia! to
self-improvement: "Unless you have some way of noticing when you are doing a better job of
educating, you’re not likely to do a better job of educating," he says. Assessing
individual performance, of course, isn’t new to universities; that’s ~.;hat exams are
supposed to do. But measuring a college’s performance and publishin~ the results is a
change, one that might prod the bes% higher-~d system in the wo~ld to get better. "Few
universities sit still with consistently bad football teams," Mr. Summers says. "Why
should they sit still with consistently bad results in educating and satisfying
students?" write to David Wessel at c~pinal@wsj.com
Take the Internet to Go: Yahoo!Go puts the l~Iternet in your pocket: mail, news, photos &
more.
http:/imobile.yahoo.com/go?refer=iGNXIC
Page 52
Private. Spellings, Margaret

Sent; Thursday, June 28, 2007 1:25 PM
To: ’Johnson I11, Clay’
Subject: FW: fyi/Am going to participate in Sept. conference on accreditation
per our discussion...
I=rolTl= Dunn, David

Sent: Wednesday, 3une 27, 2007 3:44 PM
C¢: Gribble, Emily
Subject; FW: ~i/Arn going to participate in Sept. conference on accreditation
(b)(6)
~ent: Tuesday1 June 26, 2007 6:05 Pt’4
To; Tucker, Sara (Restricted)
Co,’ Oldham, Cheryl; 5chray, Vickie; ConkJin, Kristin; Dunn, David
Subjecl:; ryi/Am going to participate in Sept. conference on accreditation
Charles Miller Is Right --But Does It Matter?

By Richard Vedder
I have been infuriated by how colleges and universities, afraid of having more light shine on them and their
operations, are lobbying Congness to keep the Department of Education from using the accreditation
mechanism as a way to implement Spellings Commission recommendations on accountability, assessment,
and transparency.
In chatting with my friend Char~es Miller, chair of the Spellings Commission, about this, he opined: "What we
are seeing today in the nation’s capital is no different from what happens with other mature, inefficient
economic sectors and industries. A run to Congress for protection." AMEN. Charles hit the nail on the head.
It is absolutely vital in any higher education reform to learn more about what students know or learn or how they
think, and to convey this and other useful consumer information to the public. Margaret Spellings realizes this,
and she is courageously trying to effect change via her power as "accreditor to the accreditors." She has been
thwarted, successfully in the short run it seems, by the Educational Establishment. Shame. Shame. Shame. To
be sure, I am worded about federal intrusion into higher education, but Spellings is trying to reform a
monopolistic cartel of regulators run by the regulatees it is trying to regulate. Indeed, t wonder if the accrediting
process is attackable under the anti-trust laws, legislation that generally speaking I think is worthless but may
have some use here.
On the plus side, key establishment organizations like AASCU and NASULGC and their leaders, Deno Curris
and Peter McPherson, are saying all the right things (Interestingly, Peter is also chairing the board of Dow
Jones during a particularly exciting period in that firm’s life). They are saying "We want ~o publish lots of
information on our members, including, voluntarily, key data like scores on the National Survey of Student
Engagement or the Collegiate Learning Assessment." Even NAICU, the most anti-reformist group led by David
Wanren, is making the right sounds. Putting Warren in charge of higher education reform would make as much
4/30/2008
Page 53
sense as making Lorena Bobbitt or Dr. Kevorkiar~ the Surgeon General, but David is saying some of the right
things on this issue. Sounds great, and I hope it ha!~pens, but I worry about backpedaling after the heat dies
now a bit on this issue. Miller says we need to put the pressure on, and he ts dght. The Amedcan Enterprise
Institute, in cooperation with CCAP, will be having a college accreditation conference in Washington on
September 21 which should be very interesting.
Stay tuned,
See what’s free at AOL.co .m_.
4/3012008
Page 54
,,,p.rivate - Spellin~ls~ Margaret

From: Herr, John
Sent: Wednesday, June 13, 2007 9:46 AM
To: Reich, Heidi; Beaton, Meredith; Briggs, Kerri; Bryant, Jessica; Cariello, Dennis; Colby, Chad;
Ditto, Trey; Dorfman, Cynthia; Dunckel, Denise; Dunn, David; Evers, Bill; Flowers, Sarah;
Gare, Cassie; Gribble, Emily; Halaska, Terrell; Higgins, Kristan; Kuzmich, Holly; Lambert,
Kelly; Lenders, Angela; MacGuidwin, Katie; Maddox, Lauren; Maguire, Tory; McGrath, John;
McLane, Katherine; Mcnttt, Townsend L; Mesecar, Doug; Moran, Robert; Morffi, Jessica;
Neale, Rebecca; O’Daniel, Meagan; Pitts, Elizabeth; Rosenfelt, Phil; Ruben:j, Casey;
Scheessele, Marc; Private - Spellings, Margaret; Tada, Wendy; Tatbert, Kent; Terrelt, Julie;
Toomey, Liam; Tucker, Sara Martinez; Williams, Cynthia; Young, Tracy; ’Young, Tracy D. ’;
Yudof, Samara; Zeff, Ken
Subject: RE: Can NCLB Survive The Competitiveness Competition? (AEI)
The larger point is, the kids who are benefiting from NCLB now will be much better prepared to learn advanced subjecls in
a few years. It’s not a zero-sum game
"In light of ~e challenges, it is surprising how effectively the redistributive focus of NCLB has dominated the agenda in
the pasl tive years. This dominance is a testament to the Bush administration’s ~fforts, the moral power of the declaration 4o
educate the children "left behind," the odd coalition both of the left and right ~hat has resolutely supported the law, and the
frustration of the public and policymakers with [-he seemingly intractable troubles of low-performing schools and districts.
’As President Bush recedes from the national political scene, three factions are likely to emerge within the Republican
Party with regard 4o education policy. Business-oriented Republicans who have championed the president’s education
policies since he was a gevemor are likely to be squeezed by the tension between the competing agendas. While they have
slrongly backed NCLB, this community may benefit more-at least in the short term-from ACI. Then there are the more
tradWona!ry conservative Republicans. In the wake of the rough 2006 midterm election, which many on the right have
interpreted as the comeuppance for undisciplined spending and big-government Republicanism, these small-government
conservatives are reemerging as a force demanding a reduction-rather than an expansion-0f the federal role in education.
Finally, religious Republicans, parlicWarly the evangelical right, may see an opportunity to draw attention to such issues as
prayer in school and school vouchers, which have been largely sidelined by the gap-closing and competitiveness agendas.
Can NCLB Survive 1"he Competitiveness Competition? (AEI)

By Frederick M Hess, Andrew J, Rotherham
American Enterprise Institute, June 13, 2007
Some see the George W, Bush administration’s American Competitiveness Initiative (ACI} as the perfect complemenl
to the No Child Left Behind Act’s (NCLB) equity focus. The prospects for synergy of these two agendas, however, are not
brigl~l.
American schools have spent the last five years under the spotlight of NCLB. The statute’s relentless push to close the
racial achievement gap and lo pursue universal proliciency in reading and math has focused unprecedented attention on
I~asic instruction.
This push, however, has also raised concerns about a slighting of high-achieving students and the advanced
instruction they need for national competitiveness. The problem has taken on more urgency as study after study shows an
Page 55
America unprepared to compete in an increasingly global marketplace. Pulitzer Prize-winning New York Times journalist
Thomas Friedman gave this wonisome trend a name when he titled his 2005 bee!seller The Wodd Is Flat. Friedman
described a continenl:..connecting communications, fransportation, and financial marketplace in wi~ich high-level science,
math, and language skills would be more crucial to American well-being than ever, That same year, the National Academy of
Sciences reviewed the trends and concluded rather ominously that the "scientific and technical building blocks of our
economic leadership are eroding at a time when many other nations are gathering strength."[1]
Last year, just ahead of an Educational Testing Service repod that 61 percent of opinbn leaders identified better math,
science, and lechnology skills as essential to a healthy Amedcan economy,t2] the Bush administration launched ACt, tn
order to "ensure America succeeds in the world," a White House press release said, Presidenl Bush proposed training
70,000 new high school teachers for Advanced Placement (AP) courses in math and science and bdnging 30,000 new n~ath
and science professionals to teach in classrooms.t3]
What does this new emphasis on competitiveness mean for schooling? Is it consistent with the NCLB requirements
that have so thoroughly dominated education policy for I:he past five years? Are the two agendas on a collision course? And
what are the implications for the future o1= federal education policy?
A Bit of History
For all the popular attention Thomas Friedman has garnered, his central insight is hardly new. Robed Reich, secretary
of labor under President Bill Clinton, made many of the same arguments in his influen’lial 1992 book The Work of Nations.
And fears about China and India today are more than a little reminiscent of--and tinged with the same hysteria
discussions of "Japan, Inc." in the 1980s or the Sputnik crisis of the ]ate 1950s.
Historically, there always has been an unavoidable lension between efforts to bolster American "competitiveness"
(read as efforls to boost the performance of elite students, especially in science, math, and engineering) and those Io
promote educational equity. Champions of particular federal initiatives tend to argue that the two notions are complementary,
but fronds of the last fifty years show that the ascendance of one tends to take attention from the other.
The great investment of energy in high achievers in math, science, and language by the National Defense Education
Act of 1958, for instance, largely dissipated when the Johnson administration and the Washington education community
turned their gazes to the equity issues of the Great Society. Those concerns gave us Title I or the Elementary and
Secondary Education Act (ESEA) ot’ 1965, which focused on educationally disadvantaged children. The ESEA ethos was, in
turn, supplanted by the dictates of A Nation at Risk in 19B3, a repod from the blue-ribbon presidential panel that warned that
the United States had engaged in "unilateral educational disarmament." But while Ronald Reagan the next year called for
"tougher standards, more homework, merit pay for teachers, discipline, and [putting] parents back in charge"[4-] as a means
of re-arming American schoo] systems, the s~andards movement born in response to his challenge was soon overshadowed
¯ by the desperate condition of u~an schooling.
The "rigor--con!tic" reforms of the 19808 were then dropped or defanged in all but four or five states, while "adequacy"
lawsuits and growing attention to achievemenl gaps re-elevated the equity agenda, This time the push for equity culminated
in NCLB (the reauthorization of the canonical federal education text, ESEA), the 2002 law marked not only by a relentless
attention to elementary and middle school math and reading achievement, race- and income-based achievement gaps, and
"universal proficiency," but also by its bipartisan support: NCLB passed in the U,S. House on a 381 to 41 vote and in the
U.S. Senate by 87 to 10,[5]
NCLB and ACI
In some form or other, NCLB was as necessary as it was inevitable. For too long, inadequate instruction in essential
skills and abysmal performance by poor, black, and Latino children had been tacitly accepted as the status quo. But aside
from the inclusion of science on NCLB’s proficiency radar, this mighty federal attempt at ratcheting up standa~s for the
underserved has swamped sensible concerns about advanced instruction.
The result? Today, 71 percent of adults think U.S. high schools are falling ~hind when it come~ to helping students
compete for scientific and engineering jobs against students from other countries, and 64 percent reportedly think education
reform is necessary if America is to remain globally competitive in the next decade.t6] The results of international
assessments, like the "fhird International Mathematics and Science Study, lend credence to the public’s concerns. Just last
year Senator Ted Kennedy (B-Mass.) declared, "Perhaps nowhere is it more obvious that we are fallin9 behind than in math
and science. For a nation that pddes itself on innovation and discovery, the downward slide is shocking."]7]
Amid this atmosphere of urgency, President Bush unveiled ACI. The plan called for $5.9 billion in new spending in
fiscal year 2007 and more than $136 billion in spending over the course of the next decade. The vast majority of the latter
sum would fund research agencies and research and development: $50 billion for the National Science Foundation, tt~e
Depadment of Energy’s Office of Science, and the National Inslitule of Standards and Technology; and $86 billion to fund
Page 56
the research and development tax credit. Despite the rhetorical centrality of education in the policy debate on
competitiveness, only $380 million-just one-fifth of 1 percent of the total-was earmarked to support math, science, and
technological education in K-12 schooling, and even that amount has fallen prey to political infighting among various
members of Congress,
Different Diagnoses
Is meeting the global competitiveness challenge to train elite scientists and engineers compatible with NCL8? The
preferred line for most federal schoo1 reformers--both right and left--is to deny any real ~onflict between the two. And major
national voices, from the Ci[izens’ Commission on Civil Rights to the Education Trust to the Business Roundtable and the
U.S, Chamber of Commerce, have stood shoulder-to-shoulder in reassuring polioymakers and voters that NCLI3 and ACI fit
hand in glove.
"We can no longer afford lhe inequities that have long characterized our system of education," says Charles E. M.
Kolb, president of the Committee for Economic Development. "As our need for educated workers grows, the American
workforce is going to come increasingly from the ethnic groups that have been least welt served at all levels of Amedcan
education. By 2020, some 30 percent of our working-age population will be African-American or Hispanic, needy double [he
percentage in 1980."[8]
But there are still tensions, The equity-leaning camp postulates that by providing the poor--and generally minority-
students who fall out of the education pipeline a solid education and access to college, the nation wilt dramatically broaden
the extent or il:s development ot~ human capital. While such an approach obviously can benefit from the larger pool of
students that a successful ~uity approach would provide, the emphasis here is on improving the quality-not the quantity-of
potentially high-achieving math and science students,
These |ensions are made more poigr~ant as influential state-level actors-including key governors, powe~l
philanthropies such as the Bill & I~elinda Gates Foundation, and business-oriented groups like Achieve, Inc.--push high
school standards and math and science education, while federal pressure is focused on bringing up the betlom in K-8
reading and math. But from any short- or medium-term perspeclive, K-12 schooling seems a ftimsy tool for addressing
competitiveness in science and engineering. This is akin to signing preschoole~ to a baseball team’s farm system rather
than bringing in top-tier free agents, The reality is that today’s third-graders will not receive their PhDs in engineering until
about 2025.[9} Consequently, the ability of NCLB to on!argo the pipeline gradually is more relevant to our competitiveness in
2030 than to our standing in the next decade or~o. rhis helps explain why even these most ardently focused on America’s
economic well-being somelimes see the K-12 debate as less than urgent.
Nonetheless, whatever the substantive merits of the strategy to pursue com~titiveness through the schools, it has
immense political appeal. Investing in high-achieving students, advanced math and science courses, foreign languages, and
AP programs cleady pleases educated, high-income, suburban families-in other words, those most likely to show up at the
It is also less contentious proposing STEM (science, technoiogy, engineering, and mathematics) improvements than
enforcing NCLB-style accountability mandates. A competiliveness strategy focuses on augmenting the status quo rather
than remaking it, and this is an easier task, both substantively and politically, for legislators, governors, superintendents, and
school boards.
Finally, while raising the performance floor can be a begrudging and thankless ~ask, addressing STEM topics may
produce more tangible and visible rewards. A handful of-successful classes, programs, or curricula can yield contest winners,
Ivy League admissions, prestigious scholarships, era bump in AP results-in short, a public relations bonanza.
In light of the challenges, it is surprising how effectively the redistdbutive focus of NCLB has dominated the agenda in
the past five years, This dominance is a testament to the Bush administration’s efforts, the moral power of the declaration to
educate the children ’left behind," the odd coal!lion botf~ of the left and dght thai has resolutely supported the law, andthe
frustration of~lhe public and policymakers with the seemingly intraotable troubles of low-performing schools and districts.
But times have changed, The NCLB agenda has so far played out in.an environment in which federal spending on
K-12 education has dsen sharply, increasing from $27 billion in 2001 to $38 billion in 2006, Current massive federal budget
d~cits, a bipartisan refusal to rein in entitlement programs, and public resistance to tax increases mean that significant new
federal spending on educal:ion is unlikely. (Spending under NCLB has increased needy 40 percent.) Meanwhile, at the state
level, continued growth in Medical(! spending is squeezing state budget.s, an aging population is looming, and concerns
about college affordabiJffy are competing wi~h K-12 spending, Consequently, school spending in the coming decade is
unlikely to keep pace witf~ recent growth.
Where the Public Stands
Compounding the challenge posed by limited funds is the fact that NCLB’s public appeal is mixed, at best, The law has
Page 57
been a source of much unrest among teachers and principals, and nine states have engaged in some form of staMory
resistance (though none has actually refused to accept federal education dollars and the accompanying conditions).
The 2008 Phi Delta Kappa/Gallup poll on attitudes ~oward education reported that 88 percent of the public betieve~ it is
very or somewhat important to close the achievement gap between white stude.nts and black and Latino students,t10] aqd
81 percent believe the gap can be "narrowed substantially" v~ite maintaining high standards for all children.till Just 19
percent of respondents think the racial achievement gap is "mostly related to quality of schooling," while fully 77 percent
believe it is primarily due to ’other factors."[12]
Such responses constitute broad but shallow support for NCLB and massive support for a ’no tough choices" strategy
on the part of elected officials. It surely suggests a public open to arguments that schools cannot and should not focus solely
on achievement gaps, but that same public may not tolerate painful reforms intended lo address those gaps.
Moreover, Americans remain surprisingly skeptical about the importance of academic excellence itself. For instance,
when asked whether they would prefer that their oldest child get "A grades" or make "average grades and be active in
extracurricular activities," just 29 percent of Americans opted for "A" gi-ades.[13] "that figure has been stable over the past
decade.
And consider that 26 percent of adults oppose requiring students in their local public high schools to take four years of
math, 30 percent think elementary students are required to ~ork too hard today, 49 percent reject proposals to extend the
school year or school day in their community, 3g percent thinkthere is currently too much testing in their community’s
schools, and 67 percent think more testing will lead teachers to teach more to the test than to the acquisition of broad
academic skills (which three out of four respondents think is a bad thing). These figures suggest that a quarter or n~ofe of
voters may resist calls for more intensive schooling, longer school days, extended school years, more homework, or beefed-
up accountability-whether for closing the achievement gap or [or competitiveness.t14]
Politics and Policy: 2008 and Beyond
What does all of this mean for the future of federal policy and its effect on America’s students, teachers, and schools?
tn theory, NCLB is scheduled [or reauthorization this year. Practically speaking, it is an open question whether the
administration and Congressional leaders will ram it through as an exhibit of bipartisan comily or whether it will ultimately
stall and await t.he administration that takes office in 2009. In the interim, the Bush administration is gearing up to hold its
ground on the law, with the president asserting that reauthorization is a priority, and secretary" of the Deparlment of
Education Margaret .Spellings insisting, ’1 like to talk about No Child Left Behind like Ivory soap. It’s 99,9 percent pure.
There’s not much needed in the way of change."[15]
Among Democrats, one generally pro-NCLB coalition made up of centrist reformers or’New Democrats" like Rep.
George Miller (D-Calif.} of the House Commi(lee on Education and Labor, believes that accountability is the most effective
equity strategy the federal government can pursue. These Democrats are more fragmented on the competitiveness agenda,
though both the moderates among them and most Democratic governors, who generally have closer ties to business groups,
are more likely lo regard it as a priority.
There also exists a liberal anti-NCLB coalition united by the belief that NCLB-tike policies are damaging teachers,
schools, and students. Some from this coalition are following the lead of the National Educatbn Association, parroting the
union’s resistance to testing, accountability, and disruption. Others believe it is folly to hold schools accountable for erasing
the academic achievement gap absent broad changes in social policy-an argument advanced, most notably, by Richard
Rothstein. Inattention to such issues as health care, they say, invalidates the assumptions underlying NCLB, whatever the
law’s other merils might be. Some in this camp, buoyed by critics such as popular educalion author Nile Kohn and former
National Academy of Education president Net Noddings, have an aversion to testing and accountability, more generally.
Though often more antagonistic toward business interests, this coalition reads Thomas Friedman, too, and ils members are
not uniformly hostile to the competitiveness agenda-especially if supporting it means dropping the current emphasis on
universal testing and coercive accountability,
Republicans are split as well. While the GOP let President Bush plant the party’s flag on closing the achievement gap
through NCLB, many Republicans only grudgingly supported the president’s slrategy of expanding the federal role in
education. Former majorily leader Tom DeLay, a Republican frown Texas, confessed to Rush Limbaugh that he "voted for
that awful education bill°t16] only [o support President Bush. He explained to Limbaugh, "1 came here to eliminate the
Deparlment of Education, so it was very hard for me to vote I=or something that expands till," On Capitol Hill, Rep. Peter
Hoekstra (R-Mich.) and Senator Jim DeMint (R-S.C.), with the a~dent backing of the Heritage Foundation, have enjoyed
substantial success this year leading a resurgence of conservatives who are wary of federal involvement in schooling.
As President Bush recedes from the national political scene, three factions are likely to emerge within the Republican
Party with regard to education policy, Business.oriented Republicans who have championed the president’s education
Page 58
policies since he was a governor are likely to be squeezed by the tension between the competing agendas, While they l]ave
strongly backed NCLB, this communily may benefit more-at least in the short term--from ACI. Then there are the more
traditionally conservative Republicans. In the wake of the rough 2006 midterm election, which many on the right have
interpreted as the comeuppance for undisciplined spending and big-governrnent Republicanism, these small-government
conservatives are reemerging as a force demanding a reduction--rather than an expansion--of the federal role in education.
Finally, religious Republicans, particularly the evangelical right, may see an opportunity to draw attention to such issues as
prayer in school and school vouchers, which have been largely sidelined by lhe gap-closing and competitiveness agendas.
The politics at work resemble the politics of the late 1990s more than those of the first few years of the Bush
presidency. Consequently, moderates in both parties--and perhaps especially the New Democrats-may again emerge as a
fulcrum of education policymaking.
tn the foreseeable future, elected officials will.continue to be cross-pressured by the two agendas. Business interests-
notably the U.S. Chamber of Commerce, the Business Roundtable, and such coalitions as Achieve, Inc., and TechNet-will
continue to work to keep competitiveness on the poticymaking agenda. Meanwhile, the equity coalition is unlikely to give an
inch of ground in its efforts to keep the focus of public policy on gap-closing,
NCLB, however, is highly vulnerable. At its core, it is an attempt to transform the provision of schooling for low-
performing students, which means that its benefits are diffuse and targeted to a disorganized and frequently voiceless
population. It seeks to do this through measures that impose costs on potent constituencies, particularly teachers, school
administrators, and high-achieving communJties.[17] The result means that it is a good bet that several of NCLB’s sharper
edges will be dulled over time. Considering the growing appeal of the competitiveness agenda, the gloomy fiscal picture, and
the inability of policymakers to stay focused l:or tong, proponents of the equity agenda ought not take recent gains for
granted.
Setting a Smarter Course
Ultimately, the seeming inability to settle on a coherent agenda is due to a simple truth: schools exist to serve both the
equity and the competitiveness agendas-end many other agendas as well. Our desire to ignore this banal reality, to "fix" the
equity problem, and then to "solve" the competitiveness problem fosters grandiose ambitions and hyperbolic claims that will
inevitably come up short. Schools are meant to serve a staggeringly diverse population of students and a raft of competing
needs. Buckling down somewhere will almost inevitably mean easing up elsewhere. The best we can hope for is an
incremental, awkward stagger toward meeting a stew of public and prfva’le objectives.
The truth is that we cannot do everything. This means accepting disagreement and abandoning the tempting dream
thal we might reach consensus on what needs to be done if only good-hearted souls would examine the right data. It also
means acknowledging that every policy decision will yield both winners and losers. What we need in 2007, 2008, and
beyond is not bland reassurance or misguided efforts to paper over real divides, but honest and informed debate about
whose needs take precedence at a given moment, what to do about it today, and what to leave for tomorrow.
Frederick M. Hess (rhess@aei.org) is director of education policy studies at AEI. Andrew J. Rotherham
(arotherham@educationsector.org) is cofounder and cod.irector of Education Sector. A version of this article appeared in
January 2007 issue of Phi Delta Kappan.
AEI editorial associate Nicole Passan worked with Messrs. Hess and Rotherham to edit and produce this Education
Outlook.
Page 59
Private - Sp elli,,n ~lS, ,,M, ar~aret,
From; Herr, John
Sent: Wednesday, May 23, 2007 10:42 AM
To: Ditto, Trey; Reich, Heldi; Beaton, Meredith; Briggs, Kerd; Bryant, Jess;ca; Cariello, Dennis;
Colby, Chad; Dunn, David; Evers, BJtl; Flowers, Sarah; Gdbbte, Emily; Halaska, Terretl;
Kuzmich, Holly; Landers, Angola; MacGuidwin, Katie; Maddox, Lauren; Maguire, Tory;
McGrath, John; McLane, Katherine; Mcnitt, Townsend L.; Mesecar, Doug; Moran, Robert;
Morffi, Jess;ca; Neale, Rebecca; Pills, Elizabeth; Rosenfelt, Phil; Ruberg, Casey; Scheessele,
Marc; Tada, Wendy; Talbert, Kent; Terrell, Julie; Toomey, Liarn; Tucker, Sara Martinez;
Williams, Cynthia; Young, Tracy; ’Young, Tracy D. ’; Yudof, Samara; Zeff, Ken; Landers,
Angola; Evers; Bill; Colby, Chad; Williams, Cynthia; Dorfman, Cynthia; Mesecar, Doug;
Dunckel, Denise; Pills, Elizabeth; McGrath, John; Talbert, Kent; Briggs, Kerri; Toomey, Liam;
Scheessele, Marc; Private - Spellings, Margaret; Beaton, Meredith; Tucker, Sara Martinez;
Halaska, Terrell
Subject: RE: Secretary Spellings on The Daily Show (Politico)
Went about as well as could be expected IMHO - kudos to the Sec
----Original Message-----
From: Df~o, Trey
SenP Wednesday, May 23, 2007 9:0g AM
To: Reich, Held;; Beaton, Heredi~h; Bdggs, Kerri; Bryan~, Jes~ca; Cariello, Dennis; Colby, Chad; Dunn, David; Evers, Bill;. r’3owers,
Sarah; Gdbble, Emily; Halaska, Tern~ll; Herr, John; Kuzrnich~ Holly; Landers, Angola; MacGuidwin, Katie; Maddox, Lauren;
Haguire, Tory; N~:f;rath, John; McLane, Katherine; Mmltt, Townsend L.; Hesecar, Doug; Moran, Roberl:;.Horffi, Je..~ica; Neale,
Rebecca; Pitts. Elizabeth; ~senfeit, Phi!; Ruberg, Cas~/; S~heessele, Marc; Tada, Wendy; Talbert, Kent; Terre.l!, Julie;
Toomey, Uarn; TuL’ker, ~ara Har~nez; Williams. Cynthia; Young, Tracy; ~oung. Tra~y D, ’; Yudof, Samara; Zeff, Ken; Lander.,
Angola; Evers, Bill; Colby, Chad; Williams, O/nthia; berfman. Cynthia; He.car, Doug; Dunckel. Denise; Pitts, Elizabeth;
ML-’Grath, John; Talbert., Kent; Bdggs, Kerd; Toomey, iiam; Scheessete, Marc; Private - Spellings, Margaret; Beal:on, Heredil:h;
Tucker, Sara Hair,z; Halaska, Terrell
RE: Secrel~ry Spellings on The Daily Show (Politico)
If you missed it. you can click on the a link on the Daily Show webs;to:
http:/N~ww.comedycentral.com/showsl~he_daily_showlinde~_jhtml,
.... Original Hessage----

From." Reich, Heidi
Sent: Wednesday, Nay 23, 2007 B:55 AN
To; 6eaton, Meredith; Briggs, Kerr;; Bryant~ Je.ssica; £ariello, Dennis; Co~by, Chad; Ditto, Trey;. Dunn, David; Evers, Bill;
Rowers, Sarah; Gribble, Emily; H~laska, TerreII; t-]err, John; Kuzmich, Holly; Landers, Angola; HacGuidwin, Katie;
Mad~x, L~uren; Haguire, TorF; McGrath, John; HcL~ne/Katherine; Mcnitt, Townsend L.; Nesecar, Doug; Moran, Robert;
Norffi, Jess;ca; Neale, Rebecca; Pil:ts, Elizabeth; Reich, Held;; Rosenl=e/t, Phil; Ruberg, ~.~sey; Schee..s~le~ Marc; Tada,
Wendy; Talbert, Kent; Terrellf Julie; T~omey, Uarn; Tucker, Sara Hsrtinez; Williams, Cynthia; Young, Trac’y’; Young, Tracy
D. ; Yudof, Samara; Zeff, Ken; Angela Landers; Bill Evers; Chad Colby; Cindy Williams; Dorfrnan, Cynthia; t)oug Mesecar;
Dunckei~ Denis~; FJizabeth Pitt:s; John McGrath; Kent Talbert; Kerr; Briggs; UamToorney; Marc S~heessele; Nargaret
Pdvate - Spellings (E-mail); Meredil:h ~eaton; Sara Martinez Tucker; Terr~tt Halaska
Subje~-t; S~:retzry Spellings on The Daily Show (Politico)
PoLitico Playbook: Peeling the onion

By’: Mike Allen
May 23, 2007 07:09 AM EST
3) HIGH-WIRE ACT: Publicity coups are in short supply for the Bush administration these days, but
Education Secretary Margaret Spellings nailed an appearance last night on "The Daily Show".Jon
Stewart said: "You are the only active member of our government, in terms of tl’te executive branch, who
is not allergic to me." Laughter. Spellings: "So far, so good." Applause." Stewart: "So I’m delighted to
have you." The host gave her an apple, which they playfully pushed back and forth throughout the
interview. He showed offNo. 2 pencils and brandished a Lunchables, sipping from the CapriSun "juice
beverage." Spellings wedged in a serious, detailed plug for the reauthorization of the No Child Left
Behind Act: "We have to expect more from our kids, and we have lowered the bar and lowered the bar.
Page 60
... What we’ve done with this law is peel the omon and bring to bear information about how well are we
serving every, single kid. And the answer is not well enough, by far these days. What we’re causing is
at~xiety with grownups, oft behalf of kids .... We have to pay more attention to our high schools - No
Child Lef~ Behind is about our elementary, and middle schools." As a parting shot, Stewart asked the
secretat3’: "Alberto Gonzales is to ’t don’t recall’ as trees are to sunshine, oxygen or "I don’t recall.’?"
With a broad wink and nod, Spellings replied to whoops and applause: "I don’t recall," Stewart was
clearly taken by her Texas sassiness, and apparently it was mutual. After the taping, Spellings was heard
to say: "I’m smitten. He’s adorable."
Page 6!
Priva~ - Sp~!,lings, Margaret
From: McLane, Katherine
Sent: Tuesday, May 22, 2007 8:3t PM
To: Private - Spellings, Margaret; ’Emi]y..A._Lawrimore@who.eop,gov’
Subject: Fw: LTE from teacher in WP
Katherine McLane
Press Secretary
US Dept. of Education
(202) 401-1576
Sent from my BlackBerry Wireless De,ice

CC: Lenders, Angola; Kuzmich, Holly; Maddox, Lauren; Flowers, Sarah
Sent: Mon May 21 11:59:19 2007
Subject: LTE from teacher in WP
Eric Tipler’s e-mail address is mr.tip!er@gmail.com <mailto:mr.tipler@gmail.com>.

AP in the City: District Students Rise to the Chall~nqe
.Sunday, May 20, 2007; Page B08
On Friday, more than i million high school students completed an annual tw0-week ritual of
stress, late nights and high hopes: the AP exams. Seventy of them were my students, who
have labored hard over eight months with hours of nightly homework, after-school and
weekend review sessions, and seemingly endless tests and essays.
My students are unusual Advanced Placement candidates, because they are all African
American and because they go to school in one of Washington’s poorest neighborho6ds. Even
more Unusual is the fact that some of them took two or three AP exams this year and wil!
have ~he opportunity to graduate from high school with up to six AP credits.
The AP program was founded half a century ago with the goal of improving education in
A/aerica, and, in many respects, it has done exactly that. Sure, AP courses provide high
school students wizh college credit and impressive transcripts, but I believe that their
most significant impact has been to raise our expectations for curriuula, for teachers
andr therefore, for students.
!n September 2005, when I started t@aching history at Friendship Collegiate Academy, a
public charter school en Minnesota Avenue NE, I was astonished to find that most 10th-
graders could not locate zhe continents on a map, much less tel! me anything about their
history. If I hadno< been asked tO teach AP world history to these children, I never
would have believed that they were capable of doing college-level work. I would have
underestimated them, perhaps the cruelest crime a teacher can commit.
Their lack of knowledge may h~ve seemed especially severe to me because before coming to
Friendship Z taught at Thomas Jefferson High School for Science and Technology in Fairfax
County. TJ £s one of the top schools in the country. The faculty is exceptional. My
students were brilliant, creative ~nd intel!ectu~lly curious; they wer~ also mostly white
and Asian~ and mostly from middle- and upper-middle-class families.
As I’ve gotten to know my students at Friendship, I’ve come to realize that they, too, are
brilliant. They didn’t know where the continents are because they didn’t have the benefit
of a high-quality education before coming to friendship. Instead of being taught to think,
they typically ~pent years learning to copy notes, learning to churn out meaningless
homework and being told that good penmanship is all a good student needs. Thes~ are smart
children who were rarely pushed intellectually. Many of them were hungry for a challenge.
AP courses are providing that Qhallenge.
It is r~o exaggeration to say that AP ~s transforming our school. Because of the co[~mitment
of parents, teachers and administrators, our students are taking -- and ~assing -- AH
exams. They are also receiving scholarships and winning local and regional competitions
with students from elite schools. Much of this excellence is tied to our AP program, which
is constantly forcing us to raise our standards.
However, AP is not a panacea. Schools that focus on AF, such as TJ and Friendship, must
walk a fine line. Because most’ AP courses are broad surveys, they are great at giving
Page 62
students the "big picture" of a f±eld, and they help students develop strong anal~ical
skills. However, for students ~o put all this knowledge into context, it is important that
they have in-depth experiences, too -- weeks or months spent on a novel, research project
or historical topic. AP courses t~ioally don’t give students time for that. All of us who
have a say in our children’s education need to make sure that AP courses are balanced with
opportunities for in-depth study.
Over the past 50 years, AP courses have created exceptional educational opportunities for
mill±ons of Americans. Now, let’s push all of our children to reac~ their potential and to
learn-in ways that are bozh broad and deep.
-- Eric ?~pler
Washington
The writer teaches AF world history and psychology ar Friendship Collegiate Academy, a
public charter school i~ Northeast Washington. His e-mail address ismr,tipler@gmail.com
<mailto:mr.tlpler@gmai!.com>.
Re: Margaret Spellings speak to OECD Page 63 Page I of l

From: Johnson Iit, Clay’ [Clay_Johnson_lll@omb.eop.gov]
Ca: Henry, Tina-Maria; Landers, Angela; She& Robert J.
Subject; RE: Margaret Spellings speak to OECD
[Nonresponsive
From:.P~ivat~..-..Sp~Jlings,. Ma~r~
(b)(2) Serif:: Fdday, May 04, 2007 2:,18 PM
To: Johnson III, Clay
C~:= Henry, "lqna-Naria; Landerst Angela
Subject; Re: Margaret Spellings speak to OECD
Nonresponsive
Sent from my B~aoldBerry Wireless DEvice
.... Original Message ....

From: Johnson Ill, Clay" <Cl~v_/ohnson__II[@omb.eop.gov>
CC: Shea, Robert J. <Robertj._Shea@omb.eop.gov>
Sent: Fri May 04 12:58:t0 2007
Subject: FW: Margaret Spellings speak to OECD
Nonresponsive
4/30/2008
Page 64
Pr’rvate-S ellin s, Mar aret
Sent: Monday, April 02, 2007 9:18 AM
"re: ’Tracy, D. Young@who.eop.gov,
Cc: Mcnit:t[’To~vnsend L,; Wilffams, Cynthia
Subject: Re: 4/12 meeting approved
(b)(5)
Sent from my BlackBerry Wireless Device

From: Young, Tracy D. <Tracy_D,_Younq@who.eop.gov>
To: Private- Spellings, Margaret
CC: Williams, Cynthia
Sent: Mon Apt 02 09:05:20 2007
Subject: RE,: 4/12 _meet~ .........
(b)(5)
From: Private - -S.p-e]-].ings~-.-Ma~@~e£..l .........................

"i~: Young, Tracy D, ’ -
Cc: Williams, Cynthia
Subject: Re: 4/12 meeting approved
(b)(5)
Sent from my BiackBerrZ Wireless D~vice

From: Young, Tracy D. <Tracy D, Young@who.~oD.gov>
To: Private - Spellings, Margaret "
CC: Dunn, David; Maddox, Lauren; Halaska, Yerreil; Kuzmich, Holly; Williams, Cynthia
Sent: Fri Mar 30 16:27:41 2007 - .
Subject: 4/12 meeting approved
(b)(5)
Page 66
Private.S ellin s, Mar aret
From: Williarns, Cynthia
Sent: Sunday, April 01, 2007 4:01 PM
To; Private - Spellings, Margaret; ’Tracy_D._Young@who.eop.gov,
S~ebje~t: Re: 4112 meeting approved
b)(5)
Sent from my BlackBerxy Wireless Handheld

From: Private- Spellings, Margal-et
To: ’Tracy D. Young@who.eop.gov,
CC: Williams, Cynthia
Sen~ : Sat Mar 31 18 : 24:3"4. 2007
Subject: Re: 4/12 meeting approva,~
(b)(5)
S~nt from my Blackberry ~ireless Device

From: Young, Tracy D. <Tracy D. Young@who.eop.gov>
To: Private - Spellings, Margaret "
CC: Dunn, David; Maddox, Lauren; Halaska, Terrell; Kuzmich, Holly; Williams, Cynthia
Sent: Fri Mar 30 !6:27:4- 2007
Subject: 4/12’ meeting appr¢.ved "
b)(5)
Page 68 Page 1 of 1

From: Young, Tracy D. [Tracy_D._Young@who.eop.gov]
Cc: Dunn, David; Ma~fdox, Lauren; Halaska, Terrell; Kuzmich, Holly; Williams, Cynthia
Subject: 4/12 meeting approved
(b)(5)
5/I/2008
Page 69 Page

From: Young, Tracy D. [Tracy_D._Young@who.eop.gov]
Sent; Fdday, March 30, 2007 4:39 PM
O~.. Dunn, David; Maddox, Lauren; Nalaska, Terrell; Kuzmimh, Holly; Williams, Cynthia
Subject: 4/!3 meeting approved
(b)(5)
5/1/2008
Page 70 Page ! of 3

From: McBride, Anita B. [Anita_B._McBride@who.eop.govl
Sent: Thursday, March 15, 2007 12:07 PM
Subject: FW: NYT - Oversight Is Set for Beleaguered U.S. Reading Program
Attachments: 3.15.07 nyt Oversight ts Set for Beleaguered U.S. Reading Pr0gram.doc
Madame Secretary,
b)(5)
Anita McBride
Assistant to the President &
Chief of Staff to Mrs. Bush
(202) 456-5615 - Work

(202) 456-6771 - Fax
AMc B rid e @W..ho. e_op ._9.o~v
From; Donoghue, Tarah C.

,~ent= Thursday, March 15, 2007 8:58 AM
"to; Lineweaver, Undsey M.; McBride, Anita Bd Niller, S, Maria; Harder, Cherie S.; Whitson, Susan D.; Clyne,
Meghan L.
(3{:: CuIvahouse, Sarah A.; Austin~ Page; Rawson, Kimberly D.
S~bje~t: NYT - Oversight Is Set for Beleaguered U.S. Reading Program
New York Times

March 15, 2007
HEADLINE: Oversight Is Set for Beleaguered U, S. Reading Program
BYLINE: DIANA JEAN SCttEMO
WASHINGTON, March !4 --Under attack for improprieties uncovered in its showcase literacy
program for low-income children, the Department of Education will convene an outsSde advisory
committee to oversee the program, known as Reading First, Education Secretary Margaret Spe!lings said
Wechaesday.
Facing tough questions at a hearing before a Senate subcommittee considering appropriations for the
Bush administration’s signature education law, knovm as No Child Left Behind, Ms. Spellings also
promised to clean up the reading program in other ways.
5tl/2008
Page 71 Page 2 of 3
In about a half dozen reports in recent months, the department’s inspector general detailed irregularities
in the program, which awards $1 billion a year in grants to states to buy reading materials and teacher
training. The reports also found that federal officials overlooked conflicts of interest among private
contractors,who advised states applying for the grants. Ms. Spellings said her office’s general counsel
would examine the records of contractors accused of confl~cts of interest, and remove those wit!a actuaI
cortfliets from arty role in the program.
Her promises came as Reading First faces growing attacks while head~g for reauthorization.
Representative David R, Obey, Democrat of Wisconsin and chairman of the House Appropriations
Corrnnittee, said this week that the problems vfith the program "make it even store difficult to persuade
a number of people, including me, to vote to renew programs like No Child Left Behind," of which
Reading First is a part.
Acknowledging that ~’there’s certainly room for improveme~ff’ in Reading First, Ms. Spellings mid the
Senate panel Wednesday that her department had removed the program’s leaders; expanded its staffto
seven employees from two, ~o reduce its reliance on so many private contractors v¢ith the potential for
conflicts; and accepted all the recommendations of the department’s inspector generat.
"I’d hate to throw the baby out with the bathwater," the secretary, said, adding that despite the problems,
the program was improving reading among poor children.
At Wednesday’s hem’ing, Senator Tom Harkin, the Iowa Democrat who Js the subcommittee’s chairman,
said he, too, was disturbed by the accusations against Reading First. "It has an odor that I don’t like,’"
Mr. Harkin said. But he said he was not considering eliminating financing.
After Ms. Spellings left the hearing, Robert Slavin of Johns Hopkins University, whose Success for All
reading program was shut out of many states trader Reading First, said he did not think the secretary’s
promises went far enough. "I haven’t seen the slightest glimmer of even intention to change," Dr. Slavin
said.
Because s,chools had akeady chosen their readng curriculums, promis~s to clean up Reading First now
meant little, he said. He compared them to finding eight innings imo a baseball game vdth a score of 23
to 0 that the opposing team had been playing with cork bats.
"Then they say, ~From now on, we’re using honest bats." "Dr. Slavin said. ’I’m sorry, it’s 23 to
nothing. You can’t just say, ’From now on.’ "
Reading First was required by law to finance only reading programs backed by "scientifically based
reading research," and the Education Department was prohibited from mandating or even endorsing
specific curricuhmas. But the program has been plagued by accusations that states were steered toward a
handful of comraerciat reading programs and testing instruments.
With only two Education Depaxtment employees in charge of the vast program, lhe admh~istra~ion relied
largely on private contractors to advise states on their applications for grants, screen products for
scientific validity and weigh applications. The inspector general found that several of these contractors
wrote reading programs and testing instruments that were comp~ing for money, argl that they gave
preference to products to which they had ties.
Ms, Spellings has maintained, and said again under questioning Wednesday, that the problems with
Reading First occurred before she became education secretary.
5/I/2 008
Page 72 Page 3 of 3
She denied accusations from a former political appointee at the department, Michae! Petrilli, who said
she had essentially ruta Reading First from her post as domestic policy advise~ at the ~tite House. Mr.
Petrilli is now a vice president at a nonprofit education research foundation. Asked about Madison, Wis,
where educators gave up $2 million in Reading First money because they would have had to drop a so-
called balanced literacy reading program that they said had been successful for the district, Ms.
Spellings said she was unfamiliar with the particulars of Madison’s reading program. But she defended
Reading Fixst’s ground rules under her predecessor, Rod Paige, saying the program did not exclude
specific reading curriculums, but intended only to enstu:e that the)’ were backed by researc.h.
5/1/2008
Page 73 Page ] of 9
Private ; Spellings, Margaret

From: Young, Traoy D, [Tracy_D._Young@who,eop.gov]
Sent: Thursday, March 01, 20076:!0 PM
To: Private o Spellings, Margaret
Co: Maddox, Lauren; Dunn, David; Kuzrniuh, Holly; La Force, Hudson; Mcnitt, Townsend L.
Subject: Good NCLB mentions in here toe: REMARKS BY THE PRESIDENT AT SAMUEL J. GREEN
CHARTER SCHOOL
~lonresponsive
I know the ?icard family is here. Thank you for coming. Gaylen
was the wife of Cecil, who helped guide Louisiana’s schools through
the worst of the storms. He has passed away. I’m honored to be in
your presence. I know that you miss your good man, as does the
people of New Orleans. He was a person that served your contmunity
with a !ot of class. And I know he would be proud of places like
Green, that are setting high standards, strong centers of excellence,
making sure every single child gets an education. Thanks for being
here today. It means a lot. (Applause.)
Charter schools, to me, say innovation, individuality. You know, the

No Child Left Behind Act -- and I am a very strong supporter of it; I
look forward to the Congress reauthorizing the bill -- believes in
setting high standards, local contro! of schools, and
accountability. And the reason accountability is important is, in
order to solve problems you have to measure the problem, you have to
know what the problem is. You can’t guess, particularly when it
comes to the life of a child. You can’t guess as to whether or not a
child can read or write and add and subtract. Yod must measure to
know.
And so we said, in return for federal money, we expect local

districts and states to measure, to have tests. The principa!, the
good Doc asked me to go into the 4th grade class and say to the kids,
"Good luck on the test tomorrow." That was music to my ears, because
you don’t know whether or not a child is reading unless you test.
And the interesting thing about No Child Left Behind which is

vital is that when we find a child falling behind, there is extra
federal money for that child to get up to speed early, before it’s
too late. It’s a good piece of legislation, and it fits in with the
philosophy of this charter school.
I am very conscious that this community is going to require more
schools. And the government has a role to play. We’re spending
quite a bit of money, federal money to help you rebuild the schools.
511/2008
Page 74 rage z ot y
And Margaret Spellings -- is the Secretary of Education -- I know has

been down here, and I know she understands the responsibility we
share. As a matter of fact, there’s been about $450 million
allocated for the New Orleans school system. I would strongly -- and
by the way, some of that money is flexible in use. And what I would
strongly urge you to do is to use some of the unspent money to
recruit and attract teachers, because in order to make sure that the
school system is full -- you’ve got 40 teachers -- you need more?
Yes. He needs more.
THE WHITE HOUSE

(New Orleans, Louisiana)
For Immediate Release March I, 2007

AT SAMUEL J. GREEN CHARTER SCHOOL
New Orleans, Louisiana
3:44 P.M. CST
THE PRESIDENT: Thankyou all. (Applause.} Thank you all.

Please be seated. Dr. Tony, thank you very much for your kind
introduction. God, I love the smile on his face. (Laughter.)
Think about this: You can play recess outside in a garden.

Those are the two things I was good at at school -- (laughter)
-- eating and playing. (Laughter.)
But I really appreciate you inviting me over. Somebody said,

well, why did you come to Samuel J. Green Charter School in New
Orleans, Louisiana, when there are other places to go? Well, the
answer is, there’s nothing better than being in the middle of a
bright spot, a place thatjust shines with optimism, in a part of the
world that has gone through some really difficult times. And so I’m
here to herald success -- success for today, and equally important,
success for the future of this important city.
And I thank you all for giving me a chance to come. There’s

nothing more illustrative of the issues that this community faces
51112008
Page 75 Pa~ 3 of 9
than to think that that blue line represented water and destruction.
And yet, we’re now dry, we’re on dry land, recovering. And so I’ve
come back to New Orleans, Louisiana, to remind people that the
federa! government still knows you exist, still knows you have
issues, and wants to work with your leadership to address those
issues. (Applause.)
I know the Picard family is here. Thank you for coming. Gaylen
was the wife of Cecil, who helped guide Louisiana’s schools through
the worst of the storms. He has passed away. I’m honored to be in
your presence. I know that you miss your good man, as does the
people of New Orleans. He was a person that served your community
with a lot of class. And I know he would be proud of places like
Green, that are setting high standards, strong centers of excellence,
making sure every single child gets an education. Thanks for being
here today. It means a lot. (Applause.)
Sorry Laura is not here. She and i, by the way, spent some of
our youth here in New Orleans. I really don’t want to go into al!
the details of -- (laughter) -- but we know something about the
town. And it’s a great place. And she loves New Orleans, as do I,
and we’ve got a lot of friends here.
I want to than~ Robin Jarvis, the superintendent of the Recovery

School District, for joining us. I appreciate very much --
(applause.) I want to thank some of the elected officials who have
joined us here at the school with whom I had lunch earlier, starting
with your Mayor. It’s good to see you, Mr. Mayor. Appreciate your
time. A pleasure to be here. {Applause.)
The Mayor and I have gotten to know each other -- (laughter) --

in a positive way. (Laughter.) In a positive way. It’s
interesting, you know, having two strong-willed people who got thrown
into a d~al we didn’t ask for. I’ll tell you an interesting story
about the Mayor. The first time I ever met him, we came in Air Force
One right after the storm hit -- a couple of days after, I think it
was. The Mayor was a little irritable. (Laughter.) He hadn’t had a
shower. (Laughter.) So I came off the plane. I knew I was dealing
with a good man when I looked in his eyes and he was able to maintain
a certain sense of humor in the midst of all the trauma. And so I
sent him up the stairs for him to tak~ a shower on Air Forc~ One.
(Laughter.)
Everybody -- yes, I was about to say -- (laughter) -- the

President of the New Orleans City Council, Oliver Thomas, thanked me
then and he thanks me now. Good to see you, Big O. (Applause.) I
have spent enough time down here where I call him, "Big 0."
(Laughter.} He calls me, "Little G." (Laughter.)
I’m proud to be with your Lieutenant Governor. Mitch, thanks
5/1/2008
Page 76 Page 4 of 9
for coming, appreciate you being here. (Applause.) I flew down

today from Washington -- am I flying back with you all, too? Yes.
Flew down today wi~h the Senator, David Vitter, and Congressman Bill
Jefferson. Andrea~ good to see you. Thanks for coming.
(Applause.) i think they want a ride back.
We had lunch today with a lot of the parish presidents -- and

Kay and Oliver and Mitch and David and Jeff -- talking about the
issues. Oh, by the way, my friend, Don Powell -- he’s from Texas,
I’m from Texas, and -- (applause.) He made the mistake of answering
the phone cal! when I called him. I said, i need somebody to come
down here to help the good folks break through the logjams to make
sure that that which we intend to do gets done. And the Czar -- we
call him "Czar," Don Powell -- and I can’t thank my buddy enough for
taking on a tough job. If you were to sit at the table with us,
you’d see how tough it is -- "So-and-so has the responsibility here,"
"No, you’ve got the responsibility" -- it’s a lot of this. And our
job is to make it this, straightforward. That’s what we’re here to
do.
You knowr I came down here and spoke and I said the federal
government will be involved. And I said we’re going to put money on
the table to help follow that through. And I believe we have, with
$ii0 billion. That’s not to say there may be more money needed for
the Gulf Coast, but $ii0 billion is a lot. And now the question is,
are we going to be able te spend it wisely? Can we get it done? Can
we get it to the people that need help?
Just so you know, of the $Ii0 billion, $86 billion of that has
been obligated -- in other words, it’s out the door. But only $53
billion has been spent. And so part of the day today we talked about
if the money is out the door in Washington, where is it and how come
it hasn’t been out farther? And that’s one of the things that we’re
going to continue tc work on, to make sure that obligated money ends
up in somebody’s pocket, so it helps.
I know housing is a big issue here. The Mayor talks about it,
Oliver talks about it a lot, the Lieutenant Governor is concerned
about it. You know, I made a conscious decision when we began the
rebuilding effort to say I want the local folks running the
programs. I felt you would get a better response and a response more
tailored to the needs of the local citizens if the local folks were
in charge. That was the case in Mississippi and in Louisiana. And I
felt like the housing program that was devised by the folks in both
Mississippi and Louisiana was a really interesting solution, a
creative way of saying to people, we’re going to help you rebuild
your homes sothat people will actually come back to New Orleans, and
those who are here will have money to rebuild their homes and those
who are outside the state wil! receive incentives to come back.
5/1/2008
Page 5 of 9
Page 77
And one of the issues we have to work on is to make sure that

the money that has been sent from Washington to fund the Road to
Recovery program, the home program, actually gets spent. I don’t
know if you know this or not, but there is $6.2 billion that has been
sent down; $50 million has been spent. And so we have an obligation,
al! of us involved with this process, to work to make sure that
people begin getting that money so they can get back to living their
liv~. (Applause.}
One of the issues that we talked -- spent a lot of time about is

infrastructure. And Louisiana has had -- now had $4.6 billion sent
from the federal government. And actually, it’s your moneyr so we’re
sending your money back to you -- about $4.6 billion and about $2.5
billion has not yet been spent. I guess what I’m telling you is, is
that, first of all, there is money in the pipeline that I hope will
help improve lives. And if it is stuck because of unnecessary
bureaucracies, our responsibility at the federal, state and local
level is to unstick it, is to make sure that it keeps moving.
(Applause.)
The reason I herald this, and the reason I want to come to a

school liks this, it’s important for the taxpayers from around the
country who paid the bill to understand where we are in the process
and to realize there’s some really positive things taking place with
the money that I believe the country has been generous about. In
other words, when you go to Congress and say, we need $II0 billion to
help the people in the Gulf Coast, somebody has got to pay. That’s
the taxpayer. And the taxpayers come from more places than just
Louisiana and Mississippi. It is the collective effort of the
country as a whole. And I’m proud of the generosity of our citizens,
and I want them to knew that while it is still difficult work here,
progress has been made. And there’s more to be done.
The economic recovery here -- I was talking to the Mayor about

Mardi Gras, a subject I know a little bit about -- I remember most of
them. (Laughter.) He said it was up to about 80-something percent
capacity. In other words, it’s not i00 percent, it’s not as good as
people would like it, but things are beginning to happen.
One of the things that you’ve got to continue to work on, and we
want to help you at the local levelr is in the criminal justice
matters. It’s important for the society to say loud and clear, there
are consequences for crime. And there’s got to be a -- (applause) --
there can’t be any doubt in somebody’s mind that this is a
consequential society if you want to be able to walk your streets
safely.
And so I know the Attorney General was down here the other day.
He briefed me personally on working with the local folks on -- for
the federal government helping, what really is a local
5/t/2008
Page 78 Pas, c (5 of 9
responsibility. And yet, we want to help. We want to make sure your

criminal justice system does it’s job so that citizens feel safe and
tourists feel safe to come. !t’s a big responsibility we have. To
the extent that we can helpr we will.
One of the things that the Mayor and I have talked about is
extending tax relief to businesses doing jobs here in the New Orleans
area. Why? Because we want the entrepreneurial spirit to remain
strong in this part of the world. And one way to encourage strong
entrepreneurship is to say, there’s a tax benefit for investing in
this part of the country. There’s certain things you can look at to
determine how we!! an economy is doing.
Take a look at your port. It’s coming back. It’s strong.

Com~erce is beginning. And this is -- it doesn’t seem like much to
you all since you’re so close to it, but for a fellow who was here
and remembers the port being completely shut down, it’s pretty good
progress.
Now, there’s more to be done, I fully understand that. The

Senator spent a little time up there on Air Force One, right up there
in the presidential cabin, talking about levees, making sure that the
case is continually made about strengthening these levees. I hear
him. I hear him. We have said, we’re going to bring the levees up
to -- stronger than ever. We’re making progress there. I told the
Senator I understand there’s still more work to be done. And I want
to work with Congress to the best we can to get money to continue
meeting the obligations we set.
l’m real proud of another thing that’s happened as a result of

Democrats and Republicans working together -- it actually happens
sometime in Washington, D.C. -- and that is that bill I signed that
will enable more federal revenues to come down here to restore the
wetlands. (Applause.] I’m a strong proponent of the restoration of
the wetlands, for a lot of reasons. There’s a practical reason,
though, when it comes to hurricanes: The stronger the wetlands, the
more likely the damage of the hurricane [sic].
And so we’ve been working together on behalf of the city. I do

want to spend a little time on education. I like a system that is
willing to challenge the status quo when the status quo is failing.
And one of the reasons I’ve come to this school is that it represents
a group of citizens, including your principal and your parents and
the teachers and the citizens, who said, we’re tired of mediocrity in
the school system, it is not acceptable to have children trapped in
schools that will not teach and will not change. It is not
acceptable to the great city of New Orleans, Louisiana, to have a
failing schoo! system.
And so the storm came and it did terrible devastation, but it
5/I/2008
Page 79 P~ge 7 of 9
gave a great chance for renewal. And one of the areas where renewa!
is most evident is in the schoo! system of New Orleans, Louisiana, in
the charter system like right here at Green, where people said --
(applause.)
There are now 31 charter schools in this city, as ! understand

it. That’s up from eight. Charter schools, to me, say innovation~
individualiLy. You know~ the No Child Left Behind Act -- and I am a
very strong supporter of it; I look forward to the Congress
reauthorizing the bi!l -- believes in setting high standards, local
control of schools, and accountability. And the reason
accountability is important is, in order to solve probiems you have
to measure the problem, you have to know what the problem is, You
can’t guess, particularly when it comes to the life of a child. You
can’t guess as to whether or not achild can read or write and add
and subtract. You must measure to know.
And so we said, in return f6r federal money, we expect local

districts and states to measure, to have tests. The principal, the
good DOC asked me to go into the 4th grade class and .say to the kids,
"Good luck on the test tomorrow." That was music to my earsr because
you dDn’t know whether or not a child is reading unless you test.
And the interesting thing about No Child Left Behind which is

vital.is that when we find a child falling behind, there is extra
federa-i money for thak child to get up to speed early, before it’s
too late. It’s a good piece of legislation, and it fits in with the
philosophy of this charter school.
If you’re interested in changing a school system that hasn’t

worked, please insist upon a couple of things: high standards~ for
starters. If you demand low standards, you’re going to get bad
results -- I call it the soft bigotry of low expectations. If you
want to have a schoo! system that works, insist upon measuring so
that a parent will know whether or not the curriculum is meeting
their child’s needs. These parents, by the way, are satisfied
parents. I don’t expect the principal to have brought unsatisfied
parents, but nevertheless -- {applause.)
If you’re interested in a school system that works, when you

find excellence, herald it. That’s what I’m trying to do. I’m
trying to lend my voice to herald this school. By the way, a good
school is one that generally has an educational entrepreneur as its
head; somebody who is flexible -- rigid enough on the standards, but
flexible enough to meet the standards; somebody willing to say, well,
we tried this curriculum and it hasn’t worked, let’s make sure that
we focus on the children, not on the process and get a curriculum
that does work.
One of the things -- and by the way, New Orleans is blessed not
5/!/2008
Page 80 Page 8 0~’9
only with a strong public school system now that you’ve got charters
in it, but you’ve got some great parochial schools, too. And these
schools, like this school, were quick to start up after the storm.
They knew their mission and they knew their charge.
I am very conscious that this community is going to require more

schools. And the government has a role to play. We’re spending
quite a bit of money, federal money to help you rebuild the schools.
And Margaret Spellings -- is the Secretary of Education -- I know has
been down here, and I know she understands the responsibility we
share. As a matter of fact, there’s been about $450 million
allocated for the New Orleans school system. I would strongly -- and
by the way, some of that money is flexible in use. And what I would
strongiy urge you to do is to use some of the unspent money to
recruit and attract teachers, because in order to make sure that the
school system is full -- you’ve got 40 teachers -- you need. more?
Yes. He needs more.
The housing issue, obviously, is important. But it’s also

important to be able to use some of this money available to find
educational pioneers that want to come down and lend their expertise
to help rebuild a school system. There’s no doubt in my mind that
the school system that you’re going to rebuild is going to be a great
school system, because you’ve given it such a great start. Charter
schools work. It makes a lot of sense.
And so !’ve come to Green to say, thanks to -- thanks to the

citizens of New Orleans who pay attention to the quality of
education; thanks to the parents of this school who set an example by
being involved; and thanks to the leadership. Doc, you’re running a
good show here. I’m proud of your job. (Applause.)
Thanks for letting me come by. I’m honored to be back down

here. I’m reminded of the New Orleans Saints football team, that --
(app!ause) -- here’s a team that a lot of people didn’t give much
hope for, did they, when the season started. And it -- it rose. It
became a national story. It was a factor in the championship. The
same thing is going to happen to the city. You got work to do. You
got work to do. I’m going to keep coming down so long as I’m.the
President. And after I’m the President, I’m going to slide in
incognito. (Laughter.]
God bless you all. Thanks for coming. (Applause.)
END 4:05 P.M. CST
5/1/2008
Page 82
Private.-Sp, el!,!n~ls, Margaret
From: Macldox, Lauren
Sent: Tuesday, January 16, 2007 7:18 AM
To: ’katherine mctane’; Beaton, Meredith; Briggs, Kerri; Ruberg, Casey; Colby, Chad; Williams,
Cynthia; Dunn, David; Johnson, Henry; Kuzmich, Holly; La Force, Hudson; Landers, Angela;
Private - Spellings, Margaret; Simon, Ray; Reich, Heidi; rob Saiiterman; Yudof, Samara;
Halaska, Terrell; Toner, Jana; Mcnitt, Townsend L.; Young, Tracy; Ditto, Trey; Tucker, Sara
Ma~tinez
Subject: RE: No Child Left Behind needs work at ,5 years (MST)
Original Message .....

Tuesday, January 16, 2007
To: Beaton, Meredith; Briggs, Kerri; Ruberg, Casey; Colby, Chad; Wii!iams~ Cynthia; Dunn,
David; Johnson, Henry; Kuzmich, Holly; La Force, Hudson; Landar~, Angola; Maddox, Lauren;
Privat~ - Spellings, Margaret; Simonr Ray; Reich, Heidi; rob Saliterman; Yudef0 Samara;
Halaska~ Terrell; Toner, Jana; Mcnitt, Townsend L.; Young, Tracy; Ditto, Trey; Tucker,
Sara Martinez
Subject; No Child Left Behind needs work at 5 years (MST)
b)(5)
Minneapolis Star Tribune

Last update: January 15, 2007 - 7:42 PM
Editoria!: No Child Left Behind needs work at 5 years Changes needed to make federa!
education rules effective.
In marking ~he fifth anniversary of No Child Left Behind last week, President Hush and his
education departmen% pronounced that the plan is working.
Patting all involved on the back, Education Secretary Margaret Spellings said NCLB has
done a good job of improving education for all students.
Yet many teachers, parents and students rightfully don’t buy %hat rosy assessment. As the
ll0th Congress considers renewing the federal education rules, some major changes must be
made.
One of the basic problems with NCLB is that es<ablishing a system to identify and report
struggling students is not the same as actumlly doing something to help them. The federal
program is great on issuing penalties and punis~unenns, but not so good at following
through with support. And many of its detailed provisions have proven to be unrealistic
and unreasonable.
NCLB promised parents their children would get tutoring if a school continued to fail
them, but did not follow through with support for the tutoring. The law said students
could shift to a more successful school, but neglected to give local districts the
resources for the moves. Matching mandates with money must be a feature of the
reauthorized law.
As a 2~0~ Minnesota legislative auditor’s study said, NCLB rules are "costly, unrealistic
and punitive." The report said state schools would have to spend millions more (beyond
federal funding) on additional tests, tutoring, transportation and teacher quality
adjustments.
Because detail~ of the law were no~ well thought ou: from the start, some of the best
school~ in the nation h~ve been labeled "failing." Excellent programs were found not to
make "adequate yearly progress" because a handful of students were absent on test day or
because English learners weren’t given enough time tc master material in their s~cond
language.
9mother prob!em is that extensive testing requirements take snapshots of szudent

P~ge 83
performance instead of measuring progress. ~omparing the zest scores of this year’s
eighth-graders to last year’s doesn’t measure the grade-to-grade improvement of indZvidual
kids.
And the federa! government must design ways to make meaninqful comparisons of student
performance state to state. NCLB rules call ~or all states to day,lop their own tests and
standards. Therefore, some states have lower standards to appear more successful on test
score reports.
The ~pirit and intent of "~o Ch±ld" continue to be worthwhile, But its best goals cannot
be reached unless the la~ is modified.
©2007 Star Tribune. All rights reserved.
FOod fight? Enjoy some healthy deba~e

in the Y~hoo! .~swers Food & Drink Q&A.
http:/!ans~ers.%zahooocomidir/?iink=list&sid=396545367
Page 84
.Private - Spellings, Margaret
Sent: Thursday, November 30, 2006 9:38 AM
To: ’jkaplan@who, eop.gov’
Subject: Fw: An American Retreat (PHi)

From: HcLane, Katherine
To: Private - Spellings, Margaret; Beaton, Meredith; Brigg~, Nerri; Dunn, David; ~10wers,
Sarah; Halaska, Terrell; Johnson, Henry; Euzmiuh, Holly; Maddox, Lauren; Mcnitt, Townsend
L.; Simon, Ray; Tada, Wendy; Talbert, Kent; Young, Tracy
CC: Colby, Chad; Ditto, Trey; Ruberg, Casey; Yudof, Samara
Sent: Thu Nov 30 08;47:20 2006
Subject: An ~erican Retreat (PHI)
An American Retreat {PHI)
The Philadelphia Inquirer, November 30, 2096 We’re failing higher education America’s
higher education superiority - once taken for granted worldwide - is in danger of slipping
away.
Two bipartisan reports, one this week from the National Conference of State Legislatures
and another i!l September from a commission appointed by U.S. Secretary of Education
Margaret Spellings, lament growing gaps in colleges’ accessibility, affordability and
accountability. They see a crisis brewing, especially for poor and minority s~udents.
But more than individual students would lose out. Without diverse, affordable
universities, 7hmerica will be unable to develop a wozkforce prepared to meet £uture needs.
Nationally, for ever}. !00 ninth graders who enter high school, only 18 finish college
within six years.
While not e~eryone n~eds to go to ~ four-year college, 90 percent of the 2uture’s fastest-
growing jobs will require some form of postsecondary education.
A/net!ca has been shortsighted in neglecting higher education. While the United States once
dominated the world in higher education attainment, i£ now ranks a sorry 12th among major
industrialized n~tions.
Workforce xeplenishment helped inspire the c~eation of "public" universities. Lately,
however, many states have slashed higher education funding in favor of other pressing
budget needs, including K-12 schools. Legislators wrongly reasoned that colleges could
rely on tuition.
That fending retreat has contributed to an astronomical 375 percent increase in tuizion
and fees since the 1980s, putting college out of reach for increasing numbers of families.
Over the same time, the federal g0vernmen~ cut back on grants and other aid. The
alternative - huge debt - is unbearable. This balance sheet must change.
The Spellings report recommends an easy first step: Simplify the stu[efying "Free
Application for Federal Student Aid," or FAFSA, which makes IRS forms look easy.
The National Conference report calls on state legislatures to incorporate higher education
in economic development planning. Legislators should stop funding schools "reactively," in
response to job shortages o~ other crises.
Both reports insist on b~tter accosntability. Graduation rates, not enrollment, measure
success.
TO reduce its dropout rate~ higher education must adjust to an evolving demographic. The
assumption that most postseccndary education involves 18- to 24-year-olds studying at
four-year schools must end. Of today’s 14 milliom undergraduates, more than 4 in 10 a~tend
community colleges. ~esrly one-third are older than 24. F0rsy percenZ study pard-time.
America needs a flexible, a~fordable, accountable system to ~decate i~ future workforce.
Arbor!cans Shouldn’t presume they already have one.
From; Dunn, David
Sent: Tuesday, October 03, 2006 2:05 PM
TO: ’McBride, Anita B.’; Zinsmeister, Kad; Pdvate - Spellings, Margaret; Bartle~ Dan; MarLin, Catherine;
Karl Rove; Kaplan, Joel; Dick, Denise Y.; Miller, S. Maria; Whitson, Susan D.;
Kyle.sampson@usdoj.gov; Courtney.elwood@usdoj.gov; Andrew.beach@usdoj.gov;
Raquel.sours@usdoj.gov
Walter, Scotl B.; Stefanik, Elise M; Snyder, Martha J,; Troy, Tevi D.
Subject: RE: school violence meeting
From: McBrider Anita B. [maitto:Anita_B._NcBdde@who,eop,gov]

Sent." Tuesdayr October 03, 2006 2:03 PH
To; Zinsmeisteb Karl; Private - Spellings, Margaret; Dunn, David; Bartlett, Dan; Martin, Catherine; Karl Rove;
Kaplan, ]oel; Dick, Denise Y,; Miller, S. Maria; Whitson, Susan D.; Kyle.sampson@usdoj.gov;
Courtney.elwood@usdoj,gov; Andrew,beach@usdoj,gov; Raquel.sours@usdoj.gov
(:c; Walbar~ Scott B,; Stefanik, Elise M.; Snyder, Martha 3.; Troy, Tevi D,
$u~ecl: RE: school violence meeldng
From; Zinsmeister, Karl

¯ ent~ Tuesday, October 03, 2006 1:59 PM
To.’ ’Margaret Spellings (marlaml@edogov)’; ’david.dunn@ed.gov’; l]artlett, Dan; Martin, Catherine; ’Karl Rove’;
Kaplant .]oel~ Dick, Denise Y.; McBride~ Anita B.; Miller, S. Maria; Whitson, Susan D.; ’Kyle.sampson@usdoj.gov’;
’Courlmey.elwood@usdoj.gov’; ’Andrew.beach@usdoj.gov’; ’Raquel.sours@usdoj.go~
¢c: Walter~ Scott B.; Stelranik, Elise M.; Snyderr Martha 34 Troy, Tevi D.
Subject; school violence meeting
5/1/2008
l(b)(5)
Many thanks, Karl
5/1/2008
Page 87
,priv_ate - Spellings, Mar~iaret
From: Marlin, Catherine [Catherine_Ma~n@who.eop.govJ
To.’ Private - Spellings, Margaret
Subject: Fw: AP - Spell!rigs backs ideas to simplify college choices, track students
Great job,

From: White House News Update
To: Martin, Catherine
Sent: Tue Sop 26 17:55:48 2006
Subject: AP - Spellings backs ideas to simplify college choices, nxack students
Spellings b~cks ideas tc simplify college choices, track students
By BEN FELLER
WASHINGTON (AP) Educat±on Secretary Margaret Spellings launched plans Tuesday to redefine
the college experience, promising less confusion and more results for families.
Spellings said she would make a handful of changes on her own and start building s~pport
for some of the more sweeping ideas that came from her higher education commission.
Chief among them is the creation of a massive information-sharing System, opening up
greater rev±ew of how colleges and universities are performing. It would require vast data
collection on individual students, already raising privacy concerns in some corners.
Spellings also pledged to make it easier for people to apply for financial aid and
compare the price and the value of one school to another. She spoke of more federal
college aid bun would not endorse a specific request to raise Fell Grants, as her
commission wanted.
Sensitive to how colleges would react to her plans. Spellings heaped praise on them. Then
she mocked the idea that everything is fine.
"’Is it fine that college tuition has 0utpaced inflation?’’ she asked in a National Press
Club speech. "’Is it fine that on!y half our students graduate on t~me? is it fine that
students often graduate so saddled with debt that they can’t buy a home er start a family?
None of this seems fine to me.’’
Even with the leverage of her office and the ear of Fresident. Bush, Spellings will need
help to turn the ideas into action. In most cases, she will ,~eed support from Congres.~,
governors, state boards cf education and a complex mix of public and private colleges.
Her overarching theme is to make every<king about college choosing one, affording one.,
succeeding in cue easier for families. Parents should be able to shop for a college as
simply ~s they shop for a car, she said, with a clear expectation of what 5hey will get.
Spellin~s achaitted she’s beer~ frustrated, as a mom, in getting those answers herself. Her
oldest daughter, Mary~ is a sophomore at Davidson College in North Carolina.
"’Over the years, we’ve invested tens of billions of dollars in taxpayer money and
basically hoped for the b~st,’’ Spellings said. "’We deserve better than that.’’
The admonition drew a variety of reactions,
David Ward, president of the .~T~erican Council on Educa<ion, was the 0nly member of
Spellings’ commission to vote against the group’s recommendations. But he said Spellings’
speech eased his c0~cern that she was poised to enact some one-size-fits-all standards.
Page 88
"’She was saying were very good, but you can’t be complacent,’’ Ward said. "’That is so
much be~ter khan saying, ’You’re lousy and, by God, we’re going ~o stick it to you.’’ ’
"’I personally feel I can bring a lot more people into the tent after this speech,’’ said
Wardr whose umbrella council is the major lobbying voice in highez education.
The United States Student Association liked the news that "the federal government planned
to simplify, and speed up, the process of getting financial aid. Hut a prominen~ faculty
voice said the basis of Spellings’ agenda is all wrong.
The American Association of University Professors says the emerging vision of higher
education is only a marketplace, focused on ou%comes and skills. Developing a love of
learning and civic virtues, the group says, "’are marginalized to the point of
irrelevance.’’
On the Hill, with midterm elections nearing, the response was predictably divided.
Democrats said the speech ~as lip service; Republicans said Spellings was on target.
The B~sb administration’s new challenge to colleges more data, mor~ accountability comes
from the playbook of No Child Left Behind, the law governing the first i2 grades.
Spellings wants to have a Web site that would allsw people to compare one school [o
another, right down to the typica! salaries of graduates. But there has been little
!egisiaLive support, so far, for spending money on a system to track college student data.
She offered cash incentives to colleges that report how their students are doing.
Her commission said Congress should raise Pell Grants to cover 70 percent of in-state
tuition costs. They cover less than half no~. Spellings said it’s too soon to comx, it.
"’That’s the most important thing,’’ said former North Carolina Guy. Jim Hunt, who served
on the commission, about the ?el! Grants. "’And that’s the federal govermment’s
responsibility. I hope that they get in there and do the first down payment on that.’’
Spellings said she’ll hold a surm~it in the spring to go over all the recommendations. Many
of the commission’s ideas, such as new visa rules for foreign students, got no mention.
You ere currently subscribed to News Update {wires) as: Catherine_Martin@opd.eep.gov.

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Page 1 of l
Page 89

From: Shea, Robert J, {RobeK_.J._Shea@omb.eop.gov]
To: Johnson III, Clay; Private - Spellings, Margaret
Subject: RE: Academic Competitive Council and Jack Marburger
Attachments: marburger talking points.
Robert Shea
(202} 3954568
dshea@o_m_b.eop, go¥
Visit www.E×pectMore.gov
From: Johnson III, Clay

Sent: Tuesday,
To-’
(b)(2) Cc; Shea, Robert J.
Subject: Academic ~mpetitive Council and Jack
5/1/2008
Page 91
,Private - Spellings, Margaret .................

Sent: Wednesday, August 30, 2006 8:32 AM
’kreve@who.eop.gov’; ’jkaplan@who,eop.gov’
Subject: FW: WP; Numbers to Make Our Colleges Better
Wanted to make sure you sa’~ this. Hedge


From: katherine mclane
To: Private - Spellings, Margaret; Young, Tracy; Dunn, David; Oldham, Cheryl; Yudof,
Samara; Halaska, Terrell
Sent: Wed Aug 30 05:49:18 2006
Subject: wP: Numbers he M~ke Our Colleges Better
fabulous!
N~mbers to Make Our Colleges Better
By Thomas J. Hochstettler
Wednesday, August 30, 2006; AI9
Gathering and analyzing informationr advancing unfettered inquiry, expanding knowledge --

these are surely hallmarks of ;~r~erican higher education. So, when the academy itself is
the subject of rigorous study, shouldn’t we expegt the leaders of our colleges and
universities to support such inquiry on the same principles?
Unfortunately, that doesn’t appear to be the case w±~h a proposed federal database on
college student performance. "Orwe!!ian," same of my colleagues have called the proposed
system. "Egregious," others have termed it, a violation ef student privacy, a step toward
government control, of private education, a costly burden on our institutions. Objections
have been particularly numerous and passionate from private institutions, which a~e
typically subject te less government scruiiny than public universities.
At issue is a proposal by the Co~mission on the Future of Higher Education, labeled the
Spellings Commission after Education Secretary Margaret Spellings, who established the
body just one year ago. The coF~issio~ race,ends estab!isb~ent of a dauabase to track
students as they pursue their varied paths through the higher education system and into
the workforce. The stated purpose: to make higher education more transparent and
accountable by requiring that it keep be~ter track of student performance; and to expand
the fund of data available for much-needed analysis of our college and university systems.
Much of my colleagues’ criticism centers on the perception that we can’t ~rust the federal
qovernmemt with such sensitive data. Do we want Uncle Sam knowinq every clsss our students
are taking, every grade they earn, every course they drop? Critics have also noted the
apparent ease with which the federal government could link data ~o students’ Social
Security numbers and, presumably, to their complete life stories.
Privacy concerns are understandable, and ~e~re wise Zo question he?; such data ~igh% be
used. But it is important te note that the proposal, in its latest iteration this month,
explicitly states that the system would not identi~y individual students.
Moreover~ those objec[ing to the da~abase have not, to this point, explained how the
Spellings Co~ssion proposal represenns a dramatic departure from federal data collection
projects that have be@n underway for decades and are familiar to us e!!. Most notable
among them is FAFSA -- the Free App!ieation for Federal Strident Aid -- which requires aid
applicants to provide their Socia! Security and driver’s license nudgers as well as
information on their families’
income and assets. To cite another example, the Selective Service has for. a quarter-
century been requiring young m~n to register in the even% a draft is reinstated.
I question the wisdom of rejecting wholesale the benefits to be derived from a national
Page 92
student database. Where some see the specter of Big Brother looking over colleges’ and
students’ shoulders, I see a potential for a robust (and privacy-protected) set of [~e~rics
that would yield essential data with tremendous potential for advancing our individual
institutions and for identifying with greater precision those areas where our national
education policy needs to be strengthened. Where some see the specter of government
intrusion, I see the possibility of transforming our current separate data-reporting
schemes into a streamlined system that is beneficial to students and useful to faculty and
a~inistrators.
Contrary to what critics of The database plan might have the public be!iev~, we in
academia know remarkably little about what emerges from the vast and diverse system of
higher education. Why do students drop out? Where do they go when they do? What factors in
primary and secondary school, beyond grade-point averages, class rankings and standardized
test scores~ best predict their success or failure in college? What impact does their
educationa! experience have on our students~ soccess or failure after graduation?
We are il!-equip~ed to answer these questions. Without comprehensive information, both

individua! institutions and society lack uhe tools to a~sess how.the system is working,
how it is failing and how it might be improved.
Proponents of the database -- including, interestingly, many leaders of the nation’s

community colleges and public universities -- view it as a means for educators to achieve
the accountability for which lawmakers and the public are clamoring.
At a time when hard experience has taught the public to question institstions that once
enjoyed their implicit trust, a new ethos is beginning to take hold in higher education.
"Openness" and "transparency" are the new buzzwords. From el! quarters come ~he
questions: Why do we cost so much; how do the admissions and financia! processes work; and
how do we manage the dollars entrusted ~s? Fair questions all.
A~zd we are beginning to answer, a8 we should. Those who fund higher education, be they
parents, donors, the government or students themselves, have a right to know the payoff on
their investment.
Will we open ourselves to scrutiny and assessment, or will we continue to keep the public
at arm’s length?
Will openness~ transparenty and accountability be revealed as mere cliches, or can we
embrace them as values tha: can influence for the better who ~e are and how we pursue our
missions? Do we have it in us to live up to our historical co~itment to open inquiry?
The collective stance of the entire sector of private higher education on the matter of
student data collection wil! provide :he .answers to those challenging questions.
The writer is president of Lewis & Clark College in Portland, Ore.
Do You Yahoo[?
Tired of spam? Y~hoo! MaLl has the best spam prouection around http://mail.yah:o.com
Page 93
Private - Spellin~l.s, Margaret

m|| ,, II III II Ill I ill
From: Dunn, David

To: McLane, Katherine; Private - Spellings, Margaret; Young, Tracy; ’kevin_fl
_sullivan @who. cop. gov’
Subject: RE: NewsMax: New White House PR. Pro: Who is Kevin Sullivan?
Way to go, Sully!

To: Private o Spellings, Margaret; Dunn, David; Young, Tracy; ’kevin_f._sultivan@who.eop.gov’
Subject: NewsNax: New White House P.R. Pro; Who is Kevin Sullivan?
Ron Kessler on Sully with lots of SMSt

New White House P.R. Pro: Who is Kevin Sullivan?
RonaM Kessler
Thursday, Aug. 17, 2006
WASHINOTON -- Who is Kevin Sullivan? That’s what Bash administration and media people wanted to know
after two sentences in the Washington Post announced that Sullivan is replacing Nicolle Wallace as White
House eommtmications director.
For more daan a year, SuIly, as ha is known, has been assistant secretary for commurtications and outreach at the
Education Department. Education Secretary Margaret Spellings hired him after she heard good tkings about him
from Tom Lute, an education reformer in Texas.
Sullivan got to know Luce when Sullivan was a punic relations executive with the Dallas Mavericks. After that
job, Sullivan led the communications efforts for three Olympic games at NBC Sports and then took on media
relations at NBC Universal.
As domestic policy advisor in the White House prior to becoming a cabinet secretary, Spellings eschewed the
press. Sullivan turned her into a media star, with growing stories about her reIationship with her teenage
daughters and her decision to modify slightly the way the No Child Left Behind Act is implemented.
Other Bushies could only wish for such good press. PR people either have tl~e right touch or they don’t. Sully
has it. He understands that PR people can do two things at once -- be helpfu! to the media without forgetting
that the main j ob is to represent the principal
When Sl~ellings was doing stand-up TV interviews on the north lawn of the White House, Sullivan would rtm
into Dan BartIett, Bush’s counselor irt charge of commtmications,
"He said once, ’We’ve got to get together sometime,’" Sullivan told me. When Bartlett called on a Tuesday,
Sullivan thought he just wanted 1o shmoeze. An l~ottr later, Sullivan was in Bartlett’s West Wing office.
"We talked for probably 20, 30 minutes, just about stuff, and after that period of time, he said, ’You know, I
want to talk to you about Nicolle’sjob,’" Su!livan said. WaIlace was leaving the White House to move to New
York with her husband.
"Is this when the camera crew comes in through the door?" Sullivan asked, suggesting it was a "Candid
Page 94
SpOOf.
"No, rm not kidding," Bartlett said.

After being interviewed by Josh Bolten, the White House chief of staff, Sullivan met with Bush for about 10
minutes, and he was in. His main job is strategic message.planning for events and the media.
Bartlett was already moving toward encouraging more interaction between Bush and the press m~d humanizing
him more. SulIivan was thinking along the same lines, Bolten also was open to new ideas, Sul.[ivan said.
"The president has such great humanity, and he’s so good with people, and the public doesn’t see that enough,"
Sullivan said. "Dan wants to do more events like his overnight trip to Chicago, where he went to multiple events
and rubbed elbows v~dth reporters and the breakfast crowd at Lou Mitchell’s, a legendary local hot spot. She
public doesn’t get to see that often enough. That is something we talked about, I think you’t! see more of that."
Ronald Kessler is Chief Washington Correspondent for NewsMax, eom. Get his dispatches FREE sent
you via e-mail - Click I-Iere Now. <http://www.newsmax.com/kessler.efm>
Page 95 Page 1 of 3

From: Sullivan, Kevin F. [Kevin_F._Sullivan@who,eop,gov]
Sent: Tuesday, July 25, 2006 8:03 AM
C~; McLane, Katherine; Dunn, David
Subject: Dillon NYT
Nonresponsive
Most States Fail Demands in Education Law

By S.~~ DILLON, The New York Times
Most states failed to meet federal requirements fllat all teachers be "highly qualified" in core teaching
fields and that state programs for testing students be up to standards by the end of the past school year,
according to the federal government.
The deadline was set by the No Child Left Behind Act, President Bush’s effort to make all American
students proficient in reading and math by 2014. But the Education Department found that no state had
met the deadline for qualified teachers, and it gave only 10 states full approval of their testing systems.
Faced with such findings, Secretary of Education Margaret Spellings, who took office promising
flexible enforcement of the law, has toughened her stance, leaving several states in danger of losing
parts of their federal aid.
In the past few weeks, Ms. Spellings has flatly rejected as inadequate the testing ~stems in Maine and
Nebraska. She has also said that nine states are so far behind in providing highly qualified teachers that
¯they may face sanctions, and she has accused Cali~bmia of failing to provide federally required
attematives to troubled schools. California could be fined as much as $4_25 million.
The potential fines are far Ngher than any the Education Department has levied over the law, aa~d
officials in ~everal states, already upset with many of the raves provisions, have privately expressed
further anger over the threat of fines. But Ms. Spellings faces pressure for finn enforcement of the law
from a broad array of groups, including corporations and civil rights orgaafizations.
"In the early part of her tenure, SecretaO, Spellings seemed more interested in finding reasons to waive
the law’s requirements than to enforce them," said Clint Bolick, president of the Alliance for School
Choice, a group based in Phoenix that supports vigorous enforcement of provisions that give students
the fight to transfer from failing schools. "More recently, she seems intent on holding states’ feet to the "
fire,"
In an interview, Ms. Spellings acknowledged her shift in emphasis.
"I want states to know that Congress and the president mean business on the law;’ she said. She has
stressed that message in part, she said, because the deadlines, which expired this month, were not met,
5/1/2008
Page 96 Page 2 of 3
and because lav~makers have been asking her whether states are meeting the law’s requirements.
"I’m enforcing the law -- does that make me tough?" she said. "Last year it was, ’We’re marching
together toward the deadline,’ b~at now it’s time for, ’Your homework is due,’ "
Douglas D. Ch~tensen, the Nebraska education commissioner, has accused Ms. Spellings and her
subordinates of treating Nebraska in a "mean-spirited, arbitrary and hea~,2c-handed way" after their
announcement on June 3!3 that the state’s testing system was "nonapproved" and that they intended to
withhold $127,000 in federal money.
In an interview in Lincoln, Nob., Mr. Christensen said he first realized the administration’s attitude had
changed in .April, when Raymond Simon, deputt" education secretary, addressed most of the 50 state
school superintendents at a gathering in WasNngton.
"Ray were on a I2-minute diatribe of "You fotks just ain’t getting it done’ and said the department
would be strictly interpreting the law from here on," Mr. Christensen said.
Mr. Simort disputed that account -- "I’m not a diatribe t3"pe of guy," he said -- but acknowledged that
he bad spoken bluntly.
tried to emphasize that we continue to be partners," Mr. Simon said, "but that there are some things
we cannot be flexible on."
Mr. Bush signed the act into law in January 2002. Under his first education secretary, Rod Paige,
legislators, educators and teachers unions criticized the law’s man?’ rules and what they said was its
overemphasis on standardized testing.
After Ms. Spellings took office in January 2005, she allowed some states to renegotiate the ways they
enforced the law, and on major issues she offered ways to comply that prevented thousands of schools
fi’om being designated as failing.
Her efforts softened the outc~ from states. But they brought criticism from corporate executives who
hoped tlae law would sttake up schools to protect American competitiveness. Criticism al~o came from
civil rights groups that wanted the law to eliminate educational disparities between whites and
minorities, and from groups angry that although the law required districts to help students in failing
schools transfer out, only 1 percent of eligible students had done so.
Some experts say most parents do not want to remove children fi’om neighborhood schools. But o~ers
say districts have subverted the program, partly by infomaing parents about their options too late.
Mr. Bolick’s group, the Alliance for School Choice, used a similar argument in a complaint filed this
year against the Los Angeles Unified School District, where 250,000 students were eligible for transfers
in 2005-6, but only about 500 successfully transferred. That complaint generated considerable rtews
coverage and moved Ms, Spellings to action.
On May 15, she wrote every state, linking the"’unaceeptably low" participation in transfer programs to
fire "poor and uneven quality" of many districts’ implementation. "We are prepared to take significant
enforcement aetiort," she said.
At the Caliibmia Department of Education, Diane Levin, the state’s No Child Lett Behind administrator,
5/1/2008
Page 97 Page 3 of 3
said she had assumed that California was on solid ground because a federal review of its enforcement of
the law was ending positively.
But then California received a letter from Ms. Spellings’s office demanding extensive new
documentation by Aug. 15 oft the transfer programs in the state’s 20 largest districts. Officials -warned
California that if the documentation proved inadequate, the government would withhold part of the $700
million the state was to receive this fall for high-poverty schools, said Ms. Spellings’s spokesman,
Kevtn Sullivan.
Ms. Levin said California felt whipsawed. "We’re doing everything the law asks us to do," she said,
"which in a state this size is a huge amount of work, and we’re treated like we’re doirtg nothing."
Dozens of other states have also felt the tougher enforcement.
In May, federal officials ruled that nine s~ates were so far from meeting the teacher qualification
provision that they could lose fedemI money. Ms, Spellings said she would decide on the penalties after
August, when states must outline plans for gett~g 100 percent of teachers qualified.
At the end of June, Henry L, Johnson, an assistant secretary of education, wrote to 34 states, including
New York and New Jersey, saying that their tests had major problems za~d that they must provide new
documentation during a period of mandatory oversight.
Dr. Johnson warned some states that federal money might be withheld. And he rejected the testing
programs in Maine and Nebraska. His letter to Maine said $ ! t 4,000 would be wit|~eld unless the state
could change Washington’s mind.
Nebraska is the ordy state allowed to meet the testing requirements with separate exams written by
teachers in its 250 districts rather than wittt one statewide test.
Dr. Johnson’s letter to Nebraska said that although locally writ-tea tests were permissible, the state had
not shown it was holding all districts to a high standard.
Before announcing that decision, Dr. Johnson visited the Papillion-La Vista School District, south of
Omaha.
Harlan H. Metschke, Papillioa’s superintendem, said he had told Mr. Johnson that Nebraska’s tests
helped teachers focus on students’ leamirtg needs, unlike standardized tests, which compared students
from one school with another.
"But federal officials have the mentalib, that fl~ere has to be one state test," Mr. Metschke said.
You are currentIy subscribed to News Update (wires) as: Kevin_.f._Sullivan@who.eop.gov.

To uasubscribe send a blank- email to leave-whltehouse-news-Mres-1404661R@list.whitehouse.gov
5/1/2008
Page 98
.P..r.iva~ - Spellings, Marga,ret

From; Sullivan, Kevin
Sent: Friday, June 16, 2006 7:22 AM
To: Private - Spellings, Margaret; Dunn, David; Gtlchrist, Robin; Talbert, Kent; Young, Tracy; Luce,
Thomas; ’Dana Perino (E-mail)’; ’Susan D. Whitson (E-mail)’
Colby, Chad; Banister, Ashley; ’susan.aspey@dhs.gov’; Mcnilt, Townsend L.; Halaska, Terretl;
Kuzmich, Holly
DMN Travel Story
Think this one also turned out fine...
Head of education also studies abroad

Foreign travel a big part of the job for Spellings, who’s been to 9 nations
12;00 AM CDT on Friday, June 16, 2006
By G. ROBERT HILLMAN and ROBERT DODGE / The Dallas Morning News

WASHINGTON - Education Secretary Margaret Spellings is burning up the international airways.
In her first 17 months on the job, she’s made seven trips to nine countries: Afghanis!zan, India, Jordan, Japan,
England, France, Italy, Egypt and Russia. And she’s heading to Greece and Spain at the end of the month.
The trips run the gamut of official trave! - a visit to Afghanistan with first lady Laura Bush, international
meetings with other education ministers in Jordan and Russia, a congressional trip to India to expIore
competitiveness issues.
"Obviously, the world has changed and is changing," Ms. Spellings said, discussing her foreign travel in an
interview Thursday.
Eduoation is a "maiversal, shared value," she said, and is now fully intertwined in the international rush to
compete in a global econon\-~’ and in President Bush’s campaign to expand democracy around the world.
Ms. Spellings noted, too, that she had traveled extensively in the U.S., including 10 trips to the hurricane-
ravaged Gulf Coast. Mr. Bush selected her as education secretary after his re-election in 2004. She had initially
come with him to the White House from Austin as his domestic policy adviser.
Her department reported her overseas travel costs at $36,981, not including her aides or security. And, in many
cases, the military or other agencies had picked up part of the tab.
She replaced Rod Paige, the former Houston school superintendent, who held the Cabinet post for four years.
He also traveled abroad, but just six trips to six countries.
Ms. Spellings, an aide to Mr. Bush when he was governor of Texas, took three foreign trips at the behest of the
White House. She led the U.S. delegations to the 2006 Paralympics in Turin, Italy, and to the Worid Exposition
in Nagoya, Japan. And she accompanied Mrs. Bush to Kabul, Afghanistan,
The other four trips were Education Department ventures to international conferences, local schools and other
venues.
At the Dead Sea in Jordan, Ms. Spellings attended the first meeting of educational ministers from the Group of
Eight industrialized nations and countries from the Broader ivliddle East and North Africa Initiative.,. which was
Page 99
announced by the president when he hosted the G-8 summit in Sea Island, Ga., ~vo years ago.
The G-8 leaders are meeting next month in St. Petersburg, Russia, and Ms. Spellings was in Moscow a few
weeks ago for a conference of the 0-8 education ministers. On the same trip, she stopped in the Egyptima resort
of Sharm el-Sheik for the second education meeting of the G-8 and Broader Middle East and North Africa
coalition.
In ApriI, she joined a delegation of U.S. senators oft a trip to India to explore global competitiveness, an issue
Mr. Bush had moved high on his agenda last January in his Slate of the Union address.
And unlike the president, who said last winter his scheduler had not given him enough time on his trip to India,
Ms, Spetiings did visit the Taj MahaI with senators travetiag with her.
"l found it to be very interesting," she said.
The Associated Press contributed to this report.
Page 100
Private - Spellin~ls, Mar~laret ,,

From: Sullivan, Kevin
Sent: Thursday; June 15, 2006 9:32 PM
To: Private - Spellings, Margaret; Ounn, David; Gilchdst, Robin; Talbert, Kent; Young, Tracy; Luce,
Thomas; Dana Perino (E-mail); Susan D. Whitson (E-mail)
CC: Colby, Chad; Banister, Ashley; ’susan.aspey@dhs.gov’; Mcnitt, Townsend L,; Halaska, Terreil;
Kuzmich, Holly
Subject: Updated AP Travel Story
Think flais turned out great - all the key messages are in there...thanks all...
Spellings Goes Overseas to Tou! Education
By BEN FELLER, 06. t 5.2006, 06:20 PM
Education Secretary Margaret Spellings has put a passport stamp on her j oh, taking more overseas trips since
2005 than her predecessor did in four years.
In less than a year and a half, Spellings has taken seven overseas trips, traveling to Afghanistan, England, Egypt,
France, India, Italy, Japan, Jordan and Russia. She plans to visit Greece and Spain tater this month.
Transportation, food and lodging for her overseas travel cost $36,98I, according to her department. In some
cases, other agencies picked up the tab,
It’s not a matter of wanderlust, Spellings says. Ln her vie% the top school official ought to see the nations that
the United States is helping and competing against,
"We believe that education is a universally shared value," Spellings said in an interview with The Associated
Press on Thursday. "We are looked to and admired around the world as people who know how to do education
for the masses."
Spellings has served as a natural spokeswoman for the White House canlpalgn for greater U.S. competitiveness.
Better education is at the heart of that effort. She is also close to Bush, as his former top domestic policy adviser
and as a iongtime friend from Texas.
Spellings took office ia January 2005. Rod Paige, Bush’s first education secretary, took six overseas Irip during
his four years in the Cabinet. Three of Spellings’ trips came at the request of the White House.
She accompanied first lady Laura Bush to launch a training institute for women teachers in Kabul, Afghanistan.
She also led U.S. delegations to the 2005 World Expo in Nagoya, Japan, and to the 2006 Paralympics in Turin,
Italy.
Her other trips focused mainly on meetings with international peers. Some examples:
_ Spellings traveled with congressional members in April 2006 to Bangalore, New Delhi, and Agra in India. The
purpose of the trip was to help the U.S. learn how to compete better.
_ Spellings attended two meetings of the Broader Middle Fast and North Africa Initiative, an effort launched in
2004 by Bush and leaders of other major nations. Her travel took her along the Dead Sea in .Jordan in May 2005
and to Sharm El-Sheikh, Egypt, in May 2006.
_ Spellings went to Moscow in May 2006 for a meeting of education ministers from G8 nations. She also met
Page 101
with Russian teachers and students about math, science and foreign language study and signed a deal with
Russian leaders about student and scholar exchanges.
The trips have had different purposes, she said. But all reflect a greater international focus for the Education
Department since Bush’s fn’st term.
"The landscape has changed, and is changing, since the earliest days of the a&ninistration," Spellings said. "The
things that we’re doing in the Middle Eazt have evolved over these several years
It’s....
a smaller world, and we
are invested in key parts of the world."
In speeches, Spellings loves m reference "The World is Flat." The Thomas Friedman best-seller exp|ores how
technology is exploding ,he global economy and forcing the U.S. to adapt.
"It’s very significant that she’s traveling abroad as much as she can, and more so than her predecessor did," said
Victor Johnson, associate executive director ofNAFSA, a prom[nent association of international educators.
"It’s certainly important that she gets out there and understands Maat some of our key competitors in the
international education market are doing," Johnson said. "We need to compete for the students and the scb.ola~s
and the talent of the world."
Paige had a more domestica!ly focused mission: Starting No Child Left Behind, the sweeping education law was
Bush’s first priority in oftice. Bush signed it January 2002.
"Secretary Paige traveled a lot domestically - that’s just where the need was," said William Hansen, who was
Paige’s deput3’ secretary.
The Sept. 11 attacks, the ensuing wars and the fresh attention on economic competitiveness have all put more
focus on international travel for Spellings.
She points out that the vast majority of her trips are within the United States.
"We will never, ever lose sight of our prime directive," Spellings said. That remains getting all children up to
par in reading and math by 2014, the goal of Bush’s education law.
Page 102
,Private - Spellings, Marga.~’et .

Privai:e - Spellings, Margaret; Dunn, David
13rigg$, Kerri; Colby, Chad; Young, Tracy; ’dana_m._perino@who.eop.gov’
Subject: Fw: AP Story off SMS Q&A
Think this turned out fine - lots of space devoted to "nclb is working" and strong
response to exclusion angle...
Sent: Fri Apt 21 07:19:43 2006

Subject: AP Story off SHS Q&A
SpeLlings to Examine ’No Child’ Loophole
By F~ANK BASS and BEN FELLER

The Associated Press
Friday, April 21, 2006; 4:57 AH
WASHINGTON -- Education Secretary Margaret Spellings is.pledging to scrutinize a loophole

that allows states to exclude nearly 2 million student ~est scores under the No Child Left
Behind Act.
"When children are not ~,art of the accountability system, then that’s a problem,"
Spellings said in an in~erYlew Thursday at ~he conclusion of four-day Associated Press
series that highlighted ~he excluded scores.
Spellings said the AF repozt amounted to a "Uruth-in-advertlsing" exercise for state

policymakersr parents and federal officials. She de,lined to specify exactly how she will
address the excluded scores, noting the issue wil! come up with the law’s renewal next
year and with pending federal reviews of state education plans.
At least I0 states are seeking permission to change the nudgers of students whose scores
do not have to be counted in required zacial categories.
"Do we need to move forward to include more and more children all the time? Yes, we do. I
think you’ll see we’re going to continue to look at that issue," she said.
Under the law, schools are requized to test students in math and reading and report their
scores by group, such as race, disability, English language aSility or economic situation.
If one group of students fails to meet s%andards, an entire school can face penalties.
States, however, are allowed to set minimum numbers of students to ~sure statistical
reliability and privacy. AP found that suites have set wildly different minimum standards
for hew many children must be counted, allowing schools to e~clude 1.9 million scores in
required racial categories.
One ide~ to be considered is "whether a one-size-fits-all solution makes sense or not, and
I don’t think we know that yet," Spellings said. She emphasized her agency will look at a
state’s entire educataon plan, not jus~ the way it sets its group sizes.
Spelling also emphasized the law’s accomplishments.
Before Congress passed it in 2001, she said, federal officials had no way to track state
progress of roughly 50 million children who attend public school.
Now, she said even with nearly 2 million uncounted parents, teachers and educators
have a better ~dea of how Z3 millio~ are doing beeaus~ of the law’s requirement that
Page 103
children be tested annually in third grade through eighth grade and once in high school.
Spellings also said the law marks a watershed for closing the racial achievement gap. In
previous tests, she said, schools could always produz~ better results by reporting test
scores for an entire grade or building. Now, schools are required tO report test scores
and show progress for different groups.
The schools, she said, "are working on those student groups as they never have before, and
that is becaus8 of No Child Left Behind. Yes, we need to continue to press them to serve
each and every child, but we have made huge progress."
The AP investigation also found:
Many education officials are concerned that the law’s report~ng requirements will
~iscourage schools from in[egration efforts.
A huge gap between teacher expectations and parent~l expectations regarding the law. An
~P-AOL Learning Services Poll found teachers are more pessimistic ~han parents about
getting every student to succeed.
The law has been a boon for educations! consnltants, teachers and service companies. One
~stimate puts the burgeoning £sdustry’s revenues as high as $Z2 b±llion annually.
Celebrate Earth Day everyday! Discover i0 things you can do to help slow climate change.
Yahoo! Earth Day <http:i/us.rd.yahoo.com/mail_us/taglinesiearthday/
*http://earth.yahoo~com>
Page 104
Priv, a,,,,t,e - Spellings, Margaret ,,

Sent: Wednesday, April 05, 2006 6:44 PM
To: ’krove@who.eop.gov’
Subject: Fw: AP Story on choic~ event
Sent from my BlackB~rry Wireless Handhold
Original Message .....

......
From: Sullivan, Zevin
TO: Private - Spellings, N~rgaret; Luce, Thomas; Dunn, David; Mcnitt, To~-msend L.;
Kuzmich, Holly; Williams, Cynthia; Colby, Chad; Young, Tracy
CC: Horn, Jonathan; Flowers, Sarah
Sent: Wed Apt 05 18:29:0~ 2006
Subject: AP Story on choice event
This iS really good,.,
U.S. education secretary promotes tutoring, transfer rights
By NAHAL TOOSI
Associated Press Writer
April 5, 2006, 5:32 PM ZDT
NEW YORK -- The nation’s top education official warned ~ednesday that states may
federal money for failing to inform paten:iS about their children’s rights to transfer out
of struggling schools or get free tutoring.
U.So Department of Educanion Secretary Margare: Spellings told a Queens audience she’s
directing a top deputy to investigate what states are doing to promote pmrticipation in
such programs offered under the federal No Child Left Behind law.
"We want to ensure that districts are living u> to their responsibilities to notify
parents about their options in m timely and easy to understand way," Spellings said during
a speech at the Greater Allen A.M.E. Cathedra! of New York. "~md there are a number of
steps we can take to enforce these provisions, including withholding federal funds."
The education law promises free tutoring services for poor families if their children go
to schools that get feJeral poverty aid but have not made steady progress for three years.
It also gives families the option of transferring children out of schools that have no~
met progress goals for two straight years.
But critics say there’s been lax enf0rcemen~ of those provisions. The government’s numbers
seem to bear that out.
Spellings said the Nepartment of Education has found that of the 4 million students in the
coup|try eligible to transfer from schools just 38,000 do so, fewer than 1 percent.
Meanwhile, the department, citing different studies, has said that just ii percent tO 17
percent of eligible students nationwide are using the free tutorin~ services.
Last month, the Los Angeles-based Coalition on Urban Renewal and Education and the
Phoenix-based Alliance for School Choice filed complaints against the Compton and Los
Angeles unified school districts in California, charging they had failed to adequately
explain school transfer options to parents.
Spellings declined no comment on those legal ac[ions but said they showed that the No
Child Left Behind law was having an iE~pact on the idea that school districts can be forced
to be held accountable.
Page 105
Clint Bolick, president of the Alliance for School Choice, said in a written statement
Wednesday, "~e are delighted the secretary is looking into the wholesale denial of public
school options. This is a nationwide problem, and Los Angeles and Compton are simply the
tip of the iceberg."
The Department of Education has launched pilot programs with Chicago, Boston and Virginia
to help increase participation in the t~toring programs, BUY Spellings said ~here’s more
to do, especially considering the department has found more than half of school districts
didn’t tell parents about their options until after the school year started.
"That delay makes it virtually impossible for studenns Zo transfer schools ~;inhou5
disrupting their education~" she said. "And that’s unacceptable."
The secretary also touted the e~pansion of school ~hoice programs, particularly charter
schools. She spent part of the morning with children at the Allen Christian Schcol, a
pr±vate school affiliated with the cathedral.
Spellings also lauded Republican Gov. George Pataki’s efforts tc increase the n,l~er of
charUer schools allowed in New York and to provide education tax credits to [£oderate- and
low-income families to use for t~]toring, SAT preparation or private school tuition.
Pataki was scheduled to at<end the gathering but could not make it because of bad weather.
Among those in the audience was Republican csndidate for New York governor Bill Weld.
Sent from my BlackBerry Wireless Hsndheld

Page 106
From: Dunn, David
Sent: Wednesday, March 29, 2006 9:48 AM
To: Sullivan, Key!n; Lute, Thomas; Private - Spellings, Margaret; Halaska, Terrell; Simon, Ray;
Johnson, Henry
Co: ’dana_m._perino@who.eep.gov’
Subject: RE: (AP)Bush Wants Schools To Progress In Science
Really well.
Sent: Wednesday, March 29, 2006 8:34 ~]
To: Luce, Thomas; Private - Spellingsj Margaret; D~nn, David; Halaska, To=roll; Simon,
Ray; Johnson, Henry
Cc: ’dana_~._perino@who.eep.gov’
Subject: Fw: (AP)Bush Wants Schools To Progress In Science
Think this turned out really well -
Se~r from my BlackBerry Wireless Handhold

From: Ruiz, Sarith
To: Banister, Ashley; Colby, Chad; Flowers, Sarah; McGrath, John; Ruberg, Casey; Smith,
Valerie L. (HQ]; Su!livan, Key!n; Terrell, Julie; Williams, Cynthia; Young, Tracy; Yudof,
Samara
Sent: Wed Mar 29 ~~:06:52 2006
Subject; (AP)Bush Wants Schools To Progress In Science
Bush Wants Schools To Progress In Science (AP)
By Ben Feller
AP <http://w’ww.boston.com/news/education/k
12/articles/2006iO3/29/bush_wants schools ~o_progress in science/>, March 29, 20~6
WASHINGTON --President Bush, quietly floa[ing a plan with big implications, wants schools
to face consequences for falling short in science, just as they de in reading and math.
The president’s proposal would require schools to make yearly progress in sclence~ adding
a third high-stakes subject to a No Child Left Behind law that has thousands of schools
scrambling to meet federal goals.
Congressional leaders say they are willing to consider Bush’s idea when the law comes up
for rene~.;al next year, but that’s as far as they will commit.
Science already is part of the law. Starting in the 2007-08 school year, states are
required to test students’ science knowledge at least once in elementary, middle and high
school. But nothing in the law requires holds schools accountable for science scores.
Bush wants tc change that by applying a system of penal~ies for schools whose students do
not improve their grasp of science. Such a move would affect millions of students
nationwide.
"Given our philosophy that what gets measured ge~s done, this would be a natura! way to
emphasize the importance of s~ience," said Assistant Education Secretary Tom Lute. "We do
think it’s importaRt to have consequences."
In reading and math, those consequences have made the yearly test scores ~ huge priority.
Schools thst get federal poverty aid and miss even one academic target face penalties that
get tougher each year -- from letting students transfer to firing employees.
The same could apply in science.
That idea is winning support from science advocates, ~.~ho say it ~ould force schools to
expand curriculum~ and put more time into training children for a technica! world. But
critics of how the !aw measures progress say adding science to the ~ix could be a
nightmare.
Bush’s idea is buried inside his new compezitiveness plan, which includes ex~.anding
reading and math testing to high school. The idea had gone nowhere on Capitol Hi!!.
But in science, Bush is tapping into a fresh area of concern. Faced with slipping U.S.
performance in science education and research, Congress .is demanding action.
Page
Within B~sh’s party, the House education committee chairman~ Rep, Howard McReon, R-Calif,,
has an open mind about requiring schools to show gains in science, spokesman Steve Forde
said.
In the Senate, education co~,ittee chairman Mike Enzi, R-Wyo., wants input from people
affected by the law~ including parents and teachers who say kids are tested enough. "~
don’t think we’re close to making a decision," said his spokesman, Craig Orfield.
Democrats who helped Bush pass the law in 2001 have offered wait-and-see responses, too.
Sen. Edward M. Kennedy, D-Mass., is not opposed to adding science to hew schools are
judged. But a spokeswoman said ~ennedy does not think the change should happen until
ata~es have a chance to get high-qu61ity tests in place and more ~raininq for their
teachers.
One clear supporter is Rep. Rush Holt. A New Jersey Democrat ~ith a background in physics,
Holt has pushed for judging schools on ~heir science scores when testing begins. At a
hearing last fall, he grilled Education Secretary Margaret Spellings for a c~l%~itmento
"It is as important as reading and math," Holt said in an interview, But he says Congress
may balk because they’re getting an earful about probl~ms with the ~urrent law,
An~ong those problems is how progress is measured. Many educators don’t like the reliance
on tests, or how mj.$sinq one academic goal labels the whole school as "n~eding
improvement."
"Let’s get it right first. Then we can start talking about bringing on science or whatever
subject ~hey want to talk about," said Rob Well, deputy director of educational issues for
th~ American Federation of Teachers.
Many local school leaders also want a better way to measuze progress -- plus more federal
support for education -- before they ge~ enthusiastic about being graded on science.
But Inez Liftig, an eighth-grade science teacher in Fairfield, Conn., said the idea is
solid: Schools should face consequences if they don’t raise achievement.
"What I find myself doing year after year is shoring up the foundation that should have
been there had the curriculum in elementary school been followed," Liftig said, "Because
science is not a mandated item, it get pushed to the end of the day."
On The Net:
White House competitiveness initiative:
~ " ~ ~" ’
htt~://~w.whitehouse. go~stateoftheun~on/200o~aul/
-’’
8arith T. Eulz
U.S. Department o2 Education
202.2~0.86~I
Page 108
Pr,,!,,vate,,- S, pellin~s, M, ar~aret

From: Halaska, Terrell
Sent: Wednesday, March 29, 2006 9:45 AM
To: Sullivan, Kevin; Luce, Thomas; Private - Spellings, Margaret; Dunn, David; Simon, Ray;
Johnson, Henr~
Cc: ’dana_m._perino@who,eop.gov’
Subject: Re: (AP)Bush Wants Schools To Progress In Science
Not to be too parochial, but a nice lead in to tomorrow’s hearing...
..... 0riginai Message .....

To: L~]ce, Thomas; Private - ~pell~ngs, Margaret; Dunn, David; Ha!asks, Terrell; Simon,
Ray; Johnson, Henry
CC: ’dana_m._perino@who.eop.gov’ <dana_m._perino@who.eop.gov>
Sent: Wed Mar 29 08:34:C,6 2006
Subject: Fw: (A£)Bush Wants Schools To ~ro~ress In Science
Think this turned out rea!ly well -
Sent from my BlackBerry Wireless Handheld

From: Kuiz, Sarith
To: Banister, Ashley; Colby, Ched; Flowers, Sarah; McGrath, John; Ruberg, Casey; Smith,
Valerie L. (HQ); Sullivan, Kevin; Terrell, Julie; Williams, Cynthia; Young, Tracy; Yudof,
Samara
Sent: Wed Mar 29 08:06:52 2006
Subject: (AP)Sush Wants Schools To Frogress In Science
Bush Wants Schools To Progress In Science
By Ben Fe!ler
AP <htzp://www.boston.com/news/education/k
12/articles!2006/O3/29/bush_wants schools [o progress in science/>, March 29, 2006
WASHINGTON --Fresident Bush, quietly floating ~ plan with big implica<ions, wants schools
to face consequences for falling short in science, just as they do in reading and math.
The president’s proposal would require schools to make yearly progress in science, adding
a third high-stakes subject to a No Child Left Behind law thee has thousands o~ schools
scrambling to meet federal goals.
Congressional leaders say they are willing to consider ~ssh’s ides when the !aw comes up
for renewal next year, but that’s as far as they will commit.
Science already i~ psrt of the law. Starting in the 2007-08 school year, states are
required to test students’ science knowledge at least once in elementsry, middle and high
school. But nothing in the law requires holds schools accountable for science 8cores.
Bush wants to change that by applying a s.ystem of penaltie~ for schools ~hose students do
not improve their grasp of science. Such a move would affect millions of students
nationwide.
"Given our philosophy that what gets measured gets done, this ~ould be a natura! way to
e~ph~size the importance of science~" said Assistant Education ~,ecre.~y Tom Luce. "We do
think it’s important to have consequences."
in reading and math, those consequences have made the yearly test scores a huge priority.
Schools that get federal poverty aid and miss even one academic target face penalties that
get tougher each year ~- from letting students trsnsfer to firing e~ployees.
The sa~e could apply in science.
Tha~ idea is winning support from science advocates, who say it would force schools to
expand curriculum and put more time into Craining children for a technical world. But
critics of how the law measures progress say adding science to the mix could be a
nightmare.
Bush’s idea is buried inside his new competitiveness plan, which indludes expanding
reading and math testing to high school. The idea had gone nowhere on Capito! Hill.
But in science, Bush is tapping into a fresh area of concern. Faced wich slipping
Page 109
performance in science educat±on and research, Congress is demanding action.
Within Bush’s party, the House education committee chairman, Rep. Howard Mc~eon, R-Calif.~
has an open mind about requiring schools to show gains in science, spokesman Steve Fords
said.
In the Senate, education committee chairman Mike Enzi, R-~yo., wants input from people
affected by the law, including parents and teachers who say kids are tested enough. "I
don’t think we’re close ~o making a decision," said his spokesman, Craig Orfield.
Democrats who helped Bush pass the law in 2001 have offered wait-and-see responses, too.
Sen. Edward M. Kennedy, D-Mass., is no~ opposed to adding science to how schools are
judged. But a spokeswoman said Kennedy does not think the change should happen until
states have a chenue to get high-quality tests in place and more training for their
teachers.
One clear supporter is Rep. Rush Holt. A Ne~ JeYsey Democrat with a background in physics,
Ho!t has pushed for judging school~ on their science scores when tesuing begins. At a
hearing last fall, he grilled Education Secretary Margaret Spellings for a commitment.
"It is as importann as reading and math," Holt said in an interview. But he says Congress
may balk because they’re getting an earful about problems with the current law.
Among those problems is how progress is measured. Many educators don’t like the reliance
on tests, or how missing one academic goal labels the whole school as "needing
improvement."
"Let’s get it right first. Then we can start talkil]@ about bringing on science or whateve~
s~bject they want to talk about," said Rob Weil, deputy director of educational issues for
the American Federation of Teachers.
Many loca! school leaders also want a better way ro measure progress -- plus more federal
support for education -- before they get enthusiastic about being graded on science.
But Inez Liftig, an eighth-grade science teacher in Fairfield~ Corm., said the idea is
solid: Schools should face consequences if they don’t raise achievement.
"What i find myself doing year after year is shoring up the foundation that should have
been there had the curricu!,~m in elementary schoo! been followed," Liftig said. "Because
science is not a mandated item, it get pushed to the end of the day,"
On The Net:
White House competitiveness initiative:
http://~w.whitehouse.gov/stateoftheunion/2OO6/acii
Sarith T. Ruiz
U,S. Department of Education
202.~6008611
follow up for Secreta~, Spellings Page 110 Page 1 of ]

From: Kaplan, Joe!lJeeLD._Kaptan@omb.eop.gov]
To: Lute, Thomas
Co: Private - Spellings, Margaret; Dryden, Logan
Subject: RE: follow up for Secretary Spa!tings
Joel
From: Luce, Thomas [mailto:Thomas.Luce@ed.gov]

Sent: Wednesday, February 08, 2006
To: Kaplan, Joel
Co: Margaret Spellings (E-mail)
Subject: follow up for 5ecret~ry Spell
5/1/2008
Re: Orlando Sentinel editorial - looks good Page 111 Page ] of 4

From; Sullivan, Kevin
Sent: Saturday, February 04, 2006 11:04 AM
To; Perino, Dana M.; Private - Spellings, Margaret
Cc; Aspey, Susan; Lute, Thomas; david.dun@ed.gov
Subject: DMN Coverage
this is really great:
Select students tutor Bush

10:13 PM CST on Friday, February 3, 2006
By KENT FISCHER and KATIE MENZER / The Dallas Morning News
A handful of Dallas’ brightest high school students gave President Bush a qtfick Iesson Friday afternoon
on how to split DNA and use an electron microscope to peer at a moss sample.
The visit came as ~e president begins a push to win support 1br beefing up the nation’s ninth and science
instruction by hiring more teachers and expanding the use of college-level courses in high school.
The Dallas students attend the School of Science and Engineering, one of severer highly competitive
programs at the Dall~ Independent School District’s Townview Magnel Center in east Oak Cliff.
Visiting with first lady Laura Bush, the president spent about 40 minmes at the school and called what
he saw there inspiring.
While t 3 handpicked students shared a few memorable minutes v4th the

president in a biology classroom, other students were locked in their Right-click here to download
[]
classrooms as a security measure for the president. pictures. To help protect
your privacy, Oullook
prevented aulomatic
Meanwhite, principal Richard White gave Mr. Bush a quick tour. Mr. White d(~vnload of this p~lu~ from
said afterward that he pressed the president on the need for more school the lnt~met.
TOM FOX ! DMN
funding and other issues. He said he was impressed with Ivh-. Bush’s
understanding of the challenges facing students and educators.
"He was a prett5’ quick thinker," Mr. N%ite said. "I’m impressed by his
knowledge, how he flainks. He knows his stats."
The bioIogy cIassroom had been rearranged tbr ~e president’s visit,

Television lights hung from the ceiling, and laboratory tables had been TOM FOX / DMN
Student Aden Armas
moved to make morn for the press and securitT. Gtass-paned storage ~hows President George
cabinets were covered in black paper to reduce the glare from television
lighls. Bush a moss sample
loaded in an electron
microscope at Yvonne A.
The students who met with the president were selected by teachers for their Ewell Towrtview Magnet
speaking ability and knowledge of the equipment they would be
5II/2008
Re: Orlando Sentinel editorial - looks good Page 112 Page 2 of 4
demonstrating. Center.
Oinny Hardwick, a 17-year-old senior, showed the president how students prepare a specimen for
viewing under tlae school’s electron microscope. The school is one of only six in the nation with the
high-powered piece of equipmertt.
Ginny explalned that the preparation process takes students about three weeks and ends with the
specimen encased in a block of clear plastic.
Over their heads?
Another student, Michael Harrell, nervously explained how students split DNA with electrodes and
water - a process called electrophoresis.
"I got it," Mr. Bush qttipped, "but I’m not sure the press did."
Adam irmas, another senior, showed the president how to use the electron microscope, helping him
view a piece of moss that students had collected from outside the school. "
"Take a look. You can see the. tissue," the student said, adding that he had prepared the specimen
himself.
"You did a fine job," Mr, Bush said.
The president’s visit was part of a three-day tour to promote proposals he outlined in Tuesday night’s
State of the Uniort address. Among them was his call for $326 million to begin recruiting and training
70,000 math and science hig[~ school teachers. Mr. Bnsh also wants tt~ lure an additional 30,000 math
and science professionals to teach part time in high schools.
Improving instruction in those subjects, he said, will keep the country competitive.
"We have got to have a worklbrce that is strong in engineering and science and physics," the president
said after listening to the students Friday.
"You know, some would hope that the competition around the world will go away -. it’s not going to.
And so we have a choice to make: Do we want.to retreat, become protectionist; or do we want to seize
the moment and sttape our future?"
A school like the Dallas magnet, he said, "brightens my hope for the thture of our country,"
Its admissions requirements mean the School of Science and Engineering has an unusually gifted
student body.
More than 20 percent of the magnet school’s students have taken Advanced Placemenl college-level
classes. And, for three years running, it has had the highest number of minority studentz pass AP
calculus of any school in the count~3’ - panic or private.
After the president left, Ginny said she thought the visit ’",vent really wetl." It was a good outcome for
the senior, who confessed that she had spent a lot of time worrying Thursday night. Then, on the way to
~chool on Friday morning, she spilled coffee on her white shirt.
5/!/2008
Page 113
"I wasn’t scared," she said. "He was very personable."
The president said he was equally impressed. Dal!asNews

"It’s a fantastic school," Mr. Bush said. "It really does brighten my Interview exce~’p|s:
hopes about the future of the country to see you all and see your Secretary of Education
enthusiasm for the subj.ects." Margaret Spellings
¯ .Fhading more math and
Small protest science teachers
¯ .Sources of tim. d_i~g
Down the street from the school, a smattering of protesters stood - 2006 education._bu~
outside in the rain Friday morning to await the president. ¯ _Effects Qn the curriculum
- Congr_es_sional concensus
Jamie Durra of Da!las said he believes the nation is in a "constitutional
au_u_u_u_u_u_u_u_u__~, quick action
crisis," citing Mr. B~sh’s policies on wiretapping and national security.
¯ Enhanced Poll G__Lrants
support stud?L o._f s.c.iences
Across the street from the school, groups of office workers stood on the balcony outside their building to
get a view of the presidertt’s motorcade when it drove by.
Nicky Thomas had the forethought to bring his binoculars to work at Dallas Challenge Inc.’s Truancy
Enfoxcement Center, a local nonprofit organization.
"We just wanted to see what the hoopla was about," he said, standing outside his office,
Mr. Thomas said they were told the streets ~vould be shut down in front of his building and around the
school fi-om noon to 2 p.m., so he remembered to brown-bag his lunch of quesadillas,
He said not much work was getting done,
.... Original Message .....

From: Perino, Dana M. [mailte:Dmaa M. Perino@who.eop.gov]
Sent: S~t 2/4/2006 10:43 AM
To: Su]livan, Kevin
Subject: Re: Orlando Senti~leI editorial - !~oks good
Good stuff-- heard the dallas coverage is good too
.....Original Message---
From: Sullivan, Kevin <Kevin.Sullivan@ed.gov>
To: Perino, Dana M. <Dana M. Perino@who.eop.gov>; Dunn, David <David.Dunn@ed.gov>; Aspey, Susan
<Susan.Aspey@ed.gov>; Lure, Thomas <Thomas.Luce@ed.gov>
Sent: Sat Feb 0,~ 10:40:20 2006

Subject: Orlando Sentinel editorial - looks good
EDITOILIAL
5/1/2008
Page 114
Failing behind
Our position: Bush’s p]m3 to up nation’s competitiveness deserves support.
February 4, 2006
Amid the warmed-over proposals ha President George W. Bush’s State of the Union speech, a fresh, promising idea
stands out -- what tim president is calling his American Competitiveness Initiative.
This f~sighted plan would help the United States keep its edge in the global economy, Using targeted ~ breaks and
an increase i~ federal grants, it would promote the kind of research that leads to~ec.hnological breakthroughs and,
ultimately, to invesmaent and emptoya-nent. And it would expand the talent pool essential for conducting research and
fitting high-tech jobs by improving science mid matlaematics education.
The president’s initiative draws on recommendations made l~st year by a national panel of experts in science,
engineering and medicine. The panel, convened at the request of senators in both pat-ties, warned that the United
States was losing ground to its economic competitors in science and technology. "We are worried about the future
prosperity of the United S*ztes," the panel ominously concluded.
The warning signs already are clear: China graduated more than eight times as ma~y engineers as the United Stat~
2004; U.S. high-school senior~ do worse than their counterparts in competing countries on math and science tests;
chemical companies are closing U.S. plants and opening new ones 91 China; and the United States is now a net
importer of high-technology products.
U,S. Education Secretary Margaret Spellings~ in Orlando this ~veek, said American high-tech business leaders had
told her they struggle to fred enough qualified applicants in this country lbr top jobs in their companies. That often
leads them to recruit -- and invest -- overseas.
The jobs that would be created through better math and science education and more research funding are especially
crucial to the economic ftttare of Central Florida. This region depends too heavily on low-wage work in industries
catering to tourists. It needsmore high-wage, high-skill jobs to boost the region’s quality of life. As Ms. Spellings
pointed out this week, regions with the best-educated and trained work forces wil! be magnets for investment.
(3ov. Job Bush and school districts in Central Florida b.ave proposed or ]mmched their o~vn programs to improve math
and science education. Passage of the president’s plan would enhance those state and regional efforts.
The price for the president’s initiative - $5.9 billion next year and more than $136 billion over 10 years - is ltard to
swallow in an era of big budget deficits. Ideaily, Congress will offset the cost by ending other, obsolete programs, or
rescinding other, unwarranted ~ax breaks. But if the compo~tents of the president’s ~itiative ~re well executed, they
should spur more than enough economic growth in the future to justify the investment.
Mr. Bush’s plan deserves enthusiastic support from Congress.
51t!2008
Page 115
Private,..- Speilin~ls;..Mar~aret
From: Booker, Brenda L [Brenda_L._Secker@ovp.eop.gov]
Sent: Wednesday, Januaq¢ t8, 2006 2:59 PM
Subject: Fw: AP - As education secretary, Spellings known for a change in tone
Go girl
Brenda Becket
Office of Vice Frcsiden~ Cheney
456-6774
.....Original Message.
From: White House ~ews Update <News.Update@WhiteHcuse.Gov>
To: Becket, Brenda L. <Brenda L. Becker@ovp.eop.gov>
Sent; Wed Jan 18 14:45:24 2006
Subject: AP - As education secretary, Spellings known for a change in tone
As education secretary, Spellings known for a change in tone

By BEN FELLER
WASHINGTON (A£) ~Kqen President Bush wanted a new education law, Margaret Spellings helped
make it happen as his domestic policy chief. When she left the White House, she had new
orders.
Make the law work.
Taking over as education secretary a year ago, Spellings promised to enforce the No Child
Left Behind law with flexibility not shown much in Bush’s first term including by her.
She hasn’t been eubtle amo~t her change in tone. She has given state leaders leeway in how
and when they measure student progress, improve teacher quality, test children with
disabilities, provide tutoring LO poor kids and cope with hurricane evacuees.
Open to question is whether all the changes will make the la~q more workable or weaker.
"’We’re on ~he way to keeping that promise,’’ Spellings said in an interview with The
Associazed Fresa, talking about cooperation with states. What she wants in return is
results, mainly better tes[ scores among poor and minority children.
That’s the academic goal. The political one has been to calm the sto~m that has threaZened
a Bush priority, the most aggressive federa! school law in decades.
"’It’5 clear she had a mandate, a mission, an understanding, that she needed to be more
flexible,’’ said Connecticut Education Commissioner Betty Sternberg, whose state is suing
the federal government over the law’s financing.
More flexible, that is, than Rod Paige, who preceded Spellings and took the heat for some
messy, early implementation of the 2002 law.
The education secretary’s work trickles down. The person in the job has broad authority to
tell states what they can and can’t do, affecting the lives of millions of children.
Educators remain frustrated about the law but tend to see Spellings’ enforcemen~ as
reasonable. So far, she has won solid marks,
"’Her attempt at flexibility an,/ more state independence is something I honors’’ said
Patti Harrington, superintendent of public instruction in Utah, ano[her stat~ that has
tussled with the Bush ~dministration over the law, The law’s mission of getting i00
percent of children to grade level in reading math, though, is still "’not connected to
reality,’’ Harring:en said.
Page 116
Spellings has also been credited for getting help quickly to schools hit by the Gulf Coast
hurricanes, and ~or ordering an ambitious review o~ U.S. colleges and universities.
"’There’s no question the5 as we moved into the second term, higher education has
obviously taken more of a place on the agenda,’’ said David Ward, president of the
American Council on Educe:ion, the major lobbying voice for colleges and ~niversities.
But No Child Left Behind dominates. It is Bush’s signature education policy. Some wonder
why Spellings didn’t show flexibility earlier, when she oversaw the law from the White
House,
She was domestic policy chief in Bush’s first term, when the administration showed far
less wiggle room to sta~es. During that tiE, e, the backlash over the bipartisan law took
off.
"’It’s not that Margaret Spellings is more flexible than ROd Beige,’’ said Michael
Petriili, who worked under both of them in the Education Department’s school reform
office. "’it’s that Margaret Spellings changed her policy when she moved from the White
House.’’
Spellings defends the first years cf enfoz’cement. What’s happened since, she said, has
been adjustment, learning-as-they-go. ’’And what we do t~day wi!l probably be not what
we’re going to do in three years from now,’" she said in the AP interview.
The law aims to ensure that all children can read and do math at grade level by 2014.
Schools face penalties if they reoeive federal aid but do not improve.
Spellings sees support growing. She talks of teachers and superintendents who have more
data to figure out what works, and parents who have more choices for their kids.
"’Accountability is their friend,’’ she said.
Yet four years after Congress passed the law, the sales job is far from over.
Communities for Quality Edacation, an advocacy group that tracks legal or legislative
challenges to the law, has tallied at least one major action in all 50 states..A coalition
Of 68 groups is already lobbying for changes when the law comes up for review in 2007.
Meanwhile, Spellings has loosened the rules on tutoring in cities such as Boston, Chicago
and New York. She has let up to i0 states experiment with how they grade students. She has
given states an extra year tc get all their teachers highly qualified if they show good
faith.
"’The question is, hew rea! is all this flexibility? Tha~ has yet to be seen,’’ said
Patricia Sullivan: director of the Center on Education Policy. Some states have found that
meeting the department’s oziteria is so difficult thst the flexibility offer is moot.
Others say Spellings may be bending too far, undermining the law.
"’That’s one of the concerns you hear, that 8he is more interested in making peace among
the special interests than in enforcing the law,’’ said Andrew Rotherham~ a former adviser
to President Clinton who co-direc[s Education Sector, an education think tank.
Spellings says she won’t budge on the core elements of the law.
"’As i~e say in Texas, if el! you ever do is all you’ve ever done, then all you’ll ever get
is all you ever got,’’ Spellings said. "’~d all we ever go< is really not good enough.’’
Associated Press writer Frank Bass in Hartford, Conn., contribused to this story.
You are currently subscribed to News Update (wires) as: Brenda_L._Becker@ovp.eop.gov.

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Page 117
Private - Spellin~lS, Mar~laret,
From: Suhiff, Eleanor
Sent; Monday, September 12, 2005 8:54 AM
’clay_johnson._ll!@omb, eop.gov’
Cc: ’ehouse@omb.eop.gov’; Private -Spellings, Margaret
Subject: ernail I=rom Margaret Spellings
(b)(5)
Page 118
Privats - S ,,,ellin~s, Margaret
From; Doherty, Chris
Sent: Sunday, September 11, 2006 3:20 PM
To: ’clay_johnson@omb.eop.gov’
Dunn, David; Pdvate - Spellings, Margaret
Subject: Reques~ed Overview Document From the Department of Education (ED)
Attachments: Big Picture Obstacles. doc
(b)(5)
Sincerely,
Chris Doherty, ED
(b)(6) .......
ED Response to Hurricane Katrina
Ct~ent Big Picture/Beyond ED Obstacles
[b)(5)
Page 121 Page 1 of l

From: Cassetf, Mary 1. {Mary_t._Cassell@omb.eop.gov]
Sent: Monday, July 11, 2005 6:03 PM
Subject; RE: Thanks!
Thanks for the nice note. I’m very excited about this and was at ED today working with Hudson and Ross. If
anyone can turn this department around, you can - I hope t can help with that. -Mary
Mary Cassell
Education Branch
(202) 395-5881 (phone)
(202) 395-4875 (fax)
mcassell@omb.eop.gov
From: Private - Spellings, N_a_rga.r.eL[m~ilto,;,~,, ,’ ,,, ~ ~
TO: ~s~tl~ Ma~ I.

Subje~: Than~
Mary - Tom told me that you will 13e he(ping us part-time. I greatly appreciate your willingness to help. You witf
add a ton of vatue to the team. 3"hanks. See you around FB6. Margaret Spellings
5/1/2008
Page 122 Page I oi"2

From: Kessl~rRonald@cs.com
Sent: Tuesday, June 14, 2006 10:45 AM
¥o: susan_d._whitson@who.eop.gov
Subject: acknowledgments
My wife Pamela Kessler is my partner in life and in writing books. A tormer Washington Post reporter and author
of UndercOver Washington: W~ere Famous Spies Uved, Worked, and Loved, she pro-edits my work and informs
my decisions with her intellect and good judgment. If Pare had not supported my wish to leave newspapers and
enter the risky business of writing books, this project might never have happened.
My grown children, Rachel and Grog Kessler, round out the picture with their love and support. My stepson Mike
Whitehead ls a loyat and endearing part of that team.
My agent Robert Gottlieb, chairman of Trident Media Group, came up with the idea for this book. t am lucky to
have him on my side.
Adam Bellow, executive editor at large of Doubleday, provided excellent editorial ideas at critical points along the
way.
Having wdtten A Matter ot Oharacter." Inside the White House of George W. Bush, on which the White House
cooperated, I should have had an easy time obtaining cooperation for a book on the first lady. Wrong. The public
refatlon~ people were focused on the campaign, and who wants to take a chance thata book about the
president’s wife might go awry? Into the breach stepped Anne Sewell Johnson, who mentioned the project to
Laura and began helping. Anne’s husband Clay Johnson III, Bush’s roommate at Yale, chief of staff when he was
governor, and head of presidential personnel at the Whi~e House, had been my rabbi on the previous book. Anne
provided phone numbers, leads, insig~hts, and anecdotes. She had a sophisticated understanding of what was
needed to make a good book. When friends or aides were hesffant to talk, she vouched for me, I called her my
blonde rabbi.
Laura had never cooperated on a book before, and her overwhelming modesty made her hesitate. But once she
did, I became privy to a secret world that neither ehe nor her husband had allowed any outsiders to see. Either by
checking with her directly or by going through Gordon Johndroe and later Susan Whitson, friends, family
recruiters, and aides got the word that [he first lady though~ it would be fine if they talked with me. Most had not
talked to the media since before George Bush entered the White House. Laura’s only desire, as related to me by
Gordon, was that the book be accurate.
Pamela Nelson was the second close friend te help. Along with Pamela and Anne, Laura’s close friend Nancy
Weiss and Andrea G. "Andi" Ball, her chief of staff for ten years, went out of their way r.o make sure I got an
accurate, inside portrait. In obtaining cooperation, I also received crucial help from Dan Bartlett, Gordon
Johndroe, Margaret Spellings and Collister"Terry" Johnson, Jr.
Besides the remarkable level of cooperation, what made all the difference wa~ the fact that the people around
Laura Bush tend to be exceptionally smart, insightful individuals who are good at telling anecdotes. To the extent
the book succeeded, they and Laura Bush herself are responsible. I am grateful to them.
Those who were interviewed or helped in other ways included:
Charles Aiken, Don Aiken, Leilani Akwai, Oren AIbright, Kathadne Ideal Armstrong, Andrea Go "Andi" Bali, Jackie
Stubblefield Ball, Dan Bartlett, Robert Battle, John B. Bellinger III, Dr. James H. Bitlington, Kenneth Btasingame,
Joshua B. Bolten, Mary Bowhay, Marvin S. Brettingen, Nancy Brinkar, Beth Ann Bryan, Laura Bush, Patty Bush,
Andrew H. Card, Jr., Reverend Kathleene Card, Alice Carrington, Kirk Casselman, Tony Chauveaux, Jane
Purucker Clarke, Dalton H. Cobb, John V. Cogbitt 1!1, Betty Clark, son Conkling, Dewey W. "Skip" Corley, Dr. Rex
Cowdry, Dr, Rebecca "Becky" Curtis, James K. Davis, Polly Chapell Davis, Nicolle Devenish
Ambassador Robert J. (Rob) Dieter, Sharon Dodson, Sandra Moore-Dyrenforth, Dr, Harryette Ehrhardt, Ralph W.
Ellis, Ambassador Donald B. Ensenat, Taylor Ensenat, Donald Etra, Jeffrey Eubank, Donald L Evans, Susie
Marinis Evans, Catherine S. "Cathy" Fenton, Mary Finch, Debbie Francis, James B. "Jim" Francis, Jr., Regan
Kimberlin Gammon, Christine Mast Gilbert, Dana Gioia, Bill Godwin, Rebecca "Becky" Turner Gonzales, Dennis
Grubb, Tobia Hochman Gunesch, Vestophia Gunnells, Johnny W. Hackney, Judy Harbour, Bill Harlow, Erin E.
HeaJy, Anne Heiligens[ein, Mary Herman, Israel "lzzy" J, Hernandez, Judy Dykes Heater, Janet Kinard Heyne,
Winton Holtaday, David Holt, Martha Holton, Betsy Hurt, Marcia Jackson, Gordon Johndroe, Anne Sewetl
Johnson, Clay Johnson ti1.
Co!lister "Terry" Johnson, Jr., Liz Johnson, Harvey Kennedy, Ed Klein, Felicia Knight, Dorothy "Doro" Bush Koch,
Barnett Alexander "Sandy" Kress, James C, Langdon, Jr., Sandy Langdon, Jay Lelkowitz, Isaac Lopez, Dr. G.
Reid Lyon, Adrienne Abrahamson Madrid, Adair Mar9o, Marie Dodson Maxwel!, Anita McBride, Delaney
511/2008
Page 123 Page 2 of 2
McCaghren, Jamie McCaghren, Robert D. M¢Callum, Jr., Jimmy McCarrott, Or. John P. McEtligott, Robert
McCteskey, Harriet Miers, Emily J. Miller, Henry Moran, Bill Nelson, Pamela Hudson Nelson, Noam Neusner, Jan
Donne!ly O’Neill, Raymond H. Patton, Marge McColl Petty, James Powell, Candlce Poague Freed, William
Addams Fteitwiesner, Dr. Condoteezza Rice, Arland W. Richards, Krista Ritacco, Kathy Robbins, W.B. "Trey"
Robbins
Noelia Rodriguez, Deedie Rose, Kad Rove, Penny Royall, Tammy Smith, Margaret Spellings, Dabble Stapleton,
Craig Ft. Stapleton, Anne Lund Stewart, Dr. William Stixrud, Ambassador Vygaudas U~ackas, Elsie Walker, Peter
Wehner, J. Michael "Mike" Weiss, Nancy Weiss, Peggy Porter Weiss, Run Weiss, Mary Mark Welch, Susan D.
Whitson, Ambassador Pare Willefurd, Victoria "Vicki" Wilson, Linda Mi!ls Wofford, Michael M. Wood, Bill Young,
Dr. Charles M, Younger, Fred S. Zeidman,
5/1/2008
Page 124 Page

From: Kladakis, Monica V. [Monica_V._Kladakis@who.eop.gov]
Sent: Tuesday, March 29, 2005 12:44 PM
To; Moy, Edmund C.; Dunn, David; Oldham, Cheryl; Private - Spellings, Margaret
Cc: Trent, Joshua
Subject: RE: Jack Martin
Thank you,
Monica

From: Moy, Edmund C,
Sent: Tuesday, March 29, 2.005 ~.0:16 AM
TO: ’Dunn~ David’; ’Oldhamt Cheryl’; Margaret Spellings
(:¢: TFent, 3oshua; Kladakis, Mon~.a V.
Subject: .~ack Martin
5/1/2008
Page 125

From: Lyon, Reid G. (NIH/NICHD)[lyonr@exchange.nih,gov]
To: Chessen, Sonia (HHSIOS)
Cc: O’Grady, Michael (HHS/OS); Private - Spellings, Margaret; Dunn, David; C[sse, Cassandra
(HHS/OS); Lawlor, Laura (HHS/OS); ’sonya_e._medina@who.eop.gov’
Subject: RE: Detail to ASPE
b)(5)
> .....Original Message .....

> From: Chessen, Sonia (HHS/O$)
> Sent: Thursday, March 03~ 2005 2:49 PM
> Cc: O’Grady, Michael (HHS/OS); david, dur*n@ed, gov’ ;
> Cisse,. Cassandra {HHSiOS)
> Subject: R£: Detail to ASPE
>
Paae 126
l(b)(5)
i
...... Origina! Message .....
From: Lyon~ Reid G. (NIHiNICHD)
> Sent: Friday, February 25, 2005 10:44 AM
> TO: Chessen, Sonia (HHS/OS)
;> Co; O’Grady, Michael (HHSiOS}; ’z~arlaml@ed oov’; ’davJd.dunn@ed g0v’
Subject: RE; Detail to ASPS "" ’
>
(b)(5)
>
>
>
>
>
>
> Thanks
> reid
> G. Reid Lyon, PhD
> Chief
> Child Development & Behavior Branch
.> National Institute of Child Health & Human Services
National Institutes of Health
> 6100 Executive Boulevard
> Room 4Bo5-MSC 7510
> Bethesda, MD 20892
> [for federal express use: Rockville, MD 20852-7510]
Web site: http://~m~q.nichd.nih.gov/cr~.c/cdb/cdb.htm.
>
>
> ..... Original Message .....
> From: Chessen, Sonia (HHS/OS)
> Sent: Friday, F~bruary 25, 2005 10:34
To: Lyon, Reid G. (NIH/NICHD)
> Co: O’Grady, Michael (HHS/OS)
> Subject: P~E: Detail to ASPE
>
(b)(5)
l
> ...... Origina! Message .....
> From: Lyon, Reid ~, (5iH/NICHD}
> Sent: Friday, February 25, 2005 10:23 DIJ
> To: Chessen, Sonia (HHS/OS]
> Cc: Lyon,. Reid (HHS./OS); Lyon, Reid G. (~IH/NICHD)
> Subject: RE: Detail to ASPS
b)(5)
From: Martin, Catherine {Catherine_Martin@who.eop.gov~
Sent; Wednesday, February 09, 2005 5:27 PM
To: Pdvate - Spellings, Margaret
Subject; FW: AP - Bush’s high school plan faces fight Jn Congress
Noni’e
@ F=’om: White House News Update [mailLo:News.Update@Whit:eHouse.Gov]
Sent.’ Wednesday1 February 09, 2005 5;12 PN
To; Martin, Cathedne
Subject: AP - Bush’s high school plan faces fight in Congress
Bush’s high school plan faces fight in Congress
BEN FELLER
WASHINGTON (AP) _ President Bush’s plan to expand high school testing is facing a fight
from some of the same leaders in Congress who pushed through his first-term school agenda.
Bush wants Congress to require yearly reading and math tests in grades nine through 11,
further extending a greater federal rote in education. The No Child Left Behind law Bush
championed requires tests yearly in grades three to eight, and once during high school.
Congressional education leaders are wary, if not opposed, to the way Bush wants to change
high school, as outlined in his new budget proposal. He wants to spend $1.2 billion on high
school "’interventions," for example, but erase about as much from vocational education.
That trade-off drew resistance from Rep. Mike Castle, chairman of the House Education and
the Workforce’s subcommittee on education reform. "’It does not look likely" that Bush’s testing
plan will go forward in Congress, said Castle, R-Del.
"’Personally, ! believe in it. ! think everybody would like to see us do more at the high school
level, but there may be certain members of Congress who don’t think Congress should be
involved," Castle said at an education forum. "’1 can’t give its chances as being very high at
this time, but I’ve seen stranger things happen. So hopefully something can be worked out."
Rep. John Boehner, chairman of the full committee and a stalwart defender of the No Child
Left Behind law, has been noticeably noncommittal about Bush’s idea. Boehner, R-Ohio,
5/I/~OOg
praised Bush for a proposal that he said would "’spark a healthy debate" in Congress,
Much of the lobbying effort will fall to new Education Secreta~ Margaret Spellings, a White
House veteran who has good relations with lawmakers of both parties. She wants to build
national momentum, drawing particularly on support from governors, for the president’s effort.
"’As with all major policy initiatfves, there will be negotiations with the legislative branch,"
Spellings said. "’We look forward to working with Chairman Castle, as well as all the other
members of the House and Senate .... This is the beginning of the process."
Castle, a moderate, said many conservative members of his party oppose the proposed testing
expansions as an intrusion on local school control.
The No Child Left Behind law requires schools to show yearly progress among all major
groups of students, with the goal of getting all children up to grade level in reading and math.
Testing is a cornerstone, and Bush officials says it makes sense to expand it in high school.
But Democratic leaders say they have been burned by their first go-round on the education
law, which passed with highly touted bipartisan support. Democrats say schools have not
received enough money and that Bush’s new budget makes it worse by cutting overall
spending.
"’High schools need help, but President Bush’s proposal faces stiff resistance on Capitol Hill
because he has little credibility anymore," said Rep. George Miller of California, the top
Democrat on the House education committee.
Bush also wants to expand access to Advanced Placement testing, increase competitive
grants in math and science and reward teachers whose students excel. Those plans are offset
by cuts elsewhere in education.
"’The resources the president are proposing are essentially stolen from another critical
program," said Carmel Martin, chief education adviser for Sen. Edward Kennedy, the top
Democrat on the Senate Health, Education, Labor and Pensions Committee.
5/I/2008
You are currently subscribed to News Update (wires) as: Catherine Martin@opd.eop.gov.
To uasubscribe send a btank email ~o ea’~e-whttehouse-news-wlres-1000136K@hsLwhitehouse.gov
5/1/2008
Page 133
Private - Spellings, Margaret ,

From: Leitch, David G. [David G. Leitch@who.eop.gov]
Sent: Thursday, February 03, 2005 4:29 PM
To: Moy, Edmund C.; Private- Spellings, Margaret
Subject: RE: Bad News on Rothkopf

From: Moy, Edmund C.
Sent: Thursday, February 33, 2005 4:13 PM
To: ’Private - Spellings, Margaret’
Co: Leitch, David G.
Subject: RE; Bad News on Rothkopf
(b)(5)

P ri- v~ t e-- ~-- Sp~-!-t-i*n~ ;-- Ma-rg~ret-- {-me if-t- o
To: Moy, E~und C.
Subject: KE: Bad News on Rothko~f

From: Moy, Edmund C. [mailco:Echnund C. Mny@who.eop.gov~
Sen~: ?hursday, February 03, 2005 2:31 PM
To: Private - Spellings, Margaret; Dunn, David
Cc: Williams, Jan E.; Oldham, Cheryl
Subject: Bad News on Rothkopf

From: Arthur Rothkopf [mailto:rothkopa@lafayette.edu]
Sent: Thursdayr February 03, 2005 2:05 PM
To: Moy, Edmund C.
Cc: Williams, Jan E,
Subject:
b)(6)
Best regards,
Arthmr
Arthur ,I. Rothkopf
President
Lafayette College
316 Markle Hall
Easton, PA 18042
Phone: 610-330-5200
Fax: 610-330-5700
Page 135
From: Knox, Gregory [Gregory_Knox@who.eop.gov]

Subject: RE: Many thanks
Attachments: Spellings Swear in Ceremony 1-31-2005 #1 .jpg; The President and 8ecreatray Spellings - The
Money Shot.jpg; The President and Secretary Spellings - Cut Shot.jpg; The President and
Secretary Spellings - Shaking Hands.jpg; The President and Secretar~ Spellings - Smi}ing.jp9;
The President, Secreatary Spelling and Robert Spellings - Presidential Comment.jpg; The
Presidnet and Secret~ry and Robert Spellings - The Oath
b)(6)
I want to wish you the best of luck in your future endeavors. If I can ever be of any assistance to you, please do
not hesitate to contact me.

From.~ Prhtate~-Sl~llingsTHarg~ret]-
(b)(2) Sent: Wednesday, February 02, 200-5 2:55 PM
To: Knox, Gregory
Subject: Many thanks
|Margaret Spellings
(b)(6) ! ........................
5/1/2008
Page 136
Private - Spell,in,Is, Margaret
To: ’kzins meister@who.eop.gov’
SubJect: Fw: AP Step/just posted on Budget
Sent from zny BlackBerry Wireless Device

From: Yudof, $amara
Sent: Fri Feb 01 15:02:40 2008
Subject: Fw: AF Story just posted on Budget

From: Colby, Chad
To: Dunn, David; Gribble, Emily; Yudof, Samara; Maddox, Lauren; Kuzmich, Holly; Skandera,
Hanna; Skel!y, Thomas
CC: Ridgway, Marcia; Benton, Meredith
Sent: Fri Feb 01 14:07:06 2008
Subject: AP Story just posted ok Budget
By NA~NCY ZUCKEEBRGD
AP Education Writer
WASHINGTON {AP) - In a ],ear when many federal programs are in line for hefty budget cuts,
President Bush is asking Congress to largely leave education alone, and seeking more money
for a controversial reading initiative.
The White House budget proposal being sent to Congress on Monday asks lawmakers to sign
off on nearly $61] billiol] -for education
P _romrams
, ac-ording ~~o a copy of the Education
,..
Department budget obtained Friday by The Associated Press. The amount equals what is being
spent this year, without an increase to keep pace with inflation.
Ax, ong Bush’s proposals for the upcoming budget year: a push for Congress to restore $600
million lawmakers cut from a reading program that serves lo~-income children.
The program, called Reading First, recently has received favorable reviews from state
officials and others. But it also has been criticized by federal investigators for
conflicts of interest and ~smanagement.
Education Secretary Margaret Spellings said in a telephone interview Friday that there
were problems with the program initially but that they had been addressed and that reading
gains were being made by students served under the ini’tiative.
The administration also is renewing a push for a $300 million proposal th~c would allow
poor students to transfer to better public schools outside their district or to private
schools, if their schools failed to meet benchmarks under the 2002 No Child Left Behind
law or had low graduation rates.
Democrats are staunchly opposed to using federal dollars for private school vouchers and
have rejected similar adalinistration proposals in the past.
Spellings said it’s unfair to force kids to stay in troubled schools. "’When they are
broken chronically, we have to do something different,’’ she said.
Title I qrants, che main source of federal fund£ng for poor students, would get $14.3
billion, about a 3 percent increase from this year, under the administration’s proposal.
!~out half of the nation’s schools, and two-thirds of elementary schools, receive Title I
funding.
The administration proposes to spend about $Ii.3 billion for special education services
for students with disabilities, an increase of roughly $330 million.
A program that helps fund merit-pay plans for teachers who boost student test scores would
Page 137
double, from about $i~0 million to $200 million. T~achers unions oppose linking paychecks
to student scores.
In a!l, the administration is seeking to eliminate 47 education programs, to save about
$3.3 billion. The administration says The programs are too small to have a national
impmct, aren’t ef~ect±v~ for other reasons, oF get money from other sources.
They include programs to encourage arts in schools, bring low-income students on trips to
Washington, and provide m~ntal health services.
"’Obviously, cuts are difficult to make,’’ Spellings said. "’But I think this is a
responsible budget that sets priorities and that is aligned with the core mission and the
core focus of No Child Left Behind.’’
The Education Department al~o admln£st~rs programs that help studsnts and their families
p~y for college.
The president is asking Congress to approve an increase of about $2.6 billicn for the Poll
Grant program for low-income college students. He is seeking to eliminate osher programs,
including the Perkins Loan program, which provides low-interest loans to needy ~<~dents.
Chad Colby
U.S. Department of Educatio~
(202) 401-4401
(202) 538-4511 cell
Page 138
,,privat.e - s,,,pellin, 9s, M,,argaret.
From: Halaska, Terreil
Sent: Monday, April 16, 200"/1:37 PM
To’. Dunn, David; Maddox, Lauren; McLane, Katherine; Mesecar, Doug; Briggs, Kerri; Simon, Ray;
Tucker, Sara (Restricted); Oldham, Cheryl; Scott Waiter (E-mai0; Kelly Scott (E-mall}; Barrett
KalT (E-mat0; ’dboyer@who.eop.gov’; Kuzmich, Holly; Mcnitt, Townsend L.; Private-
Spellings, Margaret
Quades, Karen; Bannerman. Kristin; Watkins, Tiffany; Sampson, Vincent
Subject: FW: Hearings list
Here are aii the hearings - both higher ed and NCLB that we know about over the next
several weeks. We are relatively confident that the House side list is complete on NCLB
and there ~on’t be any add’i hearings added. We will see a n[tmber of oversight,
particularly on higher ed, hearings added

From; Qt~arles, ~areD
Sent: Monday, Apri! 16, 2007 12:11
To: Halaska, Terrell; Bannerman, K~istin
Cc; Soeder, Emily
S%~ject: RE: Hearings list
Thursday, Apri! 12th -House K-12 Subcommittee Field Hearing in MI
Tuesday, April !7th - Senate HELP Committee Coffee on Special Education (Kerri Briggs will
participating)
Wednesday, April 18th - House K-!2 Subcommittee on SEE
Thursday, April 19th - House Veterans Affairs Economic Benefits Subcommittee hearing on
accreditation (Carol Griffiths Tegtifylng}
Friday, April 20th - House Education and Labor hearing on Reading First
Monday,. April 23rd ~ House Ful! Education and Labor hearing ¢,n Drop Outs and Student
Engagement
Tuesday, April 24 -Senate HELP hea~ing on High Schools
Wednesday, April 25 - House Education and Labor Hearing with AG Cuomo on student lending
practices
Thursday, April 26 - Senate HELF Coffee on Assessments
Friday, April 27 - House ~-12 $ubcomm~ttee Field Hearing ISan Kafael, CA-Rep. Woolsey’s
district} on NCLB and I~pro~ing the Accountability System
Saturday, April 28 - House K-I£ Subco~a~ittee Field Hearing (~hoenix, AZ) on NCLB and
Indian Education
Tuesday, May i - Senate HELF Hearing with the Secretary
Tuesday, May Hth - House EducatioD and Labor Hearing on teacher quality
Thursday, Hay i7th (Tentative) - House Education and Labor Hearing with the Sec~t6ry
Page 139
Private,..- Spellings, Marga..ret

From: McLane, Kal:herine
Sent: Monday, April 02, 2007 8:52 AM
To: Private - Spellings, Margaret; Fards, Amanda; Conaty, Joseph; Warder, Larry; Rosenfelt, Phil;
Simor~, RaT, Landers, Angola; Evers, Bill; Colby, Chad; Williams, Cynthia; Dorfman, Cynthia;
Mesecar, Doug; Dunn, David; Pitts, Elizabeth; Flowers, Sarah; McGrath, John; Talbert, Kent;
t~riggs, Ken’i; Kuzmlch, Holly; Toomey, Liarn; Maddox, Lauren; Scheessele, Marc; Munitt,
Townsend L.; Beaten, Meredith; Tucker, Sam Martinez; Tada, Wendy; Halaska, Terre!l; Tracy
WH; Young, Tracy; Zeff, Ken
Subject: Program’s Creator ts Hired To Assess It (WPtAP)
FYi- the 1st write-thru of this AP piece originally hit the wire on Fdday, WP ran a later version
yesterday. Here it is once more.
Program’s Creator Is Hired To Assess it (WPIAP)

Associated Press
The W~ashln._qton,~Pos!, April 1, 2007
The government contractor that set up a billion-dollar-a-year federal reading program for the Education Department and
failed, a~cording to tSe department’s inspector general, to keep i~ free of conflicts of interest is one of the companies now
evaluating the program.
Reading First, part of President Bush’s signature No Child Left Behind education law, provides intense reading help to low-
income children in the early e!ementary grades. RMC Research Corp. was hired to establish and implement the program starling
in 2002, t~nder three contracts worth al~out $40 million.
Recently, the Education Department’s inspector general repealed that RMC failed to keep the program free of conflicts of
interest, For example, RMC did not screen subcontractor~ for relatior~ships wlth publishers of reading programs,
Now, Reading First is in the midst of a congressionally mandated evaluation under a 2003 contract with a team that
includes RMC, based in Portsmouth, N.H.
Lawmakers who have been investigating the Reading First program criticized the connection.
’If it’s true that RMC was also hired to evaluate the effectiveness of the very program it was hired to help implement, then
the conflict of interest could not be any clearer," Rep. George Miller (D-Calif.), chairman of the House education commiftee, said
Friday.
"tl:’s a classic case of the fox guarding the chicken coop," saint Sen, Edward M. Kennedy (D-Mass.), who chairs the Senate
education committee.
The inspector general found that federal officials intervened to influence state and local decisions about reading programs,
a potential violation of the Iaw,
RMC did not return calls seeking comment. Nor did Abt Associates, a contractor based in Cambridge, Mass., thathired
RMC as a subcontractor.
Page 140
_Pr, ivate - Sp,~!!,!,,,,,n, ~lS, Margaret
From: Halaska, Terretl
Sent: Frfday, March 02, 2007 3:24 PM
To: Pdvate- Spellings, Margaret; Dunn, David; Barrett Karr (E-mail); ’dboyer@who.eop.gov’;
Mcnitt, Townsend L; Williams, Cynthia; McLane, Katherine; Maddox, Lauren; Deb Fiddelke
(E-mai~); Talbert, Kent; Tucker, Sara (Restricted)
Quartes, Karen; Bannerman, Kdstin; Henry, Tina-Maria
Subject: Hearings we know about
Attachments: Departnlent of Ed Hearings.dec
to date on and of our topics. Not all of them have Ed witnesses
Departmenl: of Ed
Hearings.dec ,,,
Department of Ed Hearings
3/6 Senate HELP roundtable on teacher issues

3/7 Senate HELP Competitiveness heating --Bill Gates testif).’hag
3/8 House Higher Educatio~ Subcommittee oft "The State of Higl~er Education: How Studems Access and
Finance a College Education"
3/12 House Approps (SMS)
3/13 House Approps (Ray)
3/I3 Bicamera! hearing
3/13 House Science on Competitiveness; Norm Augustine and Craig Barrett Testifying
3/14 Senate Approps (SMS)

3/14 House Approps (SMT)
3/t6 Senate HELP Accotmtabilit),
3/21 House Education and Labor on NCLB, AYP
3/23 House Education and Labor on NCLB, Special Education
3/29 House Education and Labor on NCLB, English Language Learners
Reading First hearing

Pa~e 141
House Ed m~d Labor - SMS NCLB wrap up testimony

Senate HELP - April tentatively the foIlowing subjects related to NCLB: high schools, parent!commtmity
development and "intervent:ions", supplemental services
Senate HELP - SMS wrap up NCLB April 26th or 24th
Page 142
_Depar~men.t of ~,d Hearinl~
3/6 Senate HELP roundtable on teacher issues

317 Senate HELP Competitiveness hearing --B~II Gates testifying
3t8 House Higher Education Subcommittee on "The State of Higher Education: How
Students Access and Finance a College Education"
3!12 House ApNops (SMS)
3/~3 House Approps (Ray)
3/13 Bicameral hearing
3/13 House Science on Competitiveness; Norm Augustine and Craig Barrett Testifying
3ft4 Senate Approps (SMS)

3114 t-!ouse Approps (SMT)
3/16 Senate HEI2 A¢cotmtability
3121 House Educatiort and Labor on NCLB, AYP
~/23 House Education and Labor on NCLB, Special Education

3/29 House Education and Labor oft NCLB, English Language Learners
Reading First hearing
House Ed and Labor- SMS NCLB "¢,~rap up testimorty

Senate HELP - April teatatively the following subjects related to NCLB: high schools,
parent!community development and "interventions", supplemental servSees
Senate HELP - SMS vcrap up NCLB April 26ta or 24t~
Page 143
Private - SPe!.l!n_gs, Marga rot

From: Dunn, David
To: McLane, Katherine; Private -Spellings, Margaret; Beaten, Meredith; Briggs, Kerri; Evers, Bill;
Flowers, Sarah; Halaska, Terrell; Johnson, Henry;, Kuzmich, Holly; Lenders, Angela; Maddox,
Lauren; Mcnitt, Townsend L; Mesecar, Doug; Pitts, Elizabeth; Tucker, Sara Martinez;
Scheessele, Marc; Simon, Ray; Tada, Wendy; Talbert, Kent Toomey, Liam;
’tyoung@who.eop.gov’; Williams, Cynthia; Young, Trao.y
Colby, Chad; Ditto, Trey; Neale, Rebecca; Reich, Heidi; Ruberg, Casey; Terrell, Julie; Yudof,
Samara
Subject: Re: Despite stumbles, Reading First imbues science into instruction (Education Daily)
Very nice.
Sent from my BiackBezry Wireless Handheld

To: Private - Spellingsr Margaret; Beaton, Meredith; Briggs, Kerri; Dunn, David; Evers,
Bill; Flowers, Sarah~ Halaska, Terrell; Johnson, Henry; Kugmich, Holly; Lenders, Angola;
Maddox, Lauren; Mcnitt, Townsend L.; Mesecar, Doug; Bitts, Elizabeth; Tucker, Sara
Martinez; Scheessele, Marc; Simon, Ray; Tada, Wendy; Talbert, Kent7 Toomey, Liam; Tracy
Young <tyoung@who.eop.gov>; Williams, Cynthia; Young, Tracy
CC: Colby, Chad; Ditto, Trey; Neale, Rebecca; Reich, Heidi; Ruberg, Casey; Terrell, Julie;
Yudof, Samara
Sent: Fri Feb 23 08:30:34 2007
Subject: Despite stumbles, Reading First imbues science into instruction (Education Daily)
Despite stumbles, Reading First imbues science into instruction (Education Daily) By
Jeanne Sweeney and Stephen Sawchuk Education Daily, February 23, 2007
Reading First, the No Child Left Behind Act’s K-3 reading initiative, has, for all its
troubles, ~nanaged to quietly shepherd an evolution in reading instruction that has most
researchers, educators, and polic~akers agreeing on at least one thing: science can
tell us much about %he way children become readers.
The scandal over whenher the Education Department favored some commercial programs has
attracted media attention to the program, but for loca! o~icials, that has overshadowed
the program’s real success - a sea change in how teachers approach reading instruction.
Motivated by NCLB’s demand that all children read at ¢rade level by 2014, districts are
increasingly adopting research-based practices to teach a set of specific skills defined
by the National Reading Fanel as essentia! for every proficient reader.
That change has fostered collaboration among teachers and consistency behind classroom
doors.
"Teachers are all speaking the same language, they have a common vacabulary,~ said Sandra
Koczwara, who wrote Futnam County (Te~n.) Schools’ Reading First gr~nt.
As districts focus on instruction, however, the program is engendering new debates over
whether classroom insnruction is too rigid and scripted, whether the focus on the five
reading skills is too narrow, or whether iZ is appropriate to prescribe one method of
teaching when children’s reading ~kills vary widely in the early grades.
Also up in the air is the ~rogram’s future. Education stakeholders generally believe the
program will be part of the No Child Left Behind Act reauthorization, but questions remain
about what tweaks Congress might make to Reading First in light of the scandal - and
whether those tweaks could impact the program’s instructional co~0nents.
"People want to get their pound of flesh politically," said /~drew Eotherham, co-director
of the Education Sector.
F~ve component~ Enacted at a critical time in the decades-long "reading wars" between
proponents of old-style phonics instruction and advocates of whole language, observers
declared Reading First a win for the traditionalists. The legislation specifically sdopt~d
the NRP’s reco~alendation that all children be instructed in five skills: phonemic
awareness, phonics, vocabulary, fluency and comprehension.
ED officials implemented this requirement to the poinZ of misc0nduc[, according to a
series of internal reviews {see bc×), turning down states’ grant applications until they
Page 144
promised to adhere to ED’s narrow specifications.
But as money started flowing, acceptance of the NRP’s recommendations grew.
"We’re not here to experiment with our children,~ said James Hero, an, director of Reading
First in Tennessee. "We have to know what works.~
And as one former federal Reading First official says, whichever program districts
ultimately selected, its impact lay in how well teachers used it t9 instruct to the five
components.
"Most pr0gr~s will say they have those five components," said Sandi Jacobs, former
Reading First program officer. "[But] if you’re not talking about explicit and systematic
instruction, then you’re not necessarily talking abo~t scientifically based reading
instruction.~
Teacher prep While .controversy at the national leve! has centered on textbooks and favored
publishers, school officials say the most fundamental element of their Reading First
programs has been staff-~evelopment. That’s because most practicin~ teachers were not
educated in the five components of reading, and are not equipped to apply research-b~sed
strategies in the classroom.
"We had to reeducate our teachers in the five components," Koczwara said.
~It’s really three pieces," Jacobs said, noting that professio,]~l development and
inst::uctionsl strategies are uicimately grounded in ongoing progress monitoring of
students’ growth and areas of weakness. "Anything that say~ this is all about a textbook
is just totally wrong."
Louisa Moats, a reading consultant and researcher with Sopris West, said the combination
has especially impacted high-needs schools.
"What Reading First has been able to engender through professional development, coaching,
accountability, leadership training and an understanding of the practices that work better
than ~thers, is a complete change in the functioning of a school culture," Moats said.
Too scripted?
A testament to that chan.~e is districts are now debating the bows rather than the whys of
scientifically.based reading instruction.
For example, several popular curricula, such as the widely used Open Court, have
instructional routines on each of the five components that dictate what the temcher is to
do and say when introducin~ the reading technique.
SoK~e l~aders have praised that approach for facilitating program fidelity.
~We’ve stayed pure to the curriculum, teaching the standards,~ said Nancy Lucia, associate
superintendent in Elk Grove (Cm!if.) Unified School District, which uses Open Co~rt.
Others, though, characterize the approach as overly "scripted."
"[Many districts] use the series like a cut and dry recipe and it doesn’t always work
well," said Cathy Roller~ director of research and policy for the Innernational Reading
ASsociation.
Moats said such curricula are highly structured and help teachers internalize a routine.
And administrators agree their teachers do more than adhere to a script. In Elk Grove,
academic support teams set annual targets for each student, monitor progress regularly and
adjust instruction as necessary, Lucia said.
Still, reading is much more complex than five components, Roller argues. "Motivation is
cruciai~" she said. ~’It doesn’t do any good to cover the five components if you’ve got
kids who don’t want to do it."
Tweaking the model One of the doncerns for some researchers is whether it is appropriate
to assmm.e all children - even all at-risk children - need identical instruction in the
primary grades.
In a typical Reading First model, all children receive 90 to 120 minunes of daily core
instruction in a whole-group setting, often called Tier i, with supplementa! £nstruction
and £ntervent±ons in successive tiers for strugglers.
But even within Tier i teachers should tailor activities to the skill level of individual
children, says Carol Connoz, a researcher at Florida State University and the Florida
Coster for Reading Research, one of the ED-funded Reading First technical assistance
centers "There is a tendency to rely too much on the core curriculum," she sa~d. "We don’t
wa~t everyone to be on the same pa~e at the same time."
Administrators share her concern.
"’Our upper qu±ntile students are not making as much progress," Koczwara said. "That is one
of the areas we need to look at_"
Moats said ideally, teachers differentiate instruction from the beginning and use the
ongoing progress monitoring to adjust instruction. Such a practice models the traditional
tiered "reading groups" [[sed in ~merican elementary schools. The difference, Moats noted~
is the focus on getting students with the weakest skills caught up.
Jacobs said the best approach is probably m mix. "The key is ensuring thmt time is well
and appropriately spent."
From: Zinsmeister, Karl [Karl_Zinsmeister@who.eop.gov]

Sent; Thursday, January 18, 2007 3:26 PM
Subject: RE: Math Panel Issues Its First Report, But Holds OffOn Policy Proposals (IEDWF’EK)
Margaret:
Good story.
Singapore forever!
--’~ "~nt: ~u~day, Janu~ 18, 2007 1:24 PMt

Tm Zinsmei~r, Karl; Sullivan, Kevin
Subj~ ~: Na~h Panel ~ssu~ ~ First Re~, But Holds ~ On Poli~ P~ls (EDWEEK)
Front; McLane, Katherine

Sent: Thursday, January 1~, 2007 8:35 AM
To-" Private - Spellings, Margaret.: 8eaton, Meredith; Bdggs, Kerd.: Dunn, David; Rowers, Sarah; Halaska, Terrelt; Johnson, Henry; Kuzrnlch, Holly’;
Lander,, Angeta; t, laddox, Lauren; Hmi~ Townsend L.;. Tucker, Sara Hartinez; Simon, Ray’; Tada, Wend),; Tatber~, ~ent; Williams, C,/nt:hia; Young,
Tracy
(;c." Colby, Onad; Ditto, Trey; Neal% P.e~ecca; Relrh, Held[: Ruber9, Casey; T~rrall, 3ulie; Yudof, Samara
subject= Math Panel issues II:s ,grst Report, 8ul: Holds Off On Poliq, Prc~posafs (’EDWF.ER)
Math Panel Issues Its First Report, But Holds Off On Policy Proposals (EDWEEK)
By Sean Cavanagh
Education W_ee. k, January 18, 2007
A national advisory, panel studying mathematics instruction has completed an interim report on i~s work for the
White House, though members of the group have not yet offered specific recommendations for improving teaching
and learning in thai subject.
The Bush administration, which appointed the 17 voting members of the National Mathematics Advisory Panel a
year ago, originally had hoped the group’s preliminary report would give some speci~c advice, possibly to help
guide the distribution of federal math grants.
But the panel’s chairman, former University of Texas Presiden~ Larry R. Faulkner, said members did not want to
4/22/2008
Page 147
issue detailed recommendations before their research is complete. The !6-page interim report instead briefly
describes the panel’s progress so far, its organization into subcommittees studying different topics, and the rules it
is following in its research.
"We are in the midst of a serious review of the evidence," Mr. Faulkner said in an interview from New Orleans, the
site of the panel’s fifth public meeting. "We’re not really in a [sufficiently advanced] state to communicate findings."
Francis M. "Skip" Fennell, a panelist who is the president of the National Council of Teachers of Mathematics, said
the group had collected detailed information through four separate committees studying different math topics. That
work, however, is still ongoing, he said.
"We now have at least some substantial thinking about where ~is is moving," he said. "All of the groups need more
time to write and flesh things out."
The interim report sets ground rules for how the panel will issue f~ndings, saying that "every assertion or statement
of fact in its final report twill] either be labeled as a definition or opinion, or backed up by a citation." The group will
also try to convey how strong or weak the pool of research is in every area of math instruction, it says,
President Bush announced the formation of the panel last February, charging it with providing recommendations on
how schools and teachers could prepare students for algebra and higher-level math, and identify proven strategies
for accomplishing that goal. The panel was asked to produce a preliminary report by Jan, 31 of this year, and a final
document by Feb, 28, 2008. Mr. Faulkner said a complete set of recommendations would be issued in that final
report, Modeled on Reading
Mr. Bush formed the ma~ panel amid a flurry of proposals made last year by his administration and federal
lawmakers on math and science education. While most of those proposals stalled in Congress, the panel pressed
ahead with its work, holding meetings across the country to review research, debate approaches to math
instruction, and hear testimony from experts and the general public. Only last week, however, new legislation was
unveiJed with the goal of shoring up students’ mastery of math and science through volunlary national standards,
Bush administration officials modeled the math group after the Na~onat Reading Panel, which was convened dudng
the Clinlon presidency Io identify effective classroom strategies in that subject. The reading panel’s report provided
a basis for the Bush administration’s pericles in awarding grants through its $1 billion-a-year Reading First program
that has been mired in controversy.
The impact of the math panel’s activity, however, is tess cedain. Administration officials said last year they hoped
the panel’s work-even ils interim report-could shape the distribution of grants under the president’s proposed "Math
Now" initiative, a $250 million grant program |o support instruction in elementary and middle schools. So far,
Congress has neither appropriated funds for nor authorized the creation of Math Now. How Much Impact?
Mr. Fautkner acknowledged that the goals for the interim report have changed, because of both the uncertainty
about Math Now and the panelists’ realization of how much work they have left to do. He believes administration
officials were aware of the group’s progress, noting that Raymond J. Simon, the deputy U.S. secretary of education,
serves on ~he panel as a nonvoting member.
During their meetings, several panelists have pointed out that several federally commissioned studies on how to
improve math education have been conducted over the past 20 years-repeals that were welt received but u~timately
had little bearing on school poli~y. They said they wanted their work to have a broader reach.
4/22/2008
............. , ¯ ,,~ ~.~port: t~ut ~)g~ Policy Proposals (EDWEEK) Pag~ 3 ef 3
Math expeds have engaged in bitler debates over the years about how best to teach math, That divide is often
defined as pitting advocates of teaching basic skills against (~ose who argue !ha! s~udents should be exposed to
more conceptual learning,
Many in the math field were encouraged by the publication of "Curriculum Focal Points," a document released by
the influential National Council of Teachers of Mathematics in September. ("Math Organization Attempts to Bring
Focus to Subject," Sept. 20, 2006.)
The 41-page guidelines offer a more concise, streamlined set of topics than teachers have had previously, and
observers say the guidance will help educators so~t through often-contradiclory priorities presented in tex’fbooks
and academic standards,
Mr. Faulkner said while the panel "was not prepared to endorse a curriculum," there was a sense among the
group’s members that the NCTM was "on good footing" in having published the documer)t.
26, Issue 19, Page 8
4/22/2008
Page 149
pdva~-,,Spellings; Margaret
Pdvate - Spellings, Margaret
Sent; Thursday, January 18, 2007 1:24
To: ’Zinsmeister, Karl’; ’Sullivan, KeviH
Subject: FW: Math Panel Issues Its First Report, But Holds Off On Policy Proposals (EDWEEK)
HcLane, Katherine
Sent: Thursday, ~lanuary ].8, 2007 8:35 AM
Private - Spellings, Har<jareh l~eal:ono Meredith; Briggs, Kerd; Dunn, David; Rowers, Sarah; Halaska, Terrell; Johnson, Henry;
Kuzmlch~ Holly; Lenders, Angola; Haddox, Lauren; Hcnltl:, Townsend L.; Tucker, ~ra Hartinez; Simon, P.~y; Tada, Wend,/; Talberl:,
Kent; Williams, Ofnt:hla; Young, Tract
Colby, Chad; Dil:to, Trey; Neale, Rebecca; Rei~, Heidl; Ruberg, Casey; Terrell, .~ulle; Yudo~, Samara
Mal:h Panel ISsues Its R~-t Report, But Holds On On Policy Proposals (EDWEEK]
Math Panel Issues its First Report, But Holds Off On Policy Proposals (EDWEEK)
By Seen Cavanagh
Ed.ucation We.ok, January 18, 2007
A national advisory panel studying mathematics Instruction has completed an intedm report on its work for the White
House, though members of the g~oup have not yet offered specific recommendations for improving teaching and learning in that
subject.
The Bush administration, which appointed the I7 voting members of the National Mathemalics Advisory Panel a year ago,
originally had hoped the group’s preliminary report would give some specific advice, possibly to help guide the distribution of
federal math grants.
But the panel’s chairman, former University of Texas President Larry R. Faulkner, said members did not want to issue
detailed recommendations before their research is complete. The 16-page interim reporl instead briefly describes the panel’s
progress so far, its organization into subcommittees studying different topics, and the rules it is following in its research.
"We are in the midst of a serious review of the evidence," Mr. Faulkner said in an intewiew from New Odeans, the site of
the panel’s fifth public meeting. "We’re not really in a [sufficiently advanced] state to communicate findings."
Francis M, =Skip" Fennell, a panelist who is the president of the National Council of Teacher~ of Mathematics, said the
group had collected detailed information through four separate committees studying different math topics. That work, however, is
still ongoing, he said.
"We now have at least sor~e substantial thinking about where this is moving,’ he said. "All ofthe groups need more time to
write and flesh things out."
The interim reporl sets ground rules for how the panel will issue findings, saying that "every assertion or statement of fact in
its ~nal raped twill] either be labeled as a definition or opinion, or backed up by a citation." The group will also try to convey how
strong or weak the pool of research is in every area of math instruction, it says.
President Bush announced the re,nation of the panel last February, charging it with providing recommendations on how
schools and teachers could prepare ;~dents for algebra and higher-level ma~h, and identify proven strategies for accomplishing
that goal. The panel was asked to produce a preliminary report by Jan. 3t of this year, and a l~nal document by Feb. 28, 2008.
Mr, Faulkner said a complete set of recommendations would be issued in that final report. Modeled on Reading
Mr, Bush formed the math panel amid a flurry of proposals made last year by his administration and federal lawmakers on
malh and science education. While most el’ those proposals stalled in Congress, lhe panel pressed ahead with its work, holding
meetings a~ross tt]e country to review research, debate approaches to math instruction, and hear testimony from experts and the
general pul~lic. Only last week, however, new legislalion was unveiled with the g~al of shoring up students’ mastery of math and
science through voluntary national standards.
Bush administration o~cials modeled the math group after the National Reading Panel, which was convened during lhe
Clinton presidency to identify effective classroom strategies in that subject. The reading panel’s reporl provided a basis for the
Bush administration’s policies in awarding grants through its $1 billion-e-year Reading First program that has been mired in
controversy.
The impact of the math panel’s activity, however, is less certain. Administration officials said last year they hoped the
Page 150
panel’s work-even its intedm roped-could shape the distribution of grants under the president’s proposed "Math Now" initiative, a
$250 million grani p[ogram to supl~rt in, ruction in elementary and middle schools. So far, Congress has neither appropriated
funds for nor authorized the creation of Math Now. How Much Impact?
Mr, Faulkner acknowledged thai the goals for the intedm report have changed, because of both the uncertainty about Math
Now and the panelists’ realization of how much work they have left to do. He believes adminislration officials were aware of the
group’s progress, noting that Raymond J. Simon, the depu~ U.S. secretary of education, serves on the panel as a nonvoting
member,
[)uring their meetings, several panelists have pointed out that several federally commissioned studies on how to improve
math education have been conducted over the past 20 years-reports thai were well received but ultimately had little bearing on
school policy. They said they wanted their work to have a broader reach.
Math experts have engaged in bitter debates over the years about how best to teach math. That divide is often defined as
pitting advocatesof teaching I~asic skills against those who a~gue that students should be exposed to more conceptual learning.
Many in the math field were encouraged by the publication of"(;urficulum Focal Points," a document released by the
influential National Council of Teachers ot= Mathematics in September, ("Math Organization Attempts to Bring Focus to Subjecl:,"
Sept. 20, 2006.)
The 41.page guidelines offer a more concise, streamlined set of topics than ~:eachers have had previously, and observers
ray the guidance will help educators sort through often-contradlctory priorities presented in textbooks and academic standards.
Mr. Faulkner said w~ile the panel "was not prepared to endorse a curriculum," there was a sense among the group’s
members that the NCTM was "on good looting" in having published the document,
Vol. 26, Issue 19, Page 8
Page 151
Private - Spellin,gs, Marg~iret ,

From: Private- Spellings, Margaret
Sent: Fdday, December 23, 2005 9:t7 AM
To: ’Allan_B._Hubbard@who.eop.gov’
Subject: Re:

From: Hubbard, Allan B.
To: Pri~ate - Spellings, Margaret
Sent: Fri Dec 23 07:23:1,1 2805
S~bject:
Page 152 Page ] of/
Kuzmich, Holly
From; Goeglein, Tim [Tim_Goeglein@who, eop.govl

Sent: Monday, July 09, 2007 3:43 PM
To: Kuzmich, Holly
Cc: Rove, Karl C.; Cram, Julie E.; Young, Tracy D.
Subject: WEEKLY STANDARD
Dear Holly -
Please let Margaret know that the WEEKLY STANDARD this week has a fantastic cover story on the Reading First part of the
NCLB.
It may be f.he best piece ever written on phonemic awareness, why it works so remarkably well, and why Congress is being
decidedly unhelpful to us on ~.his.
Cheers
416/2008
Page 153 Past ] of !
Kuzmich, Holly
From: Smarick, Andrew R. [Andrew R. Smarick@who.eop.gov]

Sent:. Monday, February 11,2008 10:33 AM
To: Kuzmich, Holly
Cc: Bailey, John P,
Subject: Mayors?
Hi Holly,
"The day after the State of the Union address, U.S. Education Secretary Margaret SpelIings said, ’Cafl~o[ic schools are treasures,
especially in our cities, but their nnmbers are in decline.’ She told CNS in ,~ phone h~terv~ew that she has h~ard from ma~vors
:in ffteir cities."
Andy
Andy Smarick
White House Fellow
Domestic Policy Council
The White ]-/.ouse
(202) 456-7[.28
a s marick @who..~_p,_g.~
16/2008
Page 154
Kuzmich, Holly
Fro m: Bopp, Michael D. [Michael D. Bopp@omb.eop.gov]

Sent: Monday, February 04, 2008 9:46 AM
To; Reinoso, Victor (EOM}; Baker, Christin T.; Brooks, Carrie (EOM); Mcnitt, Townsend L.; Bailey, John P.; Kevetigt~an,
Sean M.; Melanson, Karen C.; Tanghedini, Dan (EOM); Smarick, Andrew R.; $colt, Kelly S.; Weatherly, Mark A.;
Larson, Lauren; Rowe, David; Stack, Kathryn B.; Gagnon, Jennifer E.; Danberg. Nail B.; KLrzmich, Holly; Maddox,
Lauren
Ginsberg, Joanne [EOM)
Subject: RE: Pre-Retease of DC Education Budget -- Next Steps
Victor - f thought the coverage was very positive. Nice work by you and Hotly.
1 take it from the article that you did send the letter to the Post. When you get a chance, would you mind circulating signed r.,opies
to the group? I would like to send on,~= to my old boss (Senator Collins).
Thanks a lot.
Michael
From: Reinoso, Victor (EOM) [mailto:Victor,Reinoso@dc.gov]

Sent; Honday’,. February 04r 2.008 9:t0 .AM
Tot Baker, Christin T.; Brooks, Carrie (.EOM); Townsend.Hcnitt@ed,gov; Bailey, John P.; Ke~elighan, 5ean H,; Bepp,"Hichael D.;
Nelanson, Karen C.; Tangherlinir Dan (EOM); Smarick, Andrew R..; Scott, Kelly 54 Weatherly, Marl< A.; Larson, Lauren; Rower
David; Stack, Kal:hryn B.; Gagnon, Jennifer E.; Danberg, Nail B.; Holly.Kuzmich@ed.gov; Lauren.Haddox@ed.gov
~¢; Ginsberg, Jeanne
Subject: RE: Pro-Release of pC Education Budget -- Next Steps
Hope you feel reasonably satisfied with the coverage, Notwithstanding the placement of [he artfcle inside Metro. I think the tone
of the coverage & editorial was positive¯ We appreciale your support throughout this pro~ess & your confidence in our efforls.
Victor
Victor Reinoso
Deputy Mayor
From: Baker, Christin T. [mailto:Chrisl:in_T._Baker@omb.eop.gov]

Sent; Sunday, February 03, 2008 1~’,t9 AM
To; Brooks, Carrie (EOM); Townsend.l’,lcnitt@ed.gov; Bailey, John P.; Kevelighan, Sean M.; Bepp, Nichael D.; Helanson, Karen
C.; Tangherlini, Dan (EOM); Smarick, Andrew R.; Sco~t, Kelly 5.; Weatherly, Mark A.; Larson, Lauren; Rowe, David; Stack,
Kathryn.B.; Gagnon, Jennifer E.; Danberg, Nell B.; Hotty.Kuzmich@ed.gov; Lauren.Maddox@ed.gov
C~; Reinoso, Victor (EOH); Ginsberg, Jeanne (EOM)
Subject; RE: Fro-Release of DC Education Budget -- Next Steps
~,Vashirtgton Post editorial (2/3) and news story (2/2)
Boost for D.C. Schools

~esident Bush’s new budget would fund badly ncedetl ~eforms.
hmday, February 3, 20081 B06
7HE $32 MILLION in additional federal money that _P_residet~t Bush will propose for D.C. public schools tomorrow is
mportant for two reasons. On the practical side, the extra resources could be used to jump-start school ~’efonn by
aaking possible new prog~’ams. Symbolically, the decision is a powerfid vote of conscience in 1he District and a
onfJm~ation that the leadership finally is iz~ place to address the sad state of public education.
"he budget v41l include funding to help Chancellor Michel[¢ A. Rhee launch a new teacher merit pay program, recruiL
./16/2008
Page 2 of 7
~’a e 155
and trajlt principals, and mtera,’ene m lo~ -performing schools.Mr. Bush’s package a}so includes money for cttarter
schools and resources to sustain the D.C. school voucher program. U.S. Education Secretary M____~g_aret_S~ called
the budget proposal an "unprecedented partnership" between the While ~ouse and the city. Ma_~_or Adrian M. Fent,y.v’s
decision to make education his administration’s top priority and his selection of Ms. Rhee has given real standing to the
District and credibility to its reform efforts.
Ms. P, hee’s interest in starting a program that rewards teachers who have demonstrated exceltence is particularly
exciling. Pay-for-performance programs are being tried with promising results in places such as Denver and Nex~( York_
C..C_i~. Ms. Rhee will need to work with the teachers union to fashion a program that Jchiriy assesses teachers and doesn’t
discourage them from working with students most in need. School ok-fic~als say that they hope "to have parts of
program in place by September. That sense of urgency, fast becoming a h-,-dlmark of the Fenty-Rhee strategy, is an
acknowledgment that too much time has already been wasted ia trying to fix the schools. Ms. Rhee refuses to let the
political demands of adults interfi.’re with the irtterests or’students; her insistence on closing underused schools is the
latest example.
Congress will need to approve the funding proposal, aM it’s important that members don’t let polities or ideology derail
the needed referees. We think here of the $t8 milIion the administration is earmarking for the D.C. OpportunitT
Scholarship Program, which provides ~-ouchers to students to attend private school. Leading Democrats have made no
secret of their dislike of vouchers, but this program gives low-income parents educatio "hal options and it is operating
successfully for scores ofckildren. Opponents should thfltk twice before fl~ey try to interrupt the education of these
children. Mr. Fenty is fight to urge Congress Io adopt the proposaI in its entirety.
Bush Proposes Giving D.C. $32 Million More To Boost School Reform
By David Nakamttra
Washington Post Staff Writer
Saturd.ay, February 2, 2008; B(12
The White House__ plans to announce Monday that it has proposed gSving the District $32 million m additional federal
funding this year for public education, including a special $20 million, pa.~anent aimed at helping _M_as_or_Adrian M.
Fent2 restructure public scMots, ft~eral officials said.
The reconamendatjon, contained in the White House’s overall proposed D.C. budget, directs the funds toward a series of
enhanceme.nts for the nearly 50,000-student public system and the 20,000-student public c.harter school prod-ram.
Among the proposals for the traditional schools is an incentive-pay progam desigttcd to reward teachers whose
students meet specific performance goals, D.C. Schoo!.s Claanceilor Miche[le A. Rhee said. About $5 milIion would go
toward replicating successful charter schools, and $7 million would go toward beefing up programs in Iow-perfomfing
schools.
"The package includes an infusion of resources to jump-start the mayor’s robust reform strategy for D,C. Public
schools," U.S. Education Secretary blargare( Spe..[_!in_k~.s_ said in a statement.
"These targeted investments are a critical catalyst for the types ofinno-vation that have been lacking for too long in the
Nation’s Capita!," Fenty (D) said in a letter to Congress supporting the White House’s D.C. budget request. "These
initiatives will spur improved ins~ru.ction and services, directly benefiting students in the classroom."
Typically, the school system fu~mets $I20 million a year in federal funds to its schools. Ia 2006, the U.S. _D_e_partment
~f Education dectared that the school system was a "high risk" for mismanaging i%deral funds.
)!Strict officials called the proposed influx of new money a breakthrough and said it shows the federal government has
:onfidence in the Fenty administration’s school reform plans. The budgct requires approval from Congress.
U1612008
Re: Pro-Release of DC Education Budget-- Next StepspBge "156 Page 3 of 7
Since Fenty downgraded the Bo~d of Education and took control of the school system in June, he has been working on
a number of changes. Yesterday, Fenty and Rhee announced a revised list of 23 schools that will be closed, including
16 *his fall.
Rhee’s office is working to increase the public schools’ fisc!l 2009 budget by about $17 n~illion in local funds, to a total
of 8794.6 million in local money.
Under the proposed federal education budget, the city would get $18 million in each of three categories: for public
schools, for charters and for the D.C, Opportunity Scholarship program. Each of those received be~een $13 million
and $14 million last year,
An additional $20 million would come to the District in a one-time pay~nent to support fl~e Fcnty administration’s
reform efforts. That money will be earmarked to help support and train teachers and principals, develop new progrmns
for low-performing schools, improve data reporting for student accountability and help start the teacher incentive-pay
program,
The District schools have not had an inceutive-pay progrmn, Rhee said, but shc is in the process of developing one, in
conjunction with the Washington Teachers’ Union. She declined to talk about specifics but said support from the White
House shows that federal officials thi~k she is serious about improviug performance.
"When I say perfo~xnance pay’, I wilt not water it down and, create ridiculous incentives that don’t move student
achievement," Rhce said. "I do not think it’s nom~a!, for ~e federal government to give this amount to a school district,
but my track record of doing different things made them believe I could do this."
From: Brooks, Carrie (EOH) [mailto:Carrie.grooks@dc.gov]

Merit: Thur~ay, January 31, 2008 12;55 PM
TO: Townsend.Hcnitt@ed.gov; Bailey, 3ohn P.; Kevelighan, Sean M,; Bop9, Michael D.; Metanson, Karen C.; Tanghedini, Dan
(EOM); Smarick, Andrew R.; Scott, Ke!ly S.~ Weather/y, Hark k.; Larson, Lauren; Rowe, David; Stack, Kathr~n B.; Gagnon,
JenniFer E.; g~ker, Christin T.; DanSerg, Neil 8.; Holly.KuzrNch@ed.gov; Lauren.Haddox@ed.gov
C¢: Reinoso, Victor (EOM); Ginsberg, ~oanne (EOM)
Subje~’q:; Re: Pro-Release of DC Education Budget -- Next Steps
..... Original Messago .....

From: Mcztitt, Townsend L. <Townsend.Mcnitt@ed,gov>
To: Brooks, Carrie (EOM); Jotm_P._Bailey@who.eop.gov <John_P._Bailey@who.eop,gov>; Sea~_..M._Kevelighan@o~nb.eop.gov
<Sean_M._Keve[igban@omb.eop.gov>; Michael D. Bopp@omb.eop.gov <Michael D. Bopp@omb.eop.gov>;
Karen C. Melanso~@omb.~p.gov <Karen_C,_MeJanson@omb.eop.gov>; rangherlim, Dan (EOM); An&ew_R.._Smarick@who.eop.gov
<A_ndrew R. 8marick@who.eop.gov>; Kelly_S._Scott@~,vh~.eola,gov <Kelly_S._Scott@who,eop.gov>; Mark A. Weatherly@omb,eop.gov
<Mark A. Wealherly@omb.eop.gov>; Lauren._Larson@omb.eop.gov <Lauren_barson@omb,eop.gov>; David._Rowe@omb.eop,gov
<David...Rowe@omb.eop.gov.’,; Kalhryn_B,_Stac, k@omb.eop.gov <Kathryn_B._S~ack@omb.eop,gov>; Jennife~_E._GagnoJa@omb.eop:gov
~J-ermit’~r_g.__Gagnon@omb.eop.gov>; Christin_T._Baker@omb.~op.gov <Christin. T._B~er@omb,eop,gov>;
’qeil B. Danberg@omb.eop.8ov <Neil_B.._Danberg@omb.eop.gov>; Kuzmich, Holly <’~olly,Kuzmich@ed.gov>; Maddox, Lauren
~Lauren,Maddox@cd.gov>
2c: Re~oso, Victor (EOM); Gin~be~g, Joanne (EOM)
~ertt: Thu 1an 3! 12:48:05 2008
;ubject: Re: Pro-Release of DC Education Budget -- Next Steps
16/2008
From: Brooks, Carrie (EOM) <Carrie,J3ro&s@dc.gov>
To: Bailey, .lol’tll P. <!ohn_P._Bailey@who.eop.gov>; Kevetighan, Sean M. <Stun M. Kev~lighan@omb.eop.gov>; Bopp, Micllael D.
<Michael D. Bopp@omb.eop.gov>; Melanson, Karen C. <Karm~_C._Mdanson@omb.eop.gov>; Tangherlini, Dan (EOM)
<Dan.l’anghedini@dc.gov>; Smarick, Andrew R. <Andrew R. Smarick@who.eop.gov>; Soon, Kelly S. <Kelly_S._Scott@who. eop.gov>;
Mcnitt, To’,~tseIld L.; We, atherly, Mark A. <Mark A. Weatherly@omb.eop.gov>; Larsoa, Lauren <Lauren...Larson@omb.eop.gov>; Rowe,
David <David..Rowe@omb.eop.gov>; Stack, Kattu’yn 13. <KatDyn_B._S*ack@omb.eop.gov>; Gagrton: Jermifer E.
<letmifer_E._Gagnon@omb.eop.gov>; Baker., Christin T. <ChristinjT._Baket@omb.e{rp.gov>; Danberg, Neil I3.
<Nefl_B._Danberg@omb.eop.gov>; Kuzmich, Holly
CC: Reinoso, Victor (EOM) <Victor.Reinoso@dc.gov>; Ginsberg, ~oa~:e (EOM) <3oarme.Ginsberg@dc.gox’>
Sent: Thu Jan 31 t2:04:57 2008
Subject: RE: Pre-Rclease. of DC Education Budget -- Next Slep~
From: Bailey, John P. [_m__a’d__to:John ]’~_Baj~e_._ot_~,go_y_v]

gent: ~Unur~day, ~rarmary 31, 2008 t0"03 AM
Fo: Brooks, Carrie (EOM); Kevelighan: Sean M.; Bopp, Michael D.; Melanson, Karen C.; Tangherlini, Dan (EOM); Smarick, Andrew R.;
geott, Kelly S.; Town.~exad.b,(crdtt@ed.gov; Weatlaer[y, M~k A.; Larstm, i.,auten; Rowe: David; S~ack, K~thryn B.; Gagnon, Jetmifer E.; Baker,
--"laristin T.; Danberg, NeiI B.; Kuzmich, Holly
2c: Reinoso, Victor (EOM); Oinsberg, Joanne (EOM)
~ubject: RE: Pre-Release ofDC E,]t~c~tion Budget -- NeW Steps
i b)(5)
11612008
Re: Pro-Release of DC Education Budget -- Next St~ps Page "158 Page 5 of 7
I’d like this event&all to be a win for evels, one even if it takes a bit longer to I~ull toged~er so we can make sure everyone is comfortable with
the message.
--John
From: Brooks, Carrie (EOM) [.mailto:Carrie.Brook~@,_d_c.,gp’~2]

Sent: Thursday, January 31, 2008 9:23 AM
To: Kevel~ghaa, Scan M.; Bopp, Michael I3.; Melanson, Karen C.; Tangherlini, Dan (EOM}; Bailey, John P.; Smarick, Andrew R.; Scott, Kelly
S.; Townsend,Mcnitt@ed.gov; Weatherl.y, Mark A.; Larson, Lauren; Rowe, David; Stack, Kathryn B.; Gagrton, Jennifer E.; Baker, Chris*in T.;
Danberg, Nell B.; Kuzmich, Holly
Cc: R¢inoso, Victor (I~.OM); Ginsberg, Joanne
Subject: RE: Pro-Release o£ DC Educadnn Budget -- Next Step~
If everyone’s ok with il, I’ll check interest with our reporter at the Post this morning.
Prom: Kevelighan, Scan M. [mailto:Sean...M._Ke~’.eli hg~_~_mb_.~j

Sent: Ttmrsday, January 3 t, 2008 8:50 AM
To: Bopp, Michael D.; Melanson, Karen C.; Taugherlini, Dart (EOM); Bailey, John P.; Smarick, .&ndrew R.; Scott, KeIty S.;
Townsend.Menitt@ed.g~v; Weathefly, Mark A.; l.arson, Lauren; Rowe, Da-~’id; Stack, KathD-a B.; Gagnon, Je~mifer E.; Baker, Chris~in T.;
Dartberg, Neil B.; Kuzmich, Holly
Cc: Brooks, Carrie (EOM); Reinoso, Victor(EOM); GLasberg, !oam~e
S;abjeck RE: Pro-Release of De Educatiolt Budget - Next Steps
The exclusive would be beneficial.
From: Bopp, Michael D.

Sent: Wednesday, laauary 30, 2008 8:I5 PM
To: Melanson, Karen C.; ~Tangtxerlmi, Daa (EOM)’; Bailey, John P.; Smarick, Andrew R.; Scott, Kelly S.; ’Townsend.Mcnitt@ect.gov’;
Keveli~han, Seen M.; Weatherb-, Mark A.; [,arson, Lauren; Rowe, David; Stack, Kathryn t3.; Gagnon, Jetmifer E.; Baker, Christin T.;
Danbe:rg, Neil B.; ’Kuzmich, lto!ly’
Cc: ’Brooks, Carrie (EOM)’; ’Reinoso, Victor (EOM)’; ’Gin~berg, J’oarme
Subject: RE: Pro-Release of DC Education Budget--Next Steps
The time has really slipped aw-ay. I"m not sure we can actually do thi.s now as we had pie.treed,, particularly since I he~r Secrelary Spellings has
little or tto time to do a call on Friday. That is, unless plans have been g~ing on behind tlac scenes.
I also have nol seen any talldng points from DC or DOE.
4/16/2008
Ke: vre-Kelease ot DC Education Budget-- Next Stepspafe "159 Page 6 of 7
Is lhere a way to salvage this or should we i~stead look to doing an even! after the budget is released?
I’ll throw out one thought - we still give lhis as ml exclusive 1o one or a few reporters. But Dan and Townsend do the call with repoaers and
we provide quotes to them from the Secreary, Mayor, and Chance!tot.
What do people think?
Michac!
From: Melanso~, Karen C.

Sent: Tuesday, Jarmary 29., 2008 5:15 PM
TO: ’Ta~gherlini, Dan (EOM)’; Bopp, Michael D.:. Bailey, 1ohn F.; Smarick, Andsew R.; Scott: Kelly S.; To~na.send.Mcnitt@ed.gov;
Keveli~han, Sean M.; Weathedy, Mark A.; I.arson: L~mren; Rowe, David; Stack, Kathryn B.; Gagnon, Jennifer E.; Baker, Christm T.;
Daaberg, Nell B.; ’Kuzmicho t!olly’
Cc: Brooks, Carrie (EOM); Remoso, ¥ictor (EOl’,f); Ginsberg, Joanne (~OM)
Subject: Pre-Re]ease ofDC ~ducalio~ Budget -- Next Steps
To easure that everyone is working with the same information, please find attached a summary of K-I 2 education-related ftmding for the
Distric~ of Columbia for 2009, as well as 2008 enacted levels (where at~plicable).
From: Tangherlitfi, Dan (EOM)

~er~t: Tuesday, lanuary 29, 2008 4:15 PM
to: Bopp, Michael D.; Bailey, John P.; Smarick, Andrew K.; Scott, Kelly S.; Townsertd.Mcnitt@ed.gov; Kevclighan: Scan M.; We~thefly,
.~ark A.; Larson, Lauren; Melanson, Karen C.; Rowe, Da~,id; Stack, Kathr3.~a B.; Gagnon, Jennifer E.; Baker, Christin T.; Danberg, Neil B.
".’.e: Brooks~ Carrie (EOM); Reinoso, Victor (EOM); Ginsberg, Joarme (EOM)
gubje~: Re: Pre-Retease of DC Education Budget -- Next Stcps
.r’hanks, Michael, [ have included the rest of the DC Team on this response.
.... Original Message .....

’tom: Bopp, Michael D. <Michacl_D._Bopp(~:omb.eop,gov>
’o: Bopp, Michael D. <Michaei D. Bopp@omb.cop.gov>; Bailey, John P. <John_P._Bailey@who.eop.gov>; 5marick, Andrew
Andrew R. Smarick@who.eop.gov>; Scott, Kelly S. <Kelly_.S._Scott@who.eop.gov>; Mcnitt, Townsend L, <Townsend.Mcrfitt@ed.gov>;
anghedini, Dan (EOM); Kevelighan, Scan M. <Scan_ M._Kevelig~ta~@omb.cop.gov>; We~therly, Ma~k A.
Mark A. Weatherly@omb.eop.gov>; Larson; Lnuren <Lauren_Larson@omb.eop.gov>; Melanson, Karen C.
/1612008
~.e: rre-r~elease oI DL" Education Budget -- Next Stepspage 160 Page 7 of 7
<Karen_.C._Melm~son@omb.eop.gov>; Rawe, David <David Rowe@omh.eop,gov>; Stack, Katba-D~ B. <Kathryn B, Stack@omb, eop.gov>;
Gagnon, lermifer E. <Jennifer_E.._Gagnort@omb,eop,gov>; l~ker, Christin T. <Christin Y. Baker@omb.eop.gov>; Danberg, Nell B.
<Nei[ B. Danberg@omb.eop.gov> ....
Sent: Tue Jan 29 09:12:25 2008
Subject: Pre-Release of DC Education Budget -- Next Steps
b)(5)
Michael
16/2008
Page 161
K.,uzmich, Hollo/
From: Goeglein, Tim I[l"im_Goeg/ein@who.eop.gov]
Sent: Monday, May QT. 2007 4"28 PM
J
Kuzmici], Holly; Campbell Intern, Catherine E,
Subject: FW: May 9 Conferenoe - Contirmation of DR. Spellings, etc.
Dear Bill -
My very dear friend,from the Dept of Education is Holl.y; I am ccing her on our email.
(~b)(51
Also, Cather±n~ will schedule me.
Cheers
tsg
..... Original Mess~qe .....

~:
/~ c~x~--f~a~t~E: ~:~
............. ~
\~/\~Mt: Frlda~% May O~ 2007 7:21 AM
TO: Goeglein, Tim
Subject: RE; May 9 Conference - Confirmation of DR. Spellings, etC.
Importance: High
Dear Tim,
Thank s,
Bill
Page 162
From’, Barrett, Allison P, [Allison P, Barrett@who,eop,gov]

Sent: Tuesday, March 27, 2007 11:26 AM
To: Henry, Tina-Maria
Cc: Buntln, Jenny Lynn; Landers, Angela; Kuzmich, Holly
Subject: Re: Secretary Spellings
b)(5)
Thanks,
Page 164 Page l of 3
Kuzmich, Holly
From: Young, Tracy D. [’Tracy_D._Young@who.eop.gav]

Sent: Tuesday. September 25, 2007 !1:38 AM
To: Young, Tracy 13.; Harder, Cherie S.; Price~ Angola M.; Karr, Barrett; Walter, Scott B.; Scolt, Kelly S.; Mamo, Jeanie
S.; Stanzel, Scott M.; Jordan, Myriah L.; Grant, Maggie; Cram, J’ulie E.; Sullivan, Kevin F. (WHO); Boyer, David W.;
McDonough, Sally; Uiqderwood, Carrie P.; Saliterman, Robert W.; Lairsen, Wade A.; Bergman, Cynthia L.; P~rino,
Dana M; Halaska, Terrell; Maddox, Lauren; Kuzmich, Holly; Wiltiams, Cynthia; Dempsey, Donald A.; Sharp, Jess;
Smarick. Andrew R.; Adams. Julie E.
Wit}Jams, Elizabeth W.; Flanagan, Molly E.; Piack, John S.; Monde, Kirstin M.; Byrd, Leslea T.; Palagonia, Pamela
L.; Seat, Peter A.; Block, Jonathan F.; Martin, Catherine; Young, Tracy; Faufkner, Janice; Watkins, Tiffany; Shortley,
Maiselle D.; Stearns, Hannah; Heard, Denby; Holtaad, Mary
Subject: Nation’s Repod Card releases after today’s announcement
Pasled below are the President’s slatement; Sac Spellings press release; and Rap McKeon’s statement on Nation’s Report Card.
I’ve attached fact sheets on the Report Card from ED (general and African-American and Hispanic specific). More to come - th×,
Tracy
THE WHITE HOUSE
(New York, New York)
For Immediate Release September 25, 2007
STATEM~T BY THE PRESIDENT
Earliertoday, the 2007 Nation’s Report Card, also known as the National
Assessment of Educational Progress, was released. The news is outstanding.
Eighth graders achieved their highest scores ever in math, while fourth graders
set records in both reading and math. African-American and Hispanic students
posted all-time highs in a number of categories, which represents progress
toward closing the achievement ~ap.
These scores confirm that No Child Left Behind is working and producing
positive results for students across the country. Since No Child Left Behind
became !aw in 2002, the states have been setting standards and holding schools
accountable for ensuring that every child can read and do math at grade level.
We are successfully challenging the soft bigotry of low expectations and
continuing to make sisnificant progress in reforming our schools.
As we commemorate the integration 50 years ago of Central High School in Little

Rock, Arkansas, we are reminded of the sacrifices students and their families
have made in pursuit of a better education. Today’s results demonstrate
America’s progress in making their dreams a reality, but we have more work to
do. Now is not the time t.o turn b~ck the clock on educational accountability
and real options for parents, which No Child Left Behind provides.
4/16/2008
Page 165
Page2of3
The successes detailed in the Nation’s Report Card highlight the importance of
reauthorizing No Child.Left Behind. I have Proposed a number of ways to improve
the law, by increasing flexibility, helping struggling schools, and empowering
parents with more choices. I look forward to continuing to work with lawmakers
of both parties to strengthen this important law.
###

Office of Communications & Outreach, Press Office
400 Maryland Ave., S.W.
Washington, D.C. 20202
For Release: Sept. 25, 2007

Contact Samara Yudof
Casey Ruberg
(202) 401-1576
SECRETARY SPELLINGS HIGHLIGHTS GAINS MADE ON THE NATION’S REPORT CARD UNDER NO CHILD LEFT BEHIND
Spellings Encouraged by Results That Show No Child Left Behind is Working
U.S, Secretary of Education Margaret Spellings today highlighted the results of The Nation’s Report Card’,l: Mathematics 2007
and The Nation’s Report Cardm: Reading 2007. Secretary Spellings commended educators and students for the significant
progress made under No Child Left Behind.
"Student achievement is on the rise," said Secretary Spellings. "No Child Left Behind is working. It’s doable, reasonable and
necessary. Any effods to weaken accountabilily would fly in the face of rising achievement."
Spellings noted that 48 states and the District of Columbia either improved academically or held steady in att categories.
"To those who would suggest that No Child Left Behind is not working, our nation’s 4th- and 8th-graders and their teachers just
proved the naysayers wrong," Spellings added. "Math scores for 4th- and 8th-graders and the reading scores for 4th-graders are
at historic highs and the biggest gains were made by African American and Hispanic students."
More than 700,000 sludenls nationwide participated in the 2007 Nation’s Report Card on reading and math, and they represented
a diverse student population, including one-third minority students and a growing proportion of English language learners.
"At a time when our student population is becoming more diverse, educators and students are rising to the challenge and
excelling in the classroom," Spellings said. "I’m pleased with the progress but nor: satisfied. As we inch closer to our goal
having every child on grade level in reading and math by 2014, we need to continue to pick up the pace. I am confident that our
nation’s schools and leachers can gel the job done."
Spellings emphasized that today’s results prove once again that moving away from accountabaily would send us in the wrong
direction.
"What President Bush has proposed in his reauthodzation plan for No Child Left Behind is the right direction," said Spellings. "It
provides parenls more information and options to make the right educational decisions for their children; it gives states and
schools more effective ways to target resources and interventions where they’re needed most; and il gives educators more
4/16/2008
Page 166
Page 3 of 3
incenlives to teach in our most challenging educational environments.
"l~ottom line: NO Child Left Behind is empowering parents and students by infusing accountab~ity inlo educalion - and the Nation’s
Report Card shows that it is working on behalf ef our nation’s children," said Spellings.
For more information on the 2007 Nation’s Report Card, please visit h_~:/twvcw:ed.qov/nctb/aGcount.a~i_ty_l@c.bieve/report-
ca .r_d29P_7,_hJm!.
The full NAEP reports are available at ._hl.tp_://nationsreportcard_.gQv.
FOR IMMEDIATE RELEASE CONTACT: Alexa Marrero

September 25f 2007 (202) 225-4527
McKeon Statement on 2007 Nation’s Report Card

WASHtrNGTON, D.C. - Following today’s release of 4m - 8th grade reading and math
assessment results on the National Assessment of Educational Progress (NAEP), known as "the
Nation’s Report Card," the U.S. House Education and Labor Committee’s Senior Republican, Rep.
Howard P. "Buck" McKeon (E-CA), issued the following statement:
"The 2007 Nation’s Report Card confirms what we already knew - student achievement Is
on the rise, achievement gaps are narrowing, and greater numbers of students are a~ or above
basic and proficient levels in t)~e fundamentals of reading and mathematics.
"These results are good news for students, parents, teachers, and schools. They are also
a stark reminder that we cannot and must not back away from the accountabifity, flexibility, and
parental choice that are at the heart of the No Child Left Behind Act.
"Reform is taking hold in schools across the nation. As Congress proceeds with
reauthorizaden of NCLB, we must be steadfast in our commitment to the taw’s core principles,
Information on the Nation’s Report Card is available at ._ht._tp.z/_/_Aationsreportc.a__r_d.~,v_,
#####
411612008
Page 167
Page I of 3
Kuzmich, Holly
From: Young, Tra.cy D. [Tracy_D._Young@who.eop.gov]

Sent: Thursday, September 20, 2007 9:24 PM
To: Williams, Cynthia; Lee, Ebony
Cc: Mcnitt, Townsend L,; Kuzmich, Holly; Young, Tracy D.
Subject: per DPC’s request DRAFT outreach
(b)(5)
./16/2008
Page 169
Page 3 of 3
George Will, NationNly syndicated cdumnist, luncheon
b)(5)
The Good And Bad Of NCLB (1N’r)

The Washington Times,, September 13, 2007
As Congress debate~ the complexities of reauthodzing the No Child Left Behind Act, a proposal from Rep. George Miller,
California Democrat, runs the risk of waler[ng down 1he intent and spirit of the program, which both Republicans and Democrats
agree should be renewed before its expiration Sept. 30.
While certainly not without serious shodcomings, NCLB maintains an admirable goal of bringing all K-12 students lo
proficiency Jn math and reading by 2014. Unfortunately, a proposal from Mr. M~ller and his fellow Democrats would muddy the
waters of these standardized measures of student progress by throwing non-academic faclors into the mix.
Including such non-academic factors as graduation rates and the availability ol~ Advanced Placement courses, while
undoubtedly important elements of a child’s education, convolutes the program’s premise: ensuring our children are literate and
can perform basic math computations.
The proposal from Mr, Miller, Chairman of the House education panel, would also resull: in many failin9 schools escaping
needed overhaul and monitoring. Instead of forcing them to address academic failings, it gives .them the option of garnishing their
lack of subsl:ance with extracurricular window dressings to eke past federal standards.
Press reports indicate Rep. Carol McCarthy, New York Democrat, hopes to insert into NCLB a laughable proposal -- though
a somber waste of taxpayer money if enacted -- that would divert taxpayer dollars for state grants to schools that try to stop
bultying on their campuses. Not only is this idea an absurd expansion of the nanny state that Democrats love to peddle, it also
takes responsibility away from parents, not government bureaucrats, who should be the ones instilling the values of cooperation
and civility in their children.
Membe[s on both sides of the aisle considering the revamping of NCLB would do well to look at the success of D.C., where
a voucher program has allowed thousands of students to escape failing p~lblic schools for private or charier schools under g[an~s
and laws authorized by Congress. Studies have indicated parents are happy with the program, their children are performing better
and student bodies are more diverse and integrated because of it.
A bill introduced by Rep. Buck McKeon of California, the ranking Republican on the House education panel, would give
children in low-performing schools up to $~1,000 to leave a failing school and enroll in a private school of their choice. The
measure rightfully has been endorsed ~y Education Secretary Margaret Spellings.
Amid all the din surrounding NCLB, we urge lawmakers to select the best of the proposals and shun the frivolous and superfluous.
Our children deserve it.
4/1
p w: ~tevens Upset With Education Cuts To Alaska, Page 1 of 2
Kuzmich, Holly
From: Rowe, David [David_Rowe@omb.eop.gov]

Sent: Wednesday, March 21,2007 1:26 PM
To: Kuzmich, Holly
Cc: Waller, Scott B.; Sco~t, Kelty S.; Matteson, Brian R.; Cole, Allison L.
Subject’, RE: Slovens Upset With Education Cuts To Alaska, Hawaii
(b)(5)
David Rowe
Education Branch
(202) 395-384[i
(202) 395-4875 (f)
drowe@omb.eop.gov
From: Kuzmich, Holly [mailto:Holly.KuzmJch@ed.gov]

Sent: Thursday, Harch !5, 2007 1:50 PH
"re; Rowe, David
(~c; Waiter, Scott Bq Scott, Kelly S.
Subject: FW: Stevens Upset With Education Cuts To Alaska, Hawaii (AP)
Dave-
b)(5)
~anks-
folly
/16/2008
FW: Stevens Upset With Education Cuts To Alaska, Page 2 of 2
From: NcLane, Katherine
Sent: Thursday, March 15, 2007 8:37 AM
To.’ Private - Spellings, Hargaret; Queries, Karen; 6annerman, Kristin; Sampson, Vincent; Beal:on, Meredith; Briggs, Kerri; Co~l~g,
Chad; Dunn, David; Evers, Bill’, Flowers, Sarah; Halaska, TerreIl~ 3ohnson, Henry; Kuzmich, Holly; Lenders, Angela; Naddox,
Lauren; H¢nitt, Townsend L.; Hesecar, Doug; PiEs, Elizabeth; Tucker, Sara Nartinez; Scheessele, Narc; Simon, Ray; Tada,
Wendy; Talbert, Kent; Toomey, Liam; Tracy Young; Williams, Cynthia; Young, Tracy
Co: Ditto, Trey; Neale, Rebecca; Reich, Heidi; Ruberg~ Casey; Terrell, 3ulie; Yudoft Samara
Sub.ted:: Stevens Upset With Education Cuts To Alaska, Hawaii (AP)
Stevens Upset With Education Cuts To Alaska, Hawaii (AP)
AP, March t5, 2007
Alaska Republican U.S. Senator Ted Stevens Wednesday said he was disturbed by the Bush Administration’s proposed budget cuts
for education’s programs in Alaska and Hawaii.
Stevens comments came during a question-and-answer session with U,S. Secretary of Education Margaret Spellings at
Wednesday’s Senate Appropriations Committee hearing on funding the No Child Left Behind Act.
Stevens’ office says Bush’s budget request zeros out more than 100 million dollars in funding for all Alaska-specific authorized
programs, including the Alaska Native Education Equity Act and the Alaska Native/Native Hawaiian-serving Instilutions of Higher
Education p’ogram.
Stevens says, "1 look at what’s been done and I can’t believe that such a meat ax would be placed on the education budget for
AIaska and Hawaii,"
He said he was greatly worried to represent a state apparently that is not understood by the Bush Administration. He told Spellings
that these p[ograms have worked to bring Alaska children to the point they can meet 1he standards of the federal No child Left
Behind Act.
Stevens also invited Spellings to come to Alaska to learn more about unique challenges facing the state’s education system. His
office says Spellings said she hoped !o visit Alaska.
4/1612008
Page 172 Pa~e ~, of 2
Kuzmich, Holly
From: Young, Tracy D. [Tracy_D._Young@who, eep.gov]

Sent: Wednesday, July 25, 2007 1 ! :08 PM
To; Gribble, Emily; Morffi, Jessica
Cc: Maddox, Lauron; Kuzmich, Holly; Dunn, David; Gilchrist, Robin; Young, Tra~y D.
8ubjeut: Chinese Delegation Meeting wil:h SMS - list and info on flow
’,b)(5)
:1./16/2008
Page 1
Dunn, David
From: -McBride, Anita B. [Anita B. McBride@who.eop.gov]
Sent: Friday, March 16, 201:}7 10:46 AM
To: Dunn, David
Subject: FW; NYT - Oversight ls Set for Beleaguered U.S, Reading Program
Attachments: 3,15.1:)7 nyt Oversight Is Set for Beleaguered U.S, Reading Program.doc
3.15.07
Oversight Ts Set f,..
Anita McBride
Assistant to the Presiden~ &

Chief of Staff to ~<rs. Bush
Erom: McBride, Anita P.

f;en~.: Thursday, M=-rch 15, 2C,07 12:07
--/~]ech: FW: }~Y’I - Oversight !s Set for Beleagu~zed U.S. Reading Progra~
M~dame S~cretary,
Page 2
Anita NcBride
Assistan~ to the 9residen~

Chief of Staff to Mrs. Bush
(202) 456-561~ - Work
(202] 456-6771 - Fax

AMcBride@who.eop.gov
From: Donoghue, Tarah C.

Sent: Thursday, March ].5, 2007 8:58 AM
To: Lineweaver, Lindsey M.; McBride, Anita B.; Miller, S, Maria; Ha~d~x, Ch~rie S.;
Whitson, Susmm D.; Clyne, Meghan L.
Co: Culv~house, Sarah A.; Austin~ Page; Rawson, Ki~.~berly ~.
Subject: NYT - OversighL I~ S~t for Beleaguered U.S. Reading Program
New York Times
March 15, 2007

HEADLINE: Oversi@h~ Is Set for Be!eague~ed U.S. £eading Program
BYLINE: D£ANA ,]BAN SCHEMO
WASHINSTON, March 14 -- Under aztack for impropriezies uncovered in its showcase ii’~eracy
program for low-income children, the Depart~ent of Education will convene an outside.
advisory committee to oversee uhe progra.:n, kno~n ~ Reading ~’irst, Education Secreza[’y
Margaret Spellings said Wednesday.
Va.m’.’.r,g tough que~tion~ at a hea.-ing before a Senate subcommittee c:.)nsidering

ap.urop_-iations for the .3ush ~dministration’s signature education I~, known as N0 Child
ie[L Behind, Ms. Spellings ~I,~o promised to clean up the reading proq~am in other ways.
In about a half doze~ reports in recenr months, the depar[menz’s ±nspe¢~or general
detailed irregu].arities in the pr.ogram, which awards $i billion a year in giants tc states
to buy reading materials and t~acher training. The ~eports also found that federal
officials ~verl.ooked conflicts of in~ere~ among private contractors who advised sta=es
Page 3
applying for the grants, Ms. Spellings said her office’s general counsel would examine the
records of contractors accused of conflicts of interest, and remove those with actual
conflicts from any role in =he program.
Her promises came as Reading First faces growing attacks ~~hile heading for
reauthorization. Representative David R. Obey, Democrat of Wisconsin and chairman of the
House Appropriations Committee, said this week that the problems with the program "make Jt
even more difficult to persuade a nunuber cf people, including me, to vote to renew
programs like No Child Left Behind," of which Reading First is a part,
Acknowledging that "there’s certainly room for improvement" in Reading First, Ms.
Spellings told the Senate p~nel Wednesday that her department had re~oved the program’s
leader3~ expanded its staff to seven employees from Lwo~ to reduce its reiian~e on so many
private contractors with ~he potential for conflicts; and accepted a[! the rec0m~.endations
of the department’s inspecnor general.
"I’<J hate to threw the baby out with the bathwater," the secretary said, adding that
despite the problems; the p~ogram was improving reading among poor children.
At Wednesday’s hearing, Senator Tom Harkin, the Iowa Democrat who is.the subcommittee’s
chairman, said he, t0c, was dist%rbed by the accusations against Reading First. ’~It has an
odor that i don’t like,~ Mr, Hazkin said. But he said he was not considering eliminating
financil]g.
Af%er Ms. Spellings left the h~rlng, Robert Slavin of 7ohns Hopkins University, whose
Success for All reading program was shut out of many states under Reading First, said he
did not think the secretary’s promises went far enough. "I haven’t seen the slightest
glimmer of even intention to change," Dr. S.lavin said.
Because schools had already chosen their readng curriculums, promises to ~lean up Reading
First now meant little, he said. He compared them to finding eight innings into a baseball
game with a score o~ 23 to 0 that the opposing team had been playing with cork bats.
"Then they say, ~From new on, we’re ~.~sing honest bats.’ " Dr, Slavin said. "’i’m soft’y,
it’s 23 to nothing. You can’t just say, ~From now on.’
~eadi.ng First was required hy law to flnanze only ~eading prog:ams backed by
"~c!entifically based reading research," ~d the Education Departmen~ was prohibited from
mandatisg or even endorsing specific curricul~[~s. BuE the program has been ~lagued by
accusations that ~tate~ were s%ee~ed Loward a handful o~ commercial reading programs and
testing instruments.
Wi.-_h or:ly t~;o Education Oeoartmenr employees in charge of the vast program, the
administration relied largely on private con-_’ractors to advise states on :heir
app.[ic~_tions for grants, screen products for scientific valid_~ty and weigh applicatior.~.
The inspector genera[ found that severa! of these contractors wrote reading programs ~-nd
test.ing instrumen.-_s that we*’e competing for money, and that they gave preference to
products to which they had ties.
Page 4
Ms. Spellings has maintained, and said again under questioning Wednesday, that the
problems with R~ading ~irsz occurred before she became education secretary,
She denied accusations f:~ a former political appointee at the department~ Michael
Petriili, who said she had ~ssentia!ly run Reading First from her post as domestic policy
adviser at the White House, Mr, Petril!i is now a vice president at a nonprofit educarioi~
research foundation. Asked about Madison, Wis., where educators gave up $2 mi!licn in
~eading First money because they would have had to drop a so-called balansed literacy
reading program that they said had been sucoessful for thedistrict, MS. Spellings said
she was unfamiliar with the particulars of Madison’s reading program. But she defended
Keading First’s ground rules under bet predecessor~ Rod Paige, saying the program did not
exclude specific readi~g curriculnms, but intended only to ensure that they were backed by
research.
Page 5
New York Times

March 15, 2007
HEADLINE: Oversight Is Set for Beleaguered U.S. Reading Program
BYLINE.: DIANA JEAN SCHEMO
WASHINGTON, March 14 -- Under attack for improprieties uncovered in its showcase liieracy
progl’am for low-income children, the Department of Education will cortvene an outside advisory
committee to oversee the program, known as Reading First, Education Secretary Margaret
Spetlings said Wednesday.
Facing tough questions at a hearing before a Senate subcommittee considering appropriations for
the Bush administration’s signature education law, k-nm~a as No Child Left Behind, Ms.
Spellings also promised to clean up the reading program in other ways.
Ia about a half dozen reports in recent months, the department’s inspector genera1 detailed
irregularities in the program, which awards $1 billion a year in grants to states to buy reading
materials oa~d teacher training. The reports also found that federal officials overlooked conflicts
of interest among private corttractors who advised states applying for the grants. Ms. Spellings
said her office’s general counsel would examine the records of contractors accused of conflicts
of interest, and remove those with actual conflicts Ii:om any role in the program.
Her promises came as Reading First faces growing attacks Mille heading for reauthorization.
Representative David R. Obey, Democrat &Wisconsin and chairman of the House
Appropriations Committee, said this week that the problems with the program "make it even
n~ore difficult to persuade a number of people, including me, to vote to renew programs like No
Child Left Behind," of which Reading First is a part.
Acknowtedging that "there’s certainly room for improvement" in Reading First, Ms. Spellings
told the Senate panel Wednesday that her department had removed the program’s leaders;
expanded its staffto seven employees from two, to reduce its reliance on so many private
contractors with ~he potential for conflicls; ,and accepted all the recommendations of~he
~partment’s inspector general.
"I’d hate to throw the baby out with the bathwater," the secretary said, adding that despite the
problems, the program was improving reading among poor children.
At Wednesday’s hearing, Senator Torn Harkin, the lowa Democrat who is the subcommittee’s
chairman, said he, too, was disturbed by the accusations against Reading First. "It has an odor
that [ do~Yl like," Mr. Harkin said. But he said he was not considering eliminating financing.
After Ms. Spellings left the hearing, Robert Slavin of Johns Hopkins ISniversib’, whose Success
for All reading program was shut out of many.states under Reading First, said he did not think
the secretary’s promises went f~ enough. "I haven’t seen the slightest glimmer of even intention
to change," Dr. Slavin said.
¯ Page 6
Because schools had already chosen their readng curriculums, promises to clean up Reading First
now meant little, he said. F~e compared them to finding eight innings into a baseball game with a
score of 23 to 0 that the opposing team had been playing with cork bats.
"Then they say, ’From now on, we’re using honest bats.’ "Dr. SIavin said. "I’m sorry, it’s 23 to
nothing. You can’t just say, ’From now on.’ "
Reading First was required by lax,/to finance only reading programs backed ~" "scientifically
based reading research," and the Education Departmem was prohibited from mandating or even
endorsing specific curriculums. But the program has been plagued by accusations that states
were steered toward a handful of commercial reading programs and testing instla.maents.
With only two Educaion Department employees in charge of the vast program,
administration relied largely on private contractors to ad~fse states on their applications for
grants, screen products for scientific validity and weigh applications. The inspector general
found t.hat several of these contractors wrote reading programs and testing instruments that were
competing for money, and that they ga~’e preference to products to which they had ties.
Ms. Spellings has maintained, and said again under questioning Wednesday, fl~at the problems
with Reading First occurred before she became education secretary.
She denied accusations from a former politica[ appointee at the depm~nent, MicMel Petrilli, who
said she had essentially run Reading First from her post as domestic policy adviser at the White
House. Mr. Petrilli is now a vice president at a nonprofit education research foundalion. Asked
aboul Madison, Wis., M~ere educators ga,/e up $2 million in Reading First money because they
would have had to drop a so-ca_lled balanced literacy reading program that they said had been
successful for the district, Ms. Spellings said she was unfamiliar with the particulars of
Madisort’s reading program. But she defended Readin~ First’s ground rules under her
predecessor, Rod Paige, saying the program did not exclude specific reading cttrriculums, but
intended only to ensure that they were backed by research.
Page 7
Dunn, David
From: Walter, Scott B, [ScQ~._B,_Walter@who.eop.gov]
To; Dunn, David
Subject: REMARKS BY THE PRESIDENT ON NO CHILD LEFT BEHIND REAUTHORIZATION
Home run on School Choice by the Poesident today, in his first major post-Budget NCLB
speech.
Full speech below - here’s the choice part:
"...parents know best when it comes to the interests of their child.
And, therefore, when we find a school that is persistently in failure, parents must he
given different options. There has to be a consequence; something has to happen if
schools refuse to cha~ge and a child stays trapped in mediocrity. And one such
consequence is to qive parents the ability to send their child to a different school --
oublic or private, as far as I’m concerned.
"Another option, and something I strongly support, is for there to be competitive

grant programs for opportunity scholarships. You know, in Washington, D.C. we’ve got a
terrible problem there in the public schoo! system because it’s net meeting standards.
They’re just simply not go±ring the job don~ in too many instances.. And so ~ work with
the Mayor, a Democrat Mayor -- a Democratic Mayor -- who, by the way, 5elieves what 1
believe, that when you find failure you can’t accept
And so you know what we did? We put forth what’s called opportunity scholarships for
families of the poor students, so their family, if the schoo! isn’t ~eeting needs, can
afford to go to a different kind of school. What matters is the child getting the
education. That’s wh~t mBtters most. And my attitude i.s if there’s persistent failt]re,
it makes sense to liberate the parents so their child can have a better chance."

From: Scott, Kelly S.
To: Walter, Scott B.
Sent: Frl Mar 02 17:13:59 2007
Subject: FW: RF,MARKS BY THE PRESIDENT ON [,I0 CIIILD LEFT BEHIND REA[JE’HORIZATION
_ -- Behalf Of White House Press Releases

n : Friday, March 0~, 2007 4:15 PM
To: $cot~, Kelly S.
Subject: REMARKS BY THE PRF, SID, BNT ON NO CHILD LEFT BEHIHD ?.EAUTHORIZATION
THE WHI~E HOUSE
C’ffice of the Press Secretary

{New .Albany, Indiana)
Page 8
Foz Immediate Release Narch 2, 2007
ON NO CHILD LEFT BEHIND KEA!JTHORIZATION

Silver Street Elementary Zchool
New Albany, Indiana
THE PRESIDENT: Thank you all. Please be seated. (Applause.) A little bossy today,
aren’t I? {Laughter.) Thrilled to be here in New Alb~ny, Thanks for coming out to say
hello. I want to talk about schools and the federal role in schools relativ£ to local
governments -- is what we’re here to talk ~bout.
i’m glad to be here in the home of the Stars, the Silver Street Stars. (Applause,)
~ brought a lot of cameras and limousines.
{Laughter~ Kind of fJ.ts in wit]] the theme, doesn’t it -- Si]ver Street Stars. I
understand the school is 90 years ~Id. You’ve seen a lmt of decent people come here to
teach, I’ii bet you -- a lot of people who said, I want to put my co&m~;nity first, and
became teachers and principals and caring citizens of the state. And so I’m real proud to
be with you.
I’m here because I think it’s important for a President 1o herald success and te talk
about what’s possible, particularly when ih comes ~o schools.. My only regret is that my
wifm hasn’t joined me today. She’s, by far, the best deal in our f~mily. (Applause.)
Just like in Mitch’s family i want you to know° I know the Dan!oleos well end I can
certify that the person from New Albany is, by fmr, the best part of his family, too.
(Laughter.)
I’m real pro~ of MiLch. I know him -- he worked in my administratio~. I called him
out of the private sector when i first got sworn in. I s~id, would you come and work for
the country? And he did.
He was the watchdog for- the people’s money -- it’s what’s callmd the OMB. And he did a
fins job there~ really, and I miss him a lot. I love his sense of humor. I knew he’d
make a fine governor, He asked me about governor; I ~afe, listen, it’s ~he greatest job
in 2~merica -- next to P:esident. Bur it’s a great -- (laughter.) And he’s an £nnovative,
smart, capable, honest guy, and !’m proud to be with him.
I know he cares a lot abcua schools, too. ~knd so ;.~hen I talk about education, I can
talk confidently about the schools here in Indiana, because you’ve got a Governor who wil!
prioritize ed~]cation, i used to say to people~ public education is tca state what
nationai defense is ~o <he federal government. ]L ought to be the number one priority.
And I know Mitch is making [[ so. {Applause.)
I want to L~ank Tony Puffy. g’uffy has done a find job of dealing ~.~.iLh ~ impossibly
large entourage. (L~ugh~_er.l i realty appreciate your spirit, it tarns out ~hat if you
were to correlate education in a school :.;ith educational e~]t~epreneurship eL the principal
leve!, the :we go hand-in-hand. In other words, you hav~ no have a good p~ir.cipa[ in
order to be able Zo challe~]ge failure when you find it, m~diocriZy ~<.hen you see it, and
praise excell~nce when it’s ~vident. And you’v~ got ~ Qood pr~ncip~l here, Z can’u thank
you enough, Tony,
I wan: to thank all the teachers, as well, who ~each here.
Teaching is a hard job, it’s a reallV hard job, and it’$ never really appreoiatee e~,ough
in some circles. And .[ jus~ ,,;ant the teachers =o understanc fui! well that £ know the
community here thanks yOU from the b,.-,ttO.~i of their hear.--_., and the p~rents thank y.cu. And
for <he parents who are here, i a.<,prezJ, ate you paying atter~tioE to yo~r school. It rums
Out ~.arental i::vc[vement is an essential par~_ cf having e×celle~:ce [.-. the schoo! system.
2
Page 9
So when parents pay attention, it not only gives confidence to the teachers, it also
enables the school to listen to the needs of those who matter meat, and those are the
parents and the children.
I appreciate very much-Congressman Baron Hill joining us today.
The Congressman f].~w down on the airplane. As you know, we’re not from the same political
party, but we both care about education. And it’s nice of you to come. You’l! meet a
friend of mine who is with us, Mike and Keta -- appreciate you el! tom±rig.
Now is not the time to be involved with politics when we’re ~alking about the
education of our childFen. This is an issue that needs to rise above politics and needs
to focus on what’s right, b~cause getting the schools right in f~erice will make sure that
this country remains competitive and hopeful and optimistic. So I’m proud you traveled
with me, and it’s good to see you both again. Thanks for coming.
Mayor Jim Garne~ and Debbie are with us. Mr. Mayor, thank you [or being here, sir.
Proud to he in your city. I appreciate the reception that we received from the citizens.
People respect the presidency, and sometimes they like the President. (Laughter.) I
appreciate the fact that people came ou< to wave.
I want to thank Dr. Reed, who is the Indiana Superin<endent of Public Instruction.
Thank you for coming, Dr. Reed~ There ~’ou are. I ~ppreciate Mr. Don Sakel, who is the
President of the School Board.
Den, where are you? There you are, yes. I saw him coming in. I said, you’ve probably
got the toughest job in ~erica, being en <he school beard. For tho~e of you who know
school politics, you know what I’m talking about. But I appreciate the schco! board and
the board of [:rustees, ~eople who serve the local conumunity by serving on the school
board, making sure that local control of schools remains an essential part cf the school
system in this stat~ and around the country, or.
Dennis Brooks, who is the superintendent of the New Albany and Floyd County school system
is with us; a[id co[~u:]ity le~ders, thanks.
So there is a bi!l coming up fur reauthorization called the No Child Left Behind Act.
I happen to think it’s if not the, one of the most substantia! pieces e{ ].egislation I
wi!l have had the honor to sign
-- I’ve signed a lot. I want to describe to you the philosophy bmhind the act and why I
strongly believe it needs te be reauthorized by the United States Congress.
! first became directly involved ~’ith p~bl/c schools from a public policy perspective
as the governor of Texas, and I was deeply concerned ~bout systems that quit earl,/ on a
child and just moved them through.
In other words, ! was concerned about a system where people would walk in the classroom
and say, :hose children are hard to ed’acate, therefore, let’s just mo~-e them through th~
system. It may not have h~ppened in i~:di.ana, b’&t it happened in Te×a~. And it
unacceptable, because guess ~ho generally got shuffled through th~ system. The pc, or, the
nel.;ly arrivedz the minority student. And I knew that unless we confronted a system which
gave up on children early, that my state ~.~ould not be a hopefu! place.
And so I decided <o do so~ething about it. And I took <hat spirit to Washington,
D.C. Now, look, I fully ul]dezstand some are nervous when they hear a President talking
about ~ederal education -- you start thinking to yourself the government is going to tell
you what to d0 here at the local level. Quite the contrary, in this piece of legislation.
I strongly believe in local control of schools. I believe it’s essential to align
authority and resp~sibility~ And by insisting upon local control of schocls~ you put the
power where it should be -- closest to the people.
On the. or.her hand, I kncw full well that to make sure a system doesn’t la~se into
kind o[: the safety of mediocrity that you’ve got to measure. S~e, in my state we said we
want to know ~.~hezher o[" not a child can read or wit:to early, before that. child gets me, red
th~0u~h zhe system. And so ] insis=ed upon accountability.
And the spirit of vhe K,:, Child Left Behind Act is the same. it says if ’};c.u spend
money, y.=-u should insist upon results. Now, I recognize th~ f~deral government only
spends ~bout ] percent of the total educatior: budgets around <he country, &rid, frankly,
that’s the ~ay i ~hink it should be. in other words, if local people are resmunsible or
the state is responsible, that’s ~;here the prima~y f:inuinq ought tO come. ~’.~t : also
strongly subscribe to the idea of qh~ federal qo~,ernm~nr p[’ovi,Jing e:<tra money for what’s
3
Page 10
cal].ed Title I students, for e×ample, students who go to this school --money that i think
bolsters education for students in the community.
But i also believe that in return for you spending that money -- it’s your money,
after el! -- it makes sense for government to say, is it working? Are we meeting
objectives? Are we achieving the results necessary for all of us to say that the school
systems are working nationwide? And so step one of the No Child Left Behind Act was to
say yo~’ve got to measure.
We didn’t design ~ federal test because i believe a federal test undermines local
control of schools. As a matter of fact, Mitch and Boron and I ~.~ere talking t~ the car
about how Indiana has sad a longstanding ac¢ountabilicy system, and that’s good. It ought
to be your accountability system; after all, it’s your schools. But I do believe you need
to measure, and I knew you need to set high standards and keep raising those standards.
In life, i[ you lower the bar you get lousy results. !f you keep raising that bar,
it’s amazing what can happen. I call it challenging the soft bigotry of low expectations.
And that’s an important part of the No Child Left Behind Act. We expect people to se~
high standards ~nd measure to determin~ whether or not those standards are being met.
Now, one of the interesting debates in the school system is curriculum, i imagine
you’ve had a few of those tussles here; we had a lot of them in the state of ’foxes.
Reading curriculum, for example~ uheze was a longstanding debate over which type of system
¯ works better.
And it can get pretty heated. One way to cut through all the noise, however, is ~o
measure, if the children axe ]earning to read givem a basic :zurriculum, then you ~:now you
picked the right way to teach, the right set o£ instruczions. If your children aren’t
meeting sta~]dards, then an ~ccounzability sys<em gives you the opportunity to change. And
school systems, in ,~y judgment, need to be ~lexible. That’s why local control of schools
makes sense. When something isn’t working, you need to correct. But what the
accountability systems enable you to do is determine if it’s working at all.
I thir, k J.r’s very i.~porzant [or there to be transparency. In othe~ words, ~{ben you
have scores -- I don’t k~.ow if you do this, Mitch, or not, but I would szrongly suggest
that you post them for e~erybody to see across the state of Indiana. It’s kind or hard to
tell how you’re doing r~l~ti~e to you~ neighbor unless there’s full ~ccountability -- in
other words, unless everybody can see the results. A lot of times people think their
school is doing just great -- the principal, in all due respect, says, we’re doing just
fine, don’t worry about it -- to the community. Hut you may not be. And it’s important
for people to fully uzde.rstand how your school is doing relatiTe to other Schools, so that
if you need to correct, you’re able to do so. See, if you have high standards, then you
want to aim to those standards and make sure that you’re doing well relative to e:her
schools that are setting high standards.
Fir~ally, what we need is to make sure ~hat we individualize, as host as possible, the
school system. That’s what happens here at Silver Street. In other ~ords, when you use
your accountability system properly, you can tailor 5t to each individua! student. That’s
why the act is c~iled the l,lo Child Left Behind Act. It doesn’t say "all children
shouldn’t be left behind," it says, "no child." [n other words, you can individualize
cur~icuium based upon eccount~bi]ity. And this school, doe~ that.
Testing data has helped teachers tailor instruction. He~e’s what 5’o~’ principal
said. He said, "We drJll down in the data." In ethe~ words, %hey take the data and drill
down -- [ presu~ne you meant analyze a lot, Yes, excuse [~e. i’m fro~[ Crawford, Texas,
too, so [ knew.
(Laughser.} They anai?’ze, they ~rill dow[~ ir~ the data and fi§ure out what the best
practices are that we need to be using ir~ the classroom.
ir~ other ~ords, they use the data not as a way to punish, but as a way to !mprove.
The spirit of the :,).:) Child Left Behi~:d Act says we will spend money, we .*,i~.l use
ac~ounnability- to drill ,Jc, w~~, t:] ~,~ke sure no chil~ gets left behind. You ~now, one way
you can really use this, particularly in your ear].y grades, is for literacy. Science
doesn’t melter if the chiJ~d can’t read. it’s really hard to be good in math if
have the capacity to read ~he problems ih the first place.
And so i kno~ this schoo~l, i~ [ocuse~ on literacy, aa it should be, as a ste~ toward
educational excellence in all subjec:s.
Page 11
I appreciate very much the fact that %his school uses the accountability to foc~Is on
teaching techniques. Sometimes, probably not in this schoo!, but sometimes teachers have
got the ~ight heart, but they don’t have the ~echniques necessary to deliver the results
That are expected. And so you can use your accountability system, if you’re ~ise, to make
sure that the techniques are analyzed and the compassion in the classroo[~ is backed with
the skills necessary to be able to achieve objectives.
Here’s what the principal also says -- and this is an important part o~ excellence --
"We never give up. There are no excuses."
SOmetimes if you don’t measure, you can find all kinds of excuses. And i~’s just nQt in
schools, it’s life. The easy position sometimes i~ the default -- saying, well, I just
didn’t have what was necessary to get the job done, or something like that. This is a ne
excuses school.
That means high standaxds. Low standards are a place where people find excuses; high
standards~ there is ao excuse, and there’s a focus on what’s right for each child.
9a~d that’s why I’~a here at Silver Street. I appreciate so very much thau this school
has met state standards for progress under No Child Left Behind every year since 2002.
Isn’t that interesting?
(Applause.} Isn’t it interesting to be able to say that? You can’t say something that
draws applause unless you measure. Wi~hou~ a measurement system the President would be
saying, wel!, we anticipate that ~.~e are doing well, We certainly hope tllat ~.;e’re ~,~eting
state standards,
~nder this sysz~m you can say, we know we’re meeting stat9 standards.
And that should give the parenzs who pay attention to this school a great comfort, and
gi~e the teachers who teach here greaz pride.
The No Child Left Behind Act is ~orking across the country, So when men, ere of
Congress think about r~authorization -- by th~ ~ay, I’m here to -- I’m not only speaking
to you, I’m lobbying. I’m lobbying Congress. !’m setting the stage for Congress to join
me in the reaothorizati~,n of this important piece of legislation.
The test scores so.ross the country are hearsening. There’s still a lot of work to be
done, don’t get me wrong. But there’s improve~nent.
One of my issues is that ~heze’s an achievement gap in !~eriea; certain students are doing
better than other students. White students are doing banter than Afric~] American
students, or latino students. And khat’s not -- that’s simply not acceptable. It’s not
acceptable to the country. !t’s not -- it forebodes mot a positive future, so long as
that achievement gap exists. The gap is closing. !t’s heartening news.
Fourth graders are reading better. They’~e made more progress in five years than the
previous 28 years confined. In other ~ords, we’re able to measure whether or not all
children -- and by the way, we disaggregate results -- that is a fanc~ sophisticated word
meaning that we’re able to focus on demographic groups. And uhe progress has been
s~bsta~]tial. You just heard that it’s easy to quantify how we!! we’re dming because
there’s measurement.
In math: 9-year-olds and i3-year-olds earned the highest scores in the history of the
test. I hear some people say, oh, we don’t like tests, i didn’t like them either. BUt
£~’s rea[iy important to make sure That we’re achieving standards. And sO ~eauthorizing
this good piece of legislation is one o£ my to@ priorities. And my claim is, it’s
working. We can change parts of it ~:ur the he~ter, but don’t ahange the core of a piece
of good legislation that’s making a signifi.c~nt difference in the lives of a !or of
children. IApplause.)
We’re living in a competitive world. ;qheqhez people like it or not, the reality is
we live Jn a world where our stud~nt~ at.=. going to have to c..nmpate for jobs w:.th students
in China or India .or elsewhere.
And if this ¢Ountcy wal’~s to- ~emain the coot:omit leader in the world, ~e".ze got ~o m.sk~
sure we have a wo~:kfor,’.:e capable of filling the jobs of t},e 21s: cent’.it’_c. A[~d it’s a real
cl,alie~qe for us. IL’S a challel]ge ~e’re gcing to meet, by the way. There’s no doubt in
#~y mind we can ~.eet it.
Hut it rea]].y ~arzs with elementary school. It real.].y sLatis here, in schools like
this. It’s importa~t to ge$ it right early, to make sure %hat childre[~ h~ve got. [hal
foundation necessary to become the scientists and the engineers and the leade[s for
~omo~rcw. No Shild Left Fehz~)d Act is a cel]tral part of the compeEitiveness initiative,
5
Page 12
to make. sure that ~erica remains en the leading edge of change and is the economic leader
of nhe world.
We caD do some other things around. One thing we ~eed to do is to make sure that we
align our high school graduation requirements with college readir~ess standards, which is
precisely what the state of Indiana has done. We want to make sure that a h±gh school
diploma means something. [ happen to believe that we ought to take the same
accomntability that we’ve got in elementary and junior highs., and get it to high school,
just to make sure; tm he able to say with certainty the high snhool diploma that somebody
gets really’ means something, that it’s working,
I fully believe that we need to advance -- that we need to spread advanced placement
courses around the country. Advanced placement is a fabulous program. (Applause.} It’s
a way to set high standards, isn’t it? We need to train teachers in AP, and help students
afford the AP exam. (Applause,) AP is a go~d ~ay t~ -- we’ve got an AF teacher back
there.
Math and sciene~ are really impernant subje~t~. I can ~emember -- math and science
probably doesn’t have cachet, it’s not cool, but i~’s important to emphasize math and
sclemce. And one way to do that is to take math and science professionals and encourage
them to go into cla~sx~coms. I went to a school with Margaret Zpeliings, who happens to be
the Secretary of Education, a dear friend of mine and doing a fine 2ob -- and we went to a
school in Maryland~ and there was a scientist from ~ASA explaining uhe beaut±co of
science.
Pa[ents sometimes have tro~:ble explaining the beauties ef science.
I certainly did ~hen I was trying to work on those science projects.
(Laughter.) But when you g~t a prefession~l, somebody who knows what they’re talking
about, they can really enlighten the child to the benefits of math o~ science focus. And
so we’ve got a program to work with Congress to get more of those professionals in
classrooms. We call uhem ~@junct professors. ! hope the Congress fu~ds that program. So
there’s one way, for example, to build en the }~o Child Left Behind Act, focus On high
schools and math and s~:ience.
Secondly~ one of the things that we’ve got is -- in our budget is to underszand that
when a school struggles~ that there ou,~ht ~o be extra federal money to help the struggling
schoo!. I look forward to wo~kin.g with Cow, gross te fully fund that. We’ve got incentive
-- a teacher incentive fund~ grant programs to encourage teachers~to go ~o schools that
need extra help with ~he ~eacher~o I think i~ makes sense to give schoo! districts grant
~oney, or states to give grant money, to say, here’s a district that needs focus, test
scores probably aren’~ as good as they should be; if there needs to b~ additional
qualified teachers there, we’ll provide incentives for the teachers te
Thirdly: I stro~gly believe that there needs to be consequences ~hen there’s failure.
And, oh, by the way, B~ron and I tal):ed about this, an~ Mitch and I tai)~ed about the
accountability oyster, s. They ought to be flexible, we understand that, Flexibility does
no~ mean watering down standards. I~ other words, when we talk about accommodating
$pesial ~eeds students in terms of the accountability system, which 7 understand is an
~sue, and so does Margaret ~peliJngs, who is working with Congress on thi~ issue, we
cannot use that flexibility to ~ater down accountability.
And sc we -- Margaret briefed the governor’s and told Mitch and ~ii the other
governors %~e’].l ~-;o~k ~.;ith ~hem, ju$-t so long as we maintaiD those hitch standards. And I
believe we .-"-an make sure that we accommodate school needs withou~ ~;arering down this
important ~iese of .}.egislation. I01atering de~-;n N,] Child Left Behind Act would be doing
thousands of children a disservice, and ~a can’Z let i[ happen.
(Applause. ’,,
We’ve got a -- one of ~:.he problems we have -- one d~f the go-nd r_hings in the hill was
ther_ ~.~hen a child is ~I a school and has fallen behind -- a Title I ~hild -- there’s 9t]ing
to he extra money for tutoring. I think it’s a great idea. In other ~or[Js, yo& find a
young child early in his c~’ her car~er, ~ch.;~] caree~, and they can’t read, there’s extr~
m~)ney. One of the problems we’ve had is [or -- is to make sure ~;e get the test scores Out
in a timely basis to school districts who, ~hercfore, can then get uhe information on a
ti:ne.l.y basis ~o ~helr psi’or, to, tc maku sure ~ha~ the extra tutorial m0~]ey .i.s available for
theis child.
Page 13
Sometimes the best intentions get stuck in getting the information to ~tudents. And
so Margaret is going to work hard wizh Congress to make sure that parents whose child is
not meeting standards and who is eligible for this extra money gets notified early enough
to be able to take that K~oney wherev£r the parent.may want their child to receive tutorial
help. See, I’m a person ~ho believes that parents know heat when it comes to the
interests of their child. And, therefore, when we find a school that is persistently in
failure, parents must be given different options. There has to he a consequence;
something has to happen if schools refuse to change and a child stays trapped in
mediocrity. And one such consequence is ~o give parents the ability to send their child
to a different school -- public or private, as far as I’m concerned.
Another option, and something I strongly support, is for there to be competitive
grant programs for opportunity scholarships. You know, in Washington, D.C. we’ve go1 a
terrible problem there in the public school sys£em because it’s not meeting s~andards.
They’re just s~].y not getting the job done in too many instances. And so I work with
the Mayor, a Democrat Mayor -- a Democratic M~yor -- who, by the w~y, believes what [
believe, hhat when you find fail~re you can’t accept i:.
And so you know ~hat w~ did? We put forth what’s called opportunity scholarships for
families of thepoor students, so their family, if the schoo! isn’z meeting needs, can
afford to go to a different kind of school. What matuers is the child getting the
education. That’s whir matters most. And my attitude is if there’s persistent failure,
it makes sense to liberate the parents so their child can ha~e ~ better chance.
So here’s some reforms I look forward to working with Congress on.

This is a piece of legis!atien that is vital for the country~ in my judgment. I~ is
working and I think we ought to make sure ~t stays in law. And I’m looking forward to
.working with both Repu£1ieans and Demodra%s to get it done. [’Te r~aehed ou~ to the bill
sponsors in 2001, Senator Kennedy of Massachusetts, Cong~essma|% Miller o9 Ca!iforr~ia,
Congressman Boehner of Ohio, and Senato~ Gregg of Ne~ Hampshire. 2hese four gentlemen
~orked with the Whi~e Ho~se the last t~me to get £he bill done; we’re in consultations now
to get i~ zeauthorized.
i’m pleased <o report we’re all headed in the same direction. In Washington when you
get everybody llke that headed iu khe sa~e direction, sometimes you can get some things
done. B~lieve it or not, it is possible to out aside the sharp ~ibows of partisan
politics and focus o{* what’s night for the c~untry. And in my strong opinion, the
reauthorization of [~o Child Oefu Behind J.s right for the country. And that’s what I’ve
come to Ne~ Alba~y te te!l you. God bless.
~Applaus~.}
From: Walter, Scott B [Sco~._B._Walter@who.eop.govl
Sent: Tuesday, April 03, 2007 3:39 PM
To: Dunn, David
Subject: Chronicle of Higher Ed Article
Here’s the article, David.
Scorn
From: Prize, A~,gela M.

Sent: Tuesday, Apri! 03, 20C? 1:36 PM
TO: Walter, Scott B.; Scott~ Kelly S.
Subject: Chronicle of Higher Zd Article
(cj)(q’,
Education Department May Set Aside Fipse Money for Special £re~ec~s
By KELLY FIELD <mai!to:Kelly.Field@chroniele.com>

Washinqton
Secretary of Education MsrQaret ~pellinos plans to set aside for spa ..... 1 projects almost
half of the money budgeted this ’year for the Fund for the Improvement of Postsecon.dary
Education, leaving cniy $3.4-milllon for the general qrant competition, a pxoqram officer
at the @ra~:t program said on Monday.
An official in the departme.qt’s policy arm said that no decisio[~s had been made on how co
spend the money for the 2007 fiscal v=ar
"None of that has been approved," said Thomas Dawson, acting deputy assistant secretary of
the Office of Postsecondary Educatioft. "We don’t toE, ant or, internal dr.afts,
deliberations, and proposals."
Page 15
,,David
From: Young, Tracy D, [Tracy_D._Young@who.eop.gov]
Sent: Wednesday, April 25, 2007 10:15 AM
To: Lee, Ebony; Dorfman, Cynthia; Dunckel, Denise; Cain, Camille; Smith, Vatarie (SRR}; Ray,
Elizabeth
Williams, Cynthia; Beaton, Meredith; Maddox, Lauren; Kuzrnich, Holly; Dunn, David; Halaska,
Terrell
Subject: REMARKS BY THE PRESIDENT ON NO CHILD LEFT BEHIND REAUTHORIZATION
Hey folks - I wanted ~o make sure you saw the remarks and fact sheet frcm yesterday’s
White House event in NYC. Thanks for your help with invitations. The even: went really
well - I just hope all our folks made i: inside before they shut the doors :-) The
Fresident was 40 minu:es late for his speech which is abnormal, but it ended up being
because he spent more :ime in his meeting with parenLsr students and teachers and because
he visited every classroom and nct just the two we had plar~ned to visit. Always a good
problem to haze in my view. Please make sure all the folks on your lists you provided ro
me receive a copy {~f this. Thx, Tracy
http:!/www.whitehouse.gov/newsireleases/2007/O4i20070424-9.html
We can see that No Child Left Behind is working na~ionwide. There’s an achievement gap in
7~erica that better be closed if we want America £o remain the leader of the world. It is
unacceptable to me and it should be unacceptable to people ~cross the country we have an
achievement gap in America .....
..... And so my pledge is that I will ¢oD~inue to reach out and work with the new leadership
of the Congress, all aimed at making sure this piece of legislazion goes forward, and
making sure it’s funded, so tha: ~e can say, once again, we’ve got law in place that
enable us to give every chi].d .as good an education as possible so that not one child, not
one, is left behind in our country.
THE W}.IIT£ HOUSE
Office of che Press Secret~ry

(New York, New York}
For l~ediate ~.eleaee April 24, 2007

Page 16
REMARKS BY THE FSESIDENT
ON NO CHILD LEFI BEHIND REAUTHOZIZAT!ON
Harlem Village Academy Charter School

New York, New York
2:00 P.M. ZDT
THE PRESIDENT: Thank you for the warm welcome. I appreciate you making a Texan feel
right at home here in Harlem. (Laughter.) ~ have had a reraarkable experience here at
Harlem Village Academy Charter School.
You knew, it’s interesting, one of the children said, why here, why did you come here, Mr.
President? Of all the schools in the ¢oun%ry, why this schco!? And r~y answer is because
the Fresidenz has an opportunity to her~le excellence, and I have seized that opportunity.
I have come to a school where some may say these children can’t possibly exceed high
standards -- bu<, in fact, they are. Secondly, I wanted to be nice to the chairman of the
House Ways a~d Means Committee. IApplause.}
I think any time I can thank a teacher, i need to do so. So for the teachers here, thank
you for teaching: for the principals -- {applause.) Interestingly e;,ough, this. week is
called National Charter School We~k -- I mean, next week is called National Charter Schooi
Week, so a good way to herald. National Charter School Week is come to a charter school,
particularly one that’s working. I’m a big belisver in charter schools. I think charter
schools make a lot of sense, whether it be here in Harl~m or anywhere else in the United
States.
And so a way to express support for a charter school is to come :o one :hat’s working and
say to people, if you find excellence, you might want qo take a look at why; what is it
about this school that enablss a parent to say I really enjoy sending my child here. Or
what is it about this school where a child looks at the President and says, I don’t mind
being tested, because I know the[: they’re going to help correct problems early, before
it’s too late. This school is working, and I appreciate you letting me come to talk about
not only this school, but also about an important piece of legislation called the No Child
Left Behind Act.
Bofore [ do su, I thank Deborah for being when ! call an educational entrepreneur. The:
means that -- {aF.plause.) $o i said to D~borah -- you know~ I’ve never met Deborah
before, and I said, how did yeu get involved in this school? She had a personal tragedy,
~nd ~ather than all~-~ing the personal tragedy tc drag her down, sh~ said, I want to make
contribution. And I can’t think of a better contr]butio~ than to help start a charte~
schoci -- as a matte~ of fact, not only one, but two. i also thought it was interesting,
she saJd, if you’re going to be somebodZ who helps start charter schools and ~cz’ks to m~ke
charzer schools excellent, that ymu b~tt~r be on the fron: lines of edt~c~uion. Sc she
bec~me the principal of this school.
if you’re interested in helping your community -- whether you be an individual, such as a

Debt, rat, zr a ccrporaticn, for example -- promote scho~al excellence, do something fo: the
2
Page 17
commt]nity in which yon ii~-~. A lot of times if you w~it f~_~.govern~ent, things won’t
happen. She’s proven my case. She says, I want to be involved and i want to start some
schools. Corporate America needs to take the same ir~terest in ].coal schools if they
expect there to be a -- (applause} -- if we expect our co,~ntry to realize i~_s promise.
Mateo Myers introduces Dr. Kenny and introduces me. Mateo Myers. Zo I said to a lot of
the kids here at this schoo!, how many of you want to go to. college? They all rose --
raised their hand. That’s & good sign. In other words, this sohoo! believes in high
expectation8 and putting i& & child’s mind the possibilities of achieving e dream.
I appreciate very much Jsel Klein. You ta!k about a 9uY ~ho has taken on a tough job, and
in my judgment~ my humble judgment, is doing it with excellence, is Joel Klein.
(Applause.) As a result of that endorsement, he may never find work again in New York,
but nevertheless -- [laughter.)
See, I love it when somebody, heralds that which is working and takes on that which is not
working, i like a man who say.s, the status quo is unacceptable when it’s unacceptable,
and is will~ng to do hard work all aimed at making sure every child gets a good education.
And we appreciate the standard you’ve sot, and appreciate the example you have shown,
Joel.
I want thank Ed Lewis, Chairman of Village Academies, Ed Lewis is a successiul

businessman who~ ir~stead of t~king his successes and disappearing, has taken his successes
a~~d used that which enabled bi:~. to be successful to plow back into a terra, unity. And
that’s ~n example a !ot of other people need to see. {Applause.)
People say to me all the time, what can I do, Mr. President? How can I contribute? Well,
if you want to contribute, ~ork on school excellence. I can’t think of ~ better way to
contribute to the future of the Uni<ed States than to promote alze[natives if the school
systems in your community aren’t -- isn’t workir, g. in ether words, just don’t set the
status quo if children are not meeting standards. Challenge that status quo, and do
something ~bou< in.
i ~ppreciate very much Nick Timpone, who is the princip~l

here at Harlem Villa~e. (Applause.) Tha~’s a good sign. Like, i’d be worried abou5 hhe
sile~ice, you know. {Laughter.) It turns out that good schools such as this have 9cod
principals, people who work hard, people who -- you ?~now, moLivate Zhe teaching st~ff,
people who listen to parents. And I appreciate you very much being at the center of this
impozta[~t school.
Travelin~ ~.;irh me today is the Secrezary ¢[ Edueazion, Margare< Spe!i~ngs. I appreciate

you coming, Madam Sesre[ary. (Applause.) Her job.. is to work ~i~-h local school districts
so that the federal, state, and loca! rela’._’ic.-nsh~p is a collaborative relationship that.
actually works an~ doesn’t get in each other’s way. And her job is ~_o i:~’plement No Child
Lef~. Behind. And I ccul~n’: have pi::ked anybody he.<ter
I want to thank, again, Ch;’.r]ie Rangei. He is in[. chairman of :he ’z~ays 4nd Ne.hns
Cc~ittee. <A[..plause.} You .can i.~’,:agine what it’~ like t[avelin9 i:: the r~residential
limousine down Adam Clayt¢..:~ Powel] Boulevard heat-inq £.angei say, I ~;as raised eve[ here,
and here’s the hotel i worked in when .[ was a boy. You know, the people in Harlem have
3
Page 18
got a far, tactic Congressman in Charles Rangel. He cares deeply -- (applause,) He can
Agree with me a ~ew more Zimes, but -- (laughter] -- ! don’t expect him to. Hut I do
expect him to do ~hat he does, which is work for the qood of the country. And I’m really
proud to be with you. ~2hanks for coming, Charlie, (App!ause.}
Peter King, Cengress~an Peter King and Vito Fossella is with us today, Both of these
congressmen care about education. (Applause.) I appreciate the members of the New York
Charter School community who have taken time to come. I want to thank the Harlem
community leaders who have joined us today. Thanks for -- Lhan~s for letting me’be here,
Z particularly want to thank the students for letting me come by to say, heilo. I’ve
really enjoyed my trip haze, and you’ve impressed me.
I dO ~ant to say something about Virginia Tech, the Virginia Tech community. It’s a
coma[~nity thee still hurls, and the people in Blacksburg, Virginia~ mus~ know that
citizens, whether they be in Harlem or anywhere else in the country, s~ill hold those
folks ~n their prayers.
Schools should be places of safety. They shou].d be a sanctuary o~ lear[ling. And when
that sanctuary is violated, the impact is felt all across the country. It’s felt in every
classroom. And i know -- I know you’ve worried about such violence here, as a resulz of
the Virginia Tech. And I want to thank the principals and teachers for reacting and
helping cain nerves and assure people that this is a place of safety and a sanctuary for
learning.
I have asked pe~ple in m~, ad~inistration tc travel arolnd the zcunq~y~ to listen tQ folks
at the state and local level to determin~ what lessons can be !ea~ned ~rom the Virginia
Tech hozzor. Margaret Spe!l~ngs is go&rig to be a part of t~is team, ~s is the Justice
Department, ~ealth and Hulnan Services. We, of course, will proTide whatever assistance we
can to virginia Tech; but we aiso want to be a pa~t of a review of broader question, s that
have been raise~.
And so the~,’re going to travel the country. They’re going he talk ~ith mental health
experts a~d educators and state and lo~al officials, and come back and su~arize ~hat chey
have learned, and we’ll share the summaries of what they’ve learned, all in the hopes of
learning ].essons from a horrible moment. It was -- it’s a cough time down there.
I want to talk about scholJ.s, and I want to talk about ed,/cational excellence fo~ every
single child. And I ~#ant to emphasize that in my remarks, my hopes of the public school
systems i~ ~ve~y s~ate and every co~tunity excel.. That’s our goal. The public school
systems have provlde~ ~reat opportunities for a i0t of .americans. One of the great assets
of the United States .of America is a public school system that wo~kso {Applause.)
I a!so believe that paren<a.i involvement is an important aspect cf having a publ~c school
system that. works, ~nd I like the fact that charter schools enzou~’~ge pare~:ta~.
involvement. (Applause.) I like to be able to s~t with parents &nd say, I have chose
schoo! ~Or my zhild -- ch.Ds~[ the school for my child -- I coul.,i use a little e~tra h.plp.
{Laughter.)
Isn’t the-’_, a.-, ~nter.esti.qg ::once.o~? ! m.-lde the choice to s,~nd my child here. Yhat r’~as got
a nice [’i~g to i.-_, as far a~ i’:~: concerned. ~ app~eciaLe the £act that the teachers
Page 19
take place bet~een the parent &rid the child, and the child and the teache~. I appreciate
th~- faqt that teachers give parents their cell phone numbers. I think that’s an i~portant
way to make sure pare~]ts are involved in the eduoation of their children.
I appreciate the fact that folks here set high standards. I know this isn’t all
profound, but when you set low standards you get bad results, I used re call it the soft
bigotry of ~ow espectations. You kind of say, wa~l, certain people can’t learn, therefore
let’s makesure the standards are low. This schoo! challenges that soft bigotry and
insisus upon high sta~,Jards. And guess what? That’s ~hat parents want. Parents want
their 0hildren challenged. Parents believe that high standards are good for their
children.
I appreciate the fact that people go to school here from 7:30 a.m. until 5:45 p.m.
(Applause.} That’~ innovation. That means somebody here is saying, I’n going to ad]us~
the ti~e the children go to school so that we can achieve high standards. I !ike the idea
of schools having flexibility to meet the needs of their parents and their chi!dren.
Maybe some schools around the country couldn’t have that kind of innovation because the
rules and the prouess say, ~;ell, you can’t adjust that way. What I like are schools that
focus ~n results, and then adjust the process to meet the results.
I appreciate the fact that parents choose this school because it’s safe. That’s what
parents want -- they ~ant s~fezy for their children. I met with Vanessa Freeman; he~
daughter, Krystal, goes to this school. See was struggling at her old school. The
teacher said she was acting up in class in the old school. In other words, the parent,
Vanessa~ recognized there was a problem and -- my mother probably got a few of those
calls, too -- (laughter) -- but, anyway, Vanessa transferred Kryst~l here to the Herlem
Village Academy. She’s learning algebra. She said her math teacher -- her math teacher
s~ys her progress h~s given he~ goos~ bumps.
In o~her words, something has changed here at this school. In o<her words, ~here is
progress being made because the parent had an o~ticn to choose something different when
the other school wasn’~ working. It’s a powerful catalyst for reform, by the way, to give
people those opti0~s. That’s why I’m a strong supporter of the charter school movement,
appreciate providing different options.
I ~ant you to know rha~ it is a nationa! objective, an important na[ionai goal to make
sure every child realizes his or her full potential. And that is the ~hcle philosophy
behind <he No Chi!4 Lef< Behind Act. You know, ~hen we put cur mind to it, actually
Republiu~ss and ~emocrats can ~ork together -- we did so to get this important piece of
legislation passed.
The philosophy behind the hill is <his: When the federal government spends money, we
should expect results. And hy <he way, when the state spends money, it ought to expect
xesuits, tuc. instead of just sps~Sinq money and hoping for zhe best, the core philosophy
of ~he No Child Left Behind says, we’ll spend money and we expec: you to measure an~ we
expect you to pest ]:Cur scores and we e:.:pect you tc meet standa<ds. Because if you don’t,
you’re f~iling in your obliga:ion to educaSe avery ehi!d.
Now, i£ you believe certain childre[~ can’r, iearr., then you shouldn’t measare. In
wo-~ds, if you think 5hat, well, it’s just a hopeless exercise, !et’s just move kids
through the school system, then teat .~akes sense ~ot zo measure -- why w,:.~!d you --
waste the ~.ime. [ believe every child can learn, and .-.herefore I believe every school
should measure in return for federal money. And then put the scores uu early.
Page 20
I~ll Jell you why: I want the parents to be involved with education. And one way you’re
involved with education is you’re able to compare the test scores of your school to your
neighborhood school. 7t’s an interesting way to determine whether or not high stendards
are being met. !n some cases a parent will say, this is the greatest school possibles
and, yet, when the test ~ceres get posted the ~eality comes home.
Secondly, I don’t see how you can solve proble£~ ~nless yo~ measure problems. How do you
know wlnether a child needs extra help in reading unless you measure? In other ~ords~ the
accountability ~yste~ is step one of a diagnostic process that ends up making sure that
each child ge~s the help that’s needed to meet ~tandards, high standards. And so the No
Child Left Behind Ac~, a simple way of describ£ng it says if you set high standards, we’ll
give you money, buc we expect you to meet those standards. ~z0.d if not, there ought te be
different options for the parents.
I eppzeciate the results of this school. In other words, it’s interesting, isn’t it, that
the President ca~ come and say you’~e got good results here -- because you measure.
Teachers u~e the assessment to see wh~t concepts students are mastering, and which
concepts ought to be continued and which concepts ought to be dropped. The data from chis
school that you -- as a result of measurement helps teachers tailor their lesson plans to
the specific needs of the child. Isn’t that interesting? The education system <ai!oring
<he needs to fit <he -- tailor the curricul~m to fit the needs of the child? That may
sound simple, bu% it’s an unlace! concept for a lot of schools.
The school has ~ r~pid response accountability system, in other words, you don’t me~sure
once ~nd just kind of h~pe f~r the best for th~ remainder of the year -- you track student
progress closely from week t~ week. Whe~ student struggle, they ~sceive one-on-~ne
tutoring d~ring ~he sch,>ol day. ~f a child struggles, there is exzra help o~ a Saturday,
hence, No Child Left Behind. As opposed to the old system, where you just shuffled
children through and hope for the best at the end, this school measures on a regular basis
to make sure that we’re dealing not with .<ruesswork, but with results.
I appreciate the fact that this school opened in the fall of 2005. i want you to hear
this statistic: During the first year, less than 20 perzent o~ the 5th graders could mee~
stmte standards in math, only 20 percent -- (applause) -- wait a minute, uhat’s nothing to
applaud foz. (Laughter.) That’s, like, pitiful. Last year, 96 perce~|n of ~he students
-- {applause) -- from the same class were meeting state, standards. One of th~ students
was Kevin Smith. His mother says that when Kevin came to the Harlem Village Academy in
~003, he struggled. And n~w, she smys, "He can do it with his eyes closed." That’s a
math student right there. (Laughter.) Deborah Kenny says, "Ou~ $chuul proves rhat
children can achieve grade level even when they start behind." And that’s the spJ.rito
We can see that ~~o Child Left Behind is working nationwide. There’s an azhievement gap in
America tha~ bezter be closed if we wan5 America to remain uhe leaeer of the wor[J. It is
unacceptable to me and ~ should be unacceptable to people across th~ cot~ntry we have an
achievement ga~ in ~<eric~. [Applause.)
It’s amazing what happens, though, ~hen you ~,:easur~. The percentage of New York City
graders meeting state standards in reading has increased by more than
years. ’?he [~ercent~ge of ~th graders doing math at 9rude level has increased by 19
p:)ints. Congratuiazions, Joe), for holding people to account. {Apple=so.} 1
~.eopl~ say, i don’< like. [o ~est, you’re testing too much. I don’t :~ee how yc[~ can solve
p~oblems unless you d~agnose the problems. I don’: see how you can meet high stand&t’ds
6
Page 21
unless you test.
I appreciate the fa¢~ that nationwide, nine-year-olds have made more progress in five
years than in the previous 28 years combined on these tests in reading. How about that?
in other words, we’re begi,ning to make progress early. The pipeline is beginning to be
full of little readers .that are competent readers, And the fundamental question is, what
do we do in junior high and high school? Do ~;s kesp the progress going, or do we .fa!! off
when it comes co holding people to account?
I believe strongly thaz we ought to bring the saa~e standards to high’schooL that we’ve had
in elementary -- one through eightr or three through eight. That’s ~har I believe, i
believe if you want to make sure a high school diploma means something, you better h~ve
high accountability in high schools. We want the hiqh school diploma to say, <his person
is ready to compete in a world in which ths graduates are going to be competing with
Chinese or Indian workers. In other words: it matters what happens r~ow i~ our sehoeis,
more so than ever before.
And so part of zhe initiative to make sure that we continue to set high standards is to
bring these standards to high school. ! believe strongly that we ought re -- the federal
government has a [oI~ in %~pa~ding advanced placement courses all across ~h~ U~ited States
of ~meriza. I’m a big believer in AP. ~ think AP holds people to account, and challenges
people to realize their full potential,
We’ve get an effort right now to encourage 30,000 math and science professionals to become
part-time teachers. Why would you encourage math and science professionals? ~ecause if
you’ve got the capability of competing globally in math and science, you’re going to be
getting a good ~ob, is why, it’s a practical application of U.S. resources to encourag~
3DrO00 ~ath and seienc~ prsfHsslenals to enter c!ass~ooms to enoourag8 people to be
interested in math an~ science,
You k~o~, I met a math teacher here. The man wenr to Harvard -- now, we’re not going to
hold that against him, but nevertheless -- {laughter) -- he’s out there somewhere.
[Laughter.) He’s teaching ~ath. He’d been doing a lot of things, and he’s teaching math
right here at this important charter sGhool, because he understands the importance of
teaching a child math, in uerms of that child being able to find good work and be a
productive citizen in this challenging 21st century.
Here are some ways ~e can imp,_’cve the No Child Left Behind Act. My funding request has
money for underperforming sch~c..is, when you recognize there’s fa£iure and these schools
need help. i’m a strong bel’[~ver in making sure that money follo~.~s children. And so when
we find a child failing in meeting high standards, there ought to be extra tutorial money
for that child. In othe:c words, the measurement system not only hel~s d~rermine who’s
felli~g behind, but it helps determi~]e whether o~ not that child ought tc get extra money
now, early, befor~ it’s too late. That’S been an integral part cf No Child Left Behind.
It’s going to be a ~ignific~nt part of ~<o Child Left ~ehind as we go forward.
I be!iev~ strongly that we’ve got to ~.ak’e sure tha: we .... if a school just ~,~on’t change
and conhim~es to fail, that principals ought to be given additional s£af~in9 freedom, ill
other words, there ¢,uqht to b~_ flexibility ~- more f[exibi!ity as opposed to less
flexibility when ~ school fails.
Page 22
~ thin~ we ought to e~@ower mayors and other elected officials to take a more active hand
in ir~proving their schools. If you find fail.re, it’s important to do something
differently, And one way to do so is ~o encourage more power in the hands of our mayors
to break through bureaucratic logjams that are preventing people from achieving
edHsational e×qellence.
And we ought ~o make it easier !or officials to reorganize failing schools into charter
schools. We just canno~ a!!ow the status quo to exist when we fin4 failure,
Another w~y we can help Zs to encourage oar nauion’s best teachers ~o take jobs in some of
the ~oughest neighborhoods. And so we proposed increasing the investment in the Teacher
IncenZive Fund to nearly $2~0 million next year. Zn other ~erds, there’s a way for the
federa! government to encourage teachers to take en jobs that are important ~obs, and
making sure t~at every child gets a good education ~;ith a good teacher. The fu~d rewards
teachers who defy low expectations. It provides incentives ~o£ people to come into
districts all around the Hailed States to challenge the softy bigotry that ! was talking
about.
Third, parents of students in underperfurming schools must have better choices. You find
your child stuck in a school that won’t teach and won’t change, you ought to have a
different option. I can’t think of a better way to get somebody’s attention that ~e’re
tired Of mediocrity than to give a parent an option. I think there’s a better -- no
better way to send a signal that folks are. tired of mediocrity when it comes to our
classrooms than say to a parent, you should have a different opportunity for your child,
whether it be ~ charter school -- (applause) -- or a better performing public school.
In Washington, D.C., we did an interesting -- made an interestin~ !nit!silva, and that is,
~s that ~e provided scholarship money for poor students to go to any school the}, ~anted.
I like that idea. ! think it makes a lot of sense. You know, we ha~e Poll grants for
poor students to go to college, i think we ought to have federal taxpayer’s money to go
to poor parents so they c~n choose a different type of school if they’r~ dissatisfied with
the school theirchild is going to. And so I would s<rong!y u~ge Congress to reauthorize
and refund the D.C. School Choice Program, and ~ake ~ good look at our program tha~
intends to expand that program.
I do want [o congratulate Governor Spiuzer and Mayor 51oomberg for working with the
Chancellor here to increase the number of charter schools here in Ne~ York. I appreciate
the fact that they’re taking a bold initiative. As I understand, they want to double the
nu,ntber o~ charter schools avai.[able for the students here in New York, and that’s a good
thing. You know, Margaret is going to help you, to zhe extent ~hat she ca~], (Applause.)
So now we’re ±n the pro,teas 0£ rewriting thi~ bill -- re~uzhcrizinq it. H~re’s my
attitude about this: one, Congress shouldn’t weaken the bill. it’s working. The No
Chl!d LeTt Behind Act is working. These ~est scores are on the rise. Accountability
makes a siqnif3cant difference in educauional excellence.
And ~o therefore, when Re.uublicans and Democrats take a !ook at this bil!, I strc.ng!y urge
thei~ to not weaken .the bill, r~ct to backslide, nor_ to say, accountability don’t that
important. It is important. We’ll ~ork with the school districts or, flezibi!ity "~hen it
comes to the accuuntabili:y system. And I mean th~-t there are certain ~;ays tha: ;,,e {:a~i
make <his -- the accoun:abil~ty system ac.tuaily ~ork better than it’s :~crked in the past.
Page 23
But we will not allow this good piece of legislation to be weakened. And if you’re a
pa~en5, you should insist that the No Child Left Behind Act remain a strong accountability
tool so thBt every child in this country gets a good education. I’ll reach out to both
Republicans and Democra£s again. Last ti~e I signed the bi!l, I was on the s~age with one
of Charlie’s good friends and colleagues, Congressma~ George Miller from California, Ted
Ke~edy~ and two Republican colleagues of theirs. .kr~d it was -- we.worked well together.
And so my pledge is that I ~ill continuua to reach o[~t and work with the new leadership of
the Congress, all ai~ed at making sure this piece of legislation goes forward, and making
su[e it’s funded, so that we can say, c~ce again, we’ve goc law in plats that wi!l enable
us to give every child as good an educatior~ as possible so that not one child, not one, is
left behind in our country.
I%’s Such an honor to be here. i love coming tea place where people defy expectations.
(Applause.) I love coming to a place where you said, we’re going te tr~ to do something
in a different way, that the status quo is not acceptable, so here we go. ][ ieve being
w~th educational entrepreneurs, good principals, stro~g teachers, caring pa~ents, and
stuSents who are going to be leading this nation in the 21st century.
God bless. (Applause)
END 2:29 P.M. ~DT

Page 24
Dunn, David
From; Corbelt, Bryan N. [Bryan N, orbett@who, eop.gov.1
Sent: Tuesday, May 08, 2007 8-.25-AM
To:
Cc: Hennessey, Keith
Dunn, David
Subject: RE: Spellings / tenders / FTC
Attachments: imageOOl,gif
~’rom: H~nnessey, Keith

Sent: Tuesday, ~ay 08, 2~7 ~:18 AM
To: Corbett, Bryan
Co: ’david.dunn~e4.gov,
Subject: Spe].lin~s / lender~ /
(b)(5)
Thanks,
Page 25
Dunn, David
From: Young, Tracy D. [TracLD._Young@who.eop.gov]
Sent: Wednesday, May 09, 2007 1:32 PM
To: Maddox, Lauren; Hataska, Torte!l; Dunn, David; Kuzmich, Holly; Mcnilt, Townsend L.
Cc; Conklin, Kristin; Flowers, Sarah; McLane, Katherine; Beaton, Meredith; Dunckel, Denise;
Williams, Cynthia
Subject: NCLB today: REMARKS BY THE FIRST LADY AT 3HE NATIONAL SUMMIT ON AMERICA’S
SILENT EPIDEMIC
FYI
Principals and teacheJ$ across our country are working to eliminate these obstacles to
graduation. The No Child Left Behind Act, which was passed by Congress and signed by
President Bush in 2002, has brollght a special fDcus to improving reading and math
instruction in the early gr£des. Studenhs who learn to read and do math early on are more
likely to succeed once they reach high schoo!.
The No Child Left Behind Act is up for reauthorization, and President Hush has proposed
reforms to the upper grades to address problems outlined in "The Silent Epidemic" report.
Secretary Spellings will tell you more about the~e programs later today.
The reauthorized No Child LefK Behind Act could help older students who struggle because
they’ve never mastered the most important skill: reading. The law will expand the
Striving Readers program, which uses research-based instruction to help middle and high
schoo! students read at grade level or better.
THE WHITE HOUSZ
Office of the First Lady
For Immediate Release Hay 9, 2037
REMARKS BY THE [IRST LADY
AT THE KATZONAL SUMMIT [IN AM£~.ICA’S SILENT EPIDEMIC
Renaid Reagan ~uilding and :nternazional Trade center

Washington, D.C.
]0:48 A.M. EDT

Page 26
MRS. BOSH: Thank you, Lyle. And Lyle is a great example for everybody here of the way
somebody can turn their life around. And I want to thank Lyle for his very kind
introduction. I warL~ tc recognize Secretary Margaret Spellings, the Secre~ry of
Educationr who is with us today, Governor Donald Carcieri from Rhode Island has joined us
today, and Governor John Lynch from N~w Hampshire is here, as well. Thank you all very
much for joining us for this very, very important topic,
Students and teachers and parents, researchers, government officials, education officers,
distinguished guests. Thank you all very much for coming.
More than 200 years ago, Benjamin Franklin observed that "An investmeni in knowledge
always pays the beat interest." Our country has learned that investing in education
yields citizens who can develop their talents, ~ho can pursue thei~ passions, and make :he
very most of America’s opportunities. Investing ie education yields a nation thaz’s
healthier, ~ore prosperous~ and mere secure.
Today, the United States is blessed with many millions of outstandin~ schools and teachers
and students. They’re~ the product of our country’s stron~ commitment to education. Yet
too many students never realize the promise of a goo~ education. The U.S. Department of
Education estimates that out of every I00 students who enter high school, only 74 grmduatm
6n time. P~ong African .~.ericans, Hispanics, and Native i~ericans, the graduation rste is
closer to o~ly.50 percent.
These unaccepaable numbers represent millions of real young people who are excluded from
our econc.my, and ,lnequipped for our sociehy. Ninety percent of ~erica’s fastest-growing
jobs re~]ire higher education. Dropouts are more likely to be unemployed, and to receive
public assistance. They’re more likely to be in prison or unhealthy or divorced. They’re
more likely to be single parents, and ~o raise children who drop out of high school
themselves.
This crisis a~fects all Americans. All of us share in the costs cf increased
incarceration, of health care and social services. Since dropo~.~ts are less !ikeiy t~
vote, volunteer, or give hack to their communities, ~Ii of us suffer from their
disappearance from civic I.ife. And all cf us have the obligation tu help.
Resolving :h~ dropout crisis first requires knowing why it ~xists, In Civic Enterprises’
recent study, "The Silent Epidm,dc," students explain why they left school, and what could
have helped them finish. Mush of the students never expected to drop our cf high school.
They drearaed of ~xciting careers, and the degrees that would make these careers possible
-- until life’s obs[ac!es, or school itself, got in the way. Some left because of family
crises, addictions, or teen parenthood. M~ny sai~ they began high school unprepared by
their eari£er education. O:hei:s said they wo~ld’ve ~o:ked harder if someone had expected
t~Lem ~o s~cceed.
Principals and teachers across our country are working to eliminare there obstacles t..’~
graduation. The No Child Lsfl; Behin.J Act, which was passed by Congress a~:d signed by
!~resident 9.ush in 20$k, h~s brought a special fuck, s to imp:roving reading .~nd math
i:]structicn Jn the ear!,/ grades. Students who learn to read and dc math ear]y o:~ are more
likely to succeed on<~e they reach high school.
Page 27
The No Child Left Behind Act is up for reauthorization, and President Bush has proposed
reforms to the upper grades to address problems outlined in "The Silent Epidemic~ report.
Secretary $pellings will tell you more about these programs later today.
The reauthorized No Child Left Behind Act could help older students Who struggle because
they’ve never mastered the most important skill: reading. The law will expend the
Striving Readers program, ~hich uses reSearch-based instruction to help middle and high
school students read at grade level or better.
Last. year, Secretary Spellings and I met 6th-grade Striving Readers at Avon Elementary
School in Newark, New Jersey. By lea~ning to read well, these students were preparing for
every other subject -- for history, for math, for science, for languag~, for art. They
were bui!di~g a strong academic foundation for high school and college, and for the rest
of their lives.
Superintendents and education officers are confronSing the dropout crisis in school
districts throughout cur country. I~] Shelbyville, Indiana, school officials never
imagined their town had a dropout problem. After all, 90 percent of their high school
students left with their diplomas. But Shelbyvi[le used a state fomnula uhat inflated
graduation mates. The truth was that a third of Shelbyville’s high school students were
dropping out. Shelbyville went from a grade-A graduation rate to the cover of TIME
Magazine, s~bol of a "Dropout Nation."
Sheibyville’s superintendent, David Adams -- who you’ll hear from in few minutes -- was
determined that the town’s gradua[ion rates would again be a source of pride. At
Shelbyvi!!e Elementary, child,on at risk in the first grade are given special attention.
Middle sohool students are encouraged to take high school graduation pledges.
Shelbyville High offers a "credit lab,:’ where student~ can work one or~ one with teachers
%o make up lost ground. ~helbyv!!le hosts parent-<eacher conferences at a nearby factory
that employs many of the town’s moms and dads. Local businesses offer internships to show
young people the rewards of staying in school.
Sheibyvi[le’s efforts are paying off. In 2005, after ~he statistic5 were adjusted to
eliminate uhe graduation inflation, the town’s graduation rate was estimated at just 65
percez]t. Today, using the s£me evaluatior~ formula, uhe m~mber has climbed above 80
percent.
Shelbyvii[]e’s success r~minds us of why adults throughout the comd~unity must rake an
active role in the ].ires of our young people. When parents, teachers, mentors, pastors,
and coaahe_= show children we beiieve in them, they learn to believe in <hem$elve$. Thi~
is a powerful message, and one our young people want -- and need -- ~c hea~ from all of
us. (A[~plause.)
Acco~ding to the "Silent Epidemic" reporu, ?0 percent of students wished their pa=enns
were more involved i:~ their -~ducat.Jon. ~.dany .said they had "too much freedom," ~n4 they
ne-eded more ~ules. On].>" 56 percent idon:ified an adult at school they retold turn to for
Page 28
Seth c~edits his turnaround to one teacher at The Dooz -- Mark Schwartz. Mark would meet
Seth in the mornings to visit New York’s g~lle~ies and museums. Mark encouraged Seth’s
passion for drawing and pai[~ting, and his interest in art history. ~To have a mentor in a
teach, r, to have a frimnd like that,~ Seth says, "i.s the best experience you can have at
school."
Inspired by Mark, Seth kept up h~s art, He finished his ooursework with an A average. He
went from hating school to working as a teaching assistant. Now he’s considering college
at ~ew York’s School of Visual Arts. Seth still wishes he’d finished at his high school.
"But if you can’t," Seth says, "It’s g&od to have people who can show you another way."
And Seth is right hers in the audience. (Applause.]
All of us have the obligation to invest in our young people -- young people like Seth.
Today, i urge all Americans -- especially parents -- to be active participants in your
children’s education. Find out if your community has a dropout problem. Be vigilan~
abou: warning signs in your own children, like increased absences and declining grades.
Start preparing youz children for high school early, by making sure they learn to read.
Show yaung people that their education matters. He ~ mentor. Go to teacher conferences.
Attend schoo! games, concerts, and plays. The effort will be well worth it. As Benjamin
Franklin observed, the investmsn~ in our children’s education pays the very best interest:
happiness for o!]r young people, and success for our country.
Thank you all very ~uch lot inviting me to speak today. Thanks to the parqjctpants in
today’s s[1~ar~it -- especially the shuden~s -- for your ideas. Thanks especially to Civic
~nterprises, MTV, ?IME~ th~ Oates Fou~]dati~n, and the National Govermors Association for
hosting this su,~it. And th~nks to e~ch and every one of you for your determinmtion to
make sure ~vezy child graduates from high school.
Thank you a!l very much, and 004 bless you. (Applause.}
END i!:03 A,M. ~DT

Page 29
Dunn, David
From: Walter, Scott B. [Sco~_B._Walter@who.eop.gov]
Sent: Thursday, May 10, 2007 12:33 PM
To: Dunn, David
Subject; RE: News Alert: Spellings Promises S[udent Loan Oversight
She didn’t deviate from the text your OPA sent out e fete minutes ifter she spoke:
From: U,S. Department of Education [mailto:OPA@ed,gov]
Sent: Thursday, May i0, 2007 ii:15 ~
To: U.S. Department of Education
Subject: IN CASE YOU MISSED IT: HIGHLIGHTS OF SECRETARY SPELLINGS’
TESTIMONY
IN CASE YOU MISSED IT...
Highlights of Secretary Spellings’ Testimony (05/I0./07}

Government-Wide T~sk~orce on Pzivate Student Loans
"My department oversees federal student loans. Private loans-which have
lately been the focus of so much attention-are overseen by other
agencies like the FTC, the FDIC, the SEC, and the Federal Reserve.
Therefore, I am convening the chairs of el! relevant agencies to
coordinate a qovernment-wide endeavor to end student loan abuse.., nc
matter where it occurs.
"Mr. Chairman, I invite your commitZee and your colleagues in the Senate
Lo help me !ead this effort to restore faith in student financial aid.
"We cannot fix ~his broken entarpris~ by cherry picking a few narrow
issues to address. We must peel[ back the layers, increase transparency,
streamline the entire sys.zem, and provide more aid for students. "
Recommendations on Key Lender Issues

"When the zc~m[itcee failed to reach consensus last month, I i~ediately
assembled a task force to work on key lender issues. They reported to
me yesterday with reco~m<endations to end unethical practices.., put
students’ needs first.., and maintai.n trust and inteqrity throughouu the
system,
"The task force recounT=ended new plans to inject more choice~
competition, and transparency into federal student aid. These plans
will:
Ensure every borrower has the right to choose any lender, and
Kequire that if a school has ~ preferre~ lender list, it must disclose
how and why lenJers are chosen.., it must include a minimum of 3
unaffiliated lenders.., and it must not favor some students more than
others.
"in addition, we’ve strengthened ic.ng$%andinz guidance on what’s legal
and what’s not wi~h regazd to i~-~ducements. This includes a tan on gifts
and steps to limit decept[ve marketing by lenders.
"I will work co release draft regulations to be printed in the FederaJ
Regis~or by the end of :his month. Even if and when a law is passed,
I’ll have ~umFstarted the regulatory process-which would ordinarily be
just beginning its 18 plus r~onth timeline."
Congress Asking For Delay on Negotiated Ruiemaktng

"For example, since last August, I h~ve been working to address u~gcn:
Page 30
issues like preferred lendez lists and inducements,,, through the
rulemakinG process that you set up by law, I invited this coaunittee and
its counterpart in the Senate to suggest Neople to join in this process.
At that time, Mr, Chairman, you and other men~ers of this conu~ic~ee sent
me a letter requesting that I delay further action unnil Congress could
act."
Attached is the text of the letter referenced in the Secretary’s
testimony:
<<Letter i0,19.06

From: Dunn, David [mailto:David. Dunn@ed.gov]
Sent: Thursday, May I0, 20C$ 12:1~ PM
To: ~aiter, Scott B.
Subject: FW: News Alert: Spellings £romises Student Loan Oversight

From: Quarles, Karen
Sent: Thursday, May iD, 2007 12:17 PM
To: Dunn, David
Subject: Fw: News Alert: Spelling~ Promises Student Loan Oversight
Sen~ from my BlackBerry Wireless Handheld
..... Original N~ssage ......

From: Schroeder, inqrid M.
To~ Riddle~ Paul; Quarles, [~aren
CC: Bowers, Constance J,
Sent: Thu May i0 ii:57:09 2007
Subject: FW: News Alert: Spellings ~romises Szudenn Loan Oversighr
From: CQ Today Action Alerts [mailto:CQCusto~Alerts@cq.com]

Senu: ’[’h~rsd~y, May I0, 200? 1i:56 AM
To: Schroeder~ Ingrid M.
Subject: New~ A!ezs: Spelli~ Promises S~udent Lean Oversight
<hire :/iad. doubleclick, n~t/jump/siteb.cq, tmus!subject-alerts; tile=l;pos=
<http:iiw~;w.cq.ccmiaierts-manage.dc> CQ.CO:,I ~-blAIL ALERTS
<hrtp:ii%.~w~.;.cq.cor.~/im.=.ges/a!ert icon edit..~if> Mar:age my

Issu_s <ht-p;//~’ww,cq.comiaiert~-man~ge.do:, l,%st" alert
’~’~ Today Action A
<htr-P:~0°www.~..qo,.om:in’.a,~e~/a_~rt os .cqt action.qif> Sen< [4av l..’:,
2007 ll:b4 a.m. ET
Spellings [~r’omises Studen-.. L¢.a:-~ Oversi~h~_
Page 31
Education Secretary Margaret Spellings t01d members of the House

Education and Labor Committee she will ask lesders of several feder~l
agencies overseeing le~ider practices, including the Federa! Tra4e
Co~u~dssion, the Securities and Exchange CommisSion, the Federal Depos~t
Insurance Corporation and the Federa! Reserve, to monitor the
scand~l-ridden student 10an industry. Spelling8 also said her department
will publish draft ~~gul~tions by th~ e~d of May on a variety of key
lender issues.
Check C~.com <http:i/www.cq.com/news.do> for c~p].ete coverage.
Keywords: Banking, finance
(c}2007 - Congressional
<http://w~;~.cq.com/corp/show.do?page=about_mission> ~uarter!y inc.- All
Rights Reserved
Information is intended for subscr~obezs on!y and is subjsc~ co the terms
<http://www.cq.com/cerp/show.do?page=thlssite_copyright> of use posted
on our Web site.
Any unauthorized reproduction or retransmission of th~s materia! is
expressly prohibited,
C~ DeliYery ID: 264654ZI
Page 32
Dunn,..Da__v,!~.
From; Walter, Scott B. [Scolt B. Walter@who, eop.gov]
Sent: Wednesday, July 25, 2007 9:24 AM
To: Dunn, David; Kuzmich, Holly
Scott, Kelly S,
Subject: RE: STATEMENT BY SECRETARY SPELLINGS ON CENTER ON EDUCATION POLICY
REPORT ON CURRICULUM
b)(5)
From: Dunn~ David [mai!to:David. Dunn@ed.

Sent: Wednesday, July 25, 2007 9:21
To: Walter, Sc.3tt B.; Kuzmich, Holly
Cc: Scott, Kellv S.
Subject: RE: STATEMENT BY SECRETARY SPELLINGS ON CENTER OK EDUCATION POLICY R.ZPORT
C []RRI CU[.UM
(b)(5)
Frcm: Walter, Scott B. [mailto:Scott B. Walter@who.eop.gov]

Sent: Wednesday, J~ly 25, 200’7 9:20 AM
Cc: SCOtS, Kelly S.
Subject: RE: STATEMENT BY SECRETARY SPELLINGS ON CENTER ON EDUCATION POLICY REBORT ON
CURRICULUM
Many thanks,
Scott
From: Dunn, David [mailto:Oavid. Dunn@ed.gev]

Senk: ~’l~dne~day, Ju]y 25, 2[.107 9;20 AM
To: Walter, Scotz Z.7 K~zmich, Holly
Cc: Scott, Kelly S.
Subject: RE: STATEMEN? BY S£.’JR~]’i’ARY E]EKLi.!NGS ON CE’,N’?ER ON E[?U[;AT[OH [?OLIC’f REPORT ON
CURRICIILIH.I
Page 33
From: Walter, Scott B. [mmilto:Scott B, Walter@who.eop.gov]

Sent: Wednesday, July 25, 2007 9:18 AM
Co: Scott~ Nelly S.
Subject: STAT~4ENT BY SECRETARY SPELLINGS ON CENTER ON EDUCATION POLICY REPORT ON
CURRICULUM
Dear David & Holly,
Besides some unjustified reco[~menda~ions, I rhough% the CRP report shows good news - i
esp. liked the anecdotal comments about how students identified as having trouble in
assessments are often targeted for mere reading & math instruction, something the
President likes to say and the fact-checkers give us grief about.
(b)(5)
Thanks,
Scott
From: Kuzmich, Holly [m~].to:Hclly. Kuzmich@ed.gov]

Sent: Tuesday, July 24, 2007 7:36 PM
To: Scott, Kelly S.
Subject: FW: STAT£MENT BY SECRETARY SPELLINGS ON CENTEZ ON EDUCATION POLICY REPORT ON
CURRICULUM
[(b)(5)
Erom; U,So Department of Education
Sent: Tuesday, July 24, 2007 7:07 PM
To: U.S. Department of Education
Subject: $~ATEMENT BY SECRETARY S~’~;L[,IN~S ON CENTER ON EDUCATION POLICY ~.EPOR~ ON
CURRICULUM
U.S. Depar:men£ of Education

O[f~ce ,~f Communications a C.uqreach, Press Office
Maryland Ave., S.W.
Washington, b.C. 20202

I.~C~ RELEASE
Page 34
July 24, 2007

Contact: Katherine McLane
(202) 401-1576
STATEMENT BY SECKETARY OF EDUCATION MARGARET SPELLINGS ON CENTER ON EDUCATION POLICY
REPORT 0N CURRICULUM
In response to the Center on Education Policy report on curricultum, U.Z. secretary of
Education Margaret Spellings made the following statement:
While the report is cercain!y interesting, its scope is too li~ited to draw broad
conclusions and similar studies ooint toward different findings. In fact, there is aluch
evidence that shows schools are addin9 time to the school day in order to focus on reading
and math, not cutting time from other subjedts.
The rec0~e~endation to dilute the best to01 we have te measure whether schools are giving
students a good grounding in their" most important subjects would roll back the clock on
the great progress we~ve made for our poor, minority and special education students.
However~ a greater emphasis on the@subjects that are the most critical to
success is good news and as this report shows, children’s skills in reading and math are
¯ growing stronger. We encourage schools to create a broad curriculum that builds their
students’ critical skills and gives them a wel!-rounded education. If children can’t read,
they can’t learn history.
Before No Child Left Behind, little was done to hold schools accounuable for teaching our
children basic, critical skills. Poor, minority and s~ecial eduuaticn students suffered
as a zesu!t and our achievement gap g~ew. Now, we are ~eeinq great prcgress on closing
our achievement gap. And in five yea£s, more progress was made on reading by nine-year
olds than in the previo%ls 28 years combined. As students s%rengthen their skills in
reading and math, their ability to do well in ether subject areas flourishes.
Page 35
Dunn, David
From: Young, 7racy D, [Tracy_D._Young@who, eop,gov]
Maddo×, L~uren; Halaska, Tercel!; Dunn, David; Kuzmtch, Holly; Mcnitt, Townsend L.
C~: Beaton, Meredith; McLane, Katherine; Hapes, Brenna; Dunckel, Denise
Subject: Business Week: Business Gets Behind "No Child" May 7, 2007
Attachments: image001.gif; image002.gif
image00:t.gif (2 KB] image002,gif [] 37

~)
Publication Image
<javascrip~_ : popupNewWindow ( ’http ://www. buslnessweek
BUSINESS GETS BEHIND "NO CHILD’
By Richard S. Ounham <javascript:void(0);> . Business Week

<h~tp:/~pr~quest.umi.c~m/pqdweb/ipdauto?~QT=3~8&pmid=29276&TS=l~783~659~c~ientId=45398
&VT~e=PQD&VNaK, e=PQD&VInst=.?ROD> . New York: Nay 07, 2007
<htt~://pr~quest.umi~m/pqdweb/i~daut~?RQT=572&VTyp~=~QD&VNa~e~:~QD&VInst=~R~D&pmid=2~2~6
&pcid=35721161&SrchMode=3> . , Iss. 4033; pg. 16
Full Text {282

Copyright © 2007 The HcGraw-Hill Companies, Inc., All rights reserved, httP:iiwww.mcgraw-
hill.com
The President’s signature d~mestic p~ogram--the No Child Left Behind Act--!s languishing
on Capitol Hill, and a politJ.cally weakened George W. Bush is counting on corpozmte
executives to lead a rescue. If Congress fails to beef up the law in 2007, the
Administration fears its plans t$ e~pand the program will fall victim to election-~,ea~
politics.
£xecutives say ~h~. 2001 l~w--whioh toumhens standards in primary and middle schools,
mandates annua" tests, =_nd holds states, accountah!e for underachieving schools--is
essential to providing math ~nd science skills needed to keep the U.S. competitive.
Like many exe~ntives, the A~inistration wants to expand the p~ogram into high ~chools.
"There’s no time ~0 waste," says £ducation Secretary Margaret Spe].lings.
But the Iraq War has sapped Bush’s political capi<~l, and a $248 billion budget deficit
complicates attempts [o expand federal programs. There are also obstacles at both en~s of
the political spectrum: Conservatives want t~ cut: the federal ro!e in schools, while
teachers’ unions don’t like the testing regimen.
Trying to overcome all this, 80 companies--including Intel, Erns~ & Yuung, and Micrcsoft--
have jo~ned the Business Coalizion for Student Achievement. The ~roup is pushin~ new
members of the Hsuse and Senat~ education committees to review and expand the law. They’ll
also <argot key l~wmakers from ~wing States. Another gro’~p, including9 U.S. Chamber
Co~imerce boss Thomas Donoh~]e anJ former C|.inton White House Chief of $:aff John Podesta,
is hol@ing weekly strategy sessions on strengshen[ng the acz. "Torn Donuhue and
agree on that mumh," s~ys Podesta, now CEO sf the liberal Center for ?~eric~n Progress.
"[But] this is not a Left-Right issue."
[ lllustraticr,]
Page 36
Photograph: SCHOOL DAYS: Bush and Spellings with s~_udents in Washington PHOTOGF~.PH BY JAY
L. CLENDENIN/BLOOMBERG NEWS
.... Page 37
Dunn, David
Prom: Pitls, Elizabeth

Sent: Friday, April 20, 2007 7:32 PM
¥o: Dunn, David; Kuzmich, Holly; Mcnitt, Townsend L.; Hataska, Terrelt; Maddox, Lauren;
Williams, Cynthia; Briggs, Kerri; Mesecar, Doug; Santy, Ross; ’tracy_d._young@who.eop.gov’;
Talbert, Kent; Wexler, Rob; Cariello, Dennis
C¢: Flowers~ Sarah; Toomey, Liam; Colby, Chad; McLane, Katherine; Quarles, Karen;
Bannerman, Kristin; Isett, Christine A.; Gribble, Emily; Morffi, Jessica; Landers, Angela;
l~lacGuidwin, Katie
Subject: Draft HELP Committee Statement
Attachments: HELP 3.doc

Page 43
Dunn, Dav,!d
From: Henry, Tina-Maria
Sent: Tuesday, December 18, 2007 12:56 PM
To: ’Atlas, Nathan M.’
Cc: OKeefe, Nora; Dunn, David; Jeffrey, ,Scott; Kuzmich, Holty
Subject: RE: Hey l:here -
Thank you and one more thing, our COS, David Dunn, is also attending, Sorry for dropping
you, DB!
From: Atlas, Nathan N. [mailto:Nathan M. At!as@omb.eop.gov]

Sent: Tuesday, December 18, 2007 12;52 PM
To: Henry, Tins-Maria
Cc: OKeefe, Nora; Dunn, David; Jeffrey, Scott; Kuzmic~, Holly
Subject: RE: Hey there -
Perfect - thank you!
From: Henry, ’Pins-Maria [mailto:Tina-Maria. Henry@ed.gov]

Sent: Tuesday, Decen~er 18, 2007 12:50 PM
To: Atlas, Nathan M.
Cc: OKeefe, Nora; Dunn, David; Jeffrey, Scott; Kuzmich, Holly
Yes! Confirme( at 10:15am for 30 minutes in 252 EEOB. ~md yes, Hclly Kuzmich, Pep COS,
wi].l .attend.
From: Atlas, Nathan M. [mai!to:Nathan M. Atlas@omb.eop.govl

Sent: Tuesday, December !8, 2007 12:44 PM
To: Henry, Tina-M~ria
Cc: OKe.efe, Nora; Dunn, David; Jeffrey, Scoz5
Hi Tins- I ~anted to c.onfirm this meeting is sti!l on for tomorrow at i0;15 am. We have
blocked sff 30 mlns because he has another meeting he has to get zc right after this.
Will the Deputy COS att_=nd with the S~_mrstary? ~banks.
From: He.,’..[y, 7ina-Ma~-fa Imailtc:Tina-H~ria.He~]ry@ed.gov]

Sent: ~"~ednesday, Novembe[ 28, 200] ’4:50
To: Atlas, Ha=han H.
Page 44
Co: OKeefe, Nora; Dunn, David; Jeffreyr Scott

Subject: R~: Hey there -
I think Holly Kuzmich, Dep COS but will confirm.
From: Atlas, N~than M. [ma£1to:Nathan M. Atlas@omb.eop.gov]

Sent: Wednesday, November 28, 2007 4:44 PM
Co: OKeefe, Nora; Dunn, David; Jeffrey, Scott
No problem! I am glad we could finally get this set up. Can you please let me know if
anyone will join the Secretary for this meeting? 0on Dempsey from our staff will be thers
with the Director. Thanks for your help.
From: Henry, Tina-Ma~ia [ma/ito:Tina-Maria.Henry@ed.gov]

Sent: Wednesday, Nove~~er 28, 2007 3:51 9M
Co: OKeefe, Nora; Dunn, David; Jeffrey, Scotr
I do not believe it! Thank you[
~’rum: Atlas: Nathan M. [mailto:Nathan M. Atlms@on~.~op.gov]

TO: Henry, Tina-Maria
Cc: OKeefe, Nora; Ounn. David; Jeffrey, Scott
Perfect - we are in EEOB Room 252. Thank you!
From: IIenry, Tina-Maria [mailto:Tina-Marla. Henry@ed.gov]

To: Atia~, Nathan 5~.
Co: OKeefe, Nora; D:lnn, David; Jeffrey, Scott
Subject: RZ: He], there-
Yes! We can come ihcre - ~{hat. is the room numbe[? Thank you.
Page 45
From: Atlas, Nathan M. [u~ilu6:Nathan Mo AtlasOomb.eop.gov]

Co: OKeefe, Nora; Dunn, David; Jeffreyr Scott
Sure - how about 10:15 am on ~he 19th? Let me know if that works. What were you thinking
for location?
From: Henry, Tina-Maria [mailto:Tina-Maria. Henry@ed.gov]

Co: OKesfe, Nora; Dunn, David; Jeffrey, Scott
Subject: RE: ~[ey there -
UGH - Secretary Spellings will b~ on travel those days. How about [he morning of Dec 19
since the Cabinet Mtg moved?
From: Atlas, Nathan 5[, [mai±te:Nathan M. Atlas@0~nb.eop.gov]

Sent: Wednesday, Nove~ber 28, 2007 i2:]i PM
Hey Tina - Thanks for you patience~ it is appreciated. Sorry we have not Deen able ~o set
this up yet, We will not be eble to do this on December 4th. The next time Director
Nussle will be able tO meet is either on Friday~ December 7th or Monday, December 10th.
We can ma~e ii am - I pm work on ~he 7th and anytime on nhe !0th. Please let me know what
is best for Secretary Spellings. Thank you.
From: ~len~y, Ti~a-Mmria [mailto:Tina-Mariaol.lenry@ed.gov}

Sent: Tuesday° November 27, 2607 4:22 PM
Subject: Hey there -
Just checking back in on the possibility of a meeting, perhaps next Tuesday, Dec 4 in the
~fternoon be.:ween i:30pm - 3:30pro. Any shgt?
Tina He~ry
Director of Scheduling & Advance
Page 46
Office of Secretary Margaret Spellings

US Department of Education
Page 47
Dunn, David ......

Stroup, Sally [Satly.Stroup@rnail.house.guv]
Sent: Monday, March 31, 2008 10:30 AM
To." Bailey, John P.; Dunn, David; Skandera, Hanna
Subject: FW: Tom Ridge Letter
Attachments: Tom Ridge Letter,pdf
Tor~ Ridge
Letter, pdF (~08 KB)
Can’t zeros, tuber iiF I ~en~ th~,~ to ~o~
Also here’s kanjorski’s press release - he was less than impressed with the
spelllngs/Paulson response letter[ The 2000 lender quote is goil~g to come back to haunt
all of you
KANJOKS[<I EXPRESSES COMCERHS ABOUT ADHINIST~ATIOH’S ~ESPONSE ON STU[IENT LOANS
The Administration Must Take Further Acti~n to Address Issue

WASHINGTON - Congressman Paul E. Kanjorski (P-£#.), the Chairman of the House Zinancial
Services Capital Markets, Insurance, and Ggvernment Sponsore~ Enterprises Subeonu~itte~,
expressed concerns about a letter he received today from Secretary of the Treasury Henry
M, ~aulson, Jr. and Secretary of Education Margaret Spellings. The letter responds to an
inquiry from Chairman Kanjorski and 20 other Members of Congress urging the Administration
to take action to address capital access problems in the student loan marketplace in order
to ensure the continmed availability of affordable, federally guaranteed studen~ loa[~s.
"While I appreciaze Secretary Paulson and Secretary Spellings’ response that they
understand the sc~pe of the problsms affecring the student loan industry and that they are
closely monitoring the situation," said Chairman Kanjorski, "I find it unfort~nate that
the Administration is not taking greater action at this time to fix [he problem. How many
more lenders must drop out of the Federal Family Education Loan Program before the
Administration will take aczion? Students and their families preparing to go to college
this fall need to know thai they will have access to affordable higher education loans."
In their reply, Secretary Paulson and Secretary Spellings r~cte that because there are more
than 2,000 lenders who originate loans in the Federal £amily Education Loan Program
(FFELP), the Student financial aid market should be able to "quickly ~ddress i~,stances
where some...lenders choose to !~mit their participation" in the FFELP.
"While they may be techni3ally correct abeu% the current statistics, we are seeing an
ever increasing number of student loai~ originators deciding ~o exit or suspend their
participation in the FFSLP," observed Chairman Kanjorski. "Wizhin the las~ 9 days alone,
this list has grown by 16 more providers. ~ am, therefore, concerr~ed that the problems in
our capital markets may soon result in a significant decrease in the student loan
distribution system ~or which the Administration will not be able to provide an adequate,
timely and effective solution."
On March }.9 the FinAid.org website, an awa~d-wi~ning source of i~formation on student

financial aid, noted tha~ 21 originators had exited or suspended their participazion in
all o~. par~_ of the FFELP since last August. As of March 26, the~e are noH 3V student loan
lenders classified as such. These ..~’) providers account for nea~-ly i0 percent of the
~tafferd an.-! ~LUS loan originacion volume uneer the FFELP. ’[’..he}, also account for more
than 30 percent of the consolidation volume under the
""Moreover, [ am very concerned that the Administra~..ion’s response fails to _~cognize :he
views of ~he profa~:~ion~is en the ire, at lines of ,-,ur natior~’s financial
waist action n<.’w te ensure the continued availability of fe~er~lly guaranteed student loans
this fall,"
, Page 48
~dded Chairm~n Kanjorski.
Earlier this week, th~ Natienal Assaciation of Student Financial Aid A~iniatrators called
for an infusion of liquidity in the student loan marketplace. The non-profi~ association
represents financial aid professionals at 3,000 universities and colleges.
"We r~eed proactive, swift action now to provide stability in the student loan marketplace.
The Administration is in the best position to provide such leadership," concluded Chairman
Kanjo~ski. "In the weeks ~head, I w~ll continue to push for action on this critical
issue."
Chairman Kanjorski has worked for several months to raise awareness about the problems in
the student lean marketplace and urge swift action by the Administration. On February 15,
for example, Chairman Kanjorski spearheaded the effort to send the group letter to
Treasury Secretary ~aulson and Secretary SpelliNgs.
On March 17, Chairman Kanj0rski joined by 31 other bipartisan Members of Congress also
sent a letter to Federal Reserve Chairmen Ben S. Bernanke urging him to take action to
inject liquidity into the student loan marketplace to help all type@ of o~iginators. They
are still awaiting a response to their inquiry.
Editor’s Note: A copy of the March 28 response from Treasury Secretary Panlson and
Education Secreuary Spellings to Chairman Kanjorski is attached. The Vebruary ]5 inquiry
sent by Chairman Kanjorski and 20 other Members of Congress is also attached.
Page 49
The Honorable ~ovms J. R~dge
25, 2008
1"he I4onorable H~nry M, Paulson l’he Hortomble M~.rg~ret 8pel!ings

Seere.mry
U.S, Department or Treasury U.S. Departmont of Edu¢.atioJ~
1500 Pe~asy~wnia A~nue, NW 400 Maryland Av,~nu¢, SW
Washin~on, DC 20220 W~.shington, DC 20202
Th~ HonoraN¢ B~n Bemunke
Chairman
Board of Oov~mors of~ Fedemt R~e~e System
20~ Street m~d Cm~fitution Avenue, NW
W~h:ngto~ DC 20551
Dear Secretary Paulson, Secretary Spdlings, and Chairman Benaanke:
As a former Governor of Pv~msylvaaia, :I m~ thoroughly familiar with the
importance 0f higher education to ~e Co~nomwalt~ of ?etmsylv~ia. Morn impo~fiy,
~s an individua~ who g,~w up in public M~g and who had zo depend upo~ ~hol~ship%
O! benefils, ~d governn1 s~dent dd pm~8 to pursu~ higher educa~on, [ ~mw how
impoaant timely access to federal ~tdent [o~ ~m in our soci~y,
This is why I was so dismayed by the r~porl: that th~ Permsylvani~ Higher
Education AssiS!ance Agency (PHEAA) h~ been forced to 5~p~nd its fed=r~ smdcm lo~t
originations ~d purch~e activities. ] ~derst~d, as wall, ~t a n~ber of other not-fo~-
profits and for-profit tenders have t~en simil~ steps mud ~hat mo;e shn[lar ~ou~vements
are on the hmJzon. ~ust ~ week, a ~jor nomprofit lender in Texas and two major
~ommer~ial b~ks were forced to m~¢ the same derision ~ PF~AA and, i~ is becoming
cle~-er, thin ~is is just ~e tip of the iceberg,
tVor more ~.han 40 y¢~rso student% fmuilie% m~d schools haw re]led upon federally
guaranteed student !o~s tO hdp pay for college. The availability and re~iability of~his
~raining available to tens ofmilIio~m ofsmdent~, This Wstem has been so succcss~l, in
{~vt, that w~ have taken i~ for grated and taken for grated the ~omp]ex ~andal
unde~imdngs and markets that today genes’ale $60 hi[He= in guar~eed studen{ Ions ~d
billions more in non-feder~J student Ions. Today, a~ those m~ke{~ endure unimagined
Suite 308
Page 50
Pennsylwnia’s families expe~ that $4 billion in t’~dedally guaranteed loans wil! be

ready and waiting for them this fall Those loans will elLsure that 475,000 students have
the ~inancial means to begin or continue their po~ts~ondary aducattozl, NatioL~ally, more
than. seven million studenIs and families are in the same s~tuatiort. Wkhout f~derally
guaranteed Iom~s or ~en th~ ~ar ~at ~ey may no~ b~ available, I Nor thin families
choose not ~o send ~heir children t~ college ~d ~a! sophomores and juniors wtI] nM~
the nation’s economy ca~ot afford m ~k such a shock.
We all know Nat t_he students and !~amities mos~ likely to feel the brunt o(’the
economic FaIlout fi’om a disraptio~ in the availability of studertt loans will be ~hosa who
can least at~%rd it, Disadv~mged s~t~ents do act have additional financial ~es~ces to
replace the loss of loan a~eess. Th~e ~den~s disprepo~io~atel¢ attend co~uaiv
colleges, state colleges, ~d small p~Na~ ~lleges ~at d~ not hava huge endowments that
thsy can dip imo ~o provide additional Nnding for ~e smdm~s. They simply wii~ have
nowhere else to ram.
It is wid~ a grea~ ~ens¢ of urgency that I r~quest year immediate at~erttion to the
looming emis in federal student loans, Bold ac~on is needed m revive d~e aucdon r~t~
m~ke~s flxat provide tM finmcial foundation £Ol ~e program md ensu~ that th~N ar~
~uNci~m ~om-c.es ef capitN to m¢¢t th~ needs of ~mdents and ~ilios fo~ federally
guar~tecd lo~s. Providing capital at reasonable ¢0~, p~ch~ing securities backed by
s~udent loans, cr putct~asing seudeat to~ directb, ~ ~ang ~ op~ons that ~h~uld be
considered by ~h~ Trca~u~ Dep~me~t and Fed~ra[ Reserve. Ifw~ w~t to ac~ umil
thousands af students are d,med ~hese I~an~, it will bc t~ late. We must act n~w and
Novide d~e assistance thin thosa lo~s ~11 be a~ailable ~d that f~ilics will be aN~ tn
send their children te college ¢his Nil ~d beyond.
I thank 5,~’m for your a~tentJon to this matter and look forwm’d to hearing fro~ you
regarding your plm~s £~ address ~his crucial issue.
Sincerely,
...._.__._, -
Thoma~ J. Pddge
First Secretary.. U.S. Department
of Homeland Security
Former Governor of Pennsyl
The Hop, orablu Edward RendetI

Pana~yI):ania Ca~tgressional Delegation
PHEAA Board
Page 51
Dunn, David
Fro m: Zinsmeister, Karl [Karl_Zinsmeister@who.eop.gov]
Sent: Wednesday, March 14, ’2007 9:41 AM
To: Fielding, Fred F.; Wolff, Candida P.
Cc: Dunn, 13avid; Troy, Tevi D.; Waller, Scott B.; Scott, Kelly S.; Kaplan, Joel
Subje~t; Congressional doc requests at ED
Fred and C~ndi:
The Department of Educmtion currently has zhree document-requests/investi,]a~ons ur, dex ~ay
~:ith Congress:
--B.eading First
--Nelnet
--Sallie Nee
Page 52
Dunn, David
From: Young, Tracy D. [Tracy_D._Young@who.eop,gov]
Sent: "luesday, July 17, 2007 11:03 AM
To: Halaska, Terrell; Watkins, Tiffany; Quarles, Karen; Bannerman, Kristin
Maddox,.Lauren; Beaton, Meredith; McLane, Katherine; Colby, Chad; Kuzmich, Holiy; Dunn,
David; Mcnit[, Townsend L
Subject: FW: OFFICIAL RELEASE: SAP on H.R. 3043 - Departments of Labor, Hbalth and Human
Services, and Education, and Related Agencies AppropriationsAct, 2008
Attachments: SAP on HR3043.pdf
SAP on HR3043.pdf
(62 KB)
Making sure you have th±s - TY
From: Lerner, Daniel A.

Sent: Tuesday, July 17, 2007 10:53 ~H
To: Lerner, Daniel A.
Subject: OFFICIAL RELEASE: SAP on H.R. 3043 - Departments of Labor, Health and Human
Services, and Education, and Related Agencies Appropriations Act, 2008
EXECUTIVE OEE£CE OF TIIE ?~ESIDENT
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503
July 17, 2007
(House)
STATENENT OF ADMINISTRATION POLICY
H.R. 3043 - Oeparlments of Lahoz, Health and Human Services, and EJuzaticn, and Related
Agencies Appropriations Acs, 2008
(Sponsor: Obey (D), Wisconsin)
The Admini.srrarion strongly opposes H.R. 3043 because, ~n combination wi~h the other FY
2008 appropriaLions bills~ it includes an irresponsible and excessive leve! of spending
and ~r.cludes ether objectionable provisions.
The President has proposed a responsible plan for a balanced budg~.c by 2012 through
spending restrainu and without raising taxes. To achieve this important goal, :he
Administration supports a responsible discretionary spending total of no~ more .<han 5933
billion in FY 2008, which is s $@0 billion increase over the FY 2007 enacted level. The
Democratic 8udge~ Resolution and subsequer~t spending allocations ~dcpzed by the House
Appro~riatio~s Co~il:.tee exceed the Eros!dent’s discretionary spending topline by $22
Page 53
billion, causing a 9 percent increase in FY 2~08 discretionary spending and a I0 percent
increase in the deficit if the entire amount were expended in FY 2008. In additionr the
Administration opposes the House ApproDriations Committee’s plan to shift $3.5 billion
from the Defense mppropriations bill to non-defense spending, which is inconsistent with
the Democrats’ Budget Resolution and risks diminishing ~erica’s war fighting capacity,
Finally, this bill circtunvents spending limits by increasing advance appropriations by $2
billiont ~hich would bring the Total discretionary spending increase to $24 billion above
the President’s Budget.
H.R. 3043 exceeds the President’s request for programs funded in this bill by nearly $Ii
billion, part of the $22 bill~on increase above the President’s request for FY 2008
appropriations, The President’s request for programs in this bill sets forth a fiscally
responsible path that provides increases for the nation’s highest priorities while
reducing funds for low priority or non-performing programs. The President’s Budget
proposed gross savings of $3.1 billion for the Department of Education, 81.2 billion for
the Department of Labor, and $2.3 billion for the Department of Health and Human Services,
so that resources could be redirected to more important needs. The Administration has
asked that Congress demonstrate a path to live within the President’s topline and cover
the excess spending in this bill through reductions elsewhere, while ensuring the
Deparzment of Defense has the resources necessary to accomplish its mission. Because
Congress has failed to demonstrate such a path, if H.R, 3043 were presented to the
President, he would veto the bill.
In addition, the Achainistration would strongly oppose any amendment that would
substantially change Federal policies and law on abortion and use taxpayer dollars for the
destruction of human life. If the final hill presented to the President were to contain
such a provision, the President would veto the bill.
The President has called .on Congress to reform the earmarking process tha~ has led to
wasteful and unnecessary spending. Specifically, he called on Congress to provide greater
transparency and full disclosure of earmark~ to put them in the language 0£ the bill
itself, and to cut the cost and nur~oer by at least half. The Administration opposes any
efforts to shield earmarks from publiu scrutiny and urges Congress to bring full
transparency to the earmarking process sod to cut the cost and nurser of earmarks by at
least half.
The Administration would like to take this opportunity to share addit±onal views regarding
~he C0~mittee’s version of the bil!.
While the A~Lministzaricn is pleased that the b~!! supports increased j.nvestmenLs for
several of the President’s education priorities, it is disappointed that :he Committee
largely fails to adopt the program terminations and spending reductions proposed in the
~resident’s Budget ~nd exceeds the Budget’s request for the Oepartmen% cf Education by
$6.1 billion or Ii percenz. In particular~ the President’s Budget proposed to terminate
fundLng fo[ ~3 Department of Education programs that are duplicative, narrowly focused, or
unable to demonstrate effectiveness, including Even Start, Sate and Drug-Free Scnuols
State Grants, and Educational Technology State Grants, The Budget then rediuests savings
from these ~erminaticns and other spending reductions to provide significant increases for
prioritv educatior, prograi~ zhat have a record of success or hold signi[i.cant promise for
improving student auhievement and in~reasi~i~ acsour, tability. The Administration urges
the House <o adopt the terminations and reductions proposed in the Budget in order :o
2
Page 54
~estrain spending and redirect funding L0 high-priority education initiatives.
Beading First. The Administraticn strongly opposes the $629 million reduction in the
Reading First program, while the Ad~nistration recognizes the significant issues
outlined in severa! Inspector General reporter the Department has addressed these problems
and implemented all the IG’s reconm~endations. Moreover, as a result of Reading First,
reading proficiency, on measure of reading fluency in 26 Sta~ss with a few years of dat~,
has increased for third graders by 15 percent and for economically disadvantaged first
grade~s by 28 percent, Outstanding results such as these, particularly among at-risk
students, call for sustaining investments in this effective program.
;~erican Competitiveness Initiative (ACI). The Administration appreciates nhe Committee’s

support for the Advanced Placement program as part of this initiative. Ho~;ever, the bil!
does not provide funding for the Math Now programs to help school districts implement
research-based instructional practices to prepare el-risk students for more rigorous math
courses in middle school, high school, and beyond. The House is also urged to provide $25
million requested for the Adjunct Teacher Corps, to encourage professionals to bring their
needed e~pertise to the Nation’s middle and high schools by becoming adjunct teachers in
math and science.
Title I - Education for the Disadvantaged. The $i.] billion increase requested in the
Budget for Title ! Grants is sufficient to cu~tinue and enhanc~ No Child Left ~ehind
{NCLB) reforms and, together ~ith the adoption of the Administration’s NCLB
reauthorizatJ.on z,roposa].s~ would help improve achievement at the high school level.
School Improve~.ent Grants. The A4~ninistration supports the bill’s fundi~g cf School
_-mprov~ment Grants at the requested leve!.
Striving Readers. The Administration is disappointed :hat the bill provides $68 million
less than requested fo£ Striving ~eaders. Secondary school students who read below ~rade
level are at risk of d~oppin9 out of school and performing poorly in all subject areas.
This program helps address this co~e issue by supporting research-based reading
i~]terventions.
Teacher Incentive Fund- The Administration co.~m~ends the bill’s supDcrc for the Teacher
Incentive Fund but see):s thc $199 ~uillion requested.
National Security L~nguage Initiative (NSLI). The Administration appreciates the bi!l’s
support for ~4SLi but seeks the Budget’s entire request for all the education elements of
this initiative in order to significant]y increase the nu~mer of U.$. students learnin~
foreign languages critical for the Nation’s security and globa! competitiveness. Such
funding can be achieve,i, in part, by limiting funding for the Title VI inter~ational
Education program to no more tha:] the amount reqdested by the Administration.
Promis~ and Opportu~]it}’ Scholarships. The Administration is e×~zeme/y disappointed than

the bil! fails to support these crucial new initiatives to offer much needed educational
aliernativ~s to low-income st~]dents in persistently low-performing schools and to nrovide
compehitlve grant~ to help c0m~lunitie~ expand education options for low-income fa:~ili~s.
Page 55
Poll Gran:s. The Administration supports increasing Pell ~rants to help the neediest
postsecor,dary students meet the rising costs of higher education, The Budget proposed
using mandatory savings from making the student loan programs more efficient to increase
~he Poll Grant maximum award to $5,400 over five years. The House is urged to adopt this
approach, which provides needed increases for Poll Grants in a cost-neutral manner while
restraining growth in discretionary spending.
Institute for Education Sciences (IES}. The Administration seeks the $25 million
requested for a voluntary student-level dat~ system pilet, which would help increase
transparency about institutional outcomes and costs to help parents and policy makers make
behher decisions while preserving student privacy, The House is also urged to fund the
Budget request for Researchr Development and Dissemination, Since IES was cre~ted, it has
transformed the quality and rigor of education research within the Department and created
demand for scientifically based evidence of effectiveness to ~ddress the Nation’s most
pressing education needs.
Program Administration. The Administration is disappointed that the House bil! ~uts the
Department of Education’s Frogram Administration by $25mii!ion conkDared to 2007 and $38
million below the PresidenZ’s Budget. This reduction would likely require the Department
to initiate e×tensive unpaid furloughs of staff across the agency, disrupting program
operations and preventing the timely award of over $40 billion in formula and
discretionary grants,
Depactment of Health and Human Services (HHS]
The Administration cow.ends the Co.~m~ittee’s support for the third installment of the
President’s $7,1 billion Fmndem~c In£1uenza plan, Access te Recovery £rogram, Abstinence
Education grants, ~he $tzategic National Stockpile, and Drug Courts. However~ the Budget
proposed to eliminane oz reduce funding for a number of HHS activities that have not been
proven to be effective, have already achieve.d their intended purpose, or are duplicative
of other activities, such as Health Professions training g~ants and the Preventive Health
Block Grant. The Adminis:ration urges the House to adopt these reforms, in order no be a
bette~ steward of the taxpayers’ dollars,
Bioterrorism. The Administration ,~bjects to the $135 million increase shared between ~he
State and Local Public Health Preparedness and Hospital Bioterrorism Preparedness grant
programs at the Centers for Disease Control and Prevention, and the Office of the
Assistant Secretary for F~eparedness and Respons.e. These increases will divert resources
from more effective and necessary activinies to prepare the Nation to respond to a
bionerrorism attack, such as the advanced development activities that are critical to
accelerate ~he procure~nent of biodefense medical co~ntezmeasures. The Ad~inistration
strongly objects to the $50 million reduction in advanced d~velopment funding for ~he
Office of the Assistan[ Secretary for Preparedness and Response. This prog,osed reduction
wou].d prevent ~he develep~nent of essanuial medical countermeasures called for in ~he
Pandemic and All-Hazards ~reparedness Act, which authorizes up to $1 billion to be spent
on advanced developed:out,
Office c.f the National £:oo~dina:or for HIT (ONC). The House is urged to fu-ly fund the
request in order to capitalize cn the progress and momentum needed ".’o achieve the
President’s. goal of most ~ericans having electronic heaJ. t.h records by 2014.
Medicare Contrac,~ing i,’.efo~-m. The Administration is concerned that the bi.[.[ dce~ not
Page 56
provide $90 million in critical funding for the second cycle of Medicare C~ntrac:ina
Reform. HHS’s estimates indicate that delay will result’in lost savings of approximately
$300 million and increase future administrative costs by roughly $50-100 miilion.
Health Care Fraud Abuse and Contro! Account. The Administration supports the bill’s
funding for enhanced program integrity efforts to curtail waste, fraud, and abuse in
Medicare and Medicaid and believes that the $183 million re~lested in the 2008 President’s
Budget and included in the House Subcommittee bill is sufficient to protect beneficiaries
and the Federal Government from waste, fraud, and abuse.
Adolescent Health, The Committee has not included any funding for the Adolescent Health
Promotion initiative, which would enable thousands of schools to take advantage of HHS~s
science-based resources to establish a culture of wellness that begins to halt the
epidemic of childhood obesity, reaching more than three million young people and :heir
families.
Domestic NIV/AIDS Initiati=e. The Ad_~dnistration appreciates the Co~nittee’s support of

this important initiative but requests full funding, This funding supports increased
testing of individuals at high-risk of infection and [hus will improve ea~ly diagnosis,
enabling individuals to alter their behavior to prevent the spread of ne~ infections.
State Health Access Grants. The Administration objects to the provision of $75 million
for a new end unnecessary State health grant program. The President’s Budget mere
effectively expands access to health insurance through Affordable Choices, a standard
deduction for health insurance, and reauthorization of hhe State Children’s Health
Insurance Program.
Substance Abuse and Mental Health Services Administration. The House is stron~!v
encouraged to include language proposed in the Budget that would substan[iaily’i~prove
accountability and results through the incomplete National Outcome Measures data.
C~mmis$ioned Corps. The Administration apprecianes the Committee’s support fox the
Co~imsioned Corps transformation to better respond to public health emergencies.
However, full funding would enable the Corps to adequately address the recommendations in
The Federal Response to Hurricane Katrina: Lessons Learned report.
Flu Vaccine. The Administration s~rongly opposes any restriction on lhe use of funds
under section 317 and she Vaccines for Children program to deliver flu vaccine to children
under three years of age if it contains thimerosol. The p~’ovision could result in
children not receiving any flu vaccine.
Social Services B]sck ,grant ($$BG) and Co~{ur~unity Services Block Grant (CSBG). SS3G and
C85G duplicate other Federal social service programs that are better able tc demonstrate
results. The Adr~i[~istraticn urges the House to red~ce these progress.
Compassion Capi:al ~",md. The House is urged -~o N-rovide the funding to support 27
additional grants to faith-based and co~,~unity o<ganizations.
Page 57
Low-Income Home Energy Assistance Program (LIHEAB). The Administration opposes the
excessive increase above the President’s request for LIHEAP. The bill provides $880
million above the reqsest and exceeds the FY 2007 enacted level by over $500 million. The
contingency fund level of $682 million is also well above historic levels for
discretionary appropriations.
Department of Labor
The Administration is disappointed that the Committee blocks ~any of the Administration’s
efforts to reform and better manage the Department’s programs by rejecting proposed
reductions in narrow-purpose, duplicativer and ineffective program~ and preventing the use
of competitive sourcing as a tool to improve program management and save taxpayer
resources. The bill exceeds the request by more than $900 million, yet underfunds
critical management needs like th~ Information Technology crosscut ~nd core accounting
systems.
Community-Based Job Training Grants. The bill provides $25 million !ess ~han the $150
million requested for Cool,unity Based Job Training Grants and funds this program within
the Dislocated Worker National Reserve. This would severely limi~ the Department’s
ability to help workers in the wake of u~anticipated events like ~%a~ural disasters and
mass layoffs.
Job Training. The bill misses an opportunity to improve the cost-effectiveness of

Workforce Investment Act programs and includes more than $20 million in narrow-purpose
earmarks. The Administrarion also opposes the prevemtion of regulations to impro?e the
Workforce Inveszment Ac5 and Trade Adjustment Assistance (TAA) programs, which would
reduce bureaucracy, give workers more flexible training options, and better integrate the
TAA program with the One-Stop Career Center network.
Union Financiel Integrity. The A~,inistration opposes the 2D-percent reduction for the
Office of Labor-Management Standards, which would seriously weaken the agency’s ability to
improve union transparency and strengthen financial integrity.
Job Corps. The Administration is disappointed that the bill rejects the Budgetrs proposal
to return the Job Cc.rps program to the Employment and Training Administration -- a shift
that would ensure the prograln’s coordination with the Federal workforce investment system
and improve administrative efficiency, The Adf~inistratiun is also concerned about the
bill’s slot mandate, which ~-;o[~].d hamstrir~g managemenh af the program.
Other Initiatives. The Administration appreciates the support of its ~zoposed

consolidation of the Pilsener Re-entry Initiative ~nd Aesuonsible R~integrarion Of Ex-
offenders program. The AdminisZration is also ~leased that the bill includes the proposed
funding for reemploymenZ and eligibility assessments to reduce Unemp!oyment I~surance
improper paymenzs, whlch will r÷sult in annual savings of as much as $205 million.
Soci~l Security AdministrazJ.on (SSA)

Page 58
Limitation on Administzadve Expenses. The Administration appreciates the full funding of
prog=am integrity activities, which.will allow SSA to process more conhinuing disability
reviews and redetermina~iens ef SSI eligibility, saving an estimated $3.6 billion over 1O
years,
Totalization Agreements {TAs). The Administratiol~ opposes the provision that would
prohibit SSA from using administrative funds to develop TAs with other countries that
would be inconsistent with current law. SSA would not undertake any such effort if it was
inconsistent with current law. Furthermore, there is ~n established congressional ~eview
process for TAs.
Corporation for Public Broadcasting (CPB)
Digital transition an([ radio interconnection system initiatives can be azco~modated from
within CPB’S already-enacted F¥ 2008 appropriation, rathe~ than by providing addiKional
funds for those purposes. In addition, CFB sh@]id be funded like other programs that
receive Federal assistance, rather than through advance appropriations.
Competitive gourcing
The Administration szrm~gly opposes section iii, which would i~ose a moratorium on
publie-pzivate compezition at the Department of Labor while the Government Accou|]tabili~y
Office conducts a review ~;ith an unspecified deadii~e. The Department has conducted
competitions in a fair and reasoned manner to improve the efficiency of its programs. On
a Government-wide basis, competitions conducted over the las~ four years a.re expezted to
produce nearly $7 billion in savings, primarily in zhe next five to seven years.
Employment Eligibility Verification System
The Administration supz~orts d~e <~se of the Emplo>~ent Eligibility Verification System but
urges Congress to provide for a <ransition period ~o permit agencies Zo effectively
implement acquisitio~ policies and procedures.
Sec.tiens 207 .~nd 304 p~rpzrc to require approval of the Committees pr±or to £x~sutive
Branch action. Since these provisio~~s J~ould confra~ict the Supreme Court’s rulin:] in iNS
v. Chadha, they should be d~nged to require only notification.
Page 59
EXECUTIVE OFFICE OF THE PRESIDENT

OFFICE OF MANAGEMENT AND BUDGE"[
WASHINGTON, D.C. 20503
July 17, 2007

(House)
STATEMENT OF ADMINISTRATION POLICY
H.R. 3043 -I}e0artments of l~abo r~ Health and Hmatan Servic_e,s,. and Edueation~ and
Rela{ed_A~encies Approl}riations Act. 200,8
(.Sponsor: Obey (D), Wisconsin)
The Administration strongly opposes H.R. 3043 because, in combination with the other
FY 2008 appropriations bills, it includes 0a~ irresponsible and excessive level of spending and
includes other obj¢ctiotuable provisions.
The President has proposed a responsible plan for a balanced budget by 2012 through spending
restraint and without raising taxes. To achieve this important goal, the Administration supports a
responsible discretionag, spending total of not more than $933 billion in FY 2008, which is a
$60 billion increase over the FY 2007 enacted level. The Democratic Budget Resolution and
suhsequent spending al!ooations adopted by the House Appropriations Committee exceed the
President’s discretionar3’ spending topline by $22 billion, causing a 9 percent increase in FY
2008 discretionary spending and a 10 percent increase in the deficit if the entire amouut were
expended in FY 2008. In addition, the Admilfistration opposes the House Appropriations
Committee’s plan to shin $3.5 billion from the Defense appropriations bi[l to non-defense
spending, which is inconsistent with the Democrats" Budget Resolution and risks diminishing
America’s war fighting eapaeit2,.’. Finally, this bill circumvents spending [imits by increasirtg
advance appropriations by $2 billion., which would bring the total discretionm7 spending
increase to $24 billion above the President’s Budget.
H.R. 3043 exceeds the President:s request for programs fimded in this bill by nearly $11 billion,
part of the $22 billion increase above the Presidenl’s request for FY 2008 appropriations. The
President’s request for programs in this bill sets forth a fiscally responsible path thai provides
increases for the nation’s highest priorities while reducing funds for low priority or non-
performing programs. The President’s Budget proposed gross savings of $3. l billion for the
Department of Education, $1.2 billion for the Department of Labor, and $2.3 billion for the
Department ofltealth and Human Services, so that resources could be redirected to more
important needs. The Administration has asked that Congress demonstrate a path to live within
the President’s topline and cover the excess spending in this bill through reductions elsewhere,
while ensuring the Department of Defense has the resources necessary to accomplish its mission,
Because Cpogress has failed to demonstrate such a path, if .H....R. 3043 were presented to the
Presi..dent, he would veto the bill.
In addition, the Adminisl~ation would strongly oppose any amendment that would substantially
change Federal policies and law on abortion and use taxpayer dollars tbr the destruction of
human life, If the final bill presented to the President were to contain such a provision, lh_.e
President would veto the bill.
Page 60
The President has called on Congress to reform the earmarking process that has ted to wasteful
and unnecessary spending. Specifically, he called on Congress to provide greater tTansparency
and full disclosure of earmarks, to put them in the language of the b~l| itself, and to cut the e0st
and number by at Ieast half, ]?he Administration opposes any efforts to shield earmarks from
public scrutiny and urges Congress to bring lull transparency to the earmarking process and to
cut the cost and number of earmarks by at [east half,
The Administration would like to take this opporttmity to share additional views regarding tl~e
Committee’s version of the bill.
While the Administration is pleased that the bill supports increased investmenls for several of the
President’s education priorities, it is disappointed lhat the Committee largely fails to adopt the
program terminations and spending reductions proposed in the President’s Budget and exceeds
the Budget’s request for the Department of Education by $6.! billion or 11 percent. In
particular, the Pre.~idertt’s Budget proposed ta terminate funding tbr 43 Department of Education
programs that are duplicative, narrowly focused, or unable to demonstrate effectiveness,
including Even Start, Safe and Drug-Free Schools State Grants, and Educational Technology
State Grants. The Budget then redirects savings from these te~rainations and other spending
reductions to provide significant in,reuses for priori ,ty education programs that have a record of
success or hold significant promise for improving student achievement and increasing
accountability. The Adminislrafion urges the House to adopt the terminations and reductions
proposed in the Budget in order to restrain spending and redirect funding to hi~h-priori~’
education initiatives.
Reading First. The Administration strongly opposes the $629 million reduction in the Reading
First program, While the Admifiistration recognizes the significant issues outlined in several
Inspector General reports, the Department has addressed these problems and implemented al! the
IG’s recommendations. Moreover, as a result of Readlng First, reading proficiency, on measure
of reading fluency in 26 States with a few years of data, has increase4 tbr third graders hy 15
percent and for economically disadvantaged first graders by 28 percent. Outstanding results
such as these, particularly among at-risk students, call for sustaining investments in this effective
program.
American Competfi’ivene~s Initiative (ACI). The Administration appreciates the Committee’s

support for the Advanced Placement program as part oftttis i~itiative. However, the bill does
not provide funding for the Math Now programs to help school districts implement research-
based instructional practices to prepare at-risk students for more rigorous math courses in middle
.school, high school, and beyond. The House is also urged to provide $25 million requested for
the Adjunct Teacher Corps, to encourage professionals to bring their needed expertise to the
Nation’s middle and high schools by becoming ~djunct teachers in math and science.
Title 1- Education.for the Disadvantaged. The $1 .I billion increase requested in the Budget t’or
Title I Grants is sufficient to continue and enhance No Child Left Behind (-NCLB) reforms and,
together with the adoption of the Administration’s NCLB reauthorization proposals, would help
improve achievement at the high school level,
Page 61
School Improvement Grants. The Administration supports the bill’s funding of School
Improvement Grants at the requested level.
¯ Striving Readers. The Administration is disappointed that the bill provides $68 milIion less than
requested for Striving Readers, Secondary school students who read below grade level are at
risk of dropping out of school and perk’arming poorly in all subject areas. This program helps
address this core issue by supporting research-based reading interventions.
Teacher Incentive Fund The Admini.stration commends the bill’s support for the Teacher
Incentive Fund but seeks the $199 million requested.
National Security Languag~ Initiative OVSLI). The Administration appreciates the bill’s support
for NSLI but seeks the Budget’s entire request for all the education elements of this initiative in
order to significantly increase the number of U.S. students learning foreign languages critical for
the Nation’s security and global competitiveness. Such funding can be achieved, in part, by
limiting funding f.~r the Title VI International Education program to no more than the amount
requested by the Administration.
Promise and Opportuni~" Scholarships. The Administration is extremely disappointed that the
bill fails to support these crucial new initiatives to offer much needed educational alternatives to
low-income students in persistently low-performing schools and to provide competitive grants to
help communities expand education options for low-income families.
PeR Grant.~. The Administration supports increasing Poll Grants to help the neediest
postsecondary students meet the rising costs o£higher education. The Budget proposed using
mandatory savings from making the student loan programs more efficient to increase the Pal!
Grant maximum award to $5,400 over five years. The House is urged to adopt this apl~roach,
which provides needed increases for Pell Grants in a cost-neutral manner while restraining
growl:h in discretionary spending.
tnstituteJbr Educ¢~tion Sciences (IES). The Administration seeks the $25 million requested for a
vo luntary student-level data system pilot, which would help increase transparency about
institutional outcomes and costs to help parents and policy makers make better decisions while
preserving student privacy. The House is also urged to fund the Budget request for Research,
Development and Dissemination. Since IES was created, il has Iransformed the quality and vigor
of education research within the Department and created demand for scientifically based
evidence of effectiveness 1o address the Nation’s most pressing education needs.
Program Administr¢ttio~z The Administration is disappointed lbat the House bill cuts the
Department of Education’s Program Administration by $25 million compared to 2007 and $38
million below the President’s Budget. This reduction would likely require the Deparlment to
initiate extensive unpaid furloughs of staffacross the agency, disrupting program operations and
preventing the timely award of over $40 billion in formula and discretionary grants.
Page 62
Department of H. ealth and Human Services
The Administration commends the Committee’s support for tile tkird installment of the
President’s $7.1 billion Pandemic Influenza plan, Access to Recovery Program, Abstinence
Education grant~, the Strategic National Stockpile, and Drug Courts. However, the Budget
proposed to eliminate or reduce funding for a nttmber of HHS activities that have not been
proven to be effective, have already achieved their intended purpose, or are duplicative of other
activities, such as Health Professions Iraining grants and the Preventive Health Block Grant. The
Administration utrges the House to adopt these ~’eforms, in order to be a better steward of the
taxpayers’ dollars.
Bioterrorism. The Administration objects to the $135 million increase shared between the State
and Local Public Health Preparedness and Hospital Bioterrorism Preparedness glTmt programs at
the Centers for Disease Control and Prevention, and the Office of the Assistant Secretary for
Preparedness and Response. These increaser wil! divert re~ources from more effective and
necessary activities to prepare the Nation to respond to a bioten’orism attack, such as the
advanced development activities thai are critical to accelerate the procurement of biodefense
medical countermeasures. The Administration strongly objects to the $50 million reduction in
advanced development funding for the Office of the Assistant Secretary for Preparednes~ and
Response. This p~pozed reduction would prevent the development of essential medical
countermeasures ~:alled for in the Pandemic and All-Hazards Preparedness Act, which authorizes
up to $! billion to be spent on advanced development.
Office of the Natienal Coord#~atorfor HIT (ONC). The Rouse is urged to ful!], lhnd the request
~n order to capitalize on the progress and momentum needed to achieve the President’s goal of
most Americans having electronic health records by 2014.
Medicare Contracting ReJbrm. The Administration is concerned that the bill does not provide
$90 million in critical funding for the second cycle of Medicare Contracting .Reform. HHS’s
estimates indicate that delay will result in lost savings of approximately $300 million and
increase future administrative costs by roughly $50-100 million.
Health Care Fraud Abuae and Contro.l Acco~mt. The Admini~ration supports the bill’s funding
for enhanced program inlegrity eftbrts to curtail waste, fraud, and abuse in Medicare and
Medicaid and believes that the $183 million requested in the 2008 President’s Budget and
included in the House Subcommittee bill is sufficient to protect beneficiaries and the Federal
Government from waste, fraud, and abuse.
Adolescent Health. The Committee has not i~cluded any funding for the Adolescent Health
Promotion initiative, which would enable thousands of schools to take advantage of HHS’~
scienee-ba~ed resources to e~t~tb[ish a culture ofwe!lness that begins to halt the epidemic of
childhood obese’, reaching more than three million young people and their families.
Domestic HIE/AIDS lnidath’e, Tf~e Administration appreciates the Committee’s support of this
important initiative but requests [hll funding. "[’his funding supports increased xesting of
individuals at high-risk of infection and thus will improve early diagnosis, enabling individuals
to alter their behavior to prevenl the spread of new infections.
Page 63
State Health Access Granls. The Administration objects to the provision o~f" $75 million for a
new and unnecessary" State health grant program. The President’s Budget more effectively
expands access to health insurance through Affordable Choi~es, a standard deduction for health
insurance, and reauthorization of the State Children’s Health Insurance Program.
Substance Abuse and Mental Health Services Administration. The House is strongly encouraged
to include language proposed in the Budget that would substantially improve ac~ountabiliB, and
results through the incomplete National Outcome Measures data.
Commissioned Corps, The Administration appreciates the Committee’s support for the
Commissioned Corps transformation to better respond to public health emergencies. However,
full funding would enable ~he Co~s to adequately address the recommendations in The Federal
Response to Hurrican~ Katrina: Lessous Learned report.
Flu Vaccine. The Administration strongly opposes any restriction on the use of funds under
section 317 and the Vaccines for Children program to deliver flu vaccine to children under three
years of age if it contains thimerosol, The provision could result in children not receiving any
flu vaceirte.
Social Se~’gces Block Grant (SSBG) and Comrm~nity Seth,ices Block Grant (CSBG). SSBG and
CSBG duplicate other Federal social service programs that are better able to demonstrate results.
The Administration urges the House to reduce these programs.
Compassion Capital Fund. The House is urged to provide the funding to support 27 additional
grants to faith-based and comrnunity organizations,
Low-Income Home Energy Assistance Program (LIHEAP), The Administration opposes the
excessive increase above ~he President’s request for LtHEAP. The bill provides $880 million
above the request ~md exceeds the FY 2007 enacted level by over $500 million. The
contingency fund level of $682 million is also well above historic levels for discretionary
appropriations.
Department o(Labor
The Administration is disappointed that the Committee blocks many of the Administration’s
efforts to reform and better manage the Department’s programs by rejeoting proposed reductions
in narrow-purpose, duplicative: and ineffective programs and preventirtg the use of competitive
sourcing as a tool to improve program management and save taxpayer resources. The bill
exceeds the request by more than $900 million, yet underfunds critical management needs like
the Information Technology crosscut and core accounting systems.
Community-Based Job 7’~aini~g G~’ants. The bill provides $25 million less tha~ the $150 million
requested for CommuniW Based Job Training Grants and funds this program within the
Disloc.ated Worker National Reserve. This would severely limit the Department’s ability to help
workers in the wake of unanticipated events like natural disasters and mass tayolfs.
Job Traimng. The bill misses an oppommity to improve the cost-effectiveness of Workforcc
Investment Act programs and includes mere than $20 million in narrow-purpose earmarks. The
Page 64
Administration also opposes the prevention of regulations to improve the Workforce Investment
Act and Trade Adjustment Assistance (TAA) programs, which would reduce bureaucracy, give
workers more flexible training options, and better integrate the TAA program with the One-Stop
Career Center ne~vork.
Union Financia! lntegri~.. The Administration opposes file 20-percent reduction for the Office
of Labor-Management Standmds, which would seriously weaken the agency’s ability to improve
union transparency and strengthen financial integri~.
Job Corps. The .administration is disappointed that the bill rejects the. Budget’s proposal to
return the Job Corps program to the Emplo3nnent and Training Administration -- a shift that
would ensure the program’s coordination with the Federal workforce investment system and
improve administratNe efficiency. The Administratiort is also concerrted about the bill’s slot
mandate, which would hamstring management of the program.
Other Initiatives. The Administration appreciates abe support of its proposed consolidadorl of
the Prisoner Re-entry Initiative and Responsible R~integration of Ex-offenders program. The
Administration is also pleased that the bi!l includes the proposed funding for reemployment and
eligibility assessments to reduce Unemployment Insurance improper payments, which wilt result
in annual savings of~s much as $205 million.
Social Secu~inistr.ation (S S.A)
Limitation on Administrative Expem’es. The Administration appreciates the full funding of

program integriD’ activities, which will allow SSA to process more continuing disability reviews
and redeterminations of SS/eligibility, saving an estimated $3.6 billion over I0 years.
Total~zation Agreements (TAs). The Adminis~ation opposes the provision that would prohibit
SSA from using administlative funds to develop TAs with other countries that would he
inconsistent with currem law. SSA would not undertake any such effort if it was inconsistent
with current law. Furthem~ore, there is an established congressional review process for TAs.
Corporation for PubIic Broadc~stlng
Digital transition and radio interconnection system initiatives can be accommodated from within
CPB’s already-enacted FY 2008 appropriation, rather than by providing additional funds for
those purposes. In addition, CPB should be funded like other programs that receive Federal
assistance, rather than through advance appropriations.
Co _repetitive ,,,Sourcing
The Administration strongly opposes section I 1 !, which would impose ¯ moratorium on public-
private competition at the Deparm~ent of Labor while the Government Accountability Office
conducts a review with an unspecified deadline. The Department ha~ conducted competitions in
a fair and reasoned manner to improve the efficiency of its programs. On a Government-wide
basis, competitions conducted over the last four years are expected to produce nearly $7 billion
in savings, primarily in the next five to seven years.
Page 65
Emolo’~ment Eli~ibiti .ty Verification System
The Administratiol~ supports the use of the Employment Eligibility Verification System but
urges Congress to provide for a transition period to permit agencies to effectixrely implement
acquisition policies and procedures.
Constitutional Concerns
Sections 207 and 304 purport to require approval of the Committees prior to Executive Branch
action. Since these provisions would contradict the Supreme Court’s ruling in 1~’~’S ~,. Chadha,
they should be ch~anged to require only notification.
Page 66
Dun,n,.David,
From: Dempsey, Donald A. [Donald_A._Dempsey@urnb.eop, gov}
Sent; Wednesday, January 30, 2008 9:54 AM
To: Dunn, David
Bailev, John P.; Kevelighan, Sean M.; Baker, Christin T.
Subject: RE: Hey Den
Don
From: Ounn, David [mailto:David,Ounn@ed.gov~

Sent: Wednesday, January 30, 2008 9:48
To: Dempsey, Donald A,
Cc: Bailey, John P,
Subject: Hey Don
Page 67
Dunn, David
Halaska, Terrell
Sent: Fdday, March 02, 2007 3:24 PM
To: Privat~ - Spellings, Margaret; Dunn, David; Barrett Karr (E-mail); ’dboyer@who.eop.gov’;
Munitt, Townsend L; Williams, Cynthia; McLane, Ka[herine; I~addo×, Laur~n; Deb Fiddelke
(E-mail); Talber~, Kent; Tucker, Sara (Restriuted)
Quarles, Karen; Bannerman, Kristin; Henry, Tina-Maria
Subject: Hearings we knew about
Attachments Depa[tment of Ed Hearings.rico
Department of Ed
Hearinojs, doc ...
to date on and of our topics. Hot all of them have Ed witnesses
Department of Ed Hearings
March
3/6 Senate HELP roundt~ble on teacher issues
3/7 Senate HELP Co~~petitiveness hearing --Bill Gates test±lying
3/8 House Higher Education Subcommittee on "The State of Higher Education: How Students
Access and Financs a COllege Ed~lcahion"
3/12 House Approps (SMS)
3/!3 House Approps (Ray)
3/13 Bicameral hearing
3/13 House Science on Competitiveness; Norm Augusti~:e and Craig Barrett Testifying
3/14 Senate Approps (SHE}
3114 Housm Approps (SMT)
3116 Senate HELP Accountability
3/21 House Education and Lsbor on NCLB, AYP
3/23 House Education and Labor on NCLB, Special Education
3/29 House Education 5nd Labor on NCLB, English Language Learners

Reading First healing
Apri!
House Ed and Labo~ - SMS NCLB wrap up testimony Senate HELP - April tentatively the
following subjects related to NCLB: high schools, paren5/communlty development and
"if~terventions", sbDplement.al services Senate HELP - SMS wrap up NCLB Apri! 26th or 24th
Page 68
From: Halaska, Terrelt

Sent: Monday, April 16, 2007 1:37 PM
To: Dunn, David; Maddox, Lauren; McLane, Katherine; Mesecar, Doug; Briggs, Kerri; Simon, Ray;
¯ Tucker, Sara (Restricted); Otdham, Cheryl; Scott Walter (E-mail); Kelly Scott (E-mail); Barrett
Karr (E-mail); ’dboyer@who.eop.gov’; Kuzmich, Holly; Mcnitt, Townsend L.; Private-
,Spellings, Margaret
Queries, Karen; Bannerman, Kristin; Watkins, Tiffany; Sampson, Vincent
Subject: FW: Hearings list
Here are al! the hearin,~s - both hiqher ed and NCLB that we know about over the next_
ieveral ~eeks. {b)(5)

..... Original Hessage
From; Quarles, ~aren
Sent: Monday, April 16, 2907 12:11
To: Haiaska, Terrell; Bannerman, Kristin
Co: Seeder, Emily
.Subject: RE: Hearings list
Thursday, April 12th -House K-12 Subcommittee Field Hearing in Hi

Tuesday, April 17th - Senate HELP Co~mi%tee Co~fee on Special Education (Kerri Briggs will
participating)
Wednesday, April i@th - House K-12 Subcommittee on SES
Thursday, April 19th - House Veterans Affairs Econo[~i¢ Benefits Subcoxm~ittee hearing on
accreditation (Carol Grif[iths Testifying)
Friday, April 2tth - ~ouse Education and Labor hearing on Reading First
Monday, April 23rd - House Full Education and Labor hearing on Drop Outs and Student
Engagement
Tuesday, April 24 -Senate HEL~ h~azing on High Schools
Wednesday~ April 25 - House Education and Labor [[earing with AG Cuom~ on student lending
practices
Thursday, April 26 - Senate HELV Coffee on Assessments
Fridayr April 27 - House ~-12 Subcom~.i:~ee Field Hearing (San Rafa~l, CA-Hop. Woolsey’s
district) on NCLB and improvi;~g the Accountability System
Satuxday, April 28 - House K-12 Subco~[~ittee Field Hearing (Phoenix, AZ) on ~CLH and
Indian Education
Tuesday, May ! - Senate HELP Hearing wi:h the Secretary
Tuesday, May 8th - House Ed~lcaticn and Labor Hearing on teacher quality
Thursday, May 17nh (Ten<anive) - House Lduca~ien and L~bor Hearing with the S~cretary
Page 69 Page l of 2
/Nonresponsi 1
From: Blank, Gary D. [Gary_D._Blank@cea.eop.gov]
8enl: Thursday, ’February 23, 2006 7:48 PM
To: Dunn, David
Co: Hall, Keith; Blank, Gary D.
Eiul~ject: RE: Your request
Atta~;hments: Jodey Arrington
David,
(b)(5)
3. The President’s proposal for a GO Zottc allocated ~he tax relicS’and small business loa~as to counties that
FEMA designated with both "Individual and Public Assistance" disaster declarations. Here’s a map with the
designations for Katrina (I don’t have one for Rita):
l(b) (5)
http. ://vo,vw,gis,~aps.fema_ gog/20__0~gra pI~ic s/storm,dKat ri na~’Comb ined dec,pat:
Thanks,
Gary
I=rem; Dunn, David [mailto:David.Dann@ed.gov]

Sent: Thursday1 February 23, 2006 12:44 PN
To." Blank, Gary D.
Subject: FW: Your request
Hey Gary, sorry for the delay. Here is the info. Believe it was in the DQD approps bill. Thanks again for all of your help.
dd
From: Doherty, Chris

Sent: Thursday, February 23, 2006 12:23 PN
To: Dunn, David; La Force, Hudson
Subject: RE: Your request
David, here’s some of the most relevant language
511/2008
Page 70 Fage 2 of 2
Hope this is responsive to the CEA incoming.
Title IV Hurricane Education Recovery Act (December 18, 2005 Congressional Record, Vol. 15! No. 164)
Section. 102 Immediate Aid to Restart School Operations

(b) Payment~ Authorized - From amounts appropriated to carry out this subtitle, the Secr~.tary of Education is authorized
to make payments, on such basis as the Secretary determines appropriate, taking into consideration the number of
students who were enrolled, during the 2004-2005 school year, in elementary schools and secondary schools that were
closed on September 12, 2005, as a result of Hurricane Katdna or on October 7, 2005, as a resul| of Hurricane Rite, to
State educational agencies in Louisiana, Mississippi, Alabama, and Texas to enable such agencies to provide services or
assistance to local educational agencies or non-public schools serving an area in which a major disaster has been
declared in accordance with seclion 401 of the Robert T. Stafford Disaster Relief, and Emergency Assistance Act (42
U.S.C. 5170), related to Hurricane Katrina or Hurricane Rite.
Section. 102 (c}

Eligibility and Consideration - From 1he payment provided by lhe Secretary of Educalion under subsectior~ (b), the State
educational agency shall provide services and assistance to local educational agencies and non-public schools,
consistent with the provisions of this seclion. In determining the amount 1o be provided for services or assistance under
this section, the State educational agen~ shall consider (he following:
(A) The number of school-aged children served by the local educational agency or non-public school in the academic year
preceding the academic year for v~hich the services or assistance are provided.
(B) The severity of the impact of the Hurricane Katrina or Hurricane Rite, on the local educational agency or non-public
school and the extent of the needs of each local educational agency or non-public school in Louisiana, Mississippi,
Alabama, and Texas that is in an area in which a major disaster has been declared .....
From: Dunn, David

~ent: Thursday, February 23, 2006 11:37 AN
To: La Force, Hudson; Doherty, Chris
Subject: FW: Your request
Do one of you have the language we can send CEA? Thanks.
From: Blank, Gary D. [mailto:Gary_D._t3tank@cea.eop.gov]

Sent; Thursday, February 23, 2006 11:23 AM
To-’ Dunn, David
Subject: Your request
We’re working on your requesl for information about the lax base impacts of Katrina and Rita. Can you send
me the legislative language you’re working with or refer me to the public law number?
Gary D. Blank
Chief of Staff
Council.of Econoraic Ad.visers
The White House
(202) 395-5084
511/2008
Page 71
lN.onrespon
From: Maddox, Lauren
’Sullivan, Kevin F.’; ’Walter, Scott B.’; ’Perino, Dana M.’
C~: Tucker, Sara Martinez; Dunn, David
Subject; UPDATED STATEMENT...
Note: the following statement was just released from the Dept. Let me know if you have
any q~/estions..othx
The Department has placed MatLeo Fontana, a career employee at Federal Student Aid since
November 2002, on ad~~inistrative leave.
As previously noted, this matter has been referred to the Department’s Office of Inspector
General.
Additionally, Secretary of 8ducation Margaret Spellings has asked for the resignation of
5awrence Burr from the Advisory Comlni~tee on Student Financia! Assistance. Burr,
associate vice president and director of student financial a±d at the University of Texas
(UT) at Austin, is under a comprehensive review by the UT System Office of General Counsel
regarding allegations of impropriety.
Re: WP and NYT on studertt lenders, NSLDS Page 72 Page [ of 9
From: Shaw, Terd

To: Halaska, Terrell; Maddox, Lauren; unn, David;
’scott m. stanzel@who.eop.gov’; ’tracy_d._young@who.eop.gov’; Tucker, Sara Martinez
Cc: Yudof, Samara; Conklin, Kdstln; Oldham, Cheryl; Manning, James; O’Brien, Marianna
Subject: RE: WP and NYT on student lenders, NSLDS

Frol]a: Halaska: Terrell
Sent: Sun 4115./2007 l:34- PM
T’mShaw;-Terri;-Maddon;L-~t~ ...................... ]Dram, David; ’scott m, stanzel@who.eop.gov’;
(b)(6) ’tracy_d._young@who.eop.gov’; Tucker, Sara Martinez
Ce: Yudof, Samara; Cot&lin, Kristin; Oldhan~. Cheryl; Manning, Jzmes; O’Bti.en, Mmiamm
Subject: Re: WP azd NYT on student lenders..NSLDS
(b)(5)
Sent using Black.13erO,
.....OrigirtaI Message .....

From: Shaw, Terri
(b)(6) Trz M~ddu×;-Lauten;-t ............................................. I Dram. David;
~cott tn. smnzcl@~l~o.eop.gov---scott m. staz~zel@who.eop.gov>; ’tracy_d. young@who.eop,gov’
<tracy_d._young@who.eop.gov>; Ha|zska, Terrell; Tucker, Sara Martine~
CC: Yudof, Samara; Conktiu, Kdsti~; Oldhara, Cheryl; Mann/ago .fames; O~rien, Marianna
Sent: Sun Apt 15 13:13:1 ! 2007
Subject: RE: WP and N’YT on student leaders, NSLDS
(b)(5)
..... Origina! Message---

From: Maddox, Laurcn
Sent: Sun 4/15/2C’07 12:59 PM
To: Shaw, Terri; ’katherine_mclane@yahoo.com’; Dunn, David; ’sco~_m.._stanz, eI@who.cop.gov’;
’lracy_d._young@who.eop.gov’; Halaska, TerreU; Tucker, Sara. Marfinez
Cc.: Yudof, Samara; Colakli~ Ka-Jstin; Oldham, Cheryl; Marmi~g, James; O’Btien, Macianna
Subject: Re: W£ and NYT on studettt lenders, NSLDS
Senl from my Black.Berry Wireless Device

From: Shaw, Te~ti
sco~ m.__sta~el@who.cop.gov <sco~...m....sla~el@who.e~.gov>; ~acy_d._young@who.eop.gov

5/1/2008
CC: Yudof, Samara; Conklin, Kristin; Oldhan~ Cheryl; Manning, James; O’Brien, Marianna
Sent: Sm~ A.pr I5 11:42:58 2007
Subject:. RE: WP and NYT on student lenders, NSLDS

From: Shaw, Tcrri
Sent: Sun 4/15/2007 11:23 AM
To: katheri~te mclar~e; Dumt, David; Maddux; Lauren; scott m. stanzel@who.eop.gov; tracy_d._young@who.eop.gov;
Halaska, ~etrell; Tuc[:cr, Sara Marlincz
Co: Yudot] Samara; Conklin, K.tistha; Oldham, Cheryl

Subject: RE: WP and I~’T on studer~t lenders, NSI,DS

..... Frortr katherine
(b)(6) Sent: ~m~ 4/~5&007 t0:56 AM
To: Duma, David; Maddox, Lauren; scott in. starmel@who.eop.gov; tracy_d._yomtg@wlao.eop.gov; Halaska, Terrell;
Shaw, Tern; Tucker, Sara Martinet.
Cc: Yudof, Saanara; Conklin, Kristin; Oldham, Chc~’l

Subject: WP and NYT on ~tuden~ lenders, NSLDS
Two stories toda
Sunday, Apfil15,2007
Lendc~ Sought Edge Agains~U.S. in Smdentl,oans

(NY"r) Page 74
Lenders Misusing Student Database (WP)
Tile New York Times, April ! 5, 2007
Lenders Sought Edge Against U.S. in Stttder~t Learns

By JONATHAN D. GLATER and KAREN W. ARENSON
Ia a fierce contest to control the student loan
market, the nation’s banks and lenders have tbr yea~s
waged a successfid campaign to limit a federal program
that wa.~ intended to Tnake borrowing less cosily by
having the government provide loans directly to
students.
The companies Mve offered money to universities to
pull oul ~f~he federal direct loan program, which was
championed by the Clinton administration. They wens
court to keep the direct program fl’om becoming mor~
compelitive. And they benefited from over~ight so lax
that the Educatio~t Department’s assistant inspector
general in 2003 called for tightetted regulatiort of
lender dealings with urfiversities.
A1 lndiana UniversiW in 2004, for ex,~mple, SMlie
Mac. the nation’s large~ student lettder, offered. $3
million that the univer.~ity could use for "opportunity
loans" |o some students Kit left the direct loan
program. Indiana left the direct loan pxogram but said
the .$3 million was not the reason; Sallie Mac
cur~ently administers their loan program.
B~nk of America, M~ich won the University of
Virginia’s student loan business, said in its 2002
proposal that certain possible incentives had
potential to violate" federal law. The bank, which
said such a discu.~sion was henna[ m flxe bidding
process, suggested tha~ it discuss the ~ssues
university officials "dufiug the oral presentation
phase of the process."
All of this has helped give private leaders clear
dominance of the $69 billion federal studem loan
industt3,. The lenders, who defend these practices, say
they are Witmi~g business primarily because they offer
lower interest rates than ~I~e government and often
lower fc~.
Advocates of the direct Ioan program say that it has
been held back from offering more competitive rates
and benefit.s, and that a very small percentage of
students can take advanlage of the private rivals’
advertised rates .~d incentives. They argue that
private lenders cost the goveramem vast amounts of
money because they are subsidized and guaranteed
against det~auh.
President Btts~.:s budgel reports that in 2006 for every
S 100 lent by private leaders, the cost ~o the
govermrtent of subsidies, defaults a~d other items was
$13.81, white ~he same anaount lent through the direct
loan program cosl the government $3.85. The battle for
dominance in the loan market has escalated as milions
have soared and .~mdents have borrowed more. This
the context for malay offthe payments to universities
and financial aid Officials that have come to light as
a result af rcceut investigations into student loan
practices.
"What has happened is unbridled competition meets lack
of oversight," said Terry W. Hartle, senior vice
president at ~he American Uouncil on Educatio~.
5f!/2008
Part of what is gene~a|ing th~ competition is tlta~Ot~i~.~
govermnent mm~ two loan pr%¢ams ~ ~d ~versifies
usualty choo~ to pmficipa~ M one ~r lhe other.
Until the 1990s, 1he prOD’ progr~t wm fl~c Federal
guaranteed loan program under wNclt Nivate lenders
l~c Citiba~, Sallie Mac or Ba~ of America made
loans to students. ~ey were given a helping hand ~om
the gove~em, wNch paid subsidies to ~e lenders
and gua~nteed them agaMst det~ult.
Bill Cleon co.nighed for president on the no,on of
expandhxg ~e federat government’s role as s~dcnt
lo~n guarantor Mto a more cen~al position as the
direct lender. The idea was ~at ~ would prove
cheaper and simpler for students and be tess cos~ty
for taxpayers because bo~owe~ would pay interest to
the ~edenI gover~ettl Mstead of to rite lenders.
~e proem went into effect hx 1994. ~e Democrats
expected it to become &)mJnant. Bul tmwilling to be
muscled ~ide, p,dvate leaders bcg~n offer~g schools
and students a vafie~, of benefiB l~e schol~sNp
money ~d lower interest ~tes and fees,
Tom Joyce, a spokesmm for Sallie Mac, said, "~e
priva~ sector program has be~er prices, better
produc~ selectkm, betler sen, ice and beret
tec~ology."
For a few years after d~ect lend~ weal ~to effect,
it grew quickly. But as student loan vol~e ~s risen,
ct~b~g above $85 bitlion in 2005-6 from just over
$30 billion 10 years earlier, ~e gove~em’s shoe
~ a d~ect lender has d~l~ed, and now amounts to
less ~aaa qumer of the total.
"When dkect len~g ~s crated, ~e ~itial
assumption was lhat ~e bad-based program woNd be
qu[cNy ove~he~med b~" the govemmenl pro~,"
Haste said. No one co.ted on ~e s~eng~t of ~e
reaction from the lending indus., he and o~ers
said,
The Educa~oa Deponent fought back. ~cMrd W.
Riley, then ~e secreta~ of education, Ned to make
~he dkect lendhtg program more competitive in 1999
and 2000 by reducNg origination ge~ m~d ~terest
rates. ~e private lemle~ sued, saying Mr. ~ley had
no aul~o~ to do ~is because ~ese ra~s were set
by Co~gess under ~e loan legislation. (Last ye~,
lawyers set lhe inter~t rote on new Slafford loans,
one of the most popul~ federally guaranteed loans, at
6.8 percent; many p~vale leaders offer to reduce
rate for bo~owe~ who make pa~ents ou ~e or meet
o~er goals.)
In respo~e to ~e lawsuig fl~e Education Depam~t
argued that the public ~td private lo~ pragr~ had
the power to offer the s~e te~ and coa~aom, and
added ~at beret loan te~s would make loam more
aftbrdabte and thus ted~e defaults, benefiting
~xpayets.
WiN the Bush administration more s~pa~hetic to
private market, tire lenders wiN~ew the lawsuit last
year, and the direct loan program ha~ offered some
fl~e ~cenfives used hy its pfivale rivals,
Kathet~e McLmte, a spokeswoman for Education
Secreta~ Margaret Spell~gs, said bofl~ festal loan
proems were "a vital source of f~ds for smde~tt
aid." Ms. McL~e said ~at "~ough ~ese ~’o programs
wc lmve improved students’ and fa~ties’ choices by
mcreasb~g competition, upgrading customer se~ice and
5/I/2008
lov,,eti~s ~osts." Page 76
l~he Bush adrrfinistration took vh’tuaJly no action as
lenders offered special pools of money if uni’~ ersities
would leave the dkeet loan program. Lenders, by law,
are barred from oftbring induccmems to gain loan
applications. But what is art ittducement is not
entirely clear.
A review by the Education Department’s office of the
inspector general in 2003 -- prompted by an accusation
that Sallie Mac was offering illegal inducements --
found that the department had brought only one public
action, a case involving Satlie Mae and a college of
podiatric medicine in 1995, which an administrative
law j,adge later strack;dov,m.
The sssistaat h~pector general, Cathy H. Lewis, who
conducted the examination, also noted tl~t the
Education Departmem ha<i not given any updaled.
opinions about what kind ofinducemeztts were barred
since 1995, evert tltough .the competition for loan
business had escalated sharply since then. Ms. Lewis
expressed concern about "bargainiitg practices between
schools and lenders.’" She referred to both the
guaranteed loan prograan and private loans, which like
any consumer loan tack govennnent backing. Stude~
increasingly rely on private loa~s because or-limits
on borrowing through the fedec,~t progr,’tm.
She wrote that the practices "should be addressed
through statutory ~d regulatory changes ot further
department guidance."
Ms. McLaaae sa~.d in art e-mail message that the
depaarner~t had offered no guidance to len6ers because
it believed it had ’~no authority over the private loan
instannents and market and therefore no guidance could
be provided."
She said ~e d.el:,arlment had begun examining whetker
tke~e ~b.ould be new regu[afionz in December.
Republicans in Congress have issued a continuing
s treats of crificisn~s about the direct lending ptogram
and tried to restrict it in a variety of ways.
Just last year, they voted to give la~anakera the power
to cut the budge~ ol" the Education Depamnent office
that oversees the student loan program ~ a looming if
indirect threat to direct lending. ]."hey also made it
more difficult for ninny borrowers with multiple toar~
to combine them into a single, larger direct loan,
effectively making it harder for students to ref’mance
their debts.
"The federal goven~ment should be in the business of
student loans as the leader of last resort when
private lenders can’toffer competitive
opportunities," said Selmtor Michael B. Ermi, a
Wyoming Republican who is the former chairman of the
Education Cotmnittee.
Ill the absence of any crackdown or~ inducements, books
and oflacr lende~ showered universities with
incentives to leave lhe direct lending program.
Sallie Mac, ~br example, offered Pace Urfiversily in
New York City 5;4 million in loa~s tbr ~tudet~ts who
would not trove otherwise qualified if it left the
direct loan program, the tmiversity said. Pace turned
the ofl~r down, a sp~kesman said. But it did
eventually leave flxe program.
Colleges in the direct lending program were
incr0asiagly concerned about its future in the face of
growing Republican o~osition.
5/1/2008
D~,~77
Yvonne Hubb~d, dh~tor of Stude.n~ Finan~ia~l ~"
at ~e UniversiW of Vkg~a, said that was
factor that pmmp~d the school to Ieave the pmgran~
along wi~ ~ ~elt~r dea~ b~ing offend by th~
private lenders.
’~e universi~ in~ted lender proposals in 2002 ~d
chose Ba~ of America for a five-year te~. It was
thi~ process that the ~ warned ~a~ ~ome cervices
under discussion had "~e potential t0 violate"
regttlations against inducement.
Ms. Hubb~d said she had ao memory uf what thai
language might have refe~ed to, ~nd a Bank of A~i~
spokesman, Joe Miller, said that it was not unusual ~o
use tiffs l~guage M r~ponding to a request to bid
for a co~tracl.
Ba~ nfAmerica is t~ only lender the Univc~iV
Virg~ia recommend. ~e ba~ handles about 95 percent
of the t~derat smdem ~o~ns at the university. Under
the agreement, s~den~ who take out ~absidized loans
t~ough the b~k pay no oti#nation or ~tarantor fees.
Ms. Hubbard said ~at the universi~ ~icd to
cle~ to Families that ~ey were ~ee to borrow from
anyone but that it a!so offered tMs advice: "T~e
te~s we kave negotiated with Ba~ of America mid use
~is as your bas.el~le, and ~ get yo~ vendor to at
least match it, II’s a good deal."
Along wi~ ~c pa~isaa basle over the lendMg
prog~ms has come a fierce arg~lent over thek
relative cos~ to taxpayers. Lenders vehemeady ar~e
that fl~e ~ect loan progr~t h in fact more
expe~ive.
Wi~ Democrats now in con~ol of Congress, Senator
Edward M. Ke~edy, Dem~rat of Massachuset~,
Representative George Miller, Democrat of Califo~a,
wi~ ~ome bipa~isan su~po~ arc pus~ng leg~lation
k~lended to bolster lhe di~cl loan program.
M~ny Republicans ate dcte~ined to defend private
lender~. "I don’t want a few prob/e~ to ~ lhe excuse
~or the Democrats to pu~ the federal gove~ent
charge of all s~dem lending in ~e United
said Representative ~c Keller of Florida, the m~gng
Republican on the higher education su~o~ee.
Lenders Misusing Student Database

Improper Searches Raise Privacy Fears
By Arrdt R, Paley?Washinglon Post Staff Writer?Sunday,
April 15, 2007; A0I
Some lending companies with access to a national

database that contains ¢ontidential information oa
tens of millions of student borrowers have rcpeatedly
seamhed it in ways that violate fedcral rules,
raising aIarms about dam tniniag and abuse of privacy,
government and universi~" officials said.
The improper searching has gro~aa so pervasive that
officials said the Education Departmeut is considering
a temporary shutdown ~f the goverrtraent-run database to
review access policies and tighten security. Some
worry that businesses are trol!ing for marketing data
they can use to bombard students wilh mass mailings or
other solicitations.
Students’ Social Seedily ~tmnbers, e-mail addresses,
phone mtmbers, birth dares and sensitive financial
information such as loan balances are h~ the database,
511./200~
which contains 60 million student records andl’~ye
covcred by federal privacy laws. "We are just ia shock
fltat student darn could be compromised like this,"
said Nancy Hoover, director of financial aid at
Dettisoa University M Ohio.
Edncation Department spokeswoman Katherine McLanc said
the ~tgency has spent more than $650,000 since 2003 to
safeguard the database. The department has blocked
thotts~nds of u.sers thai it deemed unqualified for
access after sectu’ity reviews, McLane said, and it "has
blocked 246 users from axe student loan industry for
inappropriately access~g the data,
In gener~l, the department allows lenders to search
records in the database only if they We a student’s
permission or a fia~xtcial relationship wilh the
s~denc
The departmc~a has been "vigilant in its monitoring
for unauthorized uses" of lhe da~l~ase, McLane snick
Concerns about possible abuses of the database are
emerging as th,-~ strident loan hidustry is under
investigation by congressional Democrats and fine N’ew
York atton~ey general. Critics say the $85
billion-a-year industry has cozied up to govenm~ent
and university ,:ffficia!.~ who aro Jn a position ~o he~p
lenders.
This month, a previously obscure Education Department
official named Matteo Fontana was suspended after the
revelation that he owned more than $100,000 worth of
stock in. a student loan company while he worked in a
unit that helped oversee the industry -- and the
student loan dahabase. The stock holding raised
questiotts about ~ possibte violation of
conflict-.of-interest odes.
Tl~e database, known as the National Student Loan Data
System, was created m 1993 to help determine whether
~tudents are eligible for student aid .qnd tu assist ia
collecthag loan payments. About 29,000 universi .ty
financial aid admhaistrators and 7,500 loan compai~y
employees have access to it.
In a recent meeting with university financial aid
directors, Theresa S. Shaw, chief operating officer of
the department’s Office of Federal Student Aid, which
manage., the dalabase, said lenders h~ve been mhaing it
for student data with increasing frequency, according
to three participators at the meeting. In the
depnxmaent’s hierarchy, Shaw ranks above Fontan~.
"She said ate data mining had gotlen out of control,
and they were trying to ~one it down," s~id Eileen K.
O’Leary, director of student aid alad finance at
StonehilI College bl Massachusett.s, who was at the
Feb. 26 sessk~n. "They’d seen the mining for a few
yeats~ but now they felt it had grown exponentially."
q~e depart~nen~ first star~ed noticing a problem in
mid-2003 when loan c.onso~idation became more popular,
according to an agency official who spoke on condition
of anonymi .ty because of the sensitivity of the matter.
As companies began to aggressively look for low-risk
b~rrowers to target for consolidation plan~, lhey
turned to lhe database fi~r prospective customers, the
official said.
Database users c~m view only one student record at a
time, ~nd d~e &’.partment can monitor each lime they
view an entry. "When we see them go in alld out very
quicldy, that’s when it raises flags" about data
m.hain~, the official sa~d. Such abuse would violate
5/1/2008
dq,~rcment Page 79
Officials grew so concerned that i~ Apri! 2005, the
department seat out ~ letter to ~tabase ttserz warning
that inappropdale use of the system -- h~ other
words, toning for i~formation without attflmrizatiort
-- could cause fl~eir access to be revoked. T~e letter
said the agency was "specifically trouhled" that
~endets were giving unauthorized users - such as
marketing ILrms, collection agettcies and loan
brokerage, fm~xs -- the ability te access the dalabase.
"Itfformation may not be used for any other pttrpnae,
includittg the marketing or’student loans or other
produots," wrc, te For~tana, ~en genera! ~mnager of a
unit in the dep.~rnnent that oversaw the lendi~xg
industry.
In August 200.5, Cathy H. Lewis, the department’s
assistant inspector general, echoed those concerns ~n
a memo to Sh~w that warned of security problems w~th
the database and the lack of regular audit trails on
the system.
Through a ~okes.woman, Shaw decli~md tn coranaent.
F~mtana did nol return telephone calls.
After the warnings, innppropfiate usage of the system
seemed to deciine, according to the department
official who requested anoa~,TOil’y. B~t several months
~go, top managers learned tl~t the practice had
resumed -- "a patlem lhat’s very ~larming," the
o tt~cial said.
Some senior education officials are advocating a
temporary shutdown of access 1o the database matiI
fighter security meastues can be put itt place, the
off~ci~l s~id. MeLanc rout-timed that such
deliberations are taking place.
It is not certain ~hat the lead,s that
inapproprSately used the database used reformation
from it to market directly to students. Cre~t
bureaus, for ins~nce, also hold persona! infot-matioa
on borrowers that can be used to so|icit c~lomers.
But department officials believe lenders are probably
using tim database for markeling, according to three
current and former agency employees who spoke on
condition of znonymhy for fear ofrctr~utiort. Some
universiLy financial aid administrators suspect loan
companies are probably targeting students ia the
database who take out Io~ns directly with the
government, known as direct InanSo
"The database is being misused by the industry to raid
the direct loan port~blio," said Craig Munier,
director or’scholarships and fitmncia[ aid at the
University of Nebrask~ at Li~acoh~, who was at the
meeting with Shaw. "It’s certainly a misuse of the
intended purpose of the in.formation and was certainly
not what we intended ~ the higher education community
when we builff ~e database.
Some financial aid directors say abuse of the database
would explain why some students who have taken out
loans oaty directly with flue government are deluged by
up to a half-dozet~ soli¢itatiorts .~ d~y from private
toan companies.
"Our students are being inundated with rr~rketirtg from
consolidation companies," said O’Leary, of Stortehill
College. "How else are the consolidation compartics
gelling our studer~ts’ irtformatJon?"
Some financial aid adminislrators hope inquiries irtto
the student loan ir~dustry w~ll e~end to the possible
511.12008
Page 9 of 9
abase of the database.
"We are l~opit~g that a full coagress~om! investigalioa
can ~pp~" s~d Hoover, the Dc~soa aid directs,
wh~ also me~ wi~ Shaw. "And ~ybe then we will fred
out w~t’s ~eally happening."
~1o Yuu Yahoo[?

Tired of spare? Yahoo! Mail has the best spare protection around
5/I/2008
Re: WP and NYT on student lenders, NSLDS Page 81 Page 1 of 9
From: Shaw, Terri

Di)fifi;13ggi~l~,l~l~d~16~;lL~i0¢~fi]~~~~’scott m. stanzet@who.eop.gov’;
’]racy D. Young@who.eop.gov’; Halaska, Yerrell; Tucker, Sara Marlinez
Yudof, Samara; Conklin, Kristin; Oldham, Cheryl; Manning, James; O’Brien, Marianna
Sublet;t: RE: WP and NYT on student lenders, NSLDS
.... Origitlal Message---

From: Dunn, David
Sent: Suu 4/15/2007 2:04 PM
To: Shaw, Ten’i; Maddox, Laurea; tl~Ii; __ ~,, scott m. stanzel@who.eop.gov’;
’Tracy. D. Young@who.eop.gov’; l[ataska0 Tenell; Tucker, Sara Marth]ez
Co: Yudof, Samara; Conldin, Kristin; Oldham, Cheryl; Manning, James; O’Brien~ Mariamm
Subject: Re: WP and NYT oa student tenders, NSLDS
Sent from my Blac~erry Wireless H~mdheld

From: Shaw, Terfi
To: Maddox, [.aurc-n;!( h ~1 (a ~} ]Dulm, David;
’scott m. stanzel@who.eop.gov’ <scott m. stanzcl@who.eop,gov>; ’tracy_d._young@who.eop.gov’
<tracy_d._young@who.eop.gov>; Ha]aska, Terre]l; Tucker, Sara Martinez
CC: Yudof, Samara; C.onklin, Y-d’istin; Oldham, ChecyI; Martodng, James; O’Brien, Mariatma
Sent: Sun Apr 15 13:13:11 2007
Subject: RE: WP and NYT on student lenders, NSLDS
.....Original Message ....

From: Maddox, I,auren
Seat: Sun 4/15/2007 12:59 PM
To: Shaw, "t’erfi;i~ .... )unn, David; ’scott m. stanzel@who.eop.gov’;
’tracy_d._young@who.eop~ov’; Ha[a~ka, Terrell; Tucker, Sara Martinez
Cc: Yudof, Samara; Co~fldin, Kristin; Oldham, Cheryl; Manning, James; O’Brien, Mariarata
Subject: Re: WP and NYT on studtmt leaders, NSLDS
Sent from my B.lackBerry Wtreless Device

51112008
~e: wr anna ~ , ~ oft stuOent lea.tiers, NSLDS Page 82 Page 2 of 9

From: Shaw, Terri
’.17o: Shaw, Terri; katherine relane Durra, David; Maddox, Lau.re~;
scott m. stanzel(?__:)who.eo]~ .yotms.@.v,-ho.eop.gov
<tracy_d.._vourtg@who.eop.gov>; Halaska, Terrell; Tucker, Sara Martincz
CC: Yudof, Samara; Coakli~t, Kdstin; Oldhar~ Cheryl; Mantling, James; O’Brien, Mariamaa
Sent: Sun Apt 15 ] 1:42:58 2007
~ubject: RE: WP and N’YT on ~tttdent lertde.r~.. ]qSLDS
.....Originat lVfessage ....

From: Shaw, Tetri
Seat: Sun 4/15/2007 11:23 AM
To: katherine naclane; Durra,. David; Maddox, Lauren; scott ~n. stanzel@who.eop.gov; tracy_d.__young@who.eop.gov;
I~alaska, Tertetl; Tucker, Sara t"vfartinez
Cc: Yud~ff, Samata~ Conkl~, Kristi.n; Oldham, Cheryl

Subject: RE: WP and 1~"1" ~art student lenders, NSLDS

(b)(6) Sent: Sun 4/! 5/2007 10:56 AM
To: Dtm_rt, D~vid; Maddo~, l’.auren; ~¢ott m. stattzel@who.eop.gov; tracy_d._young@who.et3p.g~v~ Halaska, Terre!.l; Shaw,
Terri; Tucker, Sara MiartJ.nez
Co: Yudof, Samara; Conklin~ K.ristin; Oldham, Cheryl

Subject: WP and NXz~ on studen~ lenders, NSLDS
"!.’w~ prominent stories today.
5/1/2008
Re: WP and NYT on student lenders, NSLDS Page 83 Page 3 of 9
Sunday, April 15, 2007
Lenders Soughl Edge AgaiJxst U’.,q. iu Studettl Loans
Lenders Misusing Student Database ~VP)
The New York Times, April 15, 2007
Lenders Sought Edge AgaiJasl U.S. in Student Loans

By JONATHAN D. GLATER and KAREN W. AR,ENSO1V
In a fierce contest to control the student loan
market, the nation’s banks and lenders have for years
waged a successful eaxnpaigu to limil a federal program
that was intertded to make borrowing tess costly by
havi~g the government provide loans directly to
students.
q~e companies have offered money to tmiversitie~ to
pull out of the fedet~fl direct loan program, which was
championed by the Clia~ton administration. Tttey went to
court to keep the direct program from becoming more
compefitJ, ve. And they benefited from oversight so lax
that the Education Department’s assistant ix~pector
general in 2003 ~th:d tbr t~ghtened regulation of
lender dealing~ with universities.
At ia~diana Universily i~ 2004,/’or example, Sallie
Mac, the nation’s largest student leander, offered 5;3
million that the tmiversity could use for "’opportunity
loans" to some students ff ~,t leil the direcl loart
program, laadiana left the direct loan program but said
the $3 rtt~llion was rtot the rca.~ou; SalIie Mac
currently adrainisters their loa~ program.
Bank of America, which won th~ University of
Virginia’s sta~dent loan business, said in it~ 2002
proposal that ceYcai.tl possible incentives had "the
polentia] to violate" federal law. The bank, which
,said such a discussion was normal h~ fl~e bidding
process, sugge~t.ed ill.at it discuss the issues wifl~
tmiversity officials "during the oral presentation
phase office process."
All of this has helped give private lenders clear
dominance oflhe $69 billion federal student loan
industry.. The lenders, who defend these practices, say
they are winning b~siness primarily be~,ause llaey otter
lower interest rates than the govenn’nent and often
lower fees.
Advocates of the direct loan program say that it has
been held back from ,affet’hag more competitive rates
and benefik~, and that a vet’y sma!l percentage of
students can take advantage of the private rivals’
advertised rates and i:ncent~ves. They argue I~at
private lellders cost the governnleat vast amounts of
money because riley are subsidized aid gaaranteed
against default.
President Bush’s budge! reports flint in 2006 t’or every
$100 lent by private le~.ders, the cost to the
~govemmertt ot’sttbsidics, d~l’aults and o~er itt:ms was
5tt12008
Re: WP andNYT on student lenders, NSLDS Page 84 Page 4 of 9
$13.8t, while the same amount lent thzough fl~e direct
logan program cost the government $3.85. The battle for
dog2uaace in fl~e loan market has escalated as tuitions
have soared and sta~dents have borrowed more: This is
the context for matay o~ the payments to universities
and financial aid officials that have come to light as
a result of recent investigation,s into student loan
practices.
"Wttat l~as happened is unbridled competition meets lack
of oversight," said Terry W. Hattie, senior vice
presideilt at the American Council on Education.
Part of what is generating the competifiun is that the
government runs ~o loan programs--- and universities
usuatly choose to participate in one or th~ other.
Until the 1990s, the primary program was the federal
guaranteed loan progtam under which privateIenders
I~e Citibank, Sal[te Mac or Bank of America made the
loans to studenls. They we.re given a helping hand from
the govermzaent, whic.h pakt subsidies u~ the lenders
and guaranteed them agahast de:thult.
Bill Cliam~n campaigned, for president oa the notion of
expandia~g the federal govertm~ent~s wle as student
loan guarantor into a more central position as the
direct Iender. The idea was that this would prove
cheape~ and simpler tbr students and be less coaly
for In,payers because borrowers would pay interest to
the federal government instead or’to the tenders.
The program went into effect in 1994. The Democrat~
expected it 1o become dominant. But unwilling to be
muscled aside, private [endem hegira offering schools
and students a varieq, ofbenefks like scholarship
money and lower interest rates and fees.
Tom loyce, a spokezman for Sallie Mac, said, "The
private sector program has better prices, better
product selectiott, better sercice and betler
teclmology."
For a few years after direct lending went into effect,
it grew quicldy. Bu~ as studen110art volume has risen,
climbing above $85 billion in 2005-6 flora just over
$30 billion l0 years earlier, rite g,vet’ament’s share
mq a direct lender ha.~ declined, at~d now amounts ~o
les~ than a quarler of the total.
"When dh’eet ]cnd~ng was created, the initial
assumption was that the b~nk-based program would be
quickly overwhelmed by the governmen~ program," Mr.
Hartle said. No one counted on the strength of the
reaction from lhe lending industry, ]te ~md others
said.
The Education Department fought back. Richard W.
Riley, then the secret~ry of education, ~ed to mnke
the direct leading program more competitive in t999
and 2000 by reducing origination tees and ~tetest
rates. "l’he private lenders sued, saying Mr. Riley had
uo authority to do this because these roles were set
by Ctangress under the hyan legislation. (L~st year,
lawmakers sol the interest rote on new S~aftbrd loans,
one of t!~e most popular federally guaranteed loans, at
6.8 percent; many private lenders offerm reduce that
rate for borrowers who make payment~ on lhne or meet
other goals.)
In response to fl~e lawsuit, the Educa|ion Department
argued that the public and ptwate loan prograras had
the power to offer the same |errn~ and conditions, and
added that better loan terms would make loans more
affordable and thus reduce defaults, benefiting
5!l!2008
Re: WP and NYT on studenl lenders, NSLDS Page 85 Page 5 of9
taxpayers.
With the Bush administration more sympathetic 1o the
privatt~ market, the lenders ~,ithdrew the lawsuit last
year, and the direct 1oanprogtam has offered some
1he incentives used by its pri.vate rivals.
Katherine McLane,, a spokeswoman lbr Education
Secrelary Margaret Spellings, said both federal loan
programs were "’a vital source of rituals for studeut
aid." Ms. Mcl.ane said lhat "khrough these two programs
we have improved atudent~’ and families" choices by
increasing competition, upgrading customer service and
lowering costs."
The 13ash administa’atiou took ~irtual/y no action as
lenders offered special pools of money if universities
would leave the direct loan progran~. Lenders, by law,
are baa’~ed from offering inducements to ga~ loan
applications; But what is art inducement is not
entLrely cle:~r.
A review by the ’Erealien Departrrtcnt’s office of the
h,spector general in 2003 -- prompted by an accnsation
that SaIlie Mac was offerir*g illegal inducements ~
found ttmt the department had brought onty one public
action, a case invrJlving Sallie Mac m~d a college of
podiatric medicine in 1995, which art ad.ministrative
taw judge lurer slruck down.
The assistant inspector general, Cathy It, Lewis, who
conducted tb.e examination, also noted that the
Education Department had 1tot given any updated
opinions about what kind of inducements were barred
since 1995, even though lhe competition for loan
business had escalated sharply since them Ms. I..cwis
ex’prez~ed concern aSout ’qaargaining pra¢lices between
schools and lenders." She refelIed to both the
gnaranteed loan program and private lonns, which like
m~y consumer loan lack govemtttettt backing. Studerrls
increasingly rely on private loans because of lhnits
on borrowing through the federal program.
She wrote that the practices "sb.ould be addressed
tbxough statutory a~M regulatory changes or further
department guidan.ee."
Ms. McLmte said in an e-marl message that the
department had offered no guidattce ~ lenders because
it believed it had "no authority over the private lo~n
instruments and market and therefore ao guidance could
be provided."
She said the department had begun examinhag, whether
there should be new regulations in December.
Republicans in Congress have issued a continuing
stream ~f criticisms about the direct lendhag program
and tried to restrict it in a variety of ways.
Just last year, they v~ted to give lawmakers the power
to cut the budge~ of the Education Dep~nent office
lhal oversees the student loan program ~ a loon~ixlg if
indirect ti~eat t~ direct tel~diltg. They also made it
more difficult for rnany borrowers witl~ multiple loans
to combine lhem otto a single, larger direct loan,
effectively making it harder for studenls to refinance
their debts.
"The federal government should be in the business of
student !oa~as as the l~:nder of last reso,t when
private lenders cat~’t o~’fer competitive
opporttmities,’" said Senator Michael B. E~xzi, a
Wyoming Repubticax~ who i~ dm former chairrnmx of the
Education Cottunittee.
tn the absence of any crackdown oa i~ducements, banks
5/1/2008
Re: WP and NYT on student [~ade~s, NSLDS Page 86 Page 6 0[’9
and other lenders showered universities with
incentives to leave the direel lending progratrc
Sallie Mar, t-or example, offered Pace University in
New York City 5;4 million in loans for studen~ts who
would not have otherwise qua[tried ff it left the-
dixect loan program, floe mfiversity said. Pace turned
the offer dowtt~ a spokesman said. But ~tdid
eventually leave the pr%,ram.
Colleges in the direct lending program were
iancreasiagly concerned about its future in the thee of
growing Republican opposition.
Yvonne Hubbard, dirccto~ of Student Financial Services
at the Universily or" ’¢ixginia, said that was one
factor that prompted the school to leave the program,
along with the better dea[~ being offered by tile
private lenders.
"l~e university invited lender proposals hx 2002 and
chose Bank of America for a five-year term. [t was in
this process tkat the bank warned that sume services
trader discussion hod "the potential ~o violate"
regulations against inducements_
Ms. Hubbard said she had no memory of what that
language migh~ ha~’e referred to, and a Buick of America
spokesman, Joe Miller, said that it was not unusual
use this language in responding to a request to bid
for a contract.
Battk of America is the ogly lendei the UnNersity uf
Virginia recoiztmcnds. 2!~e bank handles about 95
of fl0e federal strident loans at the utliversity. Under
the agreement, studtmts who take out subsidized Ioarts
through the bank pay no origination or guarantor fees.
Ms, Hubbard said that the university tried to make
clear to families that they were free to borrow from
anyone but that it al:~o offered this advice: ’"Fake
lerms we have negotiated with Bank of America and
tb.is as your baseline, and try get your vendor to at
least match it. It’s a good deal."
Along with tl~e partisan battle over the lending
programs has come a [’~erce argument over their
relative c~sts to taxpayers. Lenders vehemently argue
that the direct roan program is in fact more
expensive.
With Democrats nov; in control of Congress, Senator
Edward M. Kennedy, Democrat of Massachusetts, aud
Representative George glil]er, Democrat of California,
with some bipartisan support, are pushing legislation
intended to bolster the direct loan program.
Many Repubhcans ~.xe determined to del?nd private
lenders. "I dort’t want a few problems to be the excuse
for the Democrats to put *it~ federal government irt
charge of all student lending in the Urtited States,"
said Reprc~ntative Ric Keller of Florida, the ranking
Republican an the higher education subcommittee.
Lenders Misusing Student Datable

Improper Searches Raise Privacy Fears
By Ami| R. Paley?Washinglon Post S’taff Wfitcr?gxmday0
April 15, 2007; A0i
Some le~lding companies with access to a natiortal

database that contain,.; co~afidential information on
tens of railtions ~g statdent borrowers have repeatedly
searched it ia ways that violate federal rules,
rais hag alarms a bout data mining and abuse o t’privacy:
5/1/2008
Re: WP and NYT on student lenders, NSLDS- Page Page 7 of 9
government and nniversit3’ officials said_
The improper searching has grown so pervasive that
officials said the Education Depamnent is considering
a temporary shutdown of the goverm-nent-mn database to
review access policies and tighten security. Some
worry that businesses are troltirtg for marketing data
they can use to bombard students with mass mailings or
other soii.cilations.
NMdents’ Social Security nmnbers, e-mail addresses,
phone lmmbers, birth dates and sensitive fina,cial
information such as ioan batanccs are in the database,
which contains 60 taitlion student records and is
covered by federal privacy laws. "We ate just in shock
that student data could be compromised tike this,"
said Nancy Hoover, dixector of financial aid at
Demson University in Ohio.
Education Depamnent spokeswoman KafllerRte McLane said
the agency has spent mo~e than $650,000 since 2003 to
safeguard the dalabase. The departmenl has blocked
thonsands ofuser~ tSat it deemed unqualified for
access after secn.tity reviews, McLane said, and it has
blocked 246 users from the student loan industry for
i~ppropfiamly accessing the data.
In general, the depamnem allows lenders to search
Ieeor& in the database only if they have a student’s
pemgssion m a financial relatm~hip with the
student.
The departmem has beert "vigita~at in its monitoring
for unauthorized uses" of the database, McLane said.
Concerns about possible abuses of the database are
emerging as the student loan industu,’ is under
investigation by congressiona! Democrats and the New
York attome2 general. Critics say the $85
billion-a-year industry has cozied up to government
and university officials who are in a position to help
lenders.
This month, a previon~ly obscure Education Department
ofti¢ial named Matte.o Fontana was suspended after the
revelation that he owned more than $100,t>30 worth of
stock in a student to.an company while he worked m a
u~t that helped oversee the iadust~’ -- and Ilae
sit, dent loan database. The stock holdktg raised
questions about a possible violation of
conflict-of-haterest odes.
The database, known as the National Student Loan Data
System, was created in t993 to help demrmine whether
students are cligib[e :[’or sit!dent aid and to assist in
collecting loan payments. Aboul 29,0t90 university.
financial aid administrators and 7,500 loan company
employees have access to it.
In a recent meeting with unwersity firtaneial aid
directors, Theresa S. Shaw, chief operming officer of
the department’s Office of Federal Student Aid, which
manages the database:, said leaders have beeo mining it
for student data with increasing frequency, according
to three participants at the meeting In the
department’s hierard~y, Shaw ranks above Fonlana.
"She said the data mining had gouen out of control,
and they were trying to tone it dow~t," said Eileen K.
O%eary, director of student aid and finance at
StonehilI College in Massachu.setts, who was at the
Feb. 26 session. "They’d seen the mining for a few
yeats, but now ttmy felt it had grown exponentially."
The department fu-st :;tarled noticing a problem in
laid-2003 when loan consolidation became mote populat,
5/l/2008
Page 8 of 9
according to an agency o~cial who spoke on condition
of anonymity because of the sensitivity of the matter,
As companies began to aggressively look for low-risk
borrowers to target for c~Jnso[idation plans, they
tttmed to the database for prospective customers, the
offici!l said.
Database users can view only one student record at a
rime, mad the departme~tt can mtmitor each time tl~ey
view an entry. "When we see tltem go in and out veW
quickly, that’s when it raises flags" about data
mining, lhe officiaI said. Such abuse would violate
deparlment odes.
Officials grew so concerned that in April 2005, the
deparm~ent sent out a letter to dalabase users ~aa’ning
that inappropriate use oi" ~he system - in other
words, looking for information without authorization
- could cause their access to be revoked. The letter
said the agency was "specitically troubled" that
lm~ders were givi~g tmauthortzed u~ers -- such as
marketing firms, collectiou agencies and loan
brokerage firms - the abi[ily to access the database.
"laformatiort may not be used for aW other purpose,
including the marketing of student loa~ or
products," wrote Fontana, !fiert general manager era
unit ~ the department that oversaw the lending
industry.
In August 2005, Colby H. Lewis, fl~e department’s
assistant inspector general, echoed ~ose concerns in
a memo to Shaw that warned of security problems with
the datab.~se and the lack of regaa]ar audit trails on
the system.
Through a spokeswoman, Shaw deolined to commertt
Fontana did not reialm telephone calls.
After the wartdags, ~nappropriate usage of the system
seemed to decline, according to the depatwaeat
official who requested anonymity. But several months
ago, top managers learned {hat the practice had
resumed - % pattern tlmt’s very alarming," the
official said.
Some senior education officials are advocating a
temporary shutdown of access m the database until
lighter security measures can be put in place, the
official sai& McLane confirmed that such
delibetatimts are tak~g place.
It is not certain that the lenders that
inappropriately used the database used informs t/on
l}om it to markel directly to s~.tdents. Credit
bureaus, for instance, also htdd persortal infomaation
on borrowers that can be used to solicit customers.
Bu, department officials believe lenders are probably
using the database for marketing, according to three
current and fomaer agenc.y employees who spoke on
condition of anonymity for fear ofretribulion. Some
urtiversity financial aid administrators suspect loan
companies are probably larger/rig .students in the
database who lake out loans directly with the
govemmen~, tmowla as direct loans.
"The database is beirtg misused by the hadustr2,." to mid
the direct loan portfolio," said Craig Mauler,
director of scholarships and Fmandal aid at the
Universiw of Neh~ska at Lincoh~, who was at the
meeting with. Shaw. "It’s certahaly a misuse of the
i~atended pnrpose of fl~c information and was certainly
not whal we ~ntended i.t~ the higher education community
when we built" the database.
5il/2008
Re: WP and NYT on stude]tt londers, NSLDS Page 89 Page 9 of 9
Some financial aid directors say abuse of the database
would explain why some studenls who have taken out
loans only directly with the govenmaent are deluged by
up to a half-dozen solicieatior~ a day from private
loan companies.
"Our students are being inundated with marketing from
c~nsolidation companies," said O’Leat-y, of Stonehitl
College. ’~ow else are tb.e cortsolidation companies
getth~g our stude~ts’ int’orrnafioa?"
Some f’man¢ia[ aid admini.~tra~ors h#p~ inquiries into
the student loan indt~stq," will extend ~o ~he possible
abuse of the database.
"We are hoping that a full congressional havestigatior~
c~n happen," said Hoover, th~ Denison aid director,
whn also met with Shaw. "And maybe then we will find
ou~ whal’s really t~appening."
Do You Yahoo!?
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5/1/2008
Page 90
°nresp°n
,,,
From: Maddox, Lauren
Sent: Tuesday, May 15, 2007 5:03 PM
"[o: Sullivan, Kevin F.; ’McDonough, Sa!ly’; ’Perino, Dana M.’; Stanzet, Scott M.; Waiter, Scott
’Scott, Kelly S.’
Dunn, David; Kuzrnich, Holly; McLane, Katherine; Farris, Amanda; Halaska, Terrell
Subject ABC News on Reading First
Attachments: RF Fac[ Sheet* April.pdf; Summary Of Actions Taken By The Department In Response To
The OIG.doc
RF ~ Sheep Summa~ Of
A,oril.~f (126 ... ctio~ Taken By T"a.
All - Tonight, ~C World News is schedule~ to run a piece on
Reading F~rst. We understand this has been in the ~.;orks for awhile. DoED’s
communications/press shop~ however, has not received any inquiries from the ne~work
regarding the story.
I have attached a 2-page backgrounder on the grant program, as well as a summary of
action=_ the Dept has taken .~c~ ~h~ ~c, ~=,~= ~ommen~atio~sj last fall. (b](5~
(b)(5)[
In additio~, see below £or copy th~L is running on ABC’s web site today.
U.S. Reading Program Benefits Hnsh ’Pioneer’ Fandraiser May 15, 2007 2:29 PM Joseph Rhee
and Dana Kughes Report:
<http://b~gs.abc~ews.com/ph~L~s/unca~e~rized/2~07/~5/~5/us-reading~r~g-mn.jpg> A major
Texas fundraiser for President George Hush has made millions of dollars in profits f~om a
federal reading program that critics say favored administration cronies at the expense of
school~hildren.
A company foutnded and owned by RaEdy Best, who raised $i00,000 to ~alify as a Bush
"Pioneer" during the 2000 presidential campaign, received the lucrative contracts under a
Bush administration ini~iat±ve called Readln9 First.
After receiving the contracts, Best was able to sell his company, voyager Expanded
Learning, for $350 million. It was valued at only $5 million a few years earlier.
THE BLOTTER EHCOM~NDS
* Blotter No Child Left Behind Scandal Widens
<http:i/blogs.abcnews.com/theblotter/2007/O5/no_child left_b.html>
Blotter Troubled 2eading Prosram Dcaws Heat Fro~ Congress
<http://blogs.abcnews.com/theblotter/2OOT/O&/troubled_readin.html>
* Blotter Study: Bias by ~he Billions in Flawed Ed Program
<http://blogs.abcnews.com/theb!otter/2007/O2/study_bias_by_t.hLml>
* Click Here tO Check Out Brian Ross Slideshows <http://abcnews.go.com/WNT/BrianAoss/>
"At the time of the sale, the company that bought the program justified this to their
stockholders on the basis that this program had done extremely well under Reading Virst
and was very politically connected," said Robert Slavin, a leading educator at Johns
Hopkins University and critic ef the Reading First program.
Slavin, the brother of an ~JBC News executive, says a program he developed was rejected by
the Department of Education despite its record of success.
Best, of Dallas, denied his connections to President Bush helpe@ him win any of the
federal reading program contracts.
"I have gotten no help from anyozze in the administration," Best told the Blotter on
/JSCNews.com.
But congressional invesEigators say Reading First contracts were awarded by the
administration based on politics and financJa] ties, not merit.
"They designed it for their friends and cronies, and they ended up not designing the best
program lot America’s schoolchildren," said Congressman George Miller, D-Calif., the
chairman of the House Education and Labor Committee.
In a report earlier this year, the inspector general for the Depar[ment of Education found
repeated instances of confl{ct of interest in the Reading First program.
Page 91
For exampler ene of the educators who gave approval to Best’s reading testing program,
Edward Kame’enui, was on Best’s payroll at the same time. He also approved a reading
program for publisher Scott Foresman at the same time the publisher paid him $400,000 in
royalty and consulting fees.
Appearing before Miller’s congressional committee, Kame’enui said there were no conflict
of interest rules for subcontractors like him.
"Mad we been informed of conflict of interesn criteria, we would have certainly
implemented those," Kame’enui told congress.
Watch "Wo~id News With Charles Gibson" tonight for the full report.
Lauren Maddox
Assistant Secretal-y
US Department of Education
Office o~ Communications and Outreach
Page 92
Summary Of Actions Taken By The Department In Response To The OIG’s Inspection

Report Of Reading First
¯ In a recent inspection report, issued in September of 2006, the Department’s Office of

Inspector General (OIG) found that there were some significant issues in t.he way in which
the Reading Firsl: program was initially implemented.
¯ The DIG made a number of findings and r~commendations, and while the Department did
not agree with all of the OIG’s findings, the Department adopted all of the OIG’s
recommendations expeditiously to improve the management of the program.
o From a!i el~ lhe available evidence, Reading Firsl is an effective program resulting in
significant improvements in the quality of reading instruction and the reading skills of
students in kindergarten through the third grade.
,, To build on the successes of the program, the Department has acted quickly and effectively
to implement all of the specific recommendations in the OIG report, and has made some
addilional improvements.
¯ In response to the report, the timely actions taken by the Department include the following:
- Replacing the program management;

- Establishing an intra-Departmental group to help guide the implementation of the
program;
- Inviting comments from State and local officials to address their concerns and improve
the program;
- Reviewing all Sl;ate applications to delermine whether all criteria for funding have been
met, and correct problems, It necessary;,
- Reconstituting a key peer review panel used in the program to ensure fairness and
more openness in its review processes;
- Reviewing program guidance and making changes when necessary;
- Providing additional guidance to contractors and subcontractors t.o enhance the
objectivity and effectiveness of their servic4~s;
- Providing guidance on ensuring fairness and objectivity in the peer review process in atl
formula grant programs;
- Providing guidance and training to Depadment officials and staff on internal controls
and the prohibitions against controlling curriculum; and
- Taking additional steps to ensure fairness, objectivity, and transparency in the
implementation of the program.
Page 93
U,S, DEPARTMENT OF EDUCATION
Reading First: Student Achievement,

Teacher Empowerment, National Success
April 2007
"Reading First is helping nearIy two million children, raany from low-income families, to
r~,ad by the end of tl~e third grade. It Ly also enabling states to build the infrastructure to
sustain sound instr~wtion well into the future. ""
--Secretary Margaret Spellings
Over the decades, millions of children in Amedca have been denied the opportunity to learn to read. Popular
but misguided learning fads caught on in many school districts, which were not held accountable for results.
~o help solve this problem, the Reading First program was created. Reading First builds on a solid
foundation of scientifically based research and provides struggling students in the nation’s highest need
schools with the necessary resources to make significant progress in reading achievement_
Reading First is the academic cornerstone of the bipartisan No Child Left Behind Act.
~ Reading First provides grants to states to help schools and school districts improve children’s reading
achievemenl through scientifically proven methods of instruction.
>’ The program funds professional development, scientifically based instructional programs, materials, and
strategies, valid and reliable screening, diagnostic and ongoing classroom assessments, and statewide
accountability and leadership structures.
,~ Reading First is designed to help needy students in K-3, while Early Reading First helps children in
preschool.
President Bush and Congress are providing record funding for scientifically proven readin9 programs.
>" Under No Child Left Behind, State Educational Agencies (SEAs) have received over $4.8 billion in Reading
First grants.
>" President Bush’s proposed budget for FY 2008 includes $1.1 billion for Reading First and E~rly Reading
First.
Reading First is working,

>’ Reading First is the largest and most effective federal early reading initiative in our nation’s history.
.> New achievement data reported by the States shows that Reading First students from needy every grade
and subgroup (Hispanic, African American, Disabled, English language learners, and economically
disadvantaged) have made impressive gains in reading proficiency.
o On average, the 26 States with baseline data increased the percentage of students meeting or
exceeding proficiency on fluency outcome measures:
¯ 16% average gain for 1’~ graders
¯ 14% average gain for 2,d graders
- 15% average gain for 3~ graders
o On average, the 26 States with baseline data increased the percentage of students meeting or
exceeding proficiency on comprehension oulcome measures:
¯ 12% average gain for 3’~ graders
For more infon’nation, visit wv~,v.ed.gov or call 1-800-USA-LEARN,
Page 94
Children in Reading First schools receive significanlly more reading instruction - air, eel 100 minutes more
per week on average - than those in non-Reading First Title I schools, according to t~e Readtng First
Implementation Evalua~on: Interim Report.
According Io the Center on Education Policy, 97% of participating school districts that reported increased
student achievement credil Reading First as ar~ important factor.
Just like every other aspect of No Child Left Behind, states and local communities maintain control.
~ States and local schools have the flexibility to determine how reading programs are selected, as long as
selected program is grounded in scienli~ical/y based reading research.
7~ There is no federally prescribed reading program.
~ States are responsil~/e for the quality of the local programs lhey fund, and for ensuring thai: these programs
rely on scientifically based reading research.
Reading First is designed to t~elp the cl~ildren who need it the most,
:~ The Department distributes l=unds by formula, taking into account the number of childrer~ living below the
poverly line in that state.
)~ State educational agencies (SEAs) then compelitively subg~ant funds to eligible school districts to establish
scientifically based reading programs in schools with the greatest need to improve student achievement. At
the local level, LEA eligibility is based, in part, on student reading achievement and poverty.
Thanks to Reading First, schoets and teachers finally have the technical knowledge and the practical training to
ensure every child gets the help he or she needs tO excel in reading. As a direct result of Reading First grants, more
than 100,000 leachers across the country from kindergarten through grade 3 have been b’ained to implement high-
quality, scientifically based reading programs. "their efforls are reaching more than 1.8 million students
National Reading Panel: Origins of Reading First

>- The Reading First initiative build~ on the findings of years of scientific research, which, at the request of
Congress, were compiled by the National Reading Panel.
:~ In 1997, Congress asked the Director of the National Institute of Child Health and Human Development
(N1CHD} al the National institutes of Health, in consultation with the Secretary of Education, to convene a
na~.ional panel to assess the effectiveness of differer~l: approaches used to teach children to read.
~- The 15 members of the panel were selected from among needy 300 persons who were nominated by a wide
variety of public sources, The final panel members were selected by the NICFID in consultation with the US
Department of Education.
P The National Reading Panel included prominent reading researchers, teachers, child development experts,
leaders in elemenf.ary and higher education, and parents.
.> Reviewing over 100,000 studies on reading, The National Reading Panel {NRP) found five components
essential to a child’s leamfng to read: phonemic awareness, phonics, vocabulary, fluency, and
comprehension.
For more information about the President’s Reading First Program, please visit the U.S. Departmenl ~f Education’s
web silo at h~.p:ltwww.ed.qovlp.ro~ramslreadinqfirsllir~dex,html.
Page 95
~4onrespons/
Maddox, Lauren
Sent: Wednesday, May 16, 2007 6.137 PM
To: M/alter, Scott
’Young, Tracy D.’; Stanzel, Scott M.; Sullivan, Kevin F.; ’Perino, Dana M.’; Dunn, David;
lvlcLane, Katherine
Subject: RE: ABC News on Reading First
Attachments: RF, Talkers, 5.t6.07.doc
RF, Talkers,
5,18.07,doc (37 K...
tauten Maddox
Assistant £ecretar~I
US Department o£ Education
Office of Communications and O~treach
202.40!.0768
..... Original .Message .....
Froth: Walter, Scott B. [mailto:Scott B. Walter@who.eop.gov]
Sent: Wednesday, May 16, 2007 10:47 AM
To: Maddox, Lauzen
Subject: RE: A~C ~ews on Reading F~rst
Thanks for
Best,
Scott

From: Maddox, tauten [mailto:Lauren.Maddox@ed.gov]
To: Sullivan, Kevin Fo; McDonough, Sally; Perino, Dana M.[ Stanzel, Scott M.; Walter,
Scott B.; Scot~, Kelly
Cc: Dunn, David; Kuzmich, Holly; MCLane, Katherine; Farris, Amar~da; Halaska, Tsrrell
Subject: A~C News on Read~n~ First
Al! ~ Tonight, ABC World News is scheduled to run a piece on Reading First. We understand
this has been in the works for awhile. DoED’s communications/press shop, however, has not
received any inquiries ~om the network regarding the story.
I have attached a 2-page backgroun~er on the grant program, as well as a summary of

actions the has ions last ~all. ~ ......
In addition, see below for copy than Js runn±ng on ~C’s web site today.
U.S. Readin9 Program Benefits Bush ’Pioneer’ Fundraiser May 15, 2007
2:29 PM Joseph ~e and Dana Hughes Report:
<http://blogs.abcnews.c~m/photos/uncategorized/2OOT/OS/15/us_reading_pro
g_nun.jpg> A major Texas fundraiser for President George Bush has made millions of dollars
Page 96
in profits from a federal reading program that critics say favored administration cronies
at the expense of schoolchildren.
A company founded and o~ned by Randy Best, who raised $I00,000 to qualify as a Bush
"Pioneer" during the 2000 presidential campaign, received the lucrative contracts under a
Bush administration initiative called Reading First.
After receiving the contracts, Best was able to sell his company, voyager Expanded
Learning, for $360 million. It was valued at only $5 million a few years earlier.
THE BLOTTER RECOMMENDS
Blotter No Child Left Behind Scandal Widens
<http://blogs.abc~ews.com/theblotter!2OOT/OS/no_child left_b.html>
* Blotter Troubled Reading P~ogram Draws Heat From congress
<http://blogs.abcnews.com/theblotter/2007/O~/troubled_readin.html>
* Blotter Study: Bias by the Billions in Flawed Ed Program
<http://hlogs.abcnews.com/theblotter/2OOT/O2/study_bias_by_.t.html>
* Click Here to Check Out Brian Ross Slideshows
<http://abcnews.go.com/WNT/BrianRoss/>
"At the time of tile sale, the company that bought the program justified this to their
stockholders on the basis that this program had done extremely wel! under Reading First
and was very politically connected,"
said Robert Slavin, a leading educator at Johns Hopkins University and critic of the
Reading First program.
Slavin, the brother of an AHC News executive, says a program he developed was rejected by
the Department of Education despite i~s record of success.
Best, of Dallas, denied his connections to President Bush helped him win any of the
federal reading program contracts.
"I have gotten no help from anyone in the administration," Best told the Blotter on
A~CNews.com.
But congressional investigators say Reading Firs% contracts were awarded by
administration based on politics and financial ~ies, not merit.
"They designed it for their friends and cronies, and they ended up not designing the best
program for America’s schoolchildren," said Congressman George Miller, D-Calif., the
chairman of the House Education and Labor Committee.
In ~ report earlier this year, the inspector general for the Department of Education found
repeated instances of conflict of interest in the Reading First program.
For example, one of the educators who gave approva! to Bes=’s reading testing program,
Edward Kame’enui, was on Beat’s payroll at the same time, He also approved a reading
program for publisher Scott Foresman at the same time t]~e publisher paid him $~00,000 in
royalty and consulting fees.
Appearing before Miller’s congressional com~ttee, Kame’enui said there were no conflict
of interest rules for subcoRtractors like him.
"Had we been informed of conflict of interest criteria~ we would have certainly
implemented those,,, Kame’enui told Congress.
watch "World News with Charles Gibson" tonight for thm full report.
Lauren Maddox
AssistanZ Secretary
US Department o~ Education
202.401.0768
Page 99
N~nresponsi~.
From: Ske!ly, Thomas
Sent: Wednesday, July 11,2007 4:56 PM
To: Mesecar, Doug; Halaska, Ten’ell; Dunn, David; Talberl, Kent; Clchowski, Carol; Corwin,
Thomas; Graham, William; Kean, Larry; Simpson, Danlet; Lawson, Trina; Wiener, Susan
Scheessele, Marc; Dave Rowe [E-mail}
Subject: FW: House Full Committe Markup-FY 2008 Appropriations
FYI
The House Committee has included discretionary funds for increasing the Poll Grant maximum award to $4,700. The
Reconciliation bill passed today by the House would increase the Pell maximum grant even more by using mandatory
funds from student loan savings. One reason that the House and Senate apppropriations discretionary numbers differ
appears to be a Senale assumption that any increase In tile Poll ma×imum in 2008 will be funded through mandatory
funds; Ibis is similar to the Presider~t’s Budget proposal.
....-Original Message ....

From; Wiener, Su~an
Sent~ W~n~ay, July t~, ~OO7 4:03 PN
To: Skelly, ~omas
Subj.: Hou~ Full Comm~ Ha~up--~ 2008 Appropfia~
Wednesday afternoon, July 11, the House Appropr~at~uns Committee passed the FY 2008 Labor-HHS-Education
Appropriations. As a result of the mark, the Department of Education’s budget would total $62.1 billion in discretionary
funds.
The Committee provided ED with $4.6 billion more than the FY 2007 level, $6.1 billion more than the President’s
budget request, and $2 billion, or 3.3 percent, more than the Senate Committee. The House Committee is higher
than the Senate in Poll Grants, Title 1 LEA Grants, Teacher Quality State Grants, and English Language Acquisition,
but it is lower than the Senate in Reading First State Grants.
The Committee expects to file the appropriations bill and report on Monday. The completed documents will be
available at that time. Floor action is scheduled for Wednesday, July 18, but may not be completed unlil the end ol=
that week.
.Hiqhliehts. of the Hoqse Committee Bill
American Competitiveness Initiative

None of the new programs that were part of the ACt in the President’s budget were accepted by the
committee. These are the two Math Now programs ($250 million requested) and the Adjunct Teacher
Corps ($25 million requested).
For Advanced Placement, the committee provided $50 million, an increase of $13 million over FY 20007
instead of the $90 million increase requested.
¯ Striving Readers is level-funded with FY 2007 at $31.9 million instead of the $100 million request.
,, The Teacher Incentive Fund received $99 million instead of the requested $t99 mi]tion.
¯ Teacher Quality State Grants got an increase over FY 2007 of $300 million instead of the $100 million
reduction requested, for a total of $3.2 billion.
¯ The largest redu~ion from FY 2007 in the entire mark for ED was in Reading First State Grants. The
committee provided $400 million, a reduction from 2007 of $629 million. Chairman Obey mentioned that
Reading First program would not get anymore funding until problems are addressed. Early Reading First
was reduced by only $3.1 million, for a total of $114.6 million.
Other Elementary and Secondary Education Proqrams

Title | LEA Grants -- $1.52 billion increase over FY 2007 in total, includin9 -~$762 million in each of Targeted
Grants and Education Finance Incentive Grants.
School Improvement Grants - $500 million, the same as ~he request, and an increase of $375 million over
the FY 2007 amount.
Promise Scholarships and America’s Opportunity Scholarships for Kids were not funded by the
committee. These two programs, along with the Math Now programs and Adjunct Teacher Corps, were not
accepted because they lack authorization.
Page 100
o Charter School Grants -- +$36.6 million increase over FY 2007, for a total of $251,4 rail{ion. That increase
was derived by eliminating funding for Credit Enhancement for Charter School Facilities.
o Safe and Drug-free Schools and Communities State Grants - funded at $300 million, a reduction of $46.5
million from FY 2007 but $200 million more than the request. For SDFSC National Programs the Committee
adopted report language, proposed by Harold Rogers (R-KY) stating that the Committee’s recommendation
includes at least the FY 2007 funding level for the pilot program on student drug testing.
Foreign Language Assistance -- +$3 million over the FY 2007 amount, for an appropriation in FY 2008 of
$26.8, million. This increase is for one of the President’s National Security Language Initiative proposals.
Grants would be made to LEAs working in partnership with institutions of higher education to establish or
expand articulated programs of study in languages critical to nationa! secur{ty.
¯ English Language Acquisition -- +$105.6 million over FY 2007, for an FY 2008 level of $774.6 million.
¯ IDEA State Grants -- $11.29 billion, an increase of $$508 million over the FY 2007 funding level. This
amount includes $$335 m~lion added through an amendment proposed during Committee action by the
Ranking Minority Member of the Labor-HHS-Education subcommittee, James Walsh (R-NY). The 2008 ~otat
for the State Grant program will provide a Fe(~eral contribution during school year 2006-2009 of I7.5 percent
to the excess cost of providing education and re~ated services to children with disabilities. ]-his is an increase
from 17.2 percent from the FY 2007 approprialion.
¯ Career and Technical Education Slate Grants - The committee provided $1.2 billion, $25 million more than
the 2007 amount. Tile additional amount over 2007 was proposed in an amendment by John Peterson
PAl, with an offset of $25 million taken out of Program Administration. The President’s FY 2008 request was
$600 million.
¯ Postsecondary Education
° The committee provided $15.583billion for Pell Grants, with a maximum award in academic year 2008-2009
of $4,700, an increase of $390 over the FY 2007 maximum.
The committee bill would move unused funds from Academic CompetitivenesslSMART Grants to Poll
Grants. The current estimate of the unused funds that may be available is $460 million.
o SEOGs -- $770.9 million, 1he same as 2007, instead of the request to eliminate funding for the program.
o TRIO is funded at $868.2 million, and increase of $40 million over 2007"; arid GEAR UP is funded at $323.4
million, and increase of $20 million over 2007.
o HEA II! - increased by $33.7 million over 2007, for a 2008 level of $431.9 million.
o International Education and Foreign Language Training was increased by $9.9 million over FY 2007
Prog£am Eliminations
¯ 7 education programs were eliminated by the committee: Early Childhood Educator Professional
Developmenl, Academies for American History and Civics, Exchanges wilh Historic Whaling and Trading
Partners, Excellence in Economic Education, Mental Health Integration in Schools, Underground Railroad, and
Credit Enhancement for Charter School Facilities, The subcommittee added the 2007 amount for Credit
Enhancement, $36.6 million, to Charter Schoo(s in FY 2008.
o The IDEA program of State Personnel Development was zero-funded by the committee. It was also zero-
funded in FY 07, but thai was to be a funding hiatus only. not a program elimination. House staff agree tha!
the program should have received funding in FY 2008, and have said they will address this mistake in
Conference.
Salaries and Expenses

The committee provided the President’s request for the Office for Civil Rights, the Office of the inspector General, and
for Sludent Aid Administralion. The level provided for Program Administration is $25 million below the FY 2007 level,
as a result of offsetting the Career and Technical Education increase proposed by Mr. Peterson and adopted during
Committee action. This level, if eventually enacted into a final appropriation for Program Administralion, would have
dire consequences for Department operations. Subcommittee staff are aware of this and said they hope to fix the
salaries and expenses appropriation in Conference with the Senate.
Page 101
,Dunn, David
From: Dunn, David
Se~t: Friday, February 01, 2008 2:15 PM
’John P. Bailey@who.eop.gov’
Subject: Re: AP Story just posted on Budget
Zn,!,=ed! Som,=..ti:nes better Lc De itl.3ky chart 9~od!
Sent from my Black~.erry Wireless Ilan,dheid
..... OL-’_: ginal Message .....

From: Bailey, John P. <John P. 8aJ ley@who,eop.gov>
To: Dunn, David
Sent: Fri Feb 01 "_41].4:93 2008
Subject: [4.E: AP StoL’y just post.e..:J ,~n Budget
Done -- good story
From: Dunn, Davi{i Imai].to:DaviJ.D,~nz6:.ed.gov]

Sent: Friday, ?ebr~;ary 0!, 20(.’,~ 2:17 PM
To: ~aiiey, John 9.
Hubj~.ct: Pw: A[~ Story just posted on B’.-~dget
Karl bounced back. Can y,t,u fe~ward? Thanks.
SeSt f~om my SlackBcrry I~irelnss }:.andheld
..... Original .Mes s,.~ qO .....

From: Dur:n, David
To: ’karl. zinsmsister@eop.who,gov’ <:kari_zinsmeis~_er@eop.{-;ho.gov>;
BaJley@who.eop.gov’ <John P. Bai/.ey@who.eo.c.gov>
Sent: Fri Feb 0] 14:09:28 2008
Subject: Fw: AP St=ry just posted on Budget.
Not bad at all.

Ser, t from my BlackB.=.rry Wi.reless Handheld

From; Colby, Chad
To: Bunn, David; @~ibb!~., Emil. y; Yudu£, Samara; Madd.:,x, L~uren; }<uzmich, Holly; Skandera,
IIanna; Ske!ly, ?h::mas
CC: Ridq~ay, Marcia; Beaton, Meredith
Sen[: ~"~i Feb 01 14:07:t6 ~008
Subject: A? Story just p,:.sted on [h:dget
By I’TANCY ’.6UCI<RRBB.OD
A[~ Education Wriue~
WASHINGTON (AP) - in a yeai when many federal programs are in liue for hefty budget cuts,
Preside:’~t S,~h is asking ’,’:rmgress E,;, largely ieav.e educa~_ion al~:ne, and seeking more money
fo~ a controversial reading initiative.
TI;~ White House budge7, pro.uosal being sent "_e Congress on Mo.%day asks lawmakers ~¢. sign
o.ff on nea[]y $60 biliior: for education programs, ..--..:cording .-.o .~. copy of the E.:Jucaqion
Depa~tmen: budget c.b..-.ained [rida,v hy The Associated .Press. The amount e~.ua[s what is being
Page 102
Spent this year, without an !nc~ease to keep pace with inf[ac_ion,
Among Bush’~ proposals for the upcoming budget ~,ear: a push fox Congress to restore $600
million l~wmake~s c~jt fro~[[ a reading ~rogram thst se~ve~ !ow-income chi!dr~n~
The program, called B.eading First, recenLly has received favorable r~views from stale
oEfit:i.als and others. ~ut ~t als<. has been criticized by ~ederal investigators for
conf].ic~s of interest and £~smanagement.
EducaLien Se~cre~ary MaLgaret Spellings said in a teleghnne interview Friday hhat there
were prch~.ems with the proqr~n initially but that they bad been addressed and that rea~J, ng
gains were being made by students served under the Lnltiative.
The admluistration also is renewing a push ~or a $.300 mJ. llion proposal that would allow
~c.or students to tnansf<~r Uc better p,]blic schooJs ouZside their district o= to private
schools, if their schools 5aJ Led tc meet bencbm.grks under’ the :.~0~2 No Child l,e[t Behind
law or had .].ow graduation ~a[es.
Dem{}crats are s~aunch[y opposed to using federal dollars for private school vouchers and
have rejeuted ~imilar administration proposals in the pa~t.
Spellings said it’s unfa~ ta force kids tc stay i:~ troubled scP~0ols. ""i’;’hen they are
br<~ken chronically, w~ have to do s,amethJng different,’’ she said.
Titl~ [ ql:ants, the main sO,area of [ederal funding [or poor st,~dents, wcu]d get $14.3
biiii.on, about a 3 percent inc,ease item this y~r, under the administratic~:’s proposs]..
About half o[ the nation’s schools, and two-th~.rds of elementary schools, r~ceive Title i
funding.
The adminis~ratiun proposes to spend about $11.3 billion for special ed~:cation services
2or s%~dents with disabiiiti~s, an increase of roughly $330 million.
A proq[-am that helvs lk~nd merit-pay plans for ~eachers who boost student test scores would
double, from about $I00 ~il!ion to $200 million. Teachers unions oppose !inking paychecks
to student s:.ores.
!n all, the administ:ation is seeking to eliminate 47 education programs, to save about
$3. ] bill!on. The admlnisuration says the programs are too s~;a!l tu have a national
impact, aren’t el[active for other reasons, or get money -from other sources.
They include 9re,rams to encourage arts in schools~ bring !ow-income stude~~ts on trips tc
Washington, and pro?ida men%al health services.
"’Obviously, cuts are dif[icu].t to make, ’’ Spellings said. "’But T think this is a
responsJhle budget than sets priorities and that is aligned with the co~e mission and the
ucre fOCus Of NO Child Le[t Beh£nd. ’’
Th~ Zduoation Department als~ admini~tsns p£og~ams that help students and their (amilie~
pay for coll~ge.
The president is asking Congress to .gpp[ov~ a~ ].me[ease of about $2.6 hi]~i, ion for <he ?~li
Gra~,t program for !ow-ir~ceme college students. He is seeking to e!iminate outer ~rograms,
including the Perkins Lo~n program, which provides low-interest loans to needy studer, ts.
Chad Colby
U.S. Depar.’_’ment of Education
Office of Communicazions and Outre&ch
( 2 D~’. ) 401-4401
(2[]2} 53.’9-4511 cel!,
Page 103
Dunn, David
From: Ounn, David
Sent: Tuesday, February 05, 2006 8:57 AM
To: Bailey, John P.
Suloject: FW: Budget (5)
Sure you havu seen but..
Erc.~.: Anderser.’., Chr.i sty

S~mt: Tuesday, February 05, 2088 8:11 ~,J
TO: Carie.!Io, Dennis; Aud, Susan; ~.a’~]s, Jim; Stearns, Hannah; Sk~ndera, E~nna; Ha.l~ska,
?erra].l; Dunn, ba~id; Galko, Vinci,t; Ewart, Ju].Je; Terrell, Julia; Rosenfelt, Phi!;
Ridgway~ Harci~; PJttsr ~lizabeth; Hopes, Srenna; Eaz’!ing, Eric; Tucker, Sara Martinez;
MaeG~idwi~b Katie; Wurman, Ze’ev; Smi[h, va!arie [Si{R); Ruberg, Casey; McGrath, John;
Kuzmich, Hoily; Heard, Oenby; Scheesse].e, Marc; Mcnit[, Townsand L.; ~owars, Sarah;
Young, Tracy; Williams, Cynthia; Mesec~r, Doug; Truonq, Anh-Chau; Lepore, Kristen; Eitel,
Robert S.; Zoel[ick, [odd; Jones, Diane; <e.[~in, Ke!ly; Tmomey, Liam; Todd, Wendy; Harvey,
Tills; Ga[tland, Lavi~~; [:ohR, Kristine; Hs:ada, Torz; Talbert, Kent; Colby, Chad; Roob,
C~rly; Se~tance, Michaa[; Chlouber, Patricia; Briggs, Kerri; Evans, Wendy; Private-
Spell.tags, Margaret; Casaron~, ~mi.~y; ~orfii, Jessica; Hanzock, f~ne; ~ox.~ey, Don~
Evers, 8ii!; Omytrenko, Orysia; Schaumburg, ~anda; Maddox, Eauren; Beaten, Meredith;
Andersen, Christy; Yudof, Samara; Wr[gh[, Chr/stophar; Oldham, Cheryl; Gribble, Emily
Subject: Budget (5)
Educatio~~ Secretary To £’ocus On What Works (DAYDN
Aid to peer and disabled chJ.ldre:~, support for Io~.~ per[orming schools and reading are her
prioritJ.es.
Dayten Daily News

<http:/!www.daytondailynews.com/n/¢ontent/oh/stcry/news/nauion world/2OOSiO2iO4!ddnO2OSO8e
d.html> , February 5, 2008
Wi:h the [ederal budget tightening, U.S. Education Secretary Margaret Spellings said
Monday she wants to focus the dollars she has on strategies she knows work.
Dayton’s deputy superinUendent in cha~ge cf academics, Debra Brathwaite, believes

Spellings has it right on some o£ the ma~or spending initiatives aimed at helping poor
children s~cceed.
President Bush on Mor~day released a proposed f~derai budget %hal leaves educatic.n spending
abeat the same ~t $60 %,’.’Ilion, but within the pl.~n there is more money fo~ some of his
favored ideas and some ~,otentJa!ly painf~l suts.
On the chopping block i.s $66 million fGr Even Start, a program that supports ear!,.,,
liLeracy training for "¢ou~q pre~schoolers and $267 million in aid for state ~][ants in
career a~:d technisal educa.tion.
[Jut Lhe b:ldget also boosts spend.ing rot Title ], a huge program that supports .~chooi¢ }:ith
mar:y poor chi!.Jren, ar.d for a program that supports speci.~l education rex children with
handicaps.
Spellings, speak:ug ¢,n a conference call, said spending is focused or~ programs that work -
.~id re puor and disabled children, support for low ~cerferming schools and a focus c.
reading.
Pa~e 104
"This is a budge.c, that has a rot of what we know for sure, " she said. "We know for sure
thaL kids can’t be successful in school if they don’t know how to read and read well."
The budget revives the ~eading Eirst progra,:b a Bush ininiative than collapsed a£ter
charges that the funds for boosting reading wexe do]sd out to companies allled with 5he
administ>ation politically. But ~ome states and school districts advocaned for the
program, saying ir worked well.
In Dayton, ~ra~h~-~aite [aid ~hat i~ading First paid f¢~ teat.her tra/nir.:], a data expert
that helped za[get gaps in student skills and after-school literacy programs.
"We saw improvement in readi~]g and in teacher practice as a result for it," she saiJ.
Bush also. again will try to gain f~dera! dollars co pay for student transfers ou~ of
perpetually lo~;-pe~fo[mi~,~ schoe.ls and into private schools - a controversia! pruposa!
that has n~ver ~.;on eongres~ona! approval.
Ohio already allcHs such transfers through its voucher program and Z~~thw~ite said £he
money woQld be better u.aed to diagnose th~ seasons why a schoo! has ~:nde~::oerfo~-med
consistently.
"Schools aze unde~per~orming for a Lot Df differen~ reasons," she said. "You need to
address ~hose core iss:~es before you close a school."
Bssh’s $59.2 ~ :eq,]est ~holds the line’ for educators {Education Daily}
Administration to us~ Title I increase for high schools, eliminate c<her programs
By £r~nk Wolfs
Educatic.n Daily, Februar7 5, 2008

The Bush administraqion has proposed a $59.2 b~ilion discret!onary funding request for
education ~ a ,:~ost£y "hold the tin--" budget that re~.lects a.qother lean year fcu
edu-c a to r~..
On top of 47 proposed program elin<inati.ons, including Career and Technical. gd~<:~tion suave_~
grants (see related story, page 2), Educational ’lechnology State Grants, ~nd Even $~art,
the FY 2009 budqut ~equest co~.~tains few K-12 program increases.
TN~ largest increase -- to Title i gr~n~.s to school districts -- would provide $406 ~r~iilion
more than in FY 2008 to hel~ schools meet the 20i4 proficiency deasline.
The increase would also augm_~nt l~[gh school accc.untaoili,~y by p~-ovidinq more choices fo~
students and parents, encoura-gJn~ the restructuring of low-performing schools, a~]d adJing
examinations for math and reading or language arts to two additiona! high school grades.
and readi~]g aasessme[~ts, mandated by NCL$, are now in place in all st.~tes for ~rades
thro~lgb 8 and for one high school grade.
T±tle I educators said the funding increase fo~ Title I is far short o£ the $24 billion
needed in FY 2009.
Most of the increase should go to. instruction, uhey said, non to ne;~ high schoa]
accountability ~nstrum-e~]ts such as improved tests.
"The [eality is we need resources to impro~-e classroom instruction," _<aid Richard L0n9,
ez=~cut.ive director of ~_~_he .National Association of St~t~ Title I Director’s.
"%’~e know assessments ~.£~d to¯ be %’nlid and usef~il, and w~.’ ~e ~ot g~:ting the mone~/ to
mak~ the assessments use£u[," he said.
This isn’t juan a matter of providin,~ informatian to parents, Long said.

"We also ~eed to pro-~:de information about how to ]reprove kids’ i.r;structian.
Page 105
assembly-line process where you’ re measuring Jr, puts and outputs."
Long and other educa.’.ors said build]n9 new stare assessments would pull money and
attention away from instruction.
"We’ve ].earned a lot about accountability in the early years of ~,~CLB. I~.’S u~fortunate
we’r~ not applying those lessons here," Lo.~:q said. "l|,is is noC good policy.’~
Choice options Despite the failure of past compete, rive grant measures, Bush’$ education
budget [takes anothe: foray into giving parents and students more options ~o escape schools
that ha-~ .chron£ca].ly fa~i~d ~d.equate yearly progress, ~ro judged as underperfor~ing,
as i~ the case of abo~t 2,00t) high schools aatiom-~Jde with low qraduacJ.on rates,
~’dropo~t ~actories."
Bush’s budget ~:ropo$e$ a $300 million Pell G~’ant for Kids program that would awa~d
competitive grants to, amo::@ others, faith-based and cor~nuni~y groups to develop K-!2
sc.~olarships for low-income students J.n schools undergoing r~.structuring.
’?he grann.~ c~uid also be used f~.~r students in high schools with graduation rates of fewer
chat 6D percent.
Bush’s budget would also end the 2ist Centu:y Community ],earning Centers after-school
program, which the administration judged ineffective in ~mproving academic performanzeo
The White Ho<,se would shift $800 mill’:.on to a new 2lst Century Learning Opport!.~nities
program that wo~id provide all:or-school scho!ar~hips ~o low-income students in
u[~der’performing :schools a~d i.n high .~chooi dropout factories.
A[ter-school advocates have dsnounced the progra[.s as a "pri’,,atiz~tion push" and expect
the programs co die in a Democrat-controlled Congress.
However, Education Secretary Margaret Spellings was undeterred by the nea~ certain failure
of school and after-scho01 cho[ce p£’oposals in Congress.
"I intend to ask Cc.ngres5 about what they ±n~nd to do about ohror*im underperfozmance,"
she .said.
’09 budget deals blow to ’08 reauthc~ization (Education Daily)
Stephen Sawchuk
Education Daily, February
President Bush’s modest FY 2009 Title i increase zender:s an al,’eady challenging 2008 ~4CLB
reauthorization even more unlikely, experts said Monday fo!loi.dng the unveiling of the
federal budget.
At $14.3 billion for Title I, the bud9ec falls far below the $25 billion NCL8 authorized
for FY 200"? and beyond.
S<affers for the 0duration co~m~littee chairmen, Sen. Edward Kennedy, O-l:.,ass., and Rep.
George Miller, D-Calif., said as recently as last week ~hat their bosses were committed to
reauthorization this year.
Washington insiders c~nt_i.nue to trade rumors that the chairmen are Frepa[ing for an ea~:ly
spring markup.
Yet i~c.th Kennedy and Miller had intimated that they had littls impetus t~: pursue
reautho."izatio~ unl~ss Bush put more money on the table for FY 2009.
reauLhorization could be in jeopardy.
"The President’s p~opcsed increase fo~’ fu~,ding for ~ub].i.c schools through the lJo Child
Left Behind law is nc~ enough cveo. to keep pace with infla<ion.." Miller said in ~
strongly worded statement.
"The President has made it clear that he i:,te~ds to e:’~d his administration the :{ame w~y he
Page 106
started i*. -- hy breaking his promises to public schools and schoolchildrer:."
Bducation Secretary Margaret Spellings took the opposite tack in a conference cal].r
suggesting that Ccngres:~ needs to m,.~ke the first move.
"Resources obviously follow policy reauthorizations aud provid~ us a way re refresin or

relrame our po].i,zy priurJ.tie$," .she said.
She also took a s~;ipe at appropriators, noting .-_hac 5hey underfunded ~?CLB by $57 million
in F’f 2008,
L~nfavorable ci!¢,,mstances ~]xperts, though, said Sush’$ failure uo provi::lu a subsLat~tial
Title I boost have compounded a s~ries of unravel-able circumstauces for reauthorizmtion
that include a lame-duck president, an early prin’.ary season, and the pr.e.=.ence elf two
Democratic candid.~ne.s ¢m the Senate education cc;~ittee.
"This type Of bud, gel .’_’ertainiy diminishes t.he possibility for anyth~_nq happening," .<.aid
Cunter on Zduc~.tio.q Po!!cy President Oa.’.:k Jennings~ a former genera] counsul for the .’40use
Bducatiou and Labor Conu~it|..ee. "I~s a stahiona~y budget. Al! they dr., is move r,~o:’..ey arou~~d
{.al~d) cut programs.’°
Alliance fief Excellent Educa’t!on Policy Development Director Jnmie Fasteau concurred.
"This could have go~e a long way to securing ,[Bush’s) legacy to this bi!l by putting
funding out," she said.
can’t fathom why the administratJ.cn didn’t put more on the table. It really cou.[d have
enqemdered a lot of trust and wi.llingness [or al! sides to c~me together on Li’.is."
"Playing to the history books’ Michae! Petrilli., a v±ca presideut [o~ the Thomas
Fordham Foundation, suggested that Bush couJ.J be seeking an alternate legacy through
budget.
"I think they are right to focus un what they can get done administratively over t:he
iI ~onths," h%. said. "They are now playin9 ~c the history books -- and mo~~ importa~]~ tha~
g~tt£ng reauthorizati0[~ done this year is demonstzatin9 that George B;l~h was a %rue
conservative, holding the line on education spending."
The budget confirms that Bush and SpallJngs do n~t actually expect reauLhorizatZon to
happen ~h].s year, he added.
The leaders of the congressional, education policy comm±tt~es are c~ncerned Lhat [:]nding
!eve]s in the FY 2Q09 budget are inadequate to carry out NCLB ~eforms.
The lean Bush administration education budget may mean that NCLB zeaut.horizatio~ does not
come to fruition this }’ear, as P, ep. George Miller, D-Calif., chairman of the House
Education and Labor Co~iht~.e, has hinted that reauthorization attempts may stall without
the impetus of proper £unding.
"The presiden-~ proposes no new investment_ to strengthen our na~.J.on’s public elementary and
secondary schools,’~ Sen. Edward Kennedy, chairman of the Hea].~.h, Education, Labor and
Pensions Com~ittee, said M,nnday.
"As we work to reauthorize Lhe Elementary and Seco~:dary Education Act this yea::, I am
particularly co~~cerned tha~ the p~esiden~ has once again proposed Jnadequat~ funding for
the law’s important reforms.
"He has used the same o!d tactics of robbinq other education priorities t~ pay fo~ his
~od~st increases for school reform. ]{is huddler once ~qain siphons scarce resources fro~
our publi~ ~chooLs ~o create a new voucher program, and he eliminates the ¢×isting after-
schoc[ program i~: favc~ el an $800 n~illion voucher-based alternative.
"Our schools ~nd chi].drer~ geseltve alore than accounting gimmicks -- t.n÷y neud qew resuurces
to make progress on reform."
The administraLJon "is not goinq fall c,n its s~ord if it doesn’t get a z:eautho,_izaF.ion
Page 107
p~opo~al this year," Petrilli said.
"It certai~iy is no< pulling out all the stops to ~et the law reauthorizcd."
At press time, neither Kennedy nor Milder had definitively indicated that NCLB was off the
~ab].e for 2008.
Still, Fasteaa said she will hold the zonunittee chai%man equally responsible if a bill is
nc-n finalized this ,/ear, noting that the!/ still h~ve nob publicl,! announced introduction
or markup dates.
"~ truly don~t mean to be flip, but when I worked on the Hi.!i, we finished £DEA after an
election (in 2004) when no one was paying attention,’" sh~ said.
"It requines deals, and it requires money 5o be on the table -- and it requires suartJng
aD.d ;, markup."
~uah Budge’: }’repo.~es Level Funding Of Education Dept. (EDN£EK}

By Alyson Klein
Ed~.~ca<ic.~i Week <http:/iwww.edweek.o~’g/ew/articles/2008/02/04/22budget web.h27.html> ,

February 4, 2008
The U.S. Depa[tment: of Ed,acal:ion’s ovecall budget would remain stagnant at $59.2 billion
undex a fisca! year 2009 prop,:,~al released by President Bush that inblu.:Jes a modest boost
for Title i grants to school dish[dots, the main funding vehicle for implementing tl~e No
Child Left Behind .~ct.
Secretary of Education Margaret Spellings linked :he p[oposed Title I increase ~.;itb.. th’-"
renewal of the six-year-old N,:]I,B la~, which is pending in <:engross.
"As we are cn the eve of reauzhorizing NCLB I think it’s importanZ to nohe tha~_ ressurces
follow policy," Ms. ~p~!lings said in a conference call wir.h reporters today.
But Rep, George Hiller, D-Calif., the chairman of the House Education and Labor Committee,
said the proposed $14.3 billion for Tit:to I granhs, a 2.9 percent i~:rease ~ver ±!seal
2008, was no~ sufficient zo help schools meet the goals of the law.
"The president’s proposed increase for funding 2or public .~chools through the ~o Child
Lef~ Behind law .~s not enough even to keep pace with infl9tion," ~ep. Mil!ec said in ~
statement. "The president has m~d~ it clear that he intends to end his ad~,inistratton the
same way he s[.arted it--by breaking his promises, to p~ib.[ic schools a~J .schoolchildren."
The president’s budget request also seeks new money for expa[~ded school choice programs
and would ~everse a severe cut made by Congress go hhe c0n~roversi-al :~.eadJng First
program. But, like Fast Bush administration budgets, r_he fiscal 2009 proposa! wcu].d ~.crap
some programs popular ~.~ith lawmakers, /nc!~iding the $1.16 Dill!on Caree.:’ and Technica!
Education SLate Grants program.
The request comes less than two months after Cow, gross and the administration wrapped up a
pr,:,trauted budget batE!e for fiscal 9_008, which began Oct. i. Lawmakers initia!ly approved
$60.’.; Oillion in disur~.tionary s~..ending for the Educe<ion Department in the cur~’unt fiscal
year, a 5.6 p.ercer~t decrease over ~iscal 2007. But President Bush v.~tosd that bill.
Democratic feeders in Congress sou,.dht to override the veto in NovembeE~ but fell two votes
short of the two-thirds majority ;~eeded. The $59.2 bill.ion budget for educetion was the
result of a comp,omise late in the session.
Edwecd R. Kealy, the e::e~utive director of the Commitr~ee for Educe%ion Funding, a
Washington-b~:~ed l:]bhying orga.nizatio~, said he expects a similar ~cenario th~s yea,-.
-"I think [Congress:~ is going tc .~gnore empha:ically this last budget and w_~it~ :heir o,,’n,"
Mr. Kealy said. "I’m sur,2 it most likely will bring us h.ac~ to a ~ep!.aF" of last yen~’s
spending sh,:,wdo~.;n, he ad{ied. E×.~andir, g Choice
In a,.JdiLiot, to the Title I increase: ~[r. Bush pr.nposed a hinge fo~ state grants for
Page 108
students ~.n speci~l education under the Individuals with Disabilities l~ducation Act. His
budget calls for Sil.3 billion, about a 3 percent boosi ov~ fiscal 2t)08.
To. free up funds to he!p schools that aren’t meeting the goals of t.he NCLB law, the budget
proposal seeks Lo revise a p~o,:ision in the law <hat ..?.~lls for st~[.es to set aside ,l
percent of their total Title ! allocation for school improveme~t activities. The p~oposal
alsm includes a "hold harm/ass" r~q~iremenr for districts, meaning that no district may
receive less Title [ mo~ey than [t did the pz’evio<~s year because of Lhe set-as!de.
Under the administration’s propose/, states ,could set aside <hc i~ull 4 percent, even if
that meant reducing aiJ tr~ distr£ctS. ’[wenty-n-~ne States would not be able to reserve, the
f’a].l 4 p.ercenc during the 2007-08 sT.’,ool year, accord~.ng to a report [e!e~sed i:~ A~g[[st by
the Washington-hosed Cente~ .on Education [’olicy, a reseat-oh and advocacy orga~ization.
The request seeks to expand school ..’choice options zhrough ~ $300 mi.l]ion ".~ei.! Grants for
Kids" program, which the president’s outlined in his Jan. 28 State of the Union address.
The propcsa~ would make competitive grants avail~bie he suntan, school district.s,
local goverr:ments, and non-p~ofi< organizations to develop i-i2
low-income ~tudents in schools that ere struggling to meet the goals of the NCLS l~w, as
well as those in high scho[:is with graduation £~ates of ies~ than 60 percent. Parents could
use the money uo send their children to out-of-di~triz< public schools
s~cular private
Last year, President Bush pt-oposed e×panding ~chool choice through "promise" and
"opportunity" scholarships, fucded at $300 ll~[£[ion it, his fiscal 2,308 b.’~dget Eequmst. That
proposal loll flat ?;itS_ Demo,.::[atic lawmakers, who lambasted it as a fedora/ voucher
p-,-ogram. The "Pall Grant~ for Kids" /.den met with a similar criticism after last week’s
State of the Union.
But S~creuary .£pellings said that, "With each passing ~,ea;: kids attend schools .that are
labeled as underperforming .... I think it ou~ responsibility is to
kids hhat ~re in those schools. This cue waV to do [hat.’"
Bui]din9 on the idea o£ expanded choice, £he proposal also seeks re overhaul the 21st
Century Community Learning Centers program, r~nam~r.g it the 21st Century Learning
Opportunlties p~cgram. The budget would cut the prog~-am’s fu:~ding from about $],08 billion
this yea~ to $800 million, a nearly :~8 percent decrease.
Under 5he existi;~g pru.gr~m, s*.a~.es resolve fund:~ throuBh formul~ grants, :~hich they %hen
~llocate [o ~choo] d~str~cts, non-profit or~a~izations, and other rec~.pients to finance
after-school and su~r programs, particularly for students attending
S choo,], s,
Under t|,e admi~,istraLion’s proposal, funds would co.’~ti~ue to ile~-~ fxor4 the Education
Department to states. B[[t states would then allocate the funds to non-p~ofit
ocg:~nizations, which would distribute the money to <he parents of low-income students who
attend schools that have faiied to meet NCLB’s achievement targets. Parents could use the
mo~ey to cover the cost .:~f academic after-school or su~[~e~ programs.
Jod£ Grant, the directc~ of the After School Alliar~ce, a Nashington-basud advocacy group,
said in a statement that "the pr3posal converts the very suCCeSsful 21st Century
[nit~ati.ve to a risky and unwise voucher p~ogram."
The proposed shift ~o~ould "pull the rug o,~t from under quality programs that are currently
sac-ring families in need," Ms. Grant said, si~se programs ~hat now receive grants for
three to five years would no longer b~ able to depend on a steady source of f~ndin#.
Restor{.ng Reading F~rst
As announued by ~ezretary Spell]ngs on Feho !, the budget would also seek to reszcre a
significant cut ~n the fiscal 2008 budget to Lne ~ead[~g First pro@ram, Congress ~lashed
:h~ prograr~, which had bee;] financed a< j~:st ov,=r $] billion a ’/ear for several ,/ears to
$393 mil].{o%, a 61 percent dee,’ease.
Page 109
Still, the program has fans Jn Cm~g~-ess.
"i am paxticu].arly pleased to see that the president’s budget restores funding for the
Reading First p.~cgram, which wa~ slashed despite its proven effectiveness and bipartisan
efforts to strengthen the program’s manageme~t_," Rap. Howard P. "Buck" ~dcKeon of
California, the top Republic=-n on the House education cormmit~ee, said in a statemen.-..
The president’s propose! again targets a number of programs that perennially h.~ve been
placed on the -administration’s chopping block on!y to be spared by iawmaker~.
again ~eeklng to eliminate the $1.16 billic.d Career and Technical E/uc~t[or~ ~tate Grants
program. He proposed e~.iminating the program in fiscal 2007, b’at its fl~ndinq was restored
by Congress. In his fiscal 2308 proposal, Mr. Bush suggested $1icin~ the ~rogra~ to
million, b~]t lawmakers provided $i.16 billi¢m, close =o the fiscal 200-1 level of 51.18
billion.
’[’~e presidenz’s fie:cal. 2~309 request wouid zero-m~t 47 Zducation Departme~t programs,
including the Zducat~onal Tech:]~lugy State Grants, financed at $Z67.5 mz]lioR in fiscal
200~’, and the Even Start "family literacy" program, funded a[: $~.5 m~.l].9on, Mr. Bush
slated those programs for elimination, l~st year, but. lawmakers [unded them anyway,
although ~t reduced amounts. Evel% S[~art was cut by 19 ~:ercent, and the Educational
Technology State gra~ts were. cut by about ~ percent.
The budget, also ~ould p~’ov].de increases for other administration priorities, i~:cluding
$200 million for the Teacher Incentiv~ Fund, which [~rovides grants to districts to
establish alternative-pay programs. That would be a 105 percent increase over fiscal 2008.
~oI. 27, Issue 22
More School vouchers, Fe~er Programs
By Maria
The Washiagt:nn Post <http:/iwww.washingtonpost.ccm!wp-
dyn/content/article/200S[O2/O4/AR2~OSD20~O26~9.html> , Eehruary 5, 2308
Preaiden< Bush wou]_d freeze the Educatior, Department’s discretionary spendfng at $59.~
billion, cutting or consolidating dozens of programs while expanding school vouchers and
restoring funding for a }~o Child Left rebind reading initiative that Democratic la}m,akers
s.J.ashed.
The budget would add $300 million re: Poll Grants fo~ Kids, a new voucher program aimed at
giving low-income students in struggling schools aid to help them switch to private
schools. It also woul~ provide $]. billion for Reading First, up f~om the $353 million that
Congress appropriated for nhe current fiscal year. The re~ding program has been beset by
allegations of conflicts ~f interest.
Some Democrats and education groups ~ontended rhat the budget would shortchange schools c.f
monaV needed to carry out. the si×-yea£-old No Child Left .Behind la~" and such other
pl.-iorities as career arid technical ed[~cation. Democrats also attacked the voucher
proposal.
Bducation Secretary Mar.qa~et Spellings said the budget would cut "ineffective" and
duplicativ~ programs to allo~.; a nearly 3 percent iccrease in funding for poor ~choois. The
budget would nearly double, to $200 million, fund2ng to he!p states and localities deva].op
teacher merit-pay p].an~. It also ~c.uld add $2.6 billion ~o Peli Grants for .)ow-~ncome
col!eg~ students, rain!ng the maximum award to $4,8~0.
Page 110
Dunn, David
From: Ounn, David
Sent: Thursday, February 07, 2008 8:51 AM
To: ’John Bailey (E-mail)’
Subject: FW: Congress Digs A Moat Around Its Ivory Tower (POt)
(b)(5)
I
Erom; An,’Jerson, Chris:y
See:t: Thursday, Febr:uazy 03, 2008 8;16 AH
To: CarJ.e!lo, Oer:r~i$; A,Jd, Su~an; Davis, Jim; Stearr, s, Hannah; Skand~.ra, ll.~nn~; Halaska,
Tot[ell; Dunn, Oav£d[ G~iko, Vincent; Ewmrr, Julia; Terr~il~ Julie; Rosenfeit, Phil;
Rid@w~,, Marcia,; Pi<ts, ~liz~be<h; }[apes, B~n~a; Zarling, E~ic; Tucker{ Sara Ma~t£nez;
M~cGuidwJn, K{ti~; Wur~han, Ze’ev; Smith, galarie ($RZ}; Ruberg, Casey; McGrath, John;
Kuzmich, Hoily; Heard, 0enby; Scheessele, ~4arc; Mcnitt, Townsend L.; ~lowers, Sarah;
Young~ T~azy; Mesecar, Doug; Truon9, Anh-Cha~; Lepore, Kristen; 5itel, ~obert
goellick, Todd; Jones, Diane; CO!~in, Kelly; Toomey, Liam; Tada, Wendy; Hervey, Tins;
Gartland, Lavin; Cohn, Krisline; Hatada, Tori; Ta!be~’t, Kent;
Sentance, Mich~cl7 Chtouber: P~tricia; Briggs, Kerri; Evans, Wendy; P~ivate- Spellings,
Margaret; Cas~rons, Zmi!y; Morffi, aessica; Hmncock, Annm; Foxle5,, ~¢nna; Evers, Bill:
Dl~ytrenko, Orysla; ~chaumbur9, ~man0a; Maddox, LBuren; Boston, Meredith; Anderson,
Christy; Yudc[, Samara; Wright, Cbris:o[:hec; O!dh~m, Cheryl; Gvibble: Emily
Subject: Congress Digs AMca< Aroun~ Its Ivo[y Tower
Congress Digs A .’.]oat A±cund Its Iv(~r.y Tower

By Margaret Spellings
The Politico <htcp: i/www.oolJ.~ico.,~om, n~.,~..,/~..._±e .....8:83~i.h , :
Last month aL the World Economic Forum meeting in Davos, Switzer.land, U.S. ousiness
Leaders talked ab.:~ut the urgent issues of tile day -- Kurmoi/ in war]d financia! markets,
the c~edi~ crunch in the U,S. housi.~g m~ket and suhprime morugage industry, and the need
fur human capital ~ retai~ uu[ competitive edge.
Th~Py~ve witnessed volatilSty in the s~_udent loan inclustry and the rising stud%nt
achieve~aent sco£es of our international competit::.rs.
They "get" where the U.3. is lagging behind, and they know the- culprits: rising tuition
costs, a burgeoning debt load and the fact 5hat on!y half of all minorities get out of
high school on time and fewer thar~ half of al! adults have a college cert.ificate or
degree, whet, 90 percent of the fasres=-qro’0~ing .~:ob~ in America require post-s~cendary
education.
Tc. tackle the challenges, they’re advocating new leaznir.g models, mo~:e inn:::.vation and
technology in the ~:la;~s.room :o customize ins.tru.:t~on, and e~:hanced collaboration between
business ar, a eduzatien r,9 prepare sLuder.ts fox the knowledge-based economy.
An,:] then t.hc~e’s the Uemocrat-led Congress.
While business l~ahers embrace ~he fature, Cong~-ess is vigorou~!y de[endin~ old _~truct.r .....
a~,d c.ut4[~r_ed practices Jn higher~ education at the b~hesr of e.ntrenched .~takeholders who
~dvocate the status rluo.
in C.ong~ess’ l.a:¢s|, at. tea~.Fc to ~_ene;,~ the Higher Education Act, which sets polJzy 1[,:,r mcre
:hart 6,(100 inst]t’Itio~]s that gove~’n IB million students ~nd through ~.~hich $~.b billion i.n
f~dera] tax dollaz~ flow eauh yeai:, it:~ response t_:~ the [undamenta! st_rucqural prcb].e.m~.
Page 111
that. plague our higher: education system and th~.a~en U.S. competJtive,~_ess is anemic at
best.
Ironically, Congress is rejecting the same solutions it’s advocating ~or other industries
i[t orisis, from toy manufacturers to the subprime mortgage industry: ,~vare transparency,
more £igcroms oversight and mo~e a<:count.sbilit.y tot the investment of federal tax dollars.
Its legislative "fixes~ ~h higher education amo:~nt to digging a moat around the "ivory
tower" instead of knock~.ng dowf, th~ very bar~iers that block access to an affordable poe%-
secondary education a~d to information that can guide a st~Iden<~s decision-ruskin] p~ocess.
The. good i~ews is there’s a better way: an ~c~reditatlon system that safeguards student and
federal taxpayer inv.-:,~tments in higher ed~]cat~c,n and that better ~omphasizes student
].earning and achievement as key indicators o~ instiuutional quality. Not a one-size-fits-
all approach but one that empowers consumers w~th information that is easily cem.~arable
across institutions, helps guide their d~.cision-making and informs the value of their
investment.
The bad news is Cong,ass is ~..ctive[y ;egis]a~ing to ~lndermJne the checks and ha!ShOeS in
th~ system. The pub]iu ~-;ili be none the wiser.
In a blatant ~nfringement of e,~ecutive branch authority, Cengres~s is proposing to st_"ip

the ~.S. []epartme.~t of £ducar_iom of ~tS a~lthouity to [s.~ue regulations holding ~ccredJting
~gencins accounnabie for ensuring the quality of programs an~ instruction at higher
education institutions -- a ~r~ove that~ leavgs st’./dents ar%d taxpayers i~% the dark about what
they’re act~ally getting for theft money.
Would the .~.erJ.can [~eop]~ l~t powe~’fu] lobbying forces persuade Congress to handcuff the
U.S. Securities and Exchange Co,lesion from carrying out its responsibility for ensuring
that consumers have the data they need to make informed decision~ about, their investme[,ts,
whether saving for a ~om~, <heir retirement ~,x their children’s ~du<ation? Of course not}
Then why has Congress been persuaoed [o block the U.S. Dep~rtment of EduGaEi~n from
overseeing the quality of i.ns~itutions of hi~her education by special interest forces
determined to keep the acct-editauion process insular, clubby and accounEable to ns one but
themselves’[:
A college educat].o~ may be the single greatest investmer~t a student or fami].y make~ ~nd is
th=- key to the ~eriuan dream. Congress should do ev~.rythlng ~n its power to ~nsure a
robnst system o~ oversight that guarantees suudents will ~eceive the q~.~lity o~. e’ducat~on
that an institutisn a0ve[tises and t.haE t.~x@ayers J.nve.st in.
Oversight o{ the se/f-regu!~ting accreditation sysnem, already plagued ~;ith conflicts

interest, is nn import.ant tool for the Department of Educ~tion’~ p~otec%ion of student
inter~.sts. Wha~ Congress is p:o~osing :~ou~d remove that cri[im~l c~e~k.
At the end of the day, will Congress be on th~ side of <he 18 million students and their
families who believe higher education is their ticket to a better quality of ]if~? Or wil!
Congress side with an e.[it~ few who refuse to acknowledge the changing f~ce of ~e~ica,
dismiss gains by our international competitors and scoff at incorporating innovation and
technology ~nto today’s dynamic [earning environment?
Time wi[] tell.

Margaret Spel.J.ings is the U.S. secretary of education,
Page 112
,Dunn,,,David
From: Dunn, David
Sent: Wednesday, February 13, 2008 I0:32 AM
To: ’Stack, Kathryn B.’; Kuzmich, Holly
[b)(5)
From: SLack, Xathryn B. [mailto:Ka.Lhryn t~, Snack@omb.eoN.gov)

Sen~: Tu.=.sdav, £ebzuary 12, 2008 7:-30 P~j --
TO: Dunn, David; Kuzmich, Ho.t’Ly
Subject; FW: ACC meeLia~
(b)(5)
From: Stack, Kathryn B.

Sent: Tuesd-3’!, February 12, 2908 7:.2i
To: Johnson Ill, C!~y
Cc: Shea, .Robert J.; ~rown, Dust.in S.
Ib)(5)
(b)(5)
FroLic: Johnson III, Clay

Sent:: Tuesdayr February i.:’,, 2006 5:31 PM
Subject: ACC meeting
[b)(5)
Page 1!5
David
F Tom: Dunn, David

Sent: Friday, March 28, 2008 9:26 AM
l’o: ’Sharp, Jess’: Bailey, John P.
Subject: RE: Credit Turmoil Raises Student-Loan Worries (WSJ)
...... Original Msssage .....

From: Shdrp, Jess [mail.to:Jess Sharp@~.;ho.e,-,p. go,,’]
S=_nt: Ft’!day, Narch 28, 2008 9.~24
T~: Dunn, David; Bail~y, John
Subject: Re: Cred:-: Turmoil Raises Student-Loan Woxri-~s (WSJ)
...... Origi s~ai Hessage .....

Frem: Dunn, David <David. Dunn@ed.g~v>
To: Sharp, Jess; Bailey, John P,
Se~t; [~i ~er 26 09:09;16 2008
Subject: RE; Credit ’furmoii R~ise$ ;~tudeRt-Lo~n
..... Origiaal Hessage .....

F<om: Sharp, Jess [mailto:Je~s_Sharp~who.eop.gov]
Ssnt; £rJ.day, March 28, 2008 9;06 AM
To: Ounn, David; Baiiey~ Johu P.
Subject: Re: Credit Turmoil Raises Student-Loan Worries (WSJ}
..... Origins! Message .....

From: Dunn, David <David. Dunn~ed.gov>
To; Joe. <jbodmer@acf.hhs.gov>; Sharp, Jess; Bailey, .7oh:: P.
Se;~n: ["ri. Mar 28 08:59:50 2008
$ubject: ~w: Credit 1’urmoil Rafses Student-Loan Worries (WS3)
/(b)(5)
..... Original M~ssage .....
From: Private - Spellings, Marqaret
Sent: Fr.idaa,, March 28. 2008 ~:31 AId
To: Oumn, David
Subject: F~v: Crecit Turmoil Raises Student-f, oan Worries (WSJ)
(b)(5)
~ent from my BlackBerry Wj.~el~ss bev’-"ce

From: Ande ~:Son,
To: Ca~ie:_lo, Fl~.nni~; Aud, Susan; D~vi~, Jim; Stearns, Ha~;nah; ~.;kandera, Hanna:
E].if:s~; l{(:lewink, Vi~toria; Durra, D~vid; Galk~, Vincent; Ewart, .]u]j.e; Tar.cell, Julia;
Page 116
Sere Ma~-tinez; Monroe, Stephani.e; MacGuidw[n, K,~ti~; Norman, Ze’ev; Smith, Valarie (SRR);
McGrath, John; Kuzmich, ik~I.ly; Scheessel~, Marc; Mcnit~, Townsend L.; ~]o~.;ers, Sarah;
Young, Tracy; Mesecar, Doug; Truong, Anh-Chau; Lepor~, Kris~en; Eitel, Robert
coflick, Todd; J~nes, Diane; Colvin, Kelly; Toomey, L~am; Taoa, Wendy; Hervey, Ti~a;
Gartland, Lavin; Cohn, Kristine; Mourn, P.oh~rt; Hatad.~, ’[czi; T{Ibert, Ke~t; Keeling,
Aiycyn; Colby, Chad; Scott, K~el].y; Robb, Car!y; Sentence, Mizhae!; Chlouber, Particle;
~r~.ggs, K,~r~i~ Evans, ~,[endy; Private- Sp£11ings, Margaret; Cssa[ona, Emiiy; Morffi,
Jessica; Hancock, An~e; Foxley, Donta; Evers, 8i!l; Omytrenko, Or~’sia~ Schaumburq, lUg<ands;
Mad<~Ox, tautens: Boston, Meredith; Anderson, Chrizty; tudor, Earners; Wright, Christopher;
Cldham, Cheryl; Gribble, Emily; Crisp, Patricia
Sent: Fri Mar 28 38:1~::!~ 20U8
Subject: Credit Yurmoll Kaises Student-Lean Worries
Credit Tu~moi± 9.aises Student-Lean Worries
_=.y [~.obert Tomsbo
<http ://online. wsj. ccm/article/SS!20667039~916lO?45, h tml?mod--qcogl ~:new.~_

The Wall Street Jou[nal, Marc.h 28, ?008
Concern is 9rowing th%t the U.S. D~partmen~ of EducatiOn has ¥~t to detail its pliers for
making emergency f.=.deral loans if studen~_s can’t hot-row-qhrough normal channels for r~he
coming SChool year-.
Typically, around this uime of y~ar, many students receiving admissions letters are
referred by their" colleges 1o one of 2,000 banks and cthe~ [e[~e~s that make lo~ns through
uhe fa.~era], g0~’ernment’s ~ah’a[~teed-lo~n prc-g~’am, which s.ippli~s billions of dollars
pay for col;ego and is by far the l~rgest source of f~nanaial aid.
But ~his year, inves.uors who normally buy the :-.cans in bundled lots have balked m.~id
broa,-_’er turmoil, ill the credit market. More than q~-~o dozen lenders
of the loan volume have said they ~ould be drc.pping out of the
¯ [he Zducation De~rtlr.en[ and others have said the:," expect that pienty of <:redit ~ill sti!l
be available for college. But the signs ~f ,iistre~s have prompted calls from Congress and
elsewhere for the depa:tment zo make pl~ns t,Z sial% a~ emergency l~nding channel, ~alled
the "lender of last resort" program, should it be
Under fedexal law, the Education Depa~tmcnt can advanc<: U.S. Tre~.sury fu~:~ to tb, e 39
student-loan guaranty agencies around the country i{ so man], prlvate icr:de~s abandon th<.
{ederal !can mar}:et thar studen.r.s 9r.e u:labl~ tc ohm.s!n f~&s..
but the last-ditch channel has. never been triggared or tested. A~d the agencies say they
still don’t know how they would requos: %he funds if they need them, how much they could
.get, and how lung it would take to ,:eceive them.
In a ;otter to Nu~ranty aNencies on Wednesday, the department said it is skill reviewin9
how and whe[~ such a@ven~e$ could be m~e. "Should the ~eed arise~ additions! information;
and guidance wi!l he issued," wr(~t~ Lawreru~e Warder, the deparcme:=t’s actiA9 chie~
operating office~ for federa~ s%udnnt a~d.
"i think they are mov.~<g too alo~,~iy," said Rcp. George Miller. [b., :alif.}, chairman uf
the Mouse Coramitte~ on Education a~:d Labor, who h0s prodded the education d~p.~rtment to
m, ake sure the lender of last reso[t program is roe,Jr and functional if needed. "If it
takes tbi~ long to go: the program into ~hape~ what happe,]$ if, in fact, they are going
The govermr;ent has estima.~d that 7.6 million st:.~cents and parents would bo~:o~ 595.1i
billion from private lenders during the 2008-2009 academic yea: in .-.he Fede~al hamiiy
gduc.ation Loan, or FFEL, program.
Department offficials sa’.,, they are cot:coined aboHt the ~:certainty i.n the ~tud-~nt loan
market and have met ’,,’i~h Treasury Depa~tment officials aboun ~nnd~.ng i~sues. But they
c~aintai~ the%r moniteuin~ has yet to find instances Of eligible ~tu<le:~%s being unable to
g~t a fede~a[
Page 117
They say their first priority is :o make sure the guaranty agencies have their
contingency plm~ updated and in order. This week’s S~tter gives them 30 days t~ do
also orders them to f~.nd privat~ ].endezs willing to scr~ as ]~nde£s of last ~sort
torsi[ to specific time per±,~ds and loan volumes.
If a lending emergency deve].ops, "we are ready now and we would he read2 in the future,"
said Hanna Zkandera, deputy chief of staff for Education Cecret~ry Margaret Spellings.
Philip Nay, ~-rssident and c~.ief e~ecutive .~fdioe~ of the Nationai Association cf Student
[~in~ncial Aid AdminJs=fators, said Lhe fs.deral 0fficia[s should already b,~ ha~erJRg out
details of th~ fnndtng advance syst,um ~ith guarantors. He noted that late spr~ng iS when
The guaranty agencies have also bee~ p~-essing the department te b~gin d~.scussing the
procedures for emergency federal advances n~w. One ~eaSon is ~hat, amid the credit
some have been h~ving a tou{h time getting priva<e lenders tc
l~,]ding even though such loans are 100% guaranteed by the ~ederal government.
Sue McMil. l. in, president and chief ezecutive ~ff~ce[ cf ~he Texas Guaranteed Student Loan
Corp., in ROu[,d Rock, Tezas~ said her ~gellcy has been %urned dawn outright by
and is still canvassing others. "Depending en how it plays ou~, we could have
limitations"
on ].end£ng, she s~id.
Guarantors ~ay they als0 _+ear having ;o adapt .~c a:% untried federal-advaace system after
~ruuhles ha~,~ al~eady be~uh. "It’~ jus% prudent to have a proc¢:ss in place rathe[ than
havinq to scrhmble i~ ~c are having a problem," said Texry L. M<.ilenburg, a 5en~cr vice
pxesident cf ]ndianano!is-based United Student Aid Funds Inc., the nation’s !a[gest
Wrize to Rd~,ert ~omsho at rob. Lomsho@ws~.,2oml

Page 118
_Dunn~ Da, vid ,,

From: Dunn, David
Sent: Monday, March 3t, 2008 9:28 AM
To: ’Kaplan. Joel’
Subject." FW: Education Department Issues Lender-of-Last-Resort Guidelines As More Banks Quit
Federal Program (CHRONED)
..... OTigiaal ~;essage ......

~rc, m: Ande[se.n, Christ},
Sent: M~nday, !,la~h 31, 20C~ 8:23 AH
To: Carieiio, Dennis; Aud, Susan; Davis, Jim; Skandera, H~nn~; Leone[d, R!is~a; HolowJnk,
Vict.nria; 9unn, 9avid; Ewarr, Julie; Tcrrell, Julie; R¢$enf¢it, i:hi]; RJdgway, H~rcie~
Pitts, Elizabeth; Hapes, Brenna; Ea[ling, ~ric; Tucker, Sara Martinez; genres, G~ephanie;
MacGuidwin, Katie; Wurman, Ze’ev; ;]mi<h, Va!aria [SRR}; McGrath, John; Kuzm.ich, ~9}iy;
Schees~e].e, Male; Mcnitt, To~.;n~end L.; Flowers: Sarah; Youn9, Tracy; Hesecar, Dougz
Truong, Anh-Chau; Lepers, KrJ.sten; Eitel, £obert S.; Zoo]lick, Todd; Jo~es, Dia:,e; Celvin,
Kelly; To~m~y, Liam; ’lade, W~ndy; Gartiand, Lavin; Zeta, Kristinc; Kcrar,, Robert; Ha<ads,
Tor~; Talhert, Kent; Keeling, A!ycyn; Colby, Chad; Scott, ~clly; ~cbb, Carly] Bental~ce~
Michaml; Chiouber, Pat~icia; Sriggs, Ke~:ri; Evans, Wendy; Private - Spellings, Mazgaz’et;
Casarona, Emily; Morffi, Jessica; Hancock, Anne; ~’oxley, Donna; Evers, Bill; Dmytrenko,
Orysia; Schau~urg, ~.anda; Maddux, Lauren; Beaton~ Meredith; Anderson, Christy; Yudof,
Zamara; Oldham, Cheryl; G[ibbie, Emily; Crisp, Patricia
Subject: Education Departmen~ Issues Lender-el-Last-Resort Guidelines As Here Batiks ,~i.t
Federal. Program (CH~OHZD}
Education Department issues Lend~r-of-Last-l{esort Guidelines As More Banks Quit Federa!
Program (~HRONF.D)
By Pau!.
The Chronicl.e of Hi.qher Education <http:/./chr,~.nicle.com/~aily/2,:]Oa/OS,"2292r,.htm> : March

2fl, 2008
As iLenders continue co pull out uf the feder~.L governmenti’s guaranteed-student-loan
pro@ram, the Education Departme[~t this week issued g,~idelines for establishing "lender-el-
last resort" p~Og[ams that would make c~rtain stu~Jents could fi~d inars if the guvernmenn
declares a loan emerg~n:y.
Five pages of gu~d£~li~e~ wez~ sent <o 35 @ua£antee agencies, the nonprofit entities
use federa! money to £epay lenders when borrowers default, if a lend~r--of-.last-resort
emergency ±s ~ec].are.J, the guarannee ~gencies would be assigned to helping students
private lendezs, cr even to i~sue leans themselves.
At the same time he issued the let<e:, the depa[tmcnt’s ~hief of staff for fid,:-~al student
aid, James F. Hannir:q, reiterated the department’s bel£ef that the withdrawal of l~nders
from the loan ~rogram is not ye~_ hurting the ah~].ity of ~r-udents tc find loan ~cney.
"Right now we’re comfortable with what’s available" for students, :.It. Kanr, i~:g, who also is
s~-rvizg as th.~ departme.<t’s a,_-ting chief ups.rating office’_, saic in ~.-. interview.
The depa):tment’s attitude, drew rent-wed protests from guarantee agencies and iendurs, who
complained tha£ %he d~partment is dragging its feet instead of n~king all possible step.~
to guard again~ the <:r’;sis they ar’,~ expectzz~g.
The £~.t thg[ stuflc~]l;a can find loans now doesn’t mean that will still me the case in
low months, when students seek loans fo~ the fail semester, said 3Jolt E. l.i.ef, preside,t
of the National Council uf Higher Education= Loan [’rcgrams, which reF,=~sents guarantee
age~,:’ie~ and ncnp[ofit l~uders.
But by the nine .~~tude,t~ complain to-.-.el, loges -~i..d c(;].]e..-..es relay thu.~c- co:i:plainzs to the
Page 119
department, iL will be too late to head off a crisis, he said, because by then "~.he mJae
~’ha£t is filled in with gas," Mr. Liei said.
Loan companies have h.een warning of a r-’zisis. They bi~me Cc-ngress’~ d~ci.sion last
September to ~-ut $20-hi.llion from the subsidies lenders r,eceive fox issuing fe~erally
gua£-an~eed student loans, as well ..~s the centinu0d tighte~]inq of credit me.rketa following
a surge in mo~tgag-~ ±oreclosu~es.
A series of l.en-.’le[s, such as College Loan Corporation an~J M&’{’ Ba~k, have announced in
recent weeks -_h~t .they wol]’t offer f~derm!J.y gua~ant~d student loans. Thn-se joining them
this ’~;eek include B~’~zos Higher Zducatio~ Service [:mrp<,raiiun, the nation’s larqest not-
for-profit holder uf federally g~,arante~d st~,J,~n~ loans, and ZJons Bank, the program’s
largest Utah-based bank.
Mark Kantrowitz, publisher of FinAJd, a Web site than provides sLt:denn-aid ~.dvioe,
c.~nimates that only about 15 p,r~vmt~ lend,Its will xcm&in in th~ program by next. year.
None ,:,f those remaining .^,ill be nonprofit lenders, even ~hou.~h Cc.ngress in Sept.ember gave
them a subsidy cut smak!.er ~han the cut it ~ave ior-profit lenders, Mr. Kant~o~;itz said.
He expects the 15, however, to be amor~g the largest of the 2,000 ]enduzs that participated
this academic year. Most of the 2,000 lenders in the program Mrovide a tiny p~Centage of
the foderal[y backed s<,dent-loan volume, and their withdrawal f~cm the system would not
he expected ~o have m~jor e[fects or, overall !oan availability.
Mr. Manning, ,gf ~he Education Department_, did no% dispute Mr. Kantrowi~_z’s estimate, and
he said that m.~ny o~ the nation’s large-st b.~nks have indicated their intention to remain
in the program.
Switch to Another. Program
In addition, :{one colleges are making preparations to join the de:act--lending program, in
~hich studen~:~ borrow directly f~om the Erlucltiun Depaz-tment, instead c.f fr.om a priva:e
b~nk.
The direct-lending progra.n’, hand-’.es only abont 20 percent of al’- [ederally guar£nteed
s~udent !endir~g, b’~:: at least 80 colleges have aU-[:,]ictl so far t~.is year to join the
program, M~’. Manning said. There are now 4,52~ cc[legc:s in the bar, k-based program, 1,051
Felyinq on di~ect lending, and about 300 offerin~ their students both options, he said.
Democrats h~ve argued !,n z~cent yea_~s for strengthe~:ing th~ ¢irect-].e~ding program.
the <:h:~irm~n cf the Honse ~duzation co,unit.tee, ~ep. George E, Mil. ier, Democrat of
Ca[ifornla, led pane.l, members earlier this month in cha]lengln~ Education Secreta£y
Margaret Spellings to prepare to k~ep the bank-based system running.
Mr. Mill.or, in a fo]].ow-up letter, repeated several of those concerns, %ailing Ms.
Spellings that the department "must take additional steps to ensure co,tinued,
uninterrupted access to federa~ c~llege loans."
Under the iendar-of-]..ast-r.eso~t provision, quarantee agencies wculJ be asuigned to helw
students who have been denied loans by at least t~.~o ~[ivate leaders in ~hc ~edera}.
program. If m !oan emergency is declared, lenders if, the federal program ,~’ouid he enti~le~
to a i~O-percsnt repayment from the federa! government if a borrower defau!sed, Unde~
no~mal circums<ances, the goverT~enz general~y guarantees the ba::ks rBp~.yment at ra:es
between 95 percent and 98 perce~t.
If the extra incentive doesn’t help unough, students, the government ~ould provide tha
guarantee agencies with federal money that th£y ~culd lend direc<l~ to stu~en:s.
Doubts About P~’acticall.tics
Mr. MilLer arid he wanted assu[ances from Ms. SpelLings the.-- she had made arran,=]emen:.s
with ’/’re~sur2" Secr’~:ary H~nry M. ?aul~on to deliver money to l:he guabante~ agencies Jf
neces~ary. Mr. Miller nlso as,:ed the department ~o c]ariEy for guarantee ~genci,~s how the
p?ncess wc.u].d work, ensur,~. [haz the dizect-]endinq program could handle a sharp increase
iF, .<-1:::ma~:d, and Lake steps tu help eoile~es swiEuh m:~re easily between th~ bank-based and
dire<’t-len~.[~%~ pro9rams.
Page 120
’[his week’s letter from Mr. Man.!rig fails to memtion any system for delivering money to
the guarantee agencies~ Mr. Lief said. It also fails to discuss the possibi!iLy of
colleges’ obtaining a lender-of-last-reso~t dezlaration for the .ent[r~ institution, rather
~han requiri~g each sludent to demonstrate an inability to find a roan, he said. And ~t
fails to consider the possibility of the Treasury Department’s ~u~king funds directly
available ~o Lend,is, to avoid rea~hlnq tht ~ci~t of i~pl~men~ing !ender-o~-last-~sort
provisions, he said.
A spokcsm~n for USA £’und$, the nation’s largest guarantee a~ency, repeated all three
conceEns. USA F~:nds is taking serious~.y its eblig~ti~n to prepare for ~ len~er-o~-]a~t-
reso~t declaration, said the spokesman, Hob ~[urray. "At the same tlme~ we wcu].d urge
~edera! authorities ~e u~ke necessary steps to e~sure l~qoi~ity" i~] the b~nk-based system,
Mr. Murray said, "so that lender-of~]as~-.-resor~ lo~n$ are used only as a last rescrt."
Although it ,,~as not men%icned in his ]ette[, Mr. Ma~%ni~g said ~n aa interview that the
dep~rtment was prepaxi,.g additional gu[dance "at some time in ~he not-too-distant future"
that would uutline the government’s plan for delivering emergency-loan funds to guarantee
~gencies.
"Ultimat÷ly the advances are indeed a potentia! gart of a lender-of-last-resort program, "
he said. "But quit~ fr,~nk!y, we see that as %he last step, if you will, in a
last-resort progra.~,. There are many things to c.Dnsrd~r before we ever get to. that point."
Less clear is whether r..he departm.=,nt wil]--c,r legally can--declta[e institution{,.i~e

eligibil[ty for a leander-of-rest-resort prog~’am, Mr.. Manning said. "Our ~_tta[’neys are
still l~oking at it," he said. "We will use every,’ tool .=.vailah]e te us uit~mately to [~ake
sure that students have access" to fedora!
Guarantee a.ge~cies such as USA Funds, despite their concerns, are cooperating wir.h the
department to prepare ~e~" a possibl~ emergenty, M~. Manning sa~d. Only three weeks after
department officials said they w~re troubled by the Stahe of preparations £cr a lender-of-
last-resort decla~at£on, "we’re much more c~mfe~uab].e with where ~e are now," he s~id.
Mr. Manni~,4 also made i[ clear" that the administration is ~et _ready r_c uffer assi.~ta~ce
directly to lenders. ~v~n i~ large numbers e~ iende=s with~r~w from Ehe b~nk-based system,
the 20 iarge~t ]en~ers handle 85 oercenL of student !oan.5~ he said. The ~ize of the
lenders, al.ong with the conti.nued migranion of some colleges uo the d.:.rect-lendinq
p~’egram, should pro’vent any large-scale ,lis~u[]tions, h~ said.
Pa~e 121
Dunn, David
Fro m: Dunn, David
Sent: Monday, March 31, 2008 9:29 AM
To: ’Sharp, Jess’; Bailey, John P.
Subject: FW: Education Department Issues Lender-of-Last-Resorl Guidelines As More Banks Ouil
Federa! Program (CHRONED)
...... Or/qinal Messa~

From: Anderson, Christy
Set[t: Monday, Ma~.ch
T~: Cariello, Dennis; Aud, Susan; Dav~s, Ji:~; Ska~dera, Hanna; I,eona~d, £]~ssa; HOlowink,
Victoria ; Du:<n,
Pitts, 51izab~’~h; Hapes, Brenna; Ear[in@, Eric; Tucker, Sara Mart[nez; Monroe, Stephanie;
MecGui4win, Ka~:ie; Wurman, Ze’~v; Smizh, Valarie
Scheessele, Marc; 14cni~c, ~o~-msend I .; Vlowe}[s, Sarah; Young, ’[rauy; Meseca~, D0ug;
Truong, Anh-Chau; Lepo~, Krist~n; Ei<e], Robert S.; Zoellick, T~dd; Jones, Diane)Colvin,
Kelly; Toomey, Liam; Tadaz Wendy; Gartland, l,avin; Cohn, Krisuine; Mexa,,, Robert; Hatada,
Tori~ Talbert, Kent; Keeling, Aiycyn; Colby, Chad; ScorE, Kelly; Robb, Ua~-iy; Sentance,
Michael; Chlouber, [;atr[cia; Briggs, K.3~’ri; Evans, Wendy; Private- Spellings, Marqarer;
Ca~arona, ~mily; [,lorEf~, 7essica; Hancock, Anne; Foxley, Donna; RveYs, ~iil; Cmy~renkc,
Orysia; Schaumburq, Amanda; M.~d,~oz, La~-en; Ueaten, Mereduth; Anderson, Christy; Yuduf,
Samara; Oidham, Cheryl; Gribble, Emil.y; Crisp, Patricia
S,.:bject: Zducatiu:] D~rtment Issues Lender-of-Lasc-Resort Guidelines As More Banks Quiz
Federal Program
Education Depa.~:-t:~-2rlt Issues Lea~dot-of-Last-Resort Guidelines As Maze Ua:Iks Quit Fede.~al
Program
S’.{ Pau! Basken
The C]~[¢.nicl~ af ilighe~ Education <http:/.,’ch£"onicle.comidail;,i’}.OOS!OSi2292n.htm> , March

28, 2008
As lea, dens cuntinue ~o pull out of the federal gover[!mer~t’~ gu--_~~[~teed-studenr-lean
program, r. he ~duc£[ti~j(~. Depa~ument th:.’.s week i.~sued guidelines fQx ~stablishinq "lender-of-
last resort" yu:oq-_am_~< that would make certain students could find loans if the gov.=..rnment
declares a lash emerg,2:]cy.
£’ive paqes of guidelines were sent ~0 35 guarantee agencies, the nanp[ofit entities %hat
us~ f~dezal money to repay ].ende[s wheu borrow¢rs default. If a lender-¢f-last-reso£C
emergency is ~eclared, the guarante~ a~encies wouia be assigned to helping students find
private lenders, ur even tc issue loans themselvu~.
At ~hc s:-,me Lime he Lssued the ]ert]r, the department’s chief of staff fo~: fedoral $Luden~
aid, Jam~s £. Karm~ng, reiter.sted the department’s belief that the withdrawal of i~nders
from the !Dan pro.gram is not yet hurti~.~.Z the ability uf studenzs to fJ~d loan money.
"Righ~ now we re comfort-able with what S ava~laDle fcr students, Mr, Hanning, who also is
serving as the deparZment’s acting <:hiei7 operating officer, said in an interview.
The departm,~n<’s attitude drew renewed pretests fron~ gua~a:~.%~u age~cies and endern, who
complained rhat the d,--’partment is dra~glng its feet instead of taking a.ll possible steps
to quard against [he crisis they are axpectin@.
The f~.ut tba~ stadents ~:a~-_ rind loans now doe:{n’[ mean that will still be the case in
f~W ~onths, when studonts seek l~ns £0~ the fall semester, said Brett E. Lie~, president
of the Natic.nal Cou.nci] of Hiqhei" Eduua~ion ioa~ Prmgrams, wh}nh re[~resents guarantee
agencies and nonprofit lenders.
Rut :Jy the Time sr, ldenrs cc,~:~[-’.lain to cclieges ari~: colleges relay those cOmpLaints to the
depa;-tment: it wi!] b.:. too -a~e to head oEf a crisis, he said, bc.cau~e by thc:i "~h~_ mine
Page 122
shaft is filled ia wi[h gas," Mr’. Lie’f said.

Loan companies have been WnrJ]ing or a crisis. They blame Congresa’~ decisfon last
September to ¢~Iz SZ0-b[llion from the subsidies lenders receiv~ ~or issuing f~de[a[ly
guaranteed student loans, as w~!l as the continued tightening of credit markets following
a surge in mortgage foreclosures.
h series of lenders, su’.:h as College Lean Corp.urati,on and M~T Da~]k, ~-~ave s.nno~xn¢~d ]n
recent weeks thor they ’~on’t offer federally quaranteed student ]oa~s. Those joinin.g theln
thfs week inn]ude Brazc.~ Highe~ Education Servic~ Corpo~atic.n, the nation’s largest
for-pr0fit holder of federally guaranteed student loans, and Z~on$ Sank, the
largest Utah-based bank.
Mazk Kantz’owitz, publisher of FinAid, a Web sire that provides student-aid advice,
estimates r.hat only ab,-.~u~t 15 private lenders ’,:ill [~.~lain in th~ program by next y~ar.
?~one ,3f <h,ose remaining will. be nonprofit [~nd=-rs, even thocgh Congress i.n September gave
them a subsidy ,:ut sHoal]or than the cut it move for-profit ]end~.r~ Mr. Kantrowitz said
He ezpects the ]5, however, to be among the largest of the 2,[]0~ !endows that participated
this academic yeaz. l,{cs~, of the 2,~I)0 ].ende2s in the proqlam provide a tiny percentage of
the fed~rally hacked ~tudent-ioa~[ volume, and their with~ir~wa! from the system would nat
he expected to have majoF effects on overall icon availability.
Mr. Manning, a[ the ~<%ucation Depaztmen[, di,~ not dispute Mr. Kant[owi-_z’s estJ.mato, and
[:~_ said that many of <he netion’s largest banks have indica~.ed their intention to ~el~.ain
i.~ ,:he p~ogram.
Zwitch to Another Prc.gra~

In addation, some colleges are m.~king preparations to join the ,iire’cL-]end~ng progrem,
which ~tudents bor~o,~ directly from the Education DeF:artme:~t, instead ef from a private
~ank.
The direcL-lending prOg.~am handles only about 20 ~ercent of all federally
student lending, h~:t at least 9~ colleges have a~K.li~d st. far thi~ year to join the
pro.gram, Mr. Manning sold. There are ~ow 4,5~9 colleges in the bank-based program, 1,051
rtlying or, direct !endi?,g, and about ]0O oifering the~z students bo.th c.ptions,
Democrats h~=.ve a:gued it. rc,zent yea[-s ~¢~ strengthening the direct-lending pro.gram.
the chairman of the llouse education co~ittee, Rep. George E. Miller, Democrat
Callfcrnia, led panel members zaziier this month in chaile~ging Education Secretory
Margaret Soe[lings te v.repa~e to keep the bank-based system runnin9.
Mr. Miller, in a follow-up !ent~r, repeated sea, era[ of th~se concerns, telling
Zpel].ing~ that the d~partmenr "must take addit~c.nal steps to ev~.~ure coP.tinued,
uninterrupted access to federal college l.~ans."
U[%der the lender-ef-]ast-~es-or[ prevision, guara[~t~e agencies ~uuld be assigned to help
students ~ho h~ve been defiled loa~s hy at !~ast two private l.enders in the federal
program. [[ ~ icon emergE:hey is decl~ed, lenders in the ~e~eral proqram ~cul.d b~ entit]~d
to a 100-percent repayment from the federal g:~vernmant if a borrower defaulted. Under
ncrmel circumsta:]ces, th9 government gel~ezally guar~nt~es the hanks repayment at rates
between 95 percept and 9~ percent.
!f th,: e:.:tra in,.-.cntive does0’t help enough ~tudents, the government ’^.euld pro.vide the
lt.~ wic.h fedeza~ money that they would l~nd ai.rectly ~o student~.
boub<s About ~’=actiaal~ties
Miller said he wanted assurances f~om Ks. ~pellings thaL .~he bad L~ade arranoemcnts
Treasury ~ecr~tafy Hezry N. Pauls,z.n to deliver money to the gua~an~e~ agencies if
n~uessazy, Mr. Miller al,~c asked the department t~ s!arify ~or guarantee ~gencies how uhe
prOuess ~.~ould work, e:Isure ~hat Lhe direct-le~ding program ~¢uld h~[~dle a sharp i[~c~ease
~ect-lend~n~ programs.
This ~eek’s letter from Mr. Man~[[J9 fails rc~ me~F,:io[~ .~ny sys&em for deliv~_~’ing mcn,~:y to
Page 123
the guazantee agencias, Kr, Lief said. it also fails to dis~zus$ the possibility of
colleges’ obtaining a lender-of-last-resort declaratim~ fo~ the ~nti~e instit~tJ.cn, ~ather
than r~quirin@ each student to demonstrate an inability to find a !oan, he said. And it
falls to consider the possibility of the Treasury Department’s making funds directly
available to lenders, to avoid reachinq the point of ~mplemenhinq lehder-of-last-resort
provisions, he said.
A spoke~:man for USA Funds, the nation’s Largest guarantee agency, repealed ~~~ three
concer~s. USA Vllr~d~ is ~aki,]g ser/.ously it~ obligation to pre~e lot a ]en,Jez’-of-]ast-
r~so~t declanation, sa{d the spokesman, 3oh Murray. "At the same ~{me, we would ~[ge
f~d~a! authorities to take necessary steps tD ensur~ i. iquidity" in the Uahk-based syste:~,
Mr. Murray said, "so that Lender-ofi-~as~-resort loans are used only as a last [esort."
Al~hough it was not me:~tiened in his l.er.te~’, ~-[r. Mannin~ said i~ an interview that the
department was preparing additional ~u~.danc~ "at some tame i]~ che Dot-tOo-d£stant f,.vture"
%h~t wou!~ outline the ~uverr.ment’s pl~n for d~liverin9 emergency-loan f~nd~ tu ~ua~a~tee
agencies.
"Ultimar-ely the ~dvanmes are indeed a Rct~.nti~l part of a lencer-of-last-resor~ program, "
he said. "But quiLe frankly, w=_ s~.e r_ha-_ Bs the last .~<ep, if yelL! will, in a len4er-of-
iast-r%s~rt prmgram. ~hene a~e many things to con~ider before ~-=. ever ~et to that :~,oint."
Less clear is whether the depar.=ment wil!--or legally c~n--declare i~stituri.onw:_de

eligib£1ity for a lender-of-last-resort program, Mr. Ma.:]ning s~.id. "Our att.~:neys are
still loukin_~ at it," he said. "We will use every t.~ol avail~_m~!e to us ultimately to m.~ke
sure that students have acce.~s" to feder.~l
Guaral]tee agencies -=uch as .USA F,lnds, deapize thei~ cencerp-s, are ,-.coperating with the
depautmcnt to prepa~ f{~r 4 possib]~ emergency, Mr. M~nning said. 0nly three weeks after
departn~ent officia.ls said they were troubled by the state of preparations f~r & i~nd~r~of-
la~t-[esort declaration, ’~we’re much more curule[cable with wh~re i-;e a<e no~," he said.
Mr. Mannii~q also m~de it clear that the admznistuation is n,ht ready t~ cf[e~ assistaT~cc
directly to lenders. Eveu if ]~rQc ;~umbet.~, of lendeJ_-s withdraw f~:o!.’.~ Zh~ ban~-based system,
the 9_0 lag’gent lenders handle 85 p,~rc~nt oF s{.ud~:: lo~ns, ~u ~aid. The size of the
lenders, alc.ng with the c.,3nti~;uen migration of some colleges to the d~[ec[-lending
p~og~am, should prex, ent any iaxqs-sca~.e di3ruptions, h~_ said.
Page 124
Dunn, David
From: Dunn, David
Sent Tuesday, April 01, 2008 6:21 PM
T’o: Kuzmich, Holly; ’Bailey, John P.’
Subject: RE:
Not bad! Thanks Holly.

From: Kuzmich, Holly
Sent: Tuesday, April 01, 7008 7:59
To: ’Bailey, John [~.’; Du~~, David
Subject :
Chairman Miller Statement on Achninisnratior,’s Propose! tc; ZsL.--.bli~h Uniform Grad’la,-.ion
Rate
Tuesday, April 1., 2008

WASHINGTON, DC --[;.S. K~p. George Miller (D-CA}, the chairman of the House Education and
Labor Co~r~nitE&’~., iSZued the fell.owing stau~men:, it: cespon~ ~c at, announc.~men~ made
by U.S. Secretary of Education Marga[-et S~eliings tna~ shm plans to establish a ur~i.[orrn
f~deral formula ~[:at all states wil! be required to ,&$o to de:elaine high school
grad,_’ation a~Id dropout rates. Cntil ~.ow, the ~3ush adl.:~i;]istmation has. allowed states to use
a broad :ange "-,f formulas to calculate their ~.raduation and dropout rates.
"There is ~ .’:].ear need for unifo=m national reporting cn graduation ;:a?.es in order to hoop
address our nation’s dropout crisis. Governo~s across many states have ~hown great
leader-ship on this issue] and lee< year I proposed a un~ [orm g[acuation rate that would
build on their efforts. I look forward to further rev~ew[n~ the Secretary’s proposal Jn
detail to see if it R~escnts the ~ight app,:each for establishinq a nationa! fozmu]a to
accu~a-tely determine graduation razes. Still, it ~s un[ortunate that the Bush
administrazion re~ec=ed an opportunity last year to work with Congress !n a bipartisan way
on comprehensive reforms to the Ne Child Left Behind law, an~l has instead chos~n to make
piecemeal changes to a law that educators and parents know is i.n need of signzficant
improvement."
Page 125
Dunn, David
From: Dunn, David
To: ’BaiJey, John P.’
Subject: FW: AP Wire story...
..... Original Kesaage .....

Frcm: Maddox, Lau~en
~ent: Fridav, April D;I, 2008 4:57
"[’o: Private -Spel!inq~ ~argaret; Zunn, David; Skan.:J~[a, Hanna/ Tl]c~r, Sara
Cc: Yud~f,
Subject: A~ Wile
WASHINGTON (AF} Educ~.ti¢.n SecreLa-~y Margaret Spellings is, seekinq tc e~se ~erries tha~
tight credit mar~ers migh< make £~ hard for students to get college icans.
~ Spel 1.ings said in ~n interview Friday that her deparzmen~ had reviewed the l~w and
conmluded t~at it has the authoriuy to quickly [xee up mo~ey from <he U.S. Treasury,
needed, to ~inance studen< loans.
9 She said the money would be: provided so tha[ guarantee agencie~ nonprofits that
traditionally hack student loans issued by banks can offer loans d~rect!y ir~ a pinch.
I Spellings said she was clarifyi~]g her autho[’i~y to do that because the~:c had been
confusiun about whether she would [irst nave to go to Congress and seek ]eg[s].ativo action
be[ore going tc the Treasury. That couJd be time cansuming, and [eqis.[atJve politics
cause further delay.
~ La~;maker~, students ~d f~nancial experts aae ~.;orr£ed that the nation’s unguing credit
crunch may make it ~ore difficult f~br students and their families t¢ find loans.
two dozen ].emders have d[-c-pped out of the federally hackod student ].Dan program. That
ha~{i’~ been a ~zoblem so [at, because they aren’t the bigges-t players and others have
~tepped in to Zrovide the icans.
~ Spmlli~gs cautione<: she was or~ly pr.~viding a safety net i[~ the event the federal
goveallmcnt’s help is r~eede~. Sh~ likened [t t.:~ ~.reparing [c: a h’.~rr~<an~ that miqht, or
£~igh~ not, hit.
~ "l’his i$ the equi,¢ale~[t uf staging foo& a~d water, " she said.
~ Students ace figuring cut now wh~re they ~e going to cull~ge in :he fall and wzl!
seek finaricing in the cominq month~. Ezpe’rts predict the impact of the tight credit market
on sZudents will become Clearer sometime ~his su~’,~r.
~ Spellings’ annc.un:~mcnt c~me a day aft~: Massachusc~ts Democra~ Edward Kennedy, the
cha~ rman of the SesaLe education co~mittce, introduced legislation sacking te ensure
students would have money to pay fo: college.
~ Due to the earlier- confusion about thc education sccre[ary’s au/hcrity, the Oill
includes ~angt:age stating that Spellings can ~o directly t¢ Congrc.ss :o frc,] uI] capital
for college loans,
~ Kennedy’s [:J].]. a!so would impL-ove the terms cf loans marent~ take out for
children by allowinq ~ep~yment to be deferred while students are £n school. The
legislation al:~o would ~Dcrease tuition grants tc r.h~ poorest students.
~ Caliberhie Democrat Ge~r@e Miller, the chairman ~f the House eCucation cem~.ittee, said
he pl~ns to intr<~duce similar legislation next week.
Lauren Mad~ox
~sisEant Sec-retary
0$ Department of Edhc~tie~
Office cf Co[~unicatiD.~s,, and Outreach
Page 126
,,Dunn, David
From; Tucker, Sara (Restricted}
Sent: Friday, February 15, 2008 8:36 AM
"To: Dunn, David; Warder, Larry
Cc: Qldham, Cheryl; Skandera, Hanna: ’Bailey, John P.’
Subject: Banks in student lending
A difference between strict ~tudent lenders and banks that also de lt~deilt ion,ling ....
http:/Ichrcnicl.e.com/dai]y/2,~OS!92/1566n.htm
Friday, February 15, 2008
Wi~h each passing day, the studen[-loan industry issues new wa[-nings about, the <win
dangers o~ federal subsidy cuts and tnrmoil in the credit markets stemming from the crisis
in suhpr~me mor~_,_qage [ending.
"Tr @eels to me ~.~e are headed to; a real crisis in the s~u..dent-]oan w:)rld," Richard
Shipman: di~rectcr of financial aid 5t Michigan State University, told The Betz’oit l,!eHs
this week after the state’s student-loan autheri.t;, canceled a pr{:gram [or :~ffer-i.qg przvate
student loans {The Chronici~, February
Industry officials have repeatedly cited such cutbacks i[~ both private end federally
stlbsidi..zed lendi.ng as evidence khan Congress werit too [az last year in culling the
sb’bsidies on government-back=~d loans at a Lime of overall econ:,m!,z [,erll.
Yhe College Loan Corporation has said it will stop offering federally subsidized loans,
Nelnet Inc. has said ~t wi.].l not write any new consolidation iuans, and 5aliie Mac, the
nation’s lar£est st;]dent-loan company, has said it wilt be more ~¢strictive in all
cateqcries (The Chronicle, January 24} .
Se%’eral lenders also re~,orCed in recent <~ays t~tat they we,_e unabl,--. Lo cc, nt~nue financing
their student loans thr’ouqh a~set-backod securi=ies~ as che mort,_-.age c~isis htd lef~
investors less willinq or able to afford packaged stude..n.~ debt.
Yet on~ o£ the nation’s largest student 10ndors, J_-- Horgan Chase 6 Compa~.y, dnesn’t s~em
to ha~e gotte:~ the memo.
The ]-=nK s student-loan division, <base Education Finance, ban anncunce.~ D.lans to ,-’~at
borrower rates, including eliminating the originati¢,n fee cn all feder.~l!y guaranteed
StudenL !cans.
A Differ’ant Strategy
Chase also said in its announcement that it .sill eliminate o-_iqinatien fce~ ou it~ priva[e
leans, mean].n~ those that carry no [ederai subsidy, ~-d~ile offering in:~er~su :ales "as low
as 1 percentage point below prime. "
Post college stude:~us rely o.~: 10ann, a~d "~educing fees ~nd i.n=orest rates for quaiifiec
a~licants will mak~ it ea[.ier fo~- them," Oanrq.’ C. Ray~ ?,resident of Chase ECucat)on
Chasu’5 positiol] uLands in sir;azp co¢~"_rast wich the warnings :hat others &n the indust[’y
have b~en issuing since Co~]g£es8 voted last September to ~ac~-ease student aid by some S2O-
billion and [inanca it by cutting the ~ubsidies paid ~o lenders i.n the g<~vern~ent-ba.nked
guaranteed-stud~nt.loan program, known as Lhe hed~ral Family E,!uc:ation T.oa~z ~u:cgram, or
ZFEL .’,The Chronicle, September i0, 20C-7) .
Page 127
Chase and other large banks can afford to buck the industry trend, said a conm~anv
spokesman, Thomas A. Kelly, because they have their own substantial assets an~ d~n’t need
to rely on securitie~ or other forms of outside investment to finance t~eir student
"We’ve been putting the loans on our own balance sneer," N[-o K~lly said in an interview,
"and so we don’t need tu qo he the secondary market i~ we don’t i~ant to. or if the markc~’s
~Ot good. "
Rather than l~ave the student-loan market, Chase has b~e.- increasing its ’investmer, t in i~,
through a,"tie,|s such aS purcha$inN ’Collegiate Fundi;,g Seevices, a company that originates
and services student loans, and hlrlng wc~rkers ].aid off by Nelnet.
"we have made ~ strategic decSsion," Mr. ~{el].y said, ".~n,i continue to believe that the
studenz-lending bcsiness is a good business."
That, however, isn’t ~:tcpFi~g .+..he st’~:dent-l¢,an indusLr, y from warning colleges and their
sLu(Jents of the !%al]c..e~5 ~he,/ still may face.
Full Effect Unknown

Not enouqh is known about the leveJ.s of service that ~ould be provided by Chase a~:d other
la~ge Danks "to know ~.~hat the impact would he on borrowers" who can’t ,so lenders that
have scaled back, l~ke College Loan C.oroora.tJon, Nelnet, or Sallie Ma~, said Kevin ~runs,
executive directo~ of Ar~erica’s Student’Loan Providers, an industry lobby group.
"Viewing it from Mars, yeah, I would agree 5hat it probably .3oesn’L make much dJ fferen:.’.¢
to students," Nt ~runs sa~d. "5u~. th<~t s lust conj,:tufa and irrelevant. What matters
what happens at the consu~r.~er level. It actually may matter a great dea! to individual
Some industry leader.<, have %.~arned Lhat colleges may find Leo few lenders to offer
gove£:~men%-subs.idized ]cans, a~d may be forced Zo use the smal".ex direc.’_-loan progYam, in
which s~ude~ts borrow d~:ect]v ~rom ~che EducaLiun Department.
Harris N. Mill,-r, .O:esident of the Career College Assc.c[at,lon, which represents for-n~ofZt
colleges, ha~ said !~is ~embe[’s .--ear that the d[re.zt-]c.an program might n0L be abl~ L~.
handle ~ sudden surge in demand.
But a spokesman for the associ.ation, Luke %homes, said the group had nc da:a
that "conjecture." The association’s fear, he said, is based on covenants [.~:om me~ioer
colleges that tried tile direct-loan system durine r_he 1990s "and were e×tre~ely
and Left, because of wh.aL r_hey considered m.~].~dm~nistration."
Education Secretary Margaret Spellings has renearedly said she ha.’-" seen nc soled evidence
that th,;, ~uhsidy cutb.a..-..k.5 of the atortqaqe-len~ing crisis :hreatcns no harm stnde~t
norrowers.
A department spokeswoman, Sam-:ra Yudof, expressed ::onfJdence that t_he ,lire~t-loan proq~<am
could handle any incieas.e in demand, though she did acknowledge some concern about the
overall effects fro.~ a r-eduztien in p~i’,,ate ie:~ders.
The cc.mFetition betwee,] the bank-based FFEL program and %he d:rect-!oan program "has
resulted in [nnovatic:ns, higher quaiity services for’ s~udents ann f.=_mi] [eg, and lower
costs for st,.Idenr_s £nd t~xpayers alike," Ms. Yudof said.
While the direct-lear, pr’oc~ram "gourd .%ccommodaie additional schools and the students and
families they se"’ve," she said, ":he dep.~rtmenL is ccnce_"ned the ber.efits of r.he FFEL
program coul.d diminish as a zesult cf fewer lender ~articzFants."
Cepy£ight © 2008 ~.,y Th;: Chronicle of ~.igher Education
’~’;uhs.-.rib,# I Ak~out The Chronicl~ I Co:<Lact us I Terms of us£ I ~rivacy policy

2
Page 128
Dunn, David
From; Bailey, John P. [John P. Bailey@who.eop.gov]
Subject: FW: Reading First Discussion
[’YI
Flora: S,:’¢LL Waller [mai ]to:waitez:@berm-anco,cc.m]

Sent: Wednesday, February ?.’;:, 2008 2:30 PM
To: Bailey, Joh~~ ~.; Pries, Angola N.; Scoqt, Kelly; tracy.ycu[19@ed.gc..v; P.owe, David
Subj,-_.ct: £.eading First Discunsl. on
From: Thomas B. Fordham Tnstitute - RSVP@edcxceller=.ce.net [mailto:ZZVPledexcelience,net]

Seal: Wednesday, 2"ebruary 27, 20081:50 PM
?o: Scott Walte~
Sub]cc~: March 1O: £eadin~ First Discussion
<ht tp :/!edexc,~ll.oc~e. netinew/institute_Log~.q~ f>

On the mornin.7 of .qez.:em.ber il, 200!, Presicle=’J. Guorg;~ W. Bush sat in a Ylormda classroom,
reading to oh! [drec and promoting his pet progfa:~:~ ReaGing First. Cong[ess later
a~Lhurized the initiative to the tune o[ $1 billion per year. Led by a passionate
direr:or, the prc:oram would eventually become a favorite among educate[s, and i53 £mpa~t
On reading sco~es would earn ~: plaudits from the Office of [4anagemef~t al]d Budget as the
only "effeCtiw~" p~ece el No Chili Left B~hind.
Six years ].ate[, Congress has slashed 9.e.:,ding First to otto-third of its fund~.nq, the Bush
Administration has ,~one AWOL, and the program’s d&rector has been forced to res~gn--a:~.
purp.crtedly because o[a "scandal" unccve~ed by the Dcpar~a.’.enL o£ £dusation’-~ inspector
General. But only one side of the sto[y has been told un.:il now.
What: really caused the demise of Reading First’? £’ordham’s forthceminq repo-"t, Tuc :{ood to
Last: The True Sto~.y o[ Reading First, writt%<~ by City Jcu:nal contributing editor .So[
Stern, investigates.
Join us on Monday, F[arch [0th for a lively di~ocussion about this important rep{:rt, .and
about the future o[ Reading First.
will
Lynanz~. Barbedc, Reaoing First D~rector, Bureau of lndJ.~n A[[ai[s.
Jim He,man, Reading First Director, Tennessee
S~ndi Jacobs, Vice President for P~licy, National <k:.unc~ cn Teacher Quality
Rick Nel.son, Former President, 5"airfax COu:]ty (V~_) i"ederatJ.nn ~[ T~azhers
Sol Stern, Sen.i.o[’ Fell~w, Manhattan I~%sLitatu and Cuntributin~ £di~A)r, City
Moderated by Michael Petrilli, ~’o/dham Vicu P[esi~~nt fez l.l~tional [’~’oqrams
Policy
Mo~day, Match i0
9:3[] - 11:00
Page 129
Break.£asL available ,.~ ~:00 _~
Thomas B.Fozdham 7nstitute

1016 16th St
7th F!oo~
Washington, eC 20036
RSVP? Questions? P]ce.$e c-mail rsvp@edexcellenc~.~.et or call ChrisLir~a Hent,Tes xt

2"02-223-5452. ~
Nationally and in our home sta<e of Ohio° the Thomas B. ~’crdham ’--nstitut~ sLrives to clr, se
America’s vexing achievement gaps by ~’aising standard~-, strengthening accountability, and
expanding hi,~]h-qua!ity e.ducaqi¢.n option:~ for parents and families. For mere information
abouL Lhe ins~itute’~ ;~ork, visit www.edexcellence.net
<h~:tp : i/ce. edexce’_l~nce .net/dsp_emailhandler. c£m?ei d=49958&u!,i--’~2301>
This e.mai] was sent to; walter@BermanCo.com I Click here

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This em~_i! was s.=.nt by: Thomas ~. Fordham Fc-undatic.n
Page 130
Dunn, David
From: Dunn, David

To’, ’Jess_Sharp@who.eup.gov’: ’John P. Bailey@who.eep.gov’
Su bject: Re: WSJ: U.S. Signals Student-Lean Shift (Tomsho)
SenE £~:Om :..~y BlackBerry 14ire]e8s Hanclhei,i

Fro~.: Sharp, Jess <Jess_Sharp@who.eop.qov>
To: Dunn, David; Bailey, John P. <Juhn P. Balley@who.e,:p.gov>
Senh: Sun Apt 06 "-~:35:13 2008
Subject; Re: W,qJ: S nais S~_u.dent-Loen Tc:msh~)
..... Origina! Has :-: a ge

Prom: Durra, D~vid <David. Dunn@ed.gov>
To: Sharp,
Sent; Sat h[.~r 05 10:22:!9 2008
Subject:
..... Oziginal Message

Flora: Yudo£, Samara
To: Private -Spellin~s, Margaret; Ounn, David; Maddox, Lau-=-e[1; Skandera, Hanna; Tucker,
Sara (Restricted}; Monxce, Stephanie; Tel.bert, :<ent
Sen:: Sat Ap,: 05 01:01:28 2008
SubjecL: WSJ: U.S. Signals St,~dcnL-Loa:: Shift (Tcmsho}
O.$. Sigr, als Student-Loan ,q. hift
ROBERT TOMSHO
April 5, 2008; Page A3
The U.S. Departme.~L of Education has decided to detail iqs plans for providin._~ emergency
student loans, i:] a sign that its planning fo£ possible disruL~tion of the market that
supports colleg~_ financial aid may he taking on gL-eatcr urgency.
Despite pleasure [rc.m nongressi,~nal ".’ca:lets and sta~_e-levs.l loan-guaranty agencies,
department had previausly indicated "it r]idn’t $9~ the i.~medla:e need to. provide such
guidance for th’-" !ast-dihch element of. its "lender cf last reso:t" program. In a March 26
lette~ to stud.~nt-lcmn guarancoE~, the .,.depaL-~ment said it would offer such informer!oF, if
the need arc.se.
SHAKY AID
, ’]’he News; Education o[ficials wiL! d~.tai] Fla.-.s f~r providing emer"gency ~Lude~t Loans.
l:)ans from private fanciers.

¯ O’_oLing Out: i<c;re than 30 p:ivate lend~.rs have said they will stop making ~ucli 13ans.
Page 132
Du=nn, Da¥id,,,
From: Dunn, David
To: ’John_P._Bailey@who.eop.gov’; ’Tony.Ryan@do.treas.gov’; ’Steven.Shafran@do.treas.gov’;
’smtucker@ed.gov’: Skandera, Hanna
Subject: Re: Plan Is Said to Be Near [or Federal Banks to Help Student Lenders
Wonder whece this coming f£om??????v
Senc fro.’.~ my BlackBerry ;-;ireless Handhold
..... Original .’.4e s s age .....

From: Bailey, Jo~un [~. <Joh.~ P._-L4ailey~who.eop.gov>
To: Tony. Ryan@do.trc~s.gov ~Tony. Ryan@do.~reas.gov>; Steven.$hafran@de.tre~s,gov
<Stev,z.n.Shafran@d,D.[reas.gc~z>; Dunr~, David; Tuckc~’, Saxa (Restric~ud) ; SkAn,Je~a,
Sent: Fri Apt ]8 08:27:26 Z098
Subject: Plan Is Sa~r] to ~e Near f.o[ Federal Banks ~o H~lp Student [,end;~&"
April 17, 200~
Plan lu Said to B~ Near t.-r~r Federal Danks ~o Help Studer,: Lendez~
Washington -- 5ducation Secretary Margaret Sp~l~ings and Troasury Secretary Henry N.

£au!~on Jr. were described today by some student~loan-[ndust~y of[[ci.a[s ~s {tea~in~
agreement o~] a plan in which ~he Federal Financing Bank and the ~Sera] Home Loan Sank
System would heip privet[, lenders by purchasing their stude~~t leans, g~vinG th~:~ cash zo
serve mere students.
Ms. Spellings started neqotia,.-.io:;~ just .as.-. ~eek ~ith loan-Jndustry officials LL, put in
place a iarqe-scale <http:I/chro:~icle.cem/~aJ]y/2008/g~/2477nohtm> iender-ot-Last-reso~t
aystem, in which the government wc~,]<l either ~ive mo[,ey to nonprofit age~ci~ for
~hem to remain in the ezisting
An a.nnouncement ,.’.~ the a./terna[ive plan, ua~.n,.] Lh¢ 5wc~ federa! banks~ is ezpeoted by Ha.
£pellinqs ~nd Mr. £~aulson within days, s.~id Philip B.. Hay, president and ch~.ef e~ucutiva
of ~he National Association of Student Financial Aid Administrators. Zuch an action ~.~ould
resort system, Mr, Day said. The expected Spe!lings-Paulson plan would cause !ess
disruption than a lender-of-!ast-ze~o~t ~yst~m because it would rely more on existinw
channels of student-l~an distribution, industry officials h~ve said.
"It’s exactly the type of thinq that w~ need to have come J~to play ~ight no~," Mr. Day
se~do The idea <ht%~:i/cnronlclc.cum/week~y/v~4/J29/29~O220~.htm> llas beer
p~blicly in recent weeks ~y Pep. 8£ui 5. Kanj~rski0 a Pe~nsylvania ~cmoc[at ~ho is
chairman of the House [’inancia]. Services ,Committee’s sub::ommirtee On capital marke~s.
O.-.her officials involved in student lendinq said they also understood Ms. spe!]ings and
Kr. Faulso;~ were ncari,g an ~greement o=: a plan for ~sing the federal agencies :~ direct
~.cre government funds toward ~rJvate studunt-loan zompanies, but did not y~t re~rd it as
i~in~n~. A department spokus~,’oman, S,~mara Yodel; said that Ms. Spelling~ had no p.:ans for
an ar, no~/ncement on the ~etter "at this ulna." --Pnui Baske~
Posted on Thu~’sday April 17, 200~ , <http:i/chron!~]e.cominews/artic!ei433bipl..;.n-is-said-
to-be-near-for-federal-b~,..’~ks-tc-he]p-s[ud~.~]t-lend~rs> Permalink I
Page 133
Dunn, David
From; Dunn, David
Sent: Wednesday, April 23, 2008 7:38 AM
To: ’John P. Bailey@who.eop.gov’; ’smtucker@ed.gov’; Skandera, Hanna
Subject: Re: Inside Higher ED:Senate Panel Proposes No-Cost Help for Lenders
Egads...
Sen: from my BlackBe~y Wireless
......Original [.]e s sag e .....

~’rom: Sailey, John P. <John :2. Bailey~who.~.c.p,gov>
To: T~ckez, ,:,a~a [Restricted); D’ann, David;
Sent: Wed Apt 23 07:29:20 2008
Subject: fnside Higher ED;Ser~ate Pane! 2reposes No-Cost .Help fo~" Lenders
April 23
:~euate Penal £’L-c.posss Nc-Cost Help for Lenders
Nonenzum has been building for" the federal governmen.’_ 1o take increasingly aggr~siv~
seeps <o ~-~ad{ into t:~e student ].cer: markets, ev~.n amid cu~Lir.uinq dtse..~[’eemer, t abou~
whethar and/or hew serious a crisis there ~eally is. Au :he urging of renders, lawmakers
have moved from merely <http://insideh~gheL’ed.c~,m/ncws/2OOB/O4/O4/loans> seeking ~o
,~nsu~’.~ that there a~e alternacive providers or loans, so that $~udonts du noh lose access
1o to.liege, tc <http;/!~asid~highered.cominewsi20(;8/O4/15i]oans> us!ling for oc~r~.ght
financial a~sisuance for banks and ,sth~r loan [3roviders.
Education Secretary Mar.ga~:e: Spellings and Tzcasury S~c[etary }lenr3’ Paulsc, n at,:. zepo[t~d
he be p[eparin~ this week rc announc~ &one joint azt~mpt Lu restore liquidity Lo the
entity like che Federa! Financing Bank to buy st,]dent loans that le~zdexs are unable to
sell Lh[ongh the tz:aditional ureeit market.
~=t~. tha possibility lurking in the ilear [ul:~:re, though, aides to -ew:i:akcrs en the Senate
Health, Education, LaboT and Pensions Co~m~tittee are floating enothe~ idea chat lenders
favor but cz-iLics deride as at, unpr%,meder~L~d, unn~.nessary and potentially damaging
bailout.
Under the proposal, which was descr~be,i in a:: e-mall me:~sag~, sent hy a Senate aide t.ha’:
was shared with inside Higher gd, the Education Uepar~m~nt would ccmmit to buyin
time <c time any cr ail of sush [Bans origir.ated o~ purchased my" any lender that so
desires, at the face value or th.e !oan. The p!an woQld [hen allow the Lender to repu,_chas9
"alW of the loans sold ~0 t[’.=: Seuretary" w~thin a year :’upon the ~alne terms ~nd
a’unditiuns" ~:nc:er which the department b.ought the ]c.ans from tile !el]dare Th=- arrangements,
k~uwn .as "standby loan pu£ch~se aqreeme~*ts," w.culd be possible Lhxcugh July 2009.
As descr!.bed by the Senate aice, the plan -- which was suggested by the Educ..=.ti,:,n :-il,ance
Counci!, which represeDts nor_profit lenders -- "wo~.:id al!ow lenders to issue bonds more
easily because they could de~,.,>,strat~ that investors cm]]d get out o~ them at an~ time
because [th,~] Secretary has agreed to- pa[chase Jesus."
Peter War~en, senior vi~.e presid.:-n:_ for gave,st,men,: -"elations ar the E,Ju;:ation
Co~ncJ.], s~id that he:zause "inves<ors ,,,,o~id know uh~y can se[! Istude~r loans}
expedited basis, i thJn~ they nan bc bzo,:gh~ back into this Ea~k~t .... Havi.n,~ the
dep£rtment as ~ standby purchaseL" wcu[.,J enable
The lender.~’ exg, ect.-tion, he sale, .is that "’the deFart[:~ent w~uldn’t end up
ioans," because j~lst the kllcwl£dqe that the fede~:al gove~nm,lnt i~ poised to buy them,
,~.nsuring a way rot an investor to s~. [ the lo~.ns at face value, would be e[:ough to
the icarus’ value ~n the credit markets. "This w,xu]rJ bo actually :aea:: less
Page 134
interv~mtlon," he said,
Several people fam.iiia~ ~’ith the student lending market, however, character~.zed t.he
preposal very diff,e~e:~-_ly. The fa,:’t that a le~de~ could :~e!l ~o the Bducation Department
any /oan.~ thaz i~ chooses and then buy the luan~ back esse~tialiy means that the fede~:al
government is .providing leDde[s ~zith a "completely free line uf crediz, which anybody else
has to pay for," said Barmak Na$:]irian, associate execuzive directo~- cf the American
AssocJatior: of C~].legiane Regi.~t~tars and Admissions Officex$. Bven ~he uther proposa!.5
suggested by the ].~nders and ].~w£:ako[s, like the or, e £n which the Federml Financing 9ank
~-zeuld make loans to fenders to enable th~{m to make st~dc~t lsans, would require lenders tc
pay some interest oh the fund.~ they borrow,
Th~ proposed arrangement could also enable lenders to pick an.’J choose which loa:~_~ they
decide to aell ~n<i buy hack, potentially resultJ.,]g ii]a siLu~tion in ~-~hich le~iders hold on
r_o their safest and me.st nro/izabfe loans (the, so they axe likelie~: <o bc able to _~.ell tu
tr~d:_tional investe£~ i[% the credit mar~:ets.’:, ,end to "dump:’ l:heir ,i.ski%~st loans, ar:d <hcs~
most likely ~o .,~o iilto defa,ll-:, or~ the fed~r’al gnvernment.
"The government will. reg[et iu," N~-~sirian said, "if it qives th~ }:sys to nhe ti:easury to
l~rlders once a.q~i..-,~ ~ :
-- <m.~il.-.o:doug.].ederm.An@in.<idehighered.com> Ouug Lederman

Page 135
Dunn, David
F rom: Dunn, David

To: ’John P. Bailey@who.eop.gov’; Kuzmich, Holly
Subject: Re: Reading First Discussion
Sent
..... Origim~l Message ........

From: Bailey, John [’. <John P. Bailey@who.copogov>
Uo: Dunn, David; Kuzmiclb H:)lly
Set.c: Wed Feb 27 14:2.5:2i 2008
Subject: FW: Reading First Discussion
From: Scott Walter [mailto:walter@bermanco.ccm]

Sent: Wednesday, Februa~¥ 27, 28(98 2:39 PM
To: Bailey, John £.; i~rice, AngoLa M.; S~orr, Koliy; ~r~uy.yo/nq(~ed.gov; ~o;~e, David
Subject: Reading FizsL Discussion
Fror.: Thomas B, Fo=~ihanl insti:ur_e - ~.,{V£@e(lexcell~nce.ne[ [mailt,~:RSvP[aedex,2.o1.1ence.a.25]

Sent: Wednesday~ February 27, 2008 1:50
To: Scott
Subject: M~r,zh I0: Readi~.~ First Discussion
<http: iiedexuelienc÷ .net/ne~.;iins:.i:ute_. logo. gif>
On th~~ morning of SeoLemb~.r II, 2C01, Pr.osi,Jent G,2~,~ge W. Bush ~a:. in ~ Florida class=earn,
readin~ zc children a{:d Fromoting his pet program, ~eading First. Congress l~te~
authorized the initiative <c the tune of Sl billion per year. Led by ~ passion~t~
director, the progxam would ever~tually become a favcrita among educators, and its impact
on reading s~ores would earn it plaudits faun the Oific~ of Management and Budget as the
on!y ",~ffccti~,’e" pieze cf Ha Child Left Behiud.
Hix years later, Congress has sJashed Reading First %u o:~e-thizd of ~7s tnnding, :he Bush.
Adminissration has 9one AWOL, and the program’s director has been ~orced to resign--a!!
p~£portedI.y because of a "~candal" uncovered by she P,e,oartl~’]e[It uf ~;ducatior.’s [nspect<,l:
Get:oral. But only on~? side of th~ sLaty has ne~. told until now.
Who,i really (:a’Jsed the donnish_, o’f Reading ?irst? Fo.rdham’a [,%rThc,.-,c~i~:g reporL, ’re:) ,~.~o<.’, tc
Last: The "."rue Story o~ R[:ading hirst, wxitten hy City Journal contributing editoc Sol
Stern, investigatas.
Join us o:: Honda;,, March 10:h fur" a lively d±s..’;nssion .=.bout this i~.~pOfthut repu:-l., ant
abou~ Lhc /utIlre 01: Re~ding First.
Page 136
Spoakers wiil include:
~ Lynann Barb~.ro, Reading First Directcr, Bu[eau of indian Affairs

~- JiM Uerman, Readin~ First Director, Tennessee
~ Sandi Jacobs, Vice President fo[ Policy, Nanional Council c~~ T~acher Quality
~ Rick ~e/son, Former President, Fairfaz County (VA) Fedeza~i~n of Teachers
~ $o] Stern, Senior Fellow, Manhattar. Institute and Contaibuting Editor, Cicy Jour~al
~ Moderated by Michael Petrilli, Fordham Vice President fez National [~rog~ams and
Policy
Monday, Ma[ch i0
9:30 - ii:00
~reakf~st avail~bl~ ~t 9:00 AM
Thomas ~. ~ordham Institute

i[]16 16th St N~’,[
7zh
Questions? Please e-mat[ rsvp@e<e×cell~nce.met or call Christina Hcntges at.

202-223-5452.
Nacio~sliy ;,nd in our home suate of Ohio, the Thomas B. Fordham Tns~it,te scrives to close
7ui~eriua’~ vexing achi~veme~:t gaps by raisin~ s=.and~rds, strengthening accountahiiity, and
expandinc7 high-quality ~’dacazicu o~tior:s for parents and families. For more information
about the Institute’s ~,~o[k0 vial% www.edexcellence.net
<hrup :/ice. e Jexce] !en,:~. n~t ,;dsp _~mailhandl~r. cfm?eid=49958~ uid=52_’-01>
This eme.~l was sent tu: wa!ter@BermanCo...ocm I Click here

< hr.tp : / ice. e~excel !en,:c, net/index, c£m? ~useac[ ion~Email. Un~ub$crib,_’&valuuS=u’.:e :ID=52301
&emailMessageID=54> =o chan,:Te your prcfcrenses for this mailing !ist.
internet sof.tware for nonprofits, ass,m.’.ia.-..ions and educational, instit,tJons.

This .~.mall was ser~t by: Thomas ~.. F<,Fdham Fou.~dat~cn
<http:i/www.cityaoft.sDm> Powered by CizySoft Community Enterprise

<http://ceoed~xcelience.net/Emmi[/Open.cfm?
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Page 137
Dunn, D,,a ,rid,,,

From: Dunn, David
Sent: Wednesday. January 26, 2005 7:56 AM
To: ’krislen_silverberg@opd.eop.gov’
Subject: FW: AP article
..... Original Kessage .....

Fh:om: Aspey, Susan
Sent: Tuesday, Januaz7 25, 2005 10:33 EH
To: Dunn, David; ~ertz, Broil],; HJckok, Gone; ?.ees, Niria; Nczdq~i~t, UJ; Talbe~t, Kent
Cc: Cr~son, Karen
~ub~ect: B’w: AP ~rtic[e
Sent from my BlackBe.-_ry wireless
...... Ori.g~ hal Message .....

From: Susan Aspey <saspey@comc.ast.ner>
To: Asp=-¥, Susan <Sus~n.Aspey@ed.gov>
Sent: Tue .Tan 25 22::~[):0] 2005
Sub]cot: AP artio]~
Y’ue January 25, 2C35 21:56 EST

Education secreta[y condemns public show with gay characters
5£N FELLER
AP ~d,.icetion Writer
WASK’TK,gTON (AP) The n.~t_:.on’-s Rew e/~ucation secretary denour~ced nh~ Pab].ic
Broadcasting SerVice rot spending public money on a cartoon with lesbian
characters, saying ma~y parents wot:[d not wan.+. .nh~ ldren exposed ~c such
lifestyles.
[’he not-y~l--aired e~i~ode o~ ’’£’ostca£ds From ~uster’’ sh~ws the title
character, an attlmated bunny n~ed Bus=~r, on a trip to Vermont e sLate
known for [o:ognizing same-sex civil union~. The eplscde fcature~ two
lesbian couples, .]ithouqh the focus is on [ar~5 life and m~ple s,lgaring.
A PBS spokesman s.3id late Tuesday <hat the nonpro[it nezwork has deuided not
to distribute the episode, called ""Suga[time[, ’’ to its 349 stations.
said the Education Department’s objections were not a factor in that
decision.
" "Ultimately, our ,Jeci~ion was ba~cd on the fact thou ~ reuognize
sensitive issue, and we ’~’anced to make su~e that pa~-ent~ had an o[;pertunity
to ]<tr0duc¢ this subject tc thei~ childcen !n their ¢~m Lime, ’’ said Lea
Sloan, v~ce }:.resfd.ent of media relati,]ns at PBS.
However, the £oston public television station that produces the show, WGBH,
does £].an te ~.~ke :he ""S,agartime~’’ episode available ~o other clarions.
WG81{ als.n D!ans to. air ~he episode on March 23, SJ. oan
[’BS gets money fur the "Postcards [tom Buster’’ series through the
koady-To-Leazn 9roqram, one aimed at helpinq young children learn throuqh
Bducati0r~ S~creta~y bh~gare; Sp~liings said the "’S~garzim~[’’ episod~
n:~t fulfili the inlenl. Co;~g:~ss had in mind f,~r p~c~g~anm~n~j, Sy law,
s~id, any funded sho;.,~-~ must give top a<tontio~: to
~ducazional ehjec:tive:~, content and mane~ial3.’’
’Me.ny parents would not wa]]~ L?,~.~r your, g child,’e:: ¢xp,::sud to the
Mitchell, p[u$idcn~ and chief ezecu:ive office~ of
"’Con,~[ess’ ai~J th,~ D<~uruliter~t’s ~,~[Qose in #undi:lg this ~-r0gran~ing
Page 138
cer~.ainiy ~as not r.o !ntrodu.ce this kind o’f subject ~.a~tc~ to children,
partic’n/ar].y through the powerful and intimate medi~m of te!e~-ision.’’
She asked £BS to consider refunding the money J.t spent 0~ the c~isode.
With her letter, $pel].iP.gs has made critJoJsm of the publicly funded
program’s depiction of =he ~ay lifestS’]e one of h.2[ first atus as
She began on Monday, ,~ep].scinq Rod Paise as ?resident 8ush’s education
chief.
Spellings issued thre~ r~quests to
She a~ked that he~f deparrmmnt’s sea! or any stgtemonz linkin,~ Lh~ d~,ar~ment
to the show be aemoved. Sh~ asked PBS to notify 5.~$ membe[ stations of the
natu~e of show so they c~uld review it before ~iring it. And she asked
the refur, d ’ill [h9 interest of avoiding embroiling the Ready-To-Lear[,
program in e controversy tha5 will only hurt’’
In closing, she ~.~:~rned: "’You can be Assured [.hat Jn the future the
department will be :,oxe cl~ar as to its expectations for any fut,:£e
program_ruing that it run,Is. ’’
!’he departmenu has a~;arded nearly S99 r,i] ]icn (eur075.66 ~,illion) 1c PBS
through the p~egram ever the ].ast five years J.n a cOnt~-ac: that expires in
September, said de.paztm~nt spokesman Susan Aspey. That money ;~e~zt t0 the-
pxoduction of "’[’ostcards [.’rc.m Buster,’’ and another aninated children’s
show, and to promotic~ of thcss shows in lasa! <ommunfties, she said.
The show about Buster also gets funCi.ng from Dther sources.
In th.e show, Buster carries a Jigita[ video camera and explores regions,
activitie.s and [ae~,ple of diffe~ent backgrounds and religions.
Page 139
Dunn, David
Dunn, David
Sent: Wednesday, January 26, 2005 8:28 PM
To: ’Kuzmich, Holly A.’
Subject: RE: Spellings Announces New Education Department Chief of Stal’f
Not toe.no much. ]’-lissed actually talking tcday... \

/
..... Original Messago .....
From: Kuzmich, He].]’.,’ A. [m.ail~o:Hoily_A._Kuzmich@wh,’~.eop.govj
E.=-nt: Wednesday, Janua[-y 26, 2005 6:13 [~M
To: Dunn~ David
Subject: RE: Spellings Announces Now Educa[ion Depa[tmenL Chief uf Staff
Ib)(5)
hc.pe you’ re not st ressing too much !
From: D~nn, David [maJ lto:David. Dunn@ed.gov]

Sent~ Wednesday, January 26, 2005 6:03 PM
TO: Kuzmich, Holly A.
Subject: RE: S~.ellings Announces New Educate. on DepartmenL Chief of S~aft
Sorry, so laLc an’~l Lhanks and of course.

(b)(5)

From: Kuzmimn, .’4oliy A. imailto:[-:oily..A,..Kuzm’_:ch@who.eop.gov]
Sent: Wednesday, January 26, 2005 I:II PM
To: Dunn, David
¯ Subject: £W: Spe!lings Announces Ne~; Education Department Chief of Staf~
(b)(6)
(b)(5)
,~rom: Aspey, Susan [mailto:Susan.Aspe¥@ed.gov]

Sent: Wednesday, January 26, 2005 i:Ol PN
TO; Aspey, Susa~
SubjecL: Spellings Annou~ces Ne~ SducaLio£ Department Chief 3f S:aff
Pa~e 140
Dunn, David
F rein: Dunn, David
Sent: Tuesday, February 22, 2005 6:24 PM
TO: ’Medina, Sonya E.’
Subject: RE: Margaret Spellings and UNESCO speech
..... O~:iginal [,lessage .....

~rcm: Medlnar Sonya F_. [maLlto;S¢,nya E. HedinaOwhe.~.p.gov]
~erlt: Tuesday, L~’ebruary 22, 2005 6:10 P~
’£0: Dunn, David
David -Thanks so much for taking time out of your hectic schedule r...:) vi:~it wiLn me
today.
Page 141
Dunn, David
Dun n, David
’Gilbert, Alan’
Subject: RE: Dinner on March 5th
l(b)(6)
From: Gilbert~ Alan [~ilto:Alan Gilhert@who.eop.govl
Sent: Fridayr February 25, 2005 T2:42 PM
To: Silverberg, Krist~n; Co!ucci, Mariene; Halaska~ Te~rell L.; Schacht, Diana L.;
Dunn, David
Cc: Melanie_Gilbert@ao..usc~urts.gov
Subject: Dinner on March 5th
Happy Friday everyone!
Just wanted to remind folks of cur dinner plans for next Saturday, March 5th, in
celebrasion of Secretary Margaret Spellings.
1 I’ii be i~ touch next we=-k with direction, s eta.

Page 142
Dunn, David
To: ’Moy, Edmund C,’
Subject: RE: Yad Vashem Delegation
b)(5)
Page 143
,Dunn&David
From; Dunn, David
Sent: Monday,, March 07, 2005 9:18 PM
To: Meyer, Ken; Simon, Ray; Sims, Celia
Cc: ’jmkelly@who.eep.gev’; ’Keith R. Branr.alo@who.eop.gov’
Subject: Re: NOLB Lelter from Ulah
Shanks Ken. Not helpful
Sent from my BlaekBe’_’zy Wireless 5andheld

From: Neyer, ~en <W~.n.M,~yer@ed.gov>
TO: Dunn, David <David. L’unn@ed,gov>; Simom, Ray <Ray. Simon@ed.gov>;o].m~,~’ ~ Celia
<Celia. Sims@ed,gcv>
CC: ’jmkelly@who.eop.gov’ <j-mkelly@who,eo~.gcv>; ’Keith R. Brancato@~hu.eop.gov’ <Keith_R.
_Brancat e@who, eop.
Sent: Non Mar 07 20:44:2C 2005
Subject: Fw: NCLB Letter from Utah
Please read below.
Ken M~yex
Deputy Assistant Secretary
Office of "Interqovernmental and Interagency Affairs U,S, Dept. of Educstion 400 Maryland
Ave, SW Washington, DC 20202
202.401,0404 Office
202.401.1989 Direct
202.746~5120 Cell
Sent by BlackDerry
.....Origina! Messag~ .....

From: John Valentine <jvalentine@utahsenate,org>
To: president@whitehouse.gov <presid~nt@whitehouse.gov>
CC: Meyer, Ken <Ken,Meyez@ed.gov>; Aspey, Susan <Susan.Aspey@ed.gov>; Knudsen, William
<WillJ.am. Knuds~n@ed,gov>; P!larring~usoe.kl2.ut.us <PHarring@usoe,kl2.ut.us>; Governor Jon
Huntsman, Jr. <GOVGOCA@utah,gov>; Jami Palmer <JPalmer@utab.gov>; Margaret Dayton
<MPAYTON@utah.gov>; Thomas Hatch <thatch@utahsenate.org>
S~nt: Mot Mar 07 20:33:~9 2005
Subject: NCLB Letter from Utah
<<hb0135.pdf>>
March 7, 2005
Non, George W. Bush
President of the United Sra<es
The White House
1600 Pennsylvanis Avenue NN
Washington D.C. 20500-0001
Dear Mr. President,

The State of Utah shares the. U,S, Department of Education’s passion for excellent
education. We are extremely i;~terested in strategies that wil! help, not hinder, our
childrsn ~nd our schools.
The c~refully considered belief of t:he Utah State Senate is that any effective education
strategy will respect America’s essential historic balance between centralized power and
Page 144
local right as e~pressed in the lOth Amer~dment ta our Constitution.
For this and several other reasoner the dictates of No Child Left Behind have caused grave
cow, corn. We are prepared to pass House Bil!
135, which we believe is reas¢,nable, fair and necessary.
Governor Huntsman has indicated to us that more time may give a!l pazties an opportunity
to come to an agreement. We sincerely hope that he is right. We are acately aware there
has been little movement in that direction since we raised our concerr~s a year ago. Ar
the governor’s request, however, we have agreed to wait until April 20,
2005 for a filial vote on HB 135.
A top priority of our ed&cation system must be ro empo~er parent:4 to uLiiize local con<r¢l
and to~lununity goa}.s. At a minimum, we are looki~ig for a ~ritten statemen< tha% aes~ires
the Stat~ of Utah full control of gcver~ance and accountability maaau~:es in Utah’s
schools. In addition~ ~le ~-,eed local control of educator qualification, ue~’tification and
licens~ire.
Please understand our intention is not to thwart the goals of HCLB but to improve or~ them
and etlhance them, appropriate to our local situation.
If NCLB continues on its current course~ however, we believe we have ~n obligation to
pass HB 135 as it is now written.
Thank you f~r your hard work and consideration. We remain co.mmitted Lo the spirit cf
ensuring al! chi],dren receive the education they need,
Respectfully,
Utah Se~ate Repub!icaa Caucus
Hon. Margaret Spel]ings, United States Secretary of Education [ion. Jon N. Huntsman,
Governor of the State of Utah
Page 146
Dun., David
From; Dunn, David
Sent; Tuesday, April 05, 2005 8:45 AM
To; Nordquis!, D J; Whitehurst, Grover, Holly Kuzmich {E-mail)
Slroup, Sally; Sclafani, Susan; Cook, Sandra
Subject: RE: here’s how the Jay Mathews piece turned out, FYI.
Sa~dra, you have any ~eactions?
> ..... Original Message .....

>From: Nordquist, DJ
>Sent: Tuesday, April 05, 2005 S;].9 AM
>T~: D~lr~, Davic~; Whitehu~s%, Grove~; Holly Kuzmich <E-mail)
~,..~’~’. Stxoup, Sally;_ Sclafani: Susan
>Subject: bore’s how the Jay Nathews piece turned out,
>
(
~1(5)
>~d~cation Statistics Difficult to !nterpre~ By Jay Mathew~ Washinqton
>Post ~ta~f Writer Tuesday, April 5, 2005; ~age AI2 In the past year,
>many newspapers published a disheartening set of graduation rate estimates compiled by
the Denver-based Nations! Center for Higher Education Management Systems, a ~enprofit
group that does policy work in higher education.
>The following numbers were based on data the center gathered from several scuzces ].n the
50 states and the District.
>Fez every I00 students who enter ninth grade:
>. 67 will graduate from high school.
>, 38 will enter college.
>, 26 will remain in college beyond freshman
>- !H will earn an associate’s or bachelor’s degree.
>But researchers at :he U.S. Department of Edusation responded with a different, and
somewhat more op~imistiu, se< of numbers based on a longitudinal study in which 12,000
students were £o!lo~eJ from the time they were in eighth grade, in 1988, until December
2000.
>F~r every 130 students in the eighth grade in 1988, their statistics showed:
>. 78 g~aduated from high school en time in 1992 wit[] a regular dipl(~ma.
>. 53 entered a postsecondary institution within seven months of graduation.
>- 47 remained in ~he postsecondary system beyond the first year.
>- 34 earned an associate or bachelor’s degree by age 26.
>Grover Whitehurst, director of the Edu~aZion Department’s Institute fo~ Educational
Sciences, sai~ he thought the Denver group’s s~ate data were "not a good basis for
generating a valid national estimate."
>O.S. gducatio~ $euretary Margaret Spellings has complained about the lack of qood
±nformazion on college qraduation and other issues. "We can tell you almost anythin9 you
want to know abouz first-time, full-time degree-seeking s~udenhs who have never
transfe=red," she said in a recent speech. "The trouole is, today, that’s less than half
of the total student popu].a~ion."
>Education sia%isticians s~y ~hey hope to develop eiectrol~ic records for el! students, as
’?eras and ether states hays been doing, se F.rogre~s can more e~si!y be followed.
>"The accounting has to be complete, open and hones~ evidence," said Clifford Adelm~n, a
seniDr research analyst at the Education Department. "Otherwise~ He wi!l never be guided
~o where the system has been successful and ~here the blockages in the system truly lie --
in time, place and popu.]ation."
>
>DJ Nordquist Page 147
>Acting Director
>0£fice of Public Affairs
>U.S, Department of Education
>401 Maryland Ave SW
>Washington, DC 20202
>Main line: (202) 401 1576
>http:!/www.ed.gov
>
Page 148
Dunn, David
From: Dunn, David
Sent: Thursday, April 07, 2005 5:23 PM
To: ’Karr, Barrett’; Hataska, Terrell L.
Subject: RE: Statement by Reps. Boehner and Miller on US. Depa~nen[ of Education Announcement
on NCLB
Attachments: image001 .gif
imageOOt,gif (I 1
KB)
~hallXs B~ett. T.t ~-zas a great day!

From: Karrr B~rrett [mailto:Barrett_Karr@who.eop.gcv]
Sent: Thursday, April 07, 2005 4:54 PM
To; D~nn, David; Halaska, Terre!l L.
Subject: FW: Statement by Reps. Boehner and Miller on U.S. Department of Education
Announcement on NCLB
..... Original Messag~ .....

~rom: Kless, KiKi [mailto:KiKi.K!ess@mail.house.qov]
Sent: Thursday, Apri! 07, 200-5 4:46 PM
TO: Karr, B~rretz
Subject: FW: Statement by Reps. ~oehner and Miller on U.S. DeF~rtmezt ~f Ed~icat±on
didn’< kn~w if you saw this...

From: Holly, Josh
Sent: Thursday, April C7, 2005 4:30 £H
To: Holly, Josh
S~bject: Statement by Reps. Boehner and Miller on U.S. Depart~ent of Education
Announcement oN NCLZ
UNITED STATES CONGRESS

COKMITTEE ON EDUCATION AND THE WOHKFORCE
For Immediate Release: Thursday, April 07, 2005
Contact: ,Iosh Holl,,° {Boehr~er) 21)2-225-4<~
Tom Kiley. (Hiller) ~u~’n2-99~ .... __~._g,-~q
STATEMENT OF REPS. BO£HNBR AND MILLER ON SECRETARY

SPELLIKGS’ A~NOU[~CEMENT ON NO CHILD LEFT BEHINO
Page 149
WASHINGTON, D.C. - Reps. John Boehner (K-Ohio) and George Miller (D-Calif.) issued
the following statement tod~y in response to a speech by Education Secretary Margaret
Spellings on the No Child Left Behind Act. Boehner is the Chairman of the House Edusation
and the Workforce Comm.ittee. Miller is the committee’s senior Democrat.
We want to thank Secretary Spellings for [ecognizing the importance of reaching out
to the states and helping them mak~ the No Chlld Left Behind Asta suzceSS. Flexibility -
applied ~cnzisZe[~tly and fairly among the states - will quell a good deal of the
controversy that surrounds the law and bring hugs benefits to ~nerica’s schools and
studenks.
As the Secretary pointed out today~ states and cities have reported a great deal of
progress in their schools, Many children who were not given adequate time and attentSon in
the classroom prior to NCLB’s enactmen~ - such as some specia! education students - are
now receiving that much-needed time and attention.
These critica! gains will continue only if ~he integr±ty of the la~ is maintained.
The law is built on a foundation of annual ~ssessments, data reporting by subgroups, and a
high-q~aality teacher in every classroom, all aimed at narrowing and ulqimately closing the
achievement gap among students.
Today, the Secretary unvuiled an approach that~ if carried out fairly and without
Favoritism, cou.ld help iron out some of the difficulties Jn implementir, g the law. We agree
with her that every effort must be made to ens;~re s~eoth and effective implementation, but
we firmly he].ieve that the ~ffort m~st be based on the law as i~ is ,written, not cn a
smorgasbord of different waivers for ,iifferent states and d~stricts. In many respects,
what’s g~od for a studsnt in Ohio should also be good for a studmnt in California, or
anywhere else in the uount~yo
ff the law is implemented with too much variety from state to state, the progress we
9xe making cn boosting achievement and improving accountability wil! be cut shorn, We
cannot allo~; our students to pay this pricH, It is i~perative that <he Department assess
flexibility requests ~veniy, objectively, an<{ fairly. ?~e believe this is schievab!~ under
the law ~nd we urge the Secretary to make it a priority.
~ith too much leeway, opponents of No Child Left Sehind will lobby the Secretary to
act outside of the bounds of this law. We read her remarks today as a refusal to ,~rant
such wide latisude, and we hope our reading is accurate. The law must be impl.eme~~ted
fairly and 9ve~].y across th~ states if it is goiSg ~e continue to succeed and make a
diffmrence in children’s lives.
Page 150
Dunn, David
From; Dunn, David
Sent: Thursday, Apd107, 2005 7:11 PM
To: ’Barry. S, Ja~kson@who.eop.gov’
Subject: Re: Statement by Reps. Boehner and Miller on U.S. Department of Education Announcement
on NCLB
I(b)(5)
INonresponsive
dd

From: Jackson, Barry S. <Barry S. Jackson@who.eop.gov>
To: Dunn, David <David. Ounn@ed.gov>
Sent: Thu Apt 07 18:56:56 2005
Subject: RE: Statement by Reps. Bcehner and Miller on U.S. Department of Education
that’s how i took it - good job
on MTV, hate Lo tell you, but I thought it was awful - if MTV is worried about the well
being of kids, they should quiz glamorizing gan~ life, drugs and a quick buck
From: Dunn, David [maii~o:David,Dunn@ed.gov]

Sent; Thursday, April 07, 2005 6:29 ~M
To: Jackson, Barry S.; Lampkin, Emily
Subject: RE: Statement by £eps. Boehner and Miller on U.S. Department of Education
Very good...altho they couldn’t resist a di@ or two at the end...
The Sec’y is pleased.
I(b)(5)
dd

From; Jackson, Barry S. [mailto:Barry S. Jackson@who.eop.gov]
Sent: Thursday, Apri! 07, 2005 £:27 PM
To: Dunn, David; Lampkin, Emily
Subject: FW: Statement by Reps. Beehner and Miller on U.S. Department o~ Education
this is good, right? hel~fu,~
From: Porter, Emil’../ [mai!tc:Emil~i. Porter@mail.hou~e.

Sent: Thursday, April 07, 2005 ~:~3 ?M
To: Porter, Emily
..Subject: Statement by Reps. Boehner and Nil!er cn U.S. Depar-_ment of Education
Page 151
UNITED STATES CONGRESS

COMMITTEE ON EDUCATION AND THE WORKFORCE
For Immediate Release: Thursday, April 87r 2805

Contact: Josh Holly (Boehner) 202-22~-4527
Tom Kiley (Miller) 202-225-2095
STATEMENT OF REPS. BOEHNER AND MILLER ON SECRETARY
SPELLINGS’ ANNOUNCEMENT ON NO CHILD LEFT BEHIND
W~~HINGTON, D.C. - Raps. John 8oehner {A-Ohio) and George Millmr {D-Calif.) issued the
fo!lowinq stateme~t today in respons~ :o a speech by Education Secretary Margaret
Spellings on the No Child Left Behind Act. Boehner is the Chairman of the House Education
and the Workforce Committee. Miller is the cO~ttee’s senior De~nocrat.
we ~ant to thank Secretary Spellings for recognizing the importance of reaching out to the
states and helping the[s make [he NO Child Left Behind Act a success. Flexibility -
applied consisten~!y and fairly among the states - will quell ~ good deal of the
controversy that surrounds the law 8~d bring h~ge benefits to .<~eriea’s schools and
students.
As the Seexetazy pointed ou~ 5eday, states and cities have reported a great deal of
progress in their schools. Mar~y children who were not given adequate time and atte~tion in
the classroom prior ~o NCLB’s enactment - such as some ~pecial education students -- are
now r~ceiving that much-need%d time and attention.
These critical gains will continue only if the integrity o[ the law is maintained. The law
is built on a foundation of annual assessments, data reporting by subgroups, and a high-
quality ~eacher in every classroom, el! aims8 at narrowing and ultimately closing tee
achievement qap among students.
Today, the Secretaxy unveiled an approach that, if ca~r~ed out fairly and without
favoritism, c~uld help iron out so~e of ~he difficulties in implementing the law. We agree
with her that every effort must be made to ~nsure smooth and effective implementation, but
we firmly believe that the effort must be based on the law as it is written, not on a
smorgasbord of different waivers for different statms and distr!cts. It, m~ny respects,
what’s good for a student in Ohio should also be good for a student in California, or
anywhere else in the country.
Page 152
If the law is impleme~~ted with too much variety frcm state to state, the progress we aze
making on boosting achievement and improving accountability will be cut short. We cannot
allow our students to pay this price, it is imperative that the Department asses~
flexibility requests evenly, objectively, and fairly. We believe ~his i~ achievable under
the law and we urge the Secretary to make ic a priority.
With too much leeway, opponents of No Child Left Behind will !ohhy the Secretary to act
outside of the bounds of this law. We read her reraarks today as a refusal to qrant such
wide latitude, and we hope our re~dlng is accurate. The la~ must be implemented fairly and
evenly across the sta~es if it is going to continue 5o succeed and make a difference in
childIen’s lives.
Page 153
Dunn, David
From: Dunn, David
To: ’Jackson, Barry $.’; Lampkin, Emily
Cc: Silverberg, Kristen; Taylor, Sara M.
Subject: RE: today’s WH Bulletin
..... Original Hessage .....

From: Jackson, Barry S. [mailto:Barry S. Jackson~who.eop.gov]
$~nt: Friday, April 0Br 2005 2:51 ?M -- -
To: La~Rpkin, £mily; D1/rn~, David
Co: Silverberg, Kristen; Taylor, Sara M.
Subject; today’s WH Bulietin
÷ Education Secretary Considers National Talk On School Violence. Education

Secretary Margaret Spellings is considering a national conference or discussion to address
recent school shootings and violence. The ne~ly insta!].ed secreLary said today that the
issue isn’t one that requires more securihy, but instead requires an awakening of school
leaders and parents to problems of troubled kids. "it’snot necessarily a matter of metal
detectors," she said. "It’s a matter of a lot of communities and a !ot of grown ups having
a lot of signs and red fJags about :hings going on," she said. "It’s almost skit, to, you
know: walking over the dead body in Na~ York City kind of thing. What in the world have we
come to?" she added. Spellings said her departmel]t is ~n~aged with schools that have seen
vlo]ence, but that uhe issue needs a larger discussion than one just focused, on class~o,:,m
security. One suggestion she offered was mo~e character education. -- Bulletin exclusive
from U.S. News
Page 154
Dunn, David
From: Ounn, David
To; ’Medina, Sonya E.’
Subject: RE: REMARKS BY THE PRESIDENT IN A CONVERSATION ON STRENGTHENING
SOCIAL SECURITY
Thanks ~onya,
£rom: Medina, Sonya E. [mailtc:$enya E. Hedfna@who.eop.gov]

Sent: Tuesday, M~y 03, 2005 5:~9 PM
To: Dunn, David
Subject: FW: REMARKS BY THE PRESIDENT IN A CONVERSATION ON STRENGTHENING SOCIAL SECURITY
From: bour, ce-67Ilg-l14563@list.whitehouse.gov [mailt~:bounce-67!19-114563

@lisc.whitehouse.gov] On ~ehalf Of White House Press RmleaseS
Sent~ Tuesday, May 03, 2005 3:C9 PM
To: Medina, S~nya E,
Subject: R~MAR~$ BY THZ ~£ZSIDENT IN A CONVERSATION ON ST~ZNGTIIE~[ING SOCIAL S~CURITY

(Canton, Mississippi)
For Immediate Reieas~
IN A COHVERSATION qN STRENGTHENING SGCIAL SEC]RITY
Niasan North 2~.ezica Manufacturlnq Plant
Can~on, Mississippi
12:17
T:~E PRESIDENT: Thar.k you all very much. ?Lease be seated. Thank you very much for :he warm
1
Paae 155
welcome. My first observation is that I overd’kessed. {Laughter and applause,) ADd my
second observation is, what an amazing facility you have here. (Applause.) I mean, you’re
coming in on the highway, and all of a sudden the Nissan plant starts to -- shows up, and
it lasts for a long time. So thanks for having me.
i w.rnt to congratulate Lhe dreamers and doers who had this plant here, end I want to thank
the workers for making it work. You can have a -- {applause.) You know what I know, you
can have a pretty building, but if you don’t have a motivat~d, highly-skilled work force,
nothing is coming out. And I want to thank you all for showing the world that AxLerica can
compete with ~nybody. (Applause.)
I want to thank the folks ~ho gree~ed me, Dan Guadette and Jim Morton, Grog Daniels, Dave
Boyer -- thank you ~Ii for your hospitality. Thanks for letting us come, I particularly
want tc thank you all for taking time out of y~Ir busy work schedules. Hops it wasn’t an
inconvenience to get you off the line, (Laughter.] I know you want ~e to be short, so you
can get h~ck to work. (Laughter.) Okay, I won’t be.
.I’ve got something I want to talk about; I’m ~oing to ~pend a little time on Social
Security. This is an incredibly important subject fc~ a lot of folks. This is going to be
an educational e~perience, and ~’ve asked some of our fellow citizens to ~oin me up here,
to make it clear to you all ~hy I’m talking about this issue to begin with.
Before I do, there’s some people ! wan~ to recognize, starting with the great Go.vernor of
the state of Mississippi, Raley Barbour, (Applause.) welcome, Governor. Thank you. And his
wife, Marsha, the First Lady. (Applause.) Haley married well, and so did Io I don’t know
about you, ].~l~y, b~t ~y wife has become quite ~ one-liner, and sh~ c~n deliver tl]ose one-
liners. I called her L~ura I.eno Bush t~!e other day. I love her dearly. She is a fabulous
woman and a great First Lady. I’m sorry she’s not with me here today. (Applause.)
i want £0 thank the Lieutenant Governor, ~y Tuck, for joining us. Governor, thank you for
being h~re, (Applause.) Traveling with me is the Secretary of Education, Margaret
Spellings. Thanks for coming, M~dam Secretary. {Applause.)
Here’s what we believe in Washington, at least Margaret and I believe this: Every child
can learn. We believe that. We don’t accept a system that si[~ly shuffles kids through
school without teaohi~g the~ hmw to read and write and add and subtract, I believe schools
ought to set high expectations, and I believe we ought to measure to determine whether to
not each child is learning to re~d and write. And by measuring, we can figure ~ut who
needs help early, before it’s too late. ] believe it when I say it ~hat we should have n~
child left behind in America by insistin8 on high standards in our schools. (Applause.}
I’m traveling with some high -- high power out cf Washington today. Senator Tren~ Lott,
head of the Budget Committee and a great friend, is with us. Thank you for being, Senator.
(Applause.] And Tricia Loft, That’s not Tricia, that’s the granddaughter. And the head of
the Appropriations Committee, S~na~or Thad Cobran. Thank you both for being here.
(Applause.) The Senator and I tr~vel~d down on Air Force One together, and I guess the
message I heard was, don’t forget Mississippi, Mr. President. <Applause.)
i appreciate Congressman Roger Wicker and Congressman Chip Piskering joining us today.
Thank you guys for coming. (Applause.) You might be aware of the Pickerir~g name. I was
~roud to appoint Chip’s dad, Judge Cha~:iI.es ~ickering, to :he Fifth Court. What a fine man
he was and what a fine judge he was, an,i give him our heat, please, Chip. (Applause.}
Senator Travis Lee is with us. Senator~ appreciate you coming. How about the Hayer of
Canton, Fred Esco? Thank you~ Mr. Mayor. Appreciate you. (Applause.)
~’here are a lot cf other folks. If. [ spent time naming them, ~,cu’d never get back to work.
So I’D’. going to. stop ~lyir,~ te Dame the[.~ all. Bu~ I do want t..~ name ol]e ~ther pe~:son. I
had the honor of [~eeting Ru<h Wilson today, when I landed there ill Jackss.n Airport..~.uth
is a lonqrime volunteer. She helped organize a program at her chursi~ that has established
a food pa[~try, at, academic tutoring program, a ci,:,the~ cloa~t =.r}d a trans~o~tatiov, service
for the elderly. The reason Z bring up P.~lth is I want to remind you el! that the great
sr~reng[h of ~_merica !ies i~: [.he hearts and _~ou!s of our citizens.
So~.e people sa:~, ths str. ength of .~erica is our military; we’ve got a s~.ror~g mi]i. tary and i
cau ~ssure you ~’r~ going to ~eep it tn~t ~-~ay. ~Applauae.) Some people say it’s beca~se
our economy 15 the biggest in the world; that’s important and we’re going to keep the
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Paae 156
environment such ~hat we’ll continue to expan~ 3ODS across America. ~ut the Erue strength
of America is the fact we’~e got people like Ruth, who are willing to take time out of
their lives to feed she hungry, to provide shelter for the homeless, to love a neighbor
just !ike you would like to be loved yourself.
If you want to serve America, join the army of COmpassion; volunteer; make a difference in
somebody’s life. Help change this great co,mltry one heart and one soul at e time -- just
like Ruth Wilson is. Ruth, thank you for coming. (Applause.) I don’t know where you are --
=here you are. Welcome. (Appl~use.)
I’m here to talk abo~t the Social Security system, I’ve spent a lot of %ime working ok
this issue. I bei±eve the job of a President iS to confront problem,s and not pass them on
to future Presidents or future Congresses. I think you expec~ people in office, like me,
if we see a problem, to deal with it, and not s~y, oh, it’s too big a political risk to
deal with it; or maybe, I don’t feel like dealing with it; or maybe, somsbody says I
shoulln’t deal with it. I bel~eve you send people to office to say here is a problem and
to take it on squa]:ely. ~nd that’s exac<ly why I’m sitting hers today in Canton~
Mississippi, because £ see a problem in Social Security. And ! believe ! have a du<y as
your President to talk about the problem a~d talk about the solution.
And here’s the problem: First, Franklin Ro.osevelt did a smart thing when it came time to
setting up Social Security. Social Secur’ity checks have meant a lot to a lot of people.
You know what I’m t~iking abous. Your moms and dads or your grandpa[ents count on that
check, We’ve got some people sintinq up here today who count on that check. I fully
understand that when you’r~ tslking about Social Security, you’re talking about something
really important for a lot of p%ople. And therefore, the first thing I want to leave you
with is that if you’re getting a Social Security check today, you’~e going to kee~ getting
your check, i don’t care what the propagandists say, I don’t care wh~t the politiuians
say, nobody is going ~o ~ak~ your check away. And J.i’s important for you to undeFstand
that. (Applause.)
Matter of fact, J.f you ~ere born in !~50 -- before 1950, noqhing is going to change. In
other words, the systs:~ is sol.vent for you. The problem is if you’re a younger worker. And
see, here’s the problem: A bunch of baby boomers, just like me~ a~e getting r~ady ~o
retire. I reach retiremeT~t age in four years from now. That’s a convenient time for me to
reti~:e. (Laughter.] I t~rn 62. The governi~ent says whe~ you’re 62, you can start dra~4ing a
c~eck. There are a lot of us. As a matter of fact, there’s 40 million retizees today.
There’s over 70 million that will be fully retired when the baby boo~ers retire
completely. That’s 70 million people, nearly double the amount of people today on Social
Security. And secondly, we’re Living a lot longer.
I try to stay in shape. I e:{ercise and all that, try to do -- make smart decisions with my
body. I plan on living a long ti~e, and so do a io~ of other people my ag~. We’re living
longer th~n <he previous generation. You’ve go< a lot of people getting ready to retire
who are living longer than the previous generatlen and we’ve been promised greater
benefits, in other words, you have people running for office saying, vote for me, i’m
going to make sure ~he baby boomers get greater benefits than the previous generation. So
think about that man for a second, particularly if you’re a younger worker. You go~ a lot
of people !ike me living longer nhan ever before, been promised a lot of benefits, and
there’s fewer of you p~ying into the system.
You see, in i950, there was 15 workers paying into <he system for every beneficiary -- 16
workers for every beneficiary. Today there is 3.3 workers, fewer of you all paying for
people like me, who are going to live longer and have been promised gzea[er benefits.
Now, this is ~ pay-as-you-go system; you pay in, and we go ahead and pay out in
Washington. You pBy into the sys~em -- some people say, well, there’s a Social ~scurity
trust, we’ll just take your money and hold it for you and give iu back to you when you-
retire. [hat’s not the way the system ~oxks. Part of my responsibility as your President
is tO tell you exactly what’s going on, uo lay it right out there for you to hear. The way
ft works in Socia~ Security Js your pan, roll taxes -- and you pay a Io~ of payroll taxes --
go .into the system, and we’[e paying for retirees, like :we of the pe~p]e sitting ~p here
today. ~nd if we have any money left over, it goes to fund government programs. And el!
that’s left is an IOU. That’s how the system works. And so you’re paying i,~, mnd it’$
going out. Nobody is -- you’fe not paying in and we’re holdinq the money for you. You’re
paying in £nd it’s going :::u=. And in Z0!9, because baby bcnmers like ire are getting ready
to retire, the system starts to go in the red. In 2027, it’s $200 biiiion a }’ear in the
Page 157
red, ~n 2030, it’s $30D billion; 2041 it is bankrupt. In other word.~, it’s out.
So think about what I’m telling you. This is the mathr folks, this is exactly what’s going
to take place unless we do something ebout it. I’m ready to -- people like me are
retiring; we expect the ~overnment to ~ke good on the promise, of course, sot yet, we
don~t have enough money coming into the system to do so. $o a lot of younger workers o~t
there will be paying into a system that’s bankrupt. And that’s n~t fair.
~nd that’s why I’ve taken on this issue, and that’s why I’m going to c~ntinue traveling
the country talking about the need to make sure the safety net of retirement is not only
good for those who have retired, but it’s good for.a generation coming up.
~Io~ I talked about -- the other day I had a p~ess conference, and I’ve spoken about this
issue at the -- during my State of the Onion address. I said, look, I no~ only have a
responsibility to !ay out the problem, I’ve got a responsibility to start helping people
come up with the soiution. It’s one thing to lay out the problem; it’s anothe~ chins to
stand ~p and say here’s some ideas to move forward, here’s some way3 we can work together
-- ~irst and foremost, future generations ought to receive benefits equal to or greater
than the previous generation. So ! think if you’ve been working all ycux life, VO~ ought
to ~eceive a b~nefit equa! to or greater th~n the promise8 that I got. I think ~hat’s m
fair system. So in other words, ~hat’s an important principle for people to listen to.
Secondly, if you work hard and -- Social Security your entire life, you will not retire
into poverty. ~’he cur~enC system toda~ by the way, doesn’t say ~hat. The current system
s~ys you can work all your life and may end up in poverty. [ don’t ~htnk that’s 2air. I
think people who have worked hard all their life and paying into the Social Security
system ~ught to have a program ~hat ]hakes sure they won’t retire into poverty.
And $o, therefore, I believe bene~$ts foR loweR-income workers should grow faster than
benefits for high,r-income werkers, just to make sure that someone doesn’t retire into
poverty. You know, ybu hear all this talk about benefit cuts; we’re talking about making
sure benefits grow at.the rate of in~lation -~ that’s ~hat we’re talking about.
been pro~ised ~omeLhing; it ought co grow at the rate of inflation. ~od~y, if you’re an
upper-income worker, it grows at the rate of wage growth. Wha~ i’m telling people is, is
that ought to be applying for younger -- lower-income workers, but not al! workers~ so
that the system can take care of those at the lower income scale. That makes sense
Z hope it makes sense to the United States Congress, I think Franklin Roosevelt would be
proud to make sure of this. If you work all your !ife and con~z-ibute to Social Security
you should no~ rerire into poverty, i thin]: that’s a principle that makes sense. I :hink
it’s also im, portant for our elected leaders, both Democrats ~n~ Republicans, to come to
the Zable. The ~eriean people now understand we have a problem. And o~Ir leaders must
choose: Do nothing and guarantee a massive tax hike, or a 30 perzent benefit cut; or act
now to keep the promises of Socia! Security for the 21st century.
The reason I say do nothing and get a tax hike -- if we don’t do anything, it’s estimated
that yo[~nger workers wil! have to pay an 18-percent property -- payroll tax to make good
on :he promises. If you don’t like i2, try 18. That’s a io~. ~ayroll taxes are some of ~he
highest taxes people Day here in ~erica, and the idea of not havir, g the political will to
address Socia~ Security a~d sticking younger w~rkers with a high payroll tax doesn’t make
shy sense to ~e.
Now, I know, sometimes Nashington locks down. They say, well, we can’t do this, it ~ill
help a 9.epuhlican sr help a Democrat. We’ve goz to qez rid of that kind of thinking in
Washington, D.C. We’re talking about -- (applause.)
I’ve {or one other idea I want <0 talk to you about. By ~-he way~ the idea I lai/ ou< the
other day about growths b.e:~efits at <he rate of inflation for lower-income workers -- [ate
of infiatiol] for upper-income workers, and rate .of wages for lower-income workers, solves
most oR %he prcble:l~., long-ze~’m problem. There’s solve other things we can wczk with
Congress on to make sure that younger workers have got a system available for them.
Nothing cha~:qes for our seniors -- I’m talking about those of you born
really talking aboun the younger workers, because if ~e don’t do and, thing, you’re gcirlq to
have a huge bill to pay, c.rle way or the other.
I’ve %-or another idea 5h~: I want Congress :o ccn~ider, and thaq is being able to
Page
take some of your own money, yoor payroll lax that you pay in the system, and the
government allow you to set up a personal savings account. First of all, it’s your money
that you send into Washington -- not Washington’s money, it’s your money. We kind of like
to spend your money up there; reme~ber, this is a system you pay in, we take care of the
retirees, any money left over we pay for other programs. Pretty soon the amount of money
you send in is going to be less than the money owed to retirees and it’s going to gq into
the red. That’s why, if we don’t do anything, you’re going to end up paying more taxes, or
we have to cu~ benefits. But it’s your money.
Secondly, I think it’s really important to recognize that if you grow your money at 4
percent or 5 percent, it’s going to amount to a lot more money than if you keep it in the
government and the government can grow it at 1.8 percent. It’s how interest continues to
grow. Some of you may have 401(k) s, and you’re watching that money begin to grow. And you
hold it in there and it grows over time, and it starts to -- the growth starts to
accumulate. It’s called the compounding interest. And that’s an important concept which is
not a p~rt cf the system today.
For example, if ycu have a person who has worked all of her or his life at -- earned
$35,000, and the government allows you to take a third of your payrol! taxes and set £t up
in a savings account, and that account earns a reasonable rate of return, that, by the
time you retire -- this is $35,000 over your lifetime, by the way -- and you can take out
some cf the money, a third of the money that you’re paying into the government and set up
an account that’s your own, you’ll end up with $250,000 by the tim~ it comes to retire --
$250,000 plus that which the government can afford to pay you through Social Security.
That’s called a personal savings account. That’s your asset. The government can’t use it.
l~’s yours. GOvernment can’t spend it on other programs. It’s a hard asset.
Today, the program has go% -- leaves behind IOUs, paper IOOs in a filing cabinet. I think
when it comes time to make sure the safety net is available for yousger 2~ericans, we
ought to make sure there’s I~ard assets. You put money in the system; you ought to have an
asset you call yo~r own as part of your retirement plan.
Now, people ask me all the time, wel!, if i have -- if I have a persona! savings account,
what are the ~ules? Well~ first, of all, you can’t take the money and pun it in the
lottery. In other words, this isn’t a -- you can’t shoot dice with it. Yhis is part of a
retirement p!anr and so you’ll be given the options 5o choo~e a conservative mix of bonds
and stocks. If you don’t wa,t to take an}" risks, you can put it in government-backed
Treasury bills. But a government-backed Treasury bill gets a greater rate of return than
the money that we’ve got in thefederal government. In other words, this is a chance to
earn more -- watch your ~oney grow in a better way through a conservative miz of bends ~nd
stocks.
This isn’t a new idea, by the way. Guess who gets to do this light now. Federal emp±oyees,
m~mbers of the Senate and the House of Representatives. They’ve decided ~his is a pretty
good idea for themselves. Seems like to me, if it’s good enough for them it ought to be
good ~nDugh for Nissan plant wcrker~. (App!ause.)
The good nerds is, these four members of the Congress agree with me -- if it’s good enough
for them, it’s good e<ough for you; that you ought to be given a chance, if you want --
and that’s tlla ~ther aspect, this is a voluntary personal savings account. Yi~is isn’t the
government s~yin9 you’ve got to ~o this. This is saying, if you want tc do this, this
option ought to be available, Some people may not want to do it -- I fully understand
that. Yo,] stay in the Social Security system, and when Congress gets it reformed and T
sign the bill, there will be a Social Security system. But i think you ought to be given
the choice. As a matter of fact, I think the mo~e government trusts people -- with their
own money, in <his case -- the b~tte: off the country is. (Applause.)
Thirdly, i like ~.he idea of people o~ning something. I don’t balieve that ownedship ought
to be available just for a privileged few. [ don’t believe that. I believe the more people
are able ,~o build assets they call their own, the better off the country is, I wank more
people s~ying, thi~ i~ my ---’ss~t, thi~ is my money, and I’r.~ going to leave it ~o whomever i
$.hoese. If I have .~ son or a daughter, I want to be able Eo pass that on to the next
generati:~n. (Applause.]
--n OUr country’s history, the truth is a ].or of peepie hadn’: accumulated asset-:-’. Ari:l now
is the time to change :ha%. I want people to say, this is rain÷; I worked hard ~o~- this,
I’~-e ~.;atched th:s ~ssut b~se grow, and ~cw I’m ,]oing to decide -- I’m either going to use
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Page 159
it fo~ my retirement, if ! want. to, or Z may decide to leave it to my son or daughter.
Your choice. After el!, it is your money.
I want to -- I want it so that people can say, I own something. The more people own
something in America, the more people are going to s~y, I really care about the future of
this country. The more people own their home, the better off we are. The more people own
their own retirement system and watch it grow, the better off we are.
This plan is good for low-income people, particularly low-income women.’Take a 20-year-old
m0m earning $8 an hsur over her career; under my idea of things, when she retires at age
63, she’d have a $I00,000 asset base, plus the Social S~ourity plan. And ~hat makes sense
-- to spread the idea ef ownership beyond gust -- (applauss) -- the so-called "~n~-estor
class." [ thimk it does.
I’m palticu[arly concerned about a system that hurts widows or spouses, if you -- thimk
about th~ system today. You work all your !ife; say, you die before you’re 62 years old;
you worked 30 years, or 40 years, and you leave a widow. If she’s working~ like most
families are now two worklr,g households, if she’s working she’ll -- when she turns time to
retire, she’ll get to choose her plan, her benefits, or the husband’s benefits, which are
ever higher, but not both. So the s~ouse has been workisg all its llfe -- his life --
putting a lot of money in the systsm, dies early, and the government says you can have one
or the other but no~ both, even though they’ve besm working hard to pay in the system,
paying those payroll taxes.
I~ you allow somebody, if they so choose, to have a personal savings account, you’ve got
yourself an asset that you can pass on to your spouse, it’s your money. You cmn watch it
grow and you can decide where that money goes. To me, this is a lot fairer system. It
makes a lot of sense to trust the people with their mo~ey. {Applause.)
So don’t truer my judgment on this alone. Trust somebody else -- named Sam Beard.. Ae’s
joined us. Me’s an expert, Ke’s a fello~ who has studied this issue a long time. He
happens to be a Democrat. I first got to know Sam when I put together a panel headed by a
former Senator from New York who was a Democrat, Senator Danie! Patrick Moynihan. I got
into offine in 2001, I said -- and campaigned on it, by the ~ay -- I said, give me -- I
want to do something abou~ ~ocial Security if I win. And so ! decidsd to ~ut together a
parcel of Democrats and Republicans %o sse what they came up with. First of el!, they had
the right spirit about all this business. They didn’~ say, !’m serving on this to enhance
one political party or another. They ~aid~ we’re people who wan~ to take an objective
look: is there a problem, and if so, can we do something abouE i~.
So, Sam, thanks fo~ joining. Welcome. You migh~ share some of your experiences on the
co~misslon. Were p~ople trying to slug ~ach other whole time there, o~ they actually have
a good conversation?
MR. BEARD: Well, first, Mr. £resident, I !ant to tell you I’:~ honored to be here and thank
you for inviting me. The nezt thing I want is just to underline the staggeri:;g leadership
of the ~zesident. I~ you think about it, historically, Franklin B.oosevelt with the New
Dea! effected policy and politics for three generations. This President, by tslking about
creating a stakeholder and shareowner society, if we allow all Americans uo set aside
SI,000 a year into an account which they ows, it will be a watershed issue, it will be
historic. And your leadership is tremendous.
THE FRE$1BENT: Thar:k you, Sam. ]’hank you. [Applaase-)

MR. BEARD: So I gues= I’ve had the privilege uf doing this for 12 years, Nr. Preside0r;
you’~e sort of a ~ewcomer.
THE PRES!DBNT: Thar’~ right, yes. Otherwise my hair wouldn’t have {]one ~.~hi~:e.
MR. BEAKD: I’ve had the privilege of making 5,000 presentations all across the country,
and I wahl to undsrline wast th~ Freside~<t is saying. This ia essential for the economic
health and future of America, and ~o sate Social Security, ~nd it needs to he done as a
nonpartisan issue. ~Applause.l
THE PRESIDENT: ’[hankS, Sam. Good ~ob. (Applause.) I apprecia~e it. Well-spoken.
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Page 160
DeaRie Sm±th.
MRS. SMITH: My name is Deanie Smith. !’m B4 years old.
THE PRESIDENT: YOu don’t look a day over 82.
MKS. SMITH: Thank you, Mr. Pros±dent. Twenty years ago I retired after about 30 years of
federal service. Amd I draw my retirement. And.then my husband, who was a veteran in World
war II -- he’s deceased now -- I draw his Social Security. I’m not worried about that. But
it’s my two baby boomers and their ~ons that I’m worried about.
THE PRESIDENT: Well, let me ask you something. You count on that Social Security check?
THE PRESIDENT: Yes. A lot of people -- a lot of people count on that check. You knew what
I’m talking about. You’ve got folks that are counting on the check. You’ve got a
grandmother or a grandfather that go to uhat mailbox, zount on the check.
MRS. SMITH: Go to the bank,
THE PRESIDENT: Yes. And I ~nderstand when you talk about Social Security, someDcdy is
going to pop up and try to frighten Deanie Smith, or friends. That’s how you stop things
in ~erican politics, you just try. to snmre people. And I appreciate you saying that you
MRS. SMITH: I appreciate your .saying iL’s going to be safe, Loo,
THE PRESIDENT: ~4ell, that’s it, and I’m 9uing to keep saying it, because it’s the truth.
And everybody who’s isvolved with this issue knows it’s the truth. (Applause.] That’s
important. It’s important for younger workers to hear we’ve got a problem ~nd it’s
important for people like Deanie to understand she’s going to get her check.
Keep going. You’re on a roll. (Laughter.)

MRS. SMITH: Well, whaz I’m concerned about is my son end my daughter and rheir two sons.
Will there be anything left -- my son will be eligible to retire -- well, he’s already
retired, bu~ he can’t draw Social Security for nine years. And my daughter is already --
THE PRESIDENT: This is a man who reCized early.
MRS. SMITH: My daughter is 55 and she’s going to need so~e help, toe, and so are the two
grandsons.
THE PRESIDENT: I’d be really worried about your grandsons. If you’re a younger worker
sitting out there, or a kid in high school or junior high, you’ve got a serious problem
facing you. You heard the man: either going to pay 18 percent payroll tax, or there’s
going to be significant benefit c~ts. And they’re not going to be cutting benefits
significantly on baby boomers. There’s just too many of ~s. Therefore, you’re going to
have to* pay for it. That would be my guess about the political dynamics.
This is a generational issue, folks. O[ice we assure the grandmoms they’~e going to get
their check -- an~ you ar~ going to get your check -- then you begin to hear what Deanie
starts saying, what about my grandkids? That’s what people in Congress are going ~o ~tart
hearing. They’re going to hear, we’ve got a problem, and ~hen we’re going t~ hea~
grandparents say, I’m worried aoout my grandkids~ member of Congress. I don’t care what
your party is, I don’t care what your politica! affiliation is; how about coming together
to solve this so we deD’t sadd!e a young generation with, a huge tax bJii. Thor’s how I
thir~k atout it.
And ! appreciate you understanding that you’re going to get your check. You hold :he rest
of us to ~ccoun5 to make sure we take care of your grandkids,
MRS. SMITH: And i’m going tc insist my grandsons do the right :hits,
THE ~.’RESIC’ENT: There you go. Welcome. (Applause.)
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Page 161
Co!ey 8alley, right out ~f Coffeevi]le, Mississippi.
MR. BAILEY: Yes, sir,

THE PRESIDENT: What do you do for a living?
MR, BAILEY: I’m m co,ton farmer.
THE PRESIDENT: Cotton farmer.
MR. BAILEY: Yes, sir.
THE PRESIDENT: You’re probably going to tell me the cotton prices aren’t high enough and
the weather is no~ any good.
MR. BAILEY: That’s exactly what I was going to say, {Laughter.)
THE PRESIDENT: Good, You got any kids?

MR. BAILEY: Yes, sir. I’ve got -- my wife is here in the audience, Her name is Jody. We’ve
got lwo children: a daughter, MacKenzie, is four years old; af~d then my son, Cole, is four
months old.
THE FRESIOEMT: Good, Well, so ~hy is a farmer sitting uN here ~aihing about Soci~l
Security?
MR. BAILEY: Wel!, my concern with it is there won’t be any Social Security for my wife and
when we r~ch retirement age.
THE PRESIDENT: You’re 33"?
MR. BAILEY~ I’m 32.

THE PRESIDENT: Thirty-two -- I was trying to get you moving here a little f~ster.
(Laughter.) You rea].iz~ if yo~’re a s~if-employed farmer you p~]t the whole 12.4 percent
into the system. ,
MR. BA~LEY: Yes, sir.
THE PR~IDEMT: You’re putting 6.2 percen< when you’re working, but if you’re self-
employed, small business c~ners -- a lot of small business owners here in [~ississippi, ~
lot of farmers in Mississippi, a lot of people working on their own account in Mississippi
-- uhey put the entire 12.4 percent in.

THE P}~,ES!DENT: SO you’re doubly cc~ncerned.
MR. BAILEY: And also what’s concerning also, without .the p:eraona! retire[.~ent accounts that
you’re proposing, we’re so close o~, the farming community with the finances, it would
really trouble a io~ of the~ to go from the !2 percent to the 18 percent, plus pay chat
ha!f of 18 percent that we ~ill be required to ~ay.
THE PF.ESIOENT: Yea. See, what he’s saying is t?:ere’-~ a clouJy future. Do you know how many
youngp~-~o~’,~_~._.~ are saying, I’m r~oh sc sure l’m going to see anything_ from [:;ccial Security.
It’s beginning to sink in. People say, well, i’m m~re likely to see a UFO than ! am a
SocJal Security check if I’m 35 an~ under. It’s beginning to -- people are beginning to
understand the naEure of Zhe issue.
A~’..d ! a%ean, people can say, well, he’s ~naking ~p the l]umbers. These numbers are real,
folks, that ~.~e’re just talking about, You heard Sam. He’s studied this issue for a long
time. My job is to lay it out to tell you the truuho You can figure our_ ~hether or not
somebody has .got the right solution or I’~::.~. But l’m telling you right now, if you’re 35
years old, you don’t think you’re going to s~e a dime. A lot of people don’t feel that
way, and particularly if you got kids. $o he’s looking -at putting 12.4 pezcen[ payr.oll tax
into the system, not ~hinkir.g he’s going to see something coming out of it. No ~.~onder he’s
8
Page 162
sitting up here talking "to the President. He’s not out there ploughin~ his fields.
MR. BAILEY: Yes, sir. He -- one thing that my wife and I have done, when me got married
almost nine years ago, we were worried about -- when we were talking about retirement, we
didn’u even consider $ocial Security at that -- nine years ago.
THE PRESIDENT: Any other youngsters think that way? Talk to a lot -- there you go.
(Applause.) Sad, isn’t it7 We’re going to change it. Than’s why we’re sitting here. That’s
why we’re talking about the issue, is to make sure that when I say, are you worried about
seeing your Social Security, those hands won’t go up, because we have done our duty --
both Republicans and Democrats hays done our duty to fix the System.
Go ahead.
MR. BAILEY: What we have done to supplement or to aid in our retirement is -- since the
Roth IRA has become available -- I think Senator Rcth from Delaware introduced it in ’97,
and it was available in 1998. So we --
THE PRESIOENT: There you go -- he’s the kind of farmer who understands history.
Go ahead.
MR. BAILEY: Ht;t we have fully funded the maximum amount every year, the eight years we’ve
been available --
THE PRESIDENT: Roth IRA, he’s watching his money grow, He and his wife said, ~[’m going Lo
put a little money aside and watch it grow, right?
MR. BAILEY: The one in<cresting thing is that, of course, we can go online, or I can call
Legs Mason here in Jackson who controls it for me, and I can see what it’s doing and how
it’s doing. And just the way that the interest is compounded, and it’s grown [i~ver the time
that we’ve done it, it’s a goc~ -- I would definitely be in support of the pensonal
retirement acoount.
THE PRESIDENT: See, he’s used to investing. You know what’s amazing about Ame±ic#? When I
was your age, I don’t think we spent a lot of time on 401{k)s -- w~’re abou5 to talk to a
~01(k) owner here in a minute -- or I~hs. I just don’t remember. I probably didn’t since
they didn’t exist. And we 90£ a whole group of youngsters coming up in America today --
32-year-old cotton farmer, I suspect a lot of Nissan ~orkers, who understand what it means
to watch your owl; assets qrow and to make investme/]t decisions.
In other words, there’s a cultural change in #~erica. Congress is lagging behind the
cultural change. But there’s a lot of #elks who are comfortable about watching their own
money gro~, a whole l~t of folks. ~d it seems like to me to make sense that if Nissan
thinks it’s all right, if this cott.on farmer takes advantage of a program, that when it
comes time to making sure the Social Sect~rity system is m~dern, that we ought to 9ire
~orkers all across the country the same opporLunities.’IApplause.)
Ready to go? Cynthia Roberts.

MRS. ROBERTS; Again, than): you~ Mr. President.
THE PRESIDENT: What do you do, Cynthia?
HRS. £CBERTS: i’m a hums, ~esource representative here at the Canton facility for Nissan.
THE PEESIDBNT: Right here?
THE PRE~IDENT: Is £L okay for these people to rake a lirule extra time off? (Applause.]
MRS. ROBERTS: I’ve worked here for about three yeacs now and loved eve~y minute of it. Ny
thoughts are similar to Coley’s, as far as Soci~.[ Security. I don’t rea].ly think ,hose
benefits will. be here, not only for myself, bt;t also for my two children ~.;ho.are 17 years
old.
Page 163
THE PRESIDENT: Seer again, I know I’m getting repetitive, but I hear this story a lot, e
younger mom saying, Mr. ~residsnt, I don’t think the benefits are going to be there fo~
me. ~’m worried about it. She’s beginning to understand the math, You a 401(k) owner’?
MRS, R.OBERTS: I am a 401(k) Own6r.

THE ~RESIDENT: How COol is that? Owns her own assets. (Applause.} How does it work here at
Nissan? How does it work at Nissan?
MRS. ROBERTS: Currently, what happens is the 401(k), the company will match 60 persen~ for
up to 5 percent°
THE PRESIDENT: Yes. And So -- arm you wa~ching -- you’re watching the accouter pretty
carefully?
MRS. ROBERTS: I do wa<ch. I get a quarterly statement, and I do watch those monies very
closely. I do not like ~e lose money, (Laughter,)
PRESIDENT: No, I don’t blame you. Don’t shoot any disc then. (Laughter.)
MRS. ROBERTS: But 401[k) has proved to ~ork out great for me and my family.
THE PRESIDENT: See, i<’s interesting, isn’t it -- [ can’t tell you how good it is for the
country to be sitting nex~ no Cynthia Roberts, working right here at Nissan, and she’s
talking to me about watching her assets grow. She gets ~ quarterly statement. I<’s a
statement that says, here’s ~hat you own and here’s how it’s growing. It’s hers. Nobody
can take it away from her. The governmerv< can’t decide, well, we need this for another
program. It’s your money.
I Chink it makes sense in a modern social Security system for people opening up a
quarterly statement that the government can’t spend, the gever~nent ~an’t take away, that
you can decide what to do with it. And that’s what Cynthia is talking about. (Applause°)
Isn’C that right?
MRS. ROBERTS: That’s rig~U.
THE PRESIDENT: Is it growing?
MES. ROBERTS: Yes, it has g~o9:n substantially.
THE PRESIDENT: Yes, has grown substantialiy. (Laughter.) i can promise you this; your
money -- your money Jn the government -- if t~e governmen[ takes your money through your
payroll tax, it’s not growing substantially. !t’s growing a little bitty. ~nd at her age,
that money begins -- when it grows substantially early on and she keep~ reinvesting and it
-- it grows substantially a IOt quicker cvez time, And that’s important for people to
figure out.
Was it hard to invest your o,,~. money? Was it hard to get used to?
MRS. ROBERTS: ~[c, i wasn’t hard. There are d_.rerent options. I curreutly use someone
with our 401(k) company to help me watch my monies and ~o monitor the investments that I
made.
THE BRESIDZNT; So is theze -- it’s a mix of bonds and stocks?
MRS. ROBERTS: !t Js mostly all bonds and minimal stocks, bur.. scm¢ stocks. ! do take some
risk,
THE ~RESIDENT: Sure. But she gets -- well, you’re you~g, you ought to. She can design a
portfolio. You hear what she’s saying? She’s ~ay±n~, they give her a ~ance to manage her
own money and she talks tc an expert and gets to design the portfolio that meets her
needs, Doesn’t that make sense? It’s her money to begin with. The government ought to do
the s~me thing through the Social Security syszem. (Applause.) And then Cynthi~ gets to
decide who to lea?e it to -- ~sn’t that right?
Page 164
THE PRESIDENT: Unless you decide to spend it when you retire.
ROBERTS: No, i’m not going to spend it. <Laughter.)

THE PRESIOENT: So you view this as a way to not only make sure that there’s something for
you when you retire -- we’ll get the Social Security system fixed so Chat you can’t sit up
here with the next President you visit with and say~ I don’t think I’m ever going to see a
dime. I think if we keep talking about this the Congress is going to say, oo~s, people
like Cynthia know we got a problea and they expect us to get something done. So we’re
going to keep working on it. But in the meantime, you’re building up an a~et base -- I
presume, with your chi]dren in mind.
MRS. ROBERTS: That is corzect, they are always in mind.

THE PRESIDENT: Yes, always en your mind.
MRS. ~.OBERTS: Always on my mind.

THE PRESIDENT: I’m afraid I’m always on my mother’s mind, too, you know? (Laughter.)
Anyway, thanks for coming and thanks for representing the work force here. {Applause.] You
did ,7ood, r~mlly good.
I’m just curious -- anybody else got a 401(k)? (Applause,) i rest my case. i rear my case,
Axe yo~ watching your own money grow? Starting to make sens~ ~o have that money you’re
contributing to the -- through the payroll Zax ~o be able to -- a part of that to be able
to do the same thing? Seems like it makes sense to me.
Finally, we’re going ~o end with DeLois Kiilen.. Welcome.
MRS. KILLEN: Thank you, Mr. President. it’s an honor.
THE ~RESI~ENT: Nhere are you from, DeLois?
MRS. EILLEN; I am from Union, Mississippi.
THE PRESIDENT: Union, Mississippi. {Applause.) And ~.~hat do you do?

MRS. KILLEN: I live i~ Union. I’m 71 years old.
THE PRESIDENT: And you’re working.

MRS. KILLEN: I am semi-retired. I work for the city of Union at the Police Department as
the dispatcher,
THE PRESIDENT: Thor9 you go. Whate~er you do, don’t !et her call your car plates.
[Laughter,) Good, thor, ks for working.
MRS, KILLEN: I need to work.

THE PRESIDENT: You’ve been ~orkin~ el! your life.
MRS. NILLEN: I have m~en ~erking ~iI my life, And if i~ wasn’t for my Social Security
check, ! really couldn’t make ends meet.
THE PRESIDENT; Right. Rut your ScoLd! Security check is not providing enough so that you
can retire,
MRS. KILLEN: it is not. If I had known ~hat these younger people ):now now, £nd had the
opportunities that they have~ I ~ou].d have had someth!nq besides Social Security.
THE P~ZZIDENT: Yes, but that’s it for you.

MRS. KILLE~: It is.
PHE PRESIDENT: Yes. That’s veally important for pe.~ple zo understand, is nhaz OeLoi~
_ou~__, O~ the Social Security check ~he is --
II
Page 165
MRS. KILLEN: Very definitely.
THE PRESIDENT: Yes, you’re over retirement age -- barely. (Laughter.) She has to keep
working. The system didn’t provide enough for her to retire on.
MRS. KILLEN: I’m just another desperate housewife. (Laughter and applause.}
THE PRESIDENT: This has been my ~eek to he around funny women, you know? (Laughter.) Good
one. (Laughter.) Once again !’m speechless. (Laughter.) Keep go±nqo No~, you’re on a roll.
MRS. KILLEN: Well, i depend on my Social Security for half of my ±n~cmeaz leas%.
THE PRESIDENT: Yes.
MRS. KILLEN: And I’m so grateful that you think we are noc going to lose itz because I
intend to be here a long time yet.
THE PRESIDENT: That’s right.
MRS, KiLLEM: And ! wan~ to be self-sufficient. I wan5 to take care of myself.
THE PRESIDENT: There you go.
MRS. KILLEN: And with S~cial Security benefits coming in ~egularly, I can p!a~] fol the
future.
THE PRESIDENT: That’s good. It’s really importann for our seniors when they hear this
debate to have peace of mind: that we’re really talking about the youngsters, the young
workers, and not -- a[,d net you, DeLois. The debate is aimed at making sur~ the safety net
is good for a younger generation of Americans. Yo~l’re fine. And people born prior to 1950
are fine. But if you’re young and w~rking, think mbout <his -- the system go~s broke in
2041. It’s not all that long from now, really, when you think about it. And you ~ork all
your lifs pu£ting your money into a system that’s going broke -- a li~tie discouraging.
We hove an obligation and a duty to fix this. l’m going to coi~t~.nue traveling the country,
DeLois, talking about th~ problem. People in ~ezic~ are begi~ning to undersLand we’ve got
a problem. People are beginning to figur~ i~ out. A lot of yo~nger ~ericans are now
beginning to pay atte~]~ion ~o this issue. If I were you, I’d be pay±ng attention [e it,
too. You got a ~ayroll tax, put your payroll ~a× in the system that’s going broke, I’d be
out there wonderin~ what the neck is going t~ happen in W~shi~gton0 D.C. to make sure the
money I’m putting in is ~orthwhile.
I’m going to continue assuring our seniors that they’re going to receive their checks. You
tell your grandma and grandads and your mother and dads, this government of yours will
keep it8 promise, And !~m going to continue talking to the younger people cf America and
~ay ~hat we’r~ goin~ ~o be wise about ho~ we fix the system. We’re going to fix the safety
net, and as we do, ~e’r~ going to make it a better deal for you. As w~ do, we’re going ~o
let you take some of your own money and ~atch i~ grow so you can build your own asset
base, so you can pass i5 en ~o whomever you chose.
We’ve got a great opportun!ty here to show the ~erican people that Washington isn’t ~iI
~oiitics, that Washington has got the capsitZ to rise above paz~isan bickering and solve
and important problem once and for all. And when we do, when we do~ and when we get it
done, we’ll ell be able ~c say we have done our duty.
I ~ant to thank you si! for giving me a chance t~ come by, God bless you all~ and God
bless our families. Gcfl bless ~aerica. (Applause.)
END i:ii P.M. UDT
12
Page 166
Dunn, David
From: Dunn, David
Sent; Tuesday, May 03, 2005 5:42 PM
To: ’Medina, 80nya E.’
Subject; RE: REMARKS BY THE PRESIDENT tN A CONVERSATION ON STRENGTHENING
SOCIAL SECURITY ¯
b)(5)
From: Medina, Sonya E. [mai!to:Sonya E. Medina@who.eop.gov]

Sent: Tnesday, May 03, 2005 5:39 PM
To: Dunn, David
Subject: RE: REMARKS HY THE PRESIDENT IN A CONVERSATION ON STRENGTHENINC SOCIAL SECURITY
(b)(5)
I
From: Dunn, David [mailto:David. Dunn@ed.gov]
To: Medina, Sonya E.
Subject: ~%~: RZMARKS BY THE PRESIDENT IN A CONVERSATION ON STRENGTHENIN~ SOCIAL SECURITY
So youdon’t have to search...
From: Gribble, Emily

Senn: Tuesday, May 03, 2005 5:31 PM
To: Dunn, David
Subject: RE: REMARKS BY T~{E PRESIDENT IN A CONVERSATION ON STRENGTHENING SOCIAL SECURITY
here’s all i found...

Traveling ~ith me is the Secretary of Educaticn, Margaret Spellings. Thanks for coming,
Madam S~cretary. (App,.muse.}
Her%’s what ~e believe in Hashinqton, at least Margaret and i believe this: Every child
can learn. We believe tha:. ~e don’t accept a system <hau simply shuffles kids through
schoo! without teaching them how to read and write and add and subtract. I believe schools
ought to set high expectations, and I believe we oueht tc measure to determine whether to
not each child is learning to read and write. And by measuring, we can figure out ~hc
needs help early, before it’s too lm:e, I relieve it when I say it that w~ should have no
child lef~ behind in ~m:erica by insisting on high standards in cur schools. (Applause.)
Page 167
From: Dunn, David
To: Gribble, Emily
Subject: FW: REMARKS BY THE PRESIDENT IN A CONVERSATION ON STRENGTHENING SOCIAL SECURITY
Supposedly potu8 talked about education today. Will you please find it for me. Thanks.
From: Medina, Sonya E. [m~ilto:Sonya E. Medina@w~o.eop.gov]

Sent: Tuesday, Nay 03, 2005 5:09 PM
To: D~nn, David
Sub[iect: FW: REMARKS BY THE PRESIDENT IN A CON~.~RSATION ON STRENGTHENING SOCIAL SECURITY
From: bounce-67119-114563@list.whitehouse.gov [mailto:bounce-67119-114563

@list.whitehouse.g~v] On Behalf Of White House Press Releases
To: Medina~ Sonya E,
Subject: REMARKS BY THE PRESIDENT IN A CONVERSATION ON STRENGTHENING SOCIAL SECURITY
THE WHITE HOUSE
Office of :he Bress Secretary
(Canton, Mississippi)
For l.~mlediate Release May 3, 2005

IN A CONVERSATION ON STRENGTHENING SOCIAL SECURITY
Nissan North America Manufacturing Plant

Canton, Mississippi
12:17 P.M. CD2
THE PRESIDENT: Thank you all very much, Please be seazed, Thank you very much for the warm
welcome. My first observa:~on is that I overdressed. (Laughter and applause.~ And my
second observation is, wha~ an amazing facility you have here. (Applause.} I mean, you’re
coming in cn ~he highway, anu all of a sudden the Nissan plant starts to -- shows up, and
it lasts fc~ a long uime. So ~hanks for having
the workers for making it work. You can have a -- (applause.) You know what I know, you
can have a pretty building, but if you don’t have a motivated, highly-skilled work force,
nothimg is coming out. And I want to thank you all for ~howing the world that ~,erica can
compete with anybody. (Applause.)
I want to thank the folks who greeted me, Dan Guadette and Jim Norton, Grog Daniels, Dave
Boyer -- thank you all for your hospitality. Thanks for letting us come. I particularly
want to thank you a~! for taking time out of your busy work schedul~s. Hope it wasn’t an
inconvenience to get you off the line. (Laughter.) I know you want me to be sher~, so you
can get back to work. (Laughter.) Okay, I won’t be.
I’ve got something i want to talk about; I’m going to spend a little time on Social
Security. This is an incredibly important subject for a !or of folks. This is going to be
an educational experience, and I’ve asked some of ~ur fellow citizens to join me up here,
to make it clear to you all why I’m talking about this issue to begin with.
Before I do, there’s som~ people I want to recognize, starting ~ith the gre~t Governor of
the state of Mississippi, Haley Barbour. {Applause.) Welcome, Governor. Thank you. And his
wife, Marsha, the First Lady. [Applause.) Haley married well, and so did I. I do~,’t know
about you, Haley, but my wife has become quite a one-liner, and she can deliver those one-
liners. I called her Laura Leno Bush the other day. i love her dearly. She is a fabulous
woman and a great Firs~ Lady. !’m sorry she’s not with ~e here today. (Applause.)
I want to thank the Lieutenant Governor, A/~y Tuck, for joining us. Gove~cr, thank you for
being here. {Applause.) Traveling with me is the Secretary of Education, Margaret
Spellings. Th~nks for coming, Madam Secretary. (Applause.)
Here’s what we believe in Washington, at least Margaret ~nd i believe this: Every child
can learn. We believe that. Wa don’t accept a system that simply shufflas kids through
school without teaching them how to read and write and add and subtract, i believe schools
ought to set high expectations, and I believe we ought to measure to detexmine whether to
not each child is learning 50 read and write. And by measuring, we can figure out who
needs help early, before it’s too late. I believ~ it when I say it that we should have no
child Left behind is America by insisting on high standards in our s~hools. (Applause.)
I’m traveling with some high -- high power Out of Washington today. Senator Trent Lott:
head of the Budget Committee and ~ great friend~ is with ~]s. Thank you for being, Senator.
[Applause.) And Tricia Lott. ?hat’s not Tricia, that’s the granddaughter. And the head of
the Appropriations Committee, Senator Thad Cochran. Thank you both for being here.
(Applause.] The Senator and i traveled down on Air Force One together~ and I guess the
message I heard was, don’t forget Mississippi, Mr. President. (Applause.)
I appreciate Congressman Rogex Wicker and Congressman Chip eickmring joining us today.
Thank you guys for coming. (A~plause.) You might be mware of the Picketing name. I was
proud to appoint Chip’s dad, Judge Charles Picketing, ~o the Fifth Court. What s fine man
he ~as and what a fine judge he was, and give him .our heat, please, Chip. (Applause.]
Senator Travls Lee is with us. Senator, appreciate you coming. How about the Mayor of
Canton, ~red Esco? Thank you, Mr. Mayor. Appreciate you. (Applause.)
Thence are a lot of other folks. If i spent time naming them, you’d never get back t<: work.
So i’m going to seep trying to name them all. But I de want to name one other person. I
had the honor of meeting Ruth Wilson today, when I landed there in Jackson Airport. Ruth
is a iongtime volunteer. She helped organize a program at her church thai has established
a food pantry, an academic tut~r.[ng program, a clothes closet and a transport~atlon service
for the e]derl},. The reason I bring up Ruth is I want to remind you all that :he great
strengr~ of ~erica lies it. the hearts and souls of our citizens.
So~e pueple say the s:reng~h o£ .~merica is our military; we’ve go: a strong military and I
can assure you we’re going to keep it that way. {Applause.) Some people say it’s because
our esomomy is the biggest in the world; :hat’s important and we’re going to keep the
environment such that we’ll continue to expand jobs across ~erica. Hut zhe t[ue strength
of ~mlecica is the fact we’ve got people like Ru~h, ~ho are willi~]g to take time out of
their .lives to feed the hungry, to provide shelter for the homeless, to love a neighbor
just !ike ysu would like to ha ].oved yourself.
somebody~s !±£e. Helo change this great country one heart an,:l one sc-ul at a t±me -- ~ust
like R,ath Wilson is. Ruth, thank you for coming. IApplause.) I don’t know where you are --
there you are. Welcome. [Applause.)
I’m here to talk about the Social Security system. I’ve spent a lot of time working on
this issue. I believe the job of a President is to confront problems and not pass them on
to future Presidents or future Congresses. i think you expect people in office, like me,
if we see a problem, to deal with it, and not sayr oh, it’s too big a political risk to
deal with it; or maybe, I don’t feel like dealing with it; or maybe, somebody says I
shouldn’t deal with it. I believe you sand people to office to say here is a problem and
to take it on squarely. And nhat’s emmctly why I’m sitting here today in Canton,
Mississippi, because I see a problem in Social Security. And I believe ! have a duty as
your President to talk about the problem and talk about the solut}on.
And here’s the problem: First, Franklin Roosevelt did a smart ~hing when it came time to
setting up Social Security. Social Security checks have meant a lot to a lot of people.
You know what I’m talking about. Your moms and dads or your grandparents count on that
check. We’ve got some people sitting up here today who count on tha~ check. I fully
understand that when you’re talking about Social Security, you’re talking about something
really important for a lot of people. And therefore, the first thing I want to leave you
with is that if you’re getting a Smcial Security check today, you’re going tO keep getting
your check. I don’t care whst the propagandists say, ! don’t care what the politicians
say, nobody is going to take your check away. A~]d it’s important for you to understand
that. {Applause.)
Matter of fact, if you were born in 1950 -- before 1950, nothing ~s going to change. In
other words, the system is solvent for you. The problem is if you’re a younger worker. And
seer here’s the problem: A bunch of baby boomers, just like me, are getting ready ~o
retire. I r~ach retirement age in four years from now. That’s a convenient time for me to
retire. (Laughter.) [ turn 62. The government says whe[~ you’re 62, you {:an start drawing
check. There ~re a lot o~ ~Is. AS a matter of fact, there’s 40 million retirees today.
There’s over 70 million that will be fully retired when the baby boomers retire
completely. That’s 70 million people, nearly double the amount of people today on Social
Security. And sacond].y, we’re living a lot longer.
I try Lo stay in shade. I exercise and all that, try to do -- make smart decisions with my
body. [ plan on living a long rime, and so do a lot of other people my age. We’re living
longer than the previous generation. You’ve got a lot of people getting ready to retire
who are living longer thgn the previous generation and we’ve bean promised greater
b~nefits. In other words, you have people running for offize saying, vote for me, i’m
going to make sure the baby bDumers get greater benefits than the previous generation. So
think about that man for a second, particularly if you’re a younger worker. You got a lot
of people like me living longer than ever before, been promised a !or of benefits, and
there’s fewer of you paying into :he system-.
YOu see, in 1950, there was 15 workers paying into the system for ~very beneficiary --
workers for every beneficJ.ary. Today there is 3.3 workers, fewer of you all paying for
people like me, who are gc, ing to live !onger and have been promised greater benefits.
Now, this is a pay-~s-you--go system; you pay in, and we go ahead and pay out: in
Washington. You pay into the system -- some people say, well, there’s a Social Sec~lri<y
trusz, we’ll just take your money and held it for you a~d give it back to },ou when you
retire. ?hat’s not the way the system works. Part of my responsibility as your President
is to tell you exactly whaT’s going on~ to lay it ~ight out there for you to hear. The way
it works in Social Security is your payr~:].l taxes -- and you pay a lot of payroll taxes --
go into the system, an~ ~e’re paying for retirees, like t~o of the people sitting u~ here
today. And if we have any money left over~ iu goes to fund govern,moot programs. And all
that’s left is an ZQU. That’s how the system works. And so you’re payin,7 in, and it’s
going out. Nobody is -- you’re not paying in and we’re holding the money for you. You’re
paying in and it’s going out. And in 2017, because baby boomers like m~ are getting ready
to retire, Yhe system starts to go in the red. In 2027: it’s $200 bill. ion a year in the
red. In 2¢30, it’s S3OO billi~n; 2041 it is ha~kr~/pz. !n other ~ords, it’s ¢u~.
So think about ~lhav. I’m telling you. ’2his is the mat:h, folks, this is exac~..]y ,,,.’hat’s going
to take piece unless wc do something about it. I’m read}, to -- people like me are
retiring; we expect ~h.e government to make good on the promise, of c:~urse. But yet, we
4
the~e will be paying into a system that’s bankrupt. And that’s not fair.
And that’s why I’ve taken ~n this issue, and that’s why I’m going to continue traveling
the country talking abo~t the need to make sure the safety net of retirement is not only
good for those who have retired, but it’s good for a generation coming
Now, I talked about -- ~he other day ! had a press conference, and I’ve spoken about this
issue at the -- during my State of the Union add[ass, I said, !ook, I not only have a
responsibility to lay out ~he problem, I’ve got a responsibility to start helping people
come up ~ith the solution. It’s one thing to lay out the problem; it’s another thing to
stand up and say here’s ~ome ideas to move forward, here’s some ways we can work together
-- first and foremost~ future generations ought to receive benefits equal to or greater
than the previo~s generation. So I think if you’ve been working all your life, you ought
to ~eceive a benefit equal to or greater than the promises that I got. I think that’s a
fair syste~. So in other words~ that’s an important principle for people to listen to.
Secoadly, if you work hard and -- Social Security your entire life, you will nou retire
into poverty. The current system today, by the way, doesn’t say that. The current system
says you can work all your life and may end up in poverty. I don’t think that’s fair.
think people who h~ve worked hard al! t.heir life and paying into the Social Security
system ought to have a program that makes sure they won’t retire into poverty.
And so, therefore, ~ believe benefits for lower-income workers should grow faster than
benefits for higher-income workers, just to make sure that someone doesn.’t retire into
poverty. You know, you hea~ all this talk about benefit cuts; we’re talking abo~t making
sure benefits grow at the rate of inflation -- that’s what we’re talking about. You’ve
been promised something; i~ ought to grow at the rate of inflation. Today, if you’re an
upper-income ~orker, it grows at the rate of wage growth. ~*~at I’m telling people is, is
that ought to be applying for younger -~ lower-income workers, but not all workers, so
that the system can take care of those at the lower income scale. That makes se~]se to me.
Z hope it makes sense to the tin!ted States Congress. I think Franklin Roosevelt would be
proud to make sure of this. If you work al! your life and contribute to Social Security
you should noI retire intopoverty, i think that’s a principle that makes sense. Z think
it’s also important for our elected leaders, both Democxats and ReDt|blica~%s, to come to
the table. The ~2,erican people now understand we have a problem. A~d our leaders must
choose; Do nothing and guarantee a massive tax hike, cra 30 percent benefit cut; or act
now to keep the promises of Social Security for the 21st century.
The reason Z say do nothing and get a tax hike -- if we don’t do anything, it’s estimated
that younger workers will hav~ to pay an 18-percent property -- pay~o!l tax to make good
on the promises. If you don’t like 12, try 18. Tha[’s a lot. Payroll ~axes are some of the
highest taxes people pay here in ~nerica, and the idea of not having the political will to
address Social Security and sticking younger workers with a high payroll tax doesn’t make
any sense
Now, I know, scmetimes Washington lucks down. They say, well, we can’t do this, it wil!
help a Republican or help a Democrat. We’ve got to get rid of that kind of thinking in
Washington, D.C. We’re talking about -- <applause.}
I’ve g0r one other idea [ :~ant to talk te you about. By the ~ay, the idea i laid out ~he
other day about growing benefits at the rate of inflation for 1ower-lncome workers -- rate
of inflation for upper-income ~orkers, and rate of wages for lower-i~come workers~ solves
most of the problem, long-term problem. There’s some other things we can work with
Congress or~ te mmke sure qhat youngec workers hav~ got a system available for them.
Netting changes for our seniors -- I’m talking about those of you born prior to 1950. i’m
really talking about the younger workers, because if we don’t do anything, you’re going to
have a huge bill to pay, one way or the ether.
Now, I’ve got another idea that [ want Congress to cow, sider, and that is being able to
take some of yo’lr own money, your payroll tax that you oar is] the system, and the
governmeDt allow you tc set. up a perso~al savings a~cou~t~ First of all, it’s your money
that you send in~c W3shington -- no~ Washingten’s money, it’s you~ ~:oney. We ki~ of like
to spewed your money up zhere;.remember, this is a syste~ you ~ay in, we ~ake care of the
retirees, any money [eft over we pay for other Drograms. Pretty soon the amount cf money
5
Pac~e 171
yo’~ send in is going to be less than the mousy o~ed to retirees and it’s going to go into
the red. That’s why, if we don’t do anything, you’re going to end up paying more taxes,or
~e have to cut benefits. But it’s your money.
Secondly, i think it’s really important to recognize that if you grow your money at 4
percent or 5 percent, it’s going to amount to a lot more money than if you keep it in the
government and the gover.n~en~ can grow it at 1.8 percent. It’s how interest continues ~o
grow. Some of you may have 401(k) s, and ymu’re watching that money begin to grow. And you
hold it in there and it grows over time, and it starts to -- the growth starts to
accumulate. It’s called the compounding interest. /~nd that’s an important concept which is
not a part of the system today.
For ezample, if you have a person who has worked all of her or his life at -- earned
$35~000, and the government allows you to t~ke a third of your payroll ~axes and set it up
in a ssvings account, and that account earns a reasonable rate of return, that, by the
time yOU retire -- this is $35,000 over your lifetime, by the way -- and you can take out .
some of the money, a third of the money that you’re paying into the government and set up
an account that’s your own, you’l! end up with $250,000 by the time it comes to retire --
$250,000 plus that which :he government can afford to pay.you through Social Security.
That’s called a personal s.avings account. That’s your asset. The government can’t use it.
It’s yours. Government can’t spend it on other programs. ~t’s a hard asset.
Today, the program has got -- leaves behind IOUs, paper ICOn in a filing cabinet. I think
when it comes time to make sure the safety net is available for younger ~ericans, we
ought to make sure there’s hard assets. You put money in the system; you ought to have an
asset you call your ~wn as part of your retirement plan.
Now, people ask me all th~ time~ well, if I have -- if I have a personal savings account,
what are the rules? Well, first of al!, you can’u take the money and put it in the
lottery. !n other words, this isn’t a -- you can’t shoot dice with it. This is part of a
retirement plan, ~nd so you’!! be given the options to choose a conservative mix of bonds
and stocks. !f you don’t want to take any risks, yo~ can pu~ it in government-backed
Treasury bills. But a government-backed Treasury bi!l gets a greater rate of return than
the money ~hat we’ve got in the federal government, in other words, this is a chance to
earn [£0ze -- watch your money @row in a better way through a co~servmtive mix of bonds and
stocks.
This isn’t a ne;v ides, by the ~ay. Guess who gets to do this right now. Federal employee~,
members of the Senate and the House of Kepresentatives. They’ve decided this is a pretty
good idea for themselves. Seems like to me, if it’s good enough for them it o~.~ght to be
good enough for Nissan plant workers. (App]ause.l
The good news is, these four members of the Congress agree with me -- if it’s good enough
for them, it’s good enough for you; thah you ought to be given a chance, if you ~ant --
and that’s the other aspect, this is a voluntary personal savings account. This isn’t the
government saying you’ve got to do this. This is saying, if you want to do this, this
option ought to be availabls. Some Neople may not want to do ic -- I fully understand
that. You stay in the Social Security .system, and when Congress gets it reformed and I
sign the bill, there will be a Soci~l Security system. But I think you ought to be given
the choice. As a matter of fact, I think the more government trusts people -- winh their
own money, in this case -- the better off tl]e country is. (Applause.)
Thirdly, ! like the idea of people owning something. I don’t believe that ownership ought
to be available just for a privileged few. I do~’h believe that. I believe the more peop!e
are able to build asse~s they call their own, the better off the country is. I want more
peop[~ saying, this is my asset, this is my money, and I’m going t.o leave it to whomever I
choose. If I have a son or a daughter, I want co be able to pass that cr~ ~o the next
generation. (Applause.)
In our country’s history, the truth is a lot o[ people hadn’t accumulated assets. And now
is the ti~e to charge that. I want people to say, this J.s mine; I ~orkeG hard for this,
I’ve we<chad this asset base grow, and now I’m going to decide -- I’m either going to use
it for my retirement, if I ~ant to, or I may decide to leave it to a~5, sen or daughter.
Yobr choice. After all, it is your money,
I want to -- i ~.~ant it so that peogle <:an say, I own something. The more people
someuhing in America, the more people are going tc say, Z rea!ly care .about tie fut~ire cf
6
thei~ o~n retirement system and watch it grow, the be~tar off w~ are.
This plan is good for low-income people, particularly low-income women. Tak~ a 20-yea~-old
mom earning $8 an hour over her career; under my idea of things, when she retires at age
63, she’d have a $i00,0~0 asset b~se~ plus the Social Security plan. And that m~hes sense
-- to spread the idea ef ownership beyond just -- (applause) -- the so-called "investor
class." [ think it does.
I’m particularly concerned about a system that hurts widows or spouses. If you -- think
about the system ~oday. You work all your life; say, you die before you’re 62 years old;
you worked 30 years, or 40 years, and you leave a widow. If she’s working, like most
families are now two working households, if she’s working she’ll -- when she turns time to
retire, she’ll ge~ to cheese her plan, her benefits, or the husband’s benefits, which are
ever higher, but net both. So the spouse has been working all its life -- his life --
putting a lot of money in the system~ dies early, and the government says you can have one
or the other but not both, even though they’~e been working h~rd to pay in the system,
paying those payrol! taxes.
If you allow somebody, if they so choose, to have a personal saving~ ~ccount, you’ve got
yourself a~ asset that you can pass on to your spouse. It’s your money. You can watch it
grow and you can decide where that money goes. To me, this is a lot fairer system. It
makes a lot of sense to ~rust the people with their money. {Applause.)
So don’t [rust my judgment on this alone. Trust somebody else -- na~ed Sam Beard. He’s
joined us. He’s an expert. He’s a fellow who has studied this issue a long ~ime. He
happens to be a Democrat. ~ ~irs[ got to know Sam when ! put together a panel headed by a
former Senator fxoK~ New York who was a Democrar, Senator Daniel Patrick Moyniha~. I go5
into office i|] 2001, I said -- and campaigned on it, by the ~ay -- I s.aid, give H,e -- I
want to do something about Soci~l Security if I win. And so I de’uid~d to put ~ogether a
panel of Democrats and ~epublicans to se~ what they came up with. First of all, they had
the right spirit about all this business. ?hey didn’~ say, i’m serving on this to enhance
one political ~arty cr another. They said, we’re people ~ho want to take an objective
look: is the~e a proble!n, and if so, can we de something about it.
So, Sam, thanks for joini.n.g. Nelcome. You might share some of your experiences on the
co~iss!on. Were people trying to slug e~¢h other whole time there, or they actually have
a good co~ver~ation?
MR. HEARD: We!!, first, Mr. President, I want to tell you I’m honorel to be here and thank
you for inviting me. The neK~ ~hing I want is just to u~derline th~ staggering leadership
of the President. If you think about it, historically, Franklin £oosevelt with the New
Deal affected policy and politics fo[ ~hxee generations. This President, by talking about
crea~ing a stakeholder and shareow~er society, if we allow all ~ericans to set aside
$i,000 a year into an account which they own, it will be a watershed issue, it will be
historic. And your leadership is tremendous.
THE PRESIDENT: Thank you, S~m. Thank you. (Applause.)
MR. BEARD: So i guess I’ve had the privilege of doing this for 12 years, Mr. President;
yo~’re sort of a newcomer.
THE PRESIDENT: <[hat’s ri,~ht, yes. Otherwise my hair wouldn’t have gone white.
MR. HEARD: !’ve had the privilege of making 5,000 presentations all across the country,
and i w~nt to underline ~hau the President is saying. This is essenti~l for the economic
health and future of ;m~erica0 .~nd to save Social Security, and it needs to be done as a
nonpartisan issue. {AFplause.l
THE ~RES.rDENT: Thanks, Sam. Good job. (Applause.) 1 appreciate it. Wel!-spoken.
Deanie SmiLh.
MRS. SMITH: My name is Deanie Smith. i’m 84 years old.
THE PRESIDF~NT: Yo,~ dov.’t ]oak a day over ~P2age
. 173
MRS. SMITH: Thank you, Mr. President. Twenty years ago I retired after about 30 years of
federal service. And I draw my retirement. And then my husband, who was a veteran in World
War I[ 4_ he’s deceased now -- I draw his Social Security, Z’m not worried about that. But
it’s my two baby boomers and their sons that I’m worried about.
THE FEESIDENT: ~ell, let me ask you something. You count on that Social Security check?
MRS. SMITH: I do.
THE PKESiDENT: Yes, A lot oF people -- a ~ot of people count on that check. You know what
i’m talking about. You’ve got folks that are counting on the check. You’ve got a
grandmother or a grandfauher that go to that mailbox, count on the check.
MRS. SMITH: Go to the bank.

THE PRESIDENT: Yes. And ~ understand when you talk about Social S~curity, so~body is
going to pop up Hnd try to frighten beanie Smith, or friends. That’s how you stop things
in _A!nerican politics, you just try to scare people. And I appreciate you saying that you
MRS. SMITH: I appreciate your sa3’ing it’s going to be safe, too.

THE PRESIDENT: Well, that’s it, and i’m going to keep saying it, because it’s the truth.
And everybody who’s involved with this issue knows it’s the truth. [Applause.} That’s
important. It’s important for you:~ger workers to hear w~’ve got ~ pzobl~m and it’s
important for people like beanie to understand she’s going to get h~r check.
[<eep going. You’re on a roll. ILaughte~.)
ItR~. SMITH: Well, what I’m concerned about is my son and my daughter and their two sons.
Will there be anything left -- my son will be eligible to re,ire -- well, he’s already
~etired, but he can’t draw Social Security for nine years. And my daughter is already --
THE PRESIDENT: ~his Lsa man who ~etired early.
MRS. SMITH: My daughter is 55 and she’s going [o need some help~ too, and So are the two
grandsons.
THE PRESIDENT: l~d be really worried about your grandsons. If you’re a younger worker
sitting out there, or a kid is high schoo! or junior high, you’ve got a serious problem
facing you. You heard the man: either going to pay i~ percent payroll tax, or there’s
going to be significant benefit cuts. And they’re not going to be cutting benefits
significantly on baby boomers. There’s juan too many of us. Therefore, you’re going to
have to* pay for it. That would be my guess about the political dynamics.
This is a generational issue, folks. Once we assure the grandmems they’re going ~o get
their check -- and you are going to get your check -~ uhen you begin to hear i~hat beanie
star~s saying, what abouh my grandkids? That’s ~hat people in Congress are going ~o start
hearing. They’re going to hear, we’ve got a problem, and then we’[e going to hear
grandparents say, I’m worried abo~t my g~andkids, me~,ber ~f Cong=ess. [ don’t care ~hat
your par~y is, [ don’t care whet your political affiliation is; how ~beut coming together
to solve th~s so we don’t ~add[e a young generation with a huge tax bill. That’s how I
Ehink about it.
And I appreciate you understanding that you’re going :o get :¢our check. You hold the rest
of us to account to make ~ure we take care of your grandkids.
MRS. SMITH: And I’m going to insist my grandsons do the right tl~ing, ..
T~{Z PRESIDENT: There you go. Welcome. {Applause.)
Coley Halley, right out of Coffeeville, [4~ssissippi.
~R, ~AIL~Y: Yes, sir.

Page 174
THF, PKESiDENT: Wha~ do you do for a living?
BAILEY: Ira a cotton farmer.
THE PRESIDENT: Cotton farmer.

MR, BAILEY: Yes, sir.
THE PRESIDENT: You’re probably going to ~iI me the cotton prices aren’t high enough and
the weather is not any good.
MR. BAILEY: That’s exactly what I was going to say. (Laughter.)
THE PRESIDENT: Good. You got any kids?
MR. BAILEY: Yes, sir. I’ve go~ -- my wife is here in the audience. Her name is Jody. We’ve
got ~wo children: a daughter, MacKenzie, is fou~ years old; and then m~ son, COlor is four
months old.
THE PRESIDENT: Good. Well, so why is a farmer sitting up here talking about Social
Security?
MR. BAILEY: Well, my concern with it is there won’t be any Social Security for my wife and
I when we reach retirement age,
MR. BAILEY: I’m 32.

THE PRESIDENT: Thirty-two -- I was trying to get you moving here a little faster.
(Laughter.) You realize if you’re a self-employed farK~er you put Che whole 12.4 percen~
into the system.’
BAILEY: Yes, sir.

TH~ PRESIDENT: YOu’re putting 6.2 percent when you’re workingr but if you’re self-
employed, small business owners -- a lot of small business owners here in Mississippi, a
lot of farmers it, Mississippi, a lot of people working on their own account in M~ssissippi
-- they put the entire 12.~ percent in.

THE ~H.ESIDENT: 5o you’re doubly concern.ad.
MR. BAILEY: And also what’s concerning also, without the persona! retirement accounts ~hat
you’re proposing, we’re sO close on the farming community ~ith the finances, it would
really trouble a lot of them to go from the 12 percent to the 18 percent, plus pmy that
half of 18 percent nhat we will b~ required to pay.
THE ~RESIDEN%’: Yes, See, what he’s saying is there’s a cloudy future. Do you know how many
young people are saying, I’m not so sure 2’m going to see anything from Social Security.
It’s beginning co s[nk in. Heople say, war1, I’m more likely to see a UFO than I al~ a
Social Security check if !’m 35 and under, It’s beginning to -- people are beginning to
understand the nature of the issue.
And I mean, people can say, well, he’s making up the numbers. These numbers are tea!,
folks, that we’re just talking about. You heard Sam. He’s studied this issu~ for a long
time. My ~ob is to ~ay it out to ~eii yo’~ the truth. You can figure out whether cr not
somebody has got the right solution or not. But i’m zelling you right now, if you’re 35
years Old, you don’~ think you’r~ going ~o s~e a dime. A !ot of people don’n fee! that
way, and particularly if you got kids. So he’s looking at putting 1.2.4 percent payroll tax
into the system, not thinking he’s going to see something coming out of iu. No wonder he’s
sitting up here talking to the ?resident. He’s not out there ploughing his fields.
MR. BAILEY; Yes, sir. We -- one thing that my wife and I have done, when we got married
almost nine ’fears ago, we were worr}.~d about -- when we were talking about reciremen~.; we
didn’t even consider Social Securzty at that -- nine years age..
9
Page 175
THE PRESIDENT: Any other youngsters think that way? Talk to a lot -- 5hece you go.
(Applause.) Sad, is:~’t it? We’ie going to change it. That’s why we’re siZti~g here. That’s
why we’re talking about the issue, is to make sure that when I say, are you worried about
seeing your Social Security, those hands won’t go up, because we have done 0ux duty --
both Republicans and Democrats have done our duty to fix the system.
Go ahead.
MR. BAILEY: What we have done to supplement or to aid in our retirement is -- since the
Roth I~h has become available -- I think Senator Roth from Delaware introduced it in ’97,
and it was ~vailable Ln 1998. So we --
THE PRESIDENT: There you go -- he’s the kind of farmer who understands history.
Go ahead.
MR. BAILEY: But ~e have fully funded the maximum amount every year~ the eigh~ years we’ve
been available --
THE P~ESIDENT: Roth Z~,’he’s watching his money grow. He.and his wife said, I’m going to
put a little money aside and watch it grow, right?
MR. BAILEY: The one interestingthing is that, of course, we can go online, o~ i can call
Legs Mason here in Jackson who controls it ~oz me~ and I can see what it’s doing and how
it’s doing, And just the way that the interest is compounded, and it’s g~own ove~ the time
that we’ve don~ it, it’s a good -- I would definitely be in support of the persona!
retirement a~count.
THE P~ESIDENT: See, he’s used to investing. You knew what’s amazing about America? When ~
was your age, I don’t think we anent a lot of time on 401{k)s -- we’re about to talk tO a
401[k) owner here in a minuce -- or I~hs. I just don’t remember. I probably didn’t since
they didn’t exist. And we got a who~e group of youngsters coming up in America today --
32-year-old cotton farmer, I suspect a lot of Hissan workers, who understand what it means
to watch your own assets gr~ and to make investment decZsions~
In other words, there’s a cultural change in America. Congrmss is lagging behind the
cultural change. But there’s a lo< of folks who are comfortable about watching their own
money grow, a whole lot of folks. And it seems like to me to make sense that if Nissan
thinks it’s a!l right, if this cotton farmer takes advantage of a program, that when it
comes time to making sure the Social Security system is modern, that we ought to give
workers all across the country the same opportunities. (Applause.)
Re~dy ~o go? Cynthia Roberts.

MRS. ROBERTS: Again, thank you, Mr. President.
THE PRESIDENT: What do you do, Cynthia?
MRS. ROBERTS: I’m a human resource representative here at the Canton facility for Nissan.
THE PRE$ZDENT: Right here?

MRS. ROBERTS: Right here,
THE PRESIDENT: [s it okay for these peogla to take a little extra time off? [Applause.)
MRS. ROBERTS: I’ve worked h~r~ for about three years nc~ and loved every minute of it. My
thoughts are similar ~o Coley’s, as far as Social Security. I don’t really think those
be[~fi[s wi[! be here, not 0nly for myself, b:t also for my two child[on who ar~ 17 years
THE P?,ESID£NT: See, again, [ know l’m Sorting repetizive, but I hear this szory a lot, a
younger morn sayin.~i, Mr. President, I don’t ~_hink the benefits ar~- going to be
me. I’m wor2ied about it. She’s be£inning tc understand the math. YOu ~ 401(.-.) owner?
~o
Page 176
THE FKESIDENT: How cool is that? Owns her own assets. (Applause.) How does it work here at
Ni~san? How does it work at Nissan?
MRS. ROBERTS: Currently, what happens is the 401(k), the company will match 60 percent for
up to 5 percent.
THE PRESIDE~T; Yes. And so -- are you watching -~ you’xe watching the account pretty
carefully?
MRS. ROBERTS: I dn watch. [ get a quarterly statement, and ~ de watch those monies very
closely. I do not l±ke to loss money. (La~ghter.]
THE PRESIDENT: No, I don’t blame you. Don’t shoot ~ny dice then. (Laughter.)
MRS. ROHERTS: But 401(k) has proved to work out great for me and my family.
THE PRESIDENT: See, it’s interesting, isn’t it -- I can"t tell you how good it is for the
country to be sitting next to Cynthia Roberts, working right here at Nissan, and she’s
talking to me about watching her assets grow. She gets ~ quarterly statement. It’s a
statement ~hat says, here’s what you own and here’s how it’s growing. It’s hers. Nobody
can take it away from her. The government can’t decide, well, we need this fez another
program. It’s your money.
I think it makes sense in a modern Social Securi<y system for people opening up a
quarterly statement tha< the govern~<ent can’t spend, the government aan’t take away, that
you can decide wh~< to do with it. And that’s what Cynthia is <alking about. (Applause.)
isn’t that right?
MRS. ROBERTS: That’s right.
THE PRESIDENT: Is it growing?
ROBERTS: Yes, it has grown substa~,tially.
THE HHESIDENT: Yes, has grew~ substantially. (Laughter.) Z can promlse you this; your
money ~- your money in the governm~ent -- if the government takes your money through yo~ir
payroll tax, it’s not growing substantially. I~’s growing a little bitty. And a% her age,
that money begins -- when it grows ~ubstantially early on and she keeps reinvesting and it
-- it grows substantially a !ct quicker over time. And that’s important for people to
figure out.
Was it hard to invest your own money? Was it hard to get used
MRS. ROBERTS: No, it wasn’t ha~d. There are different options. I currently use someone
with our 401(k) company to help me watch my monies and to moni[or the investments that
made.
THE FRESIDENT: So is there -- it’s a mi.~ of bonds and stucks?
MRS, ROBERTS: It is mo3t].y a!l bonds and minim~l stocks, but some stocks. I do take some
risk.
THE PRESIDENT: Sure. But she gets -- well, you’re young, you ought to. She can desigr% a
portfolio. You hoax what she’~ saying? She’s saying, they give her a chance to manage her
own money and she talks to an expert end gets to design the portfolio ~hat me~ts her
needs. Doesn’t that make sense? It’s net m~ney to begin ~ith. The government ought to do
the same thing through the Socia! Security system. [Appl~use.) And then Cynthia gets to
decide who to leave it to -- isn’t that right?
MRS. ROHERTS: That is correct.

THE PRESIDENT: O~].ess yo~.~ decide to spend it when you retire.
MRS. ROBERTS: No, i’m not going to spend it. (Laughter.)

Page 177
you when you retire -- we’ll get the ~oclal Senurity system fixed so that you can’t sit up
here with the next President you visit ~~ith and say, I don’~ think I’m ever going to see a
dime, I think if we keep talking about this the Congress is going to say, oops, people
like Cynthia know we got ~ problem and they expect us to get Something done. So we’re
going to keep working on it. But in the meantime, you’re building up an asset base -- I
presume, with your children in mind.
MRS. ROBERTS: That is correct, they are always in mind.
THE PRESIDENT: Yes, alway~ on your mind.
MRS. ROBERTS: Always on my mind.

THE PRESIDENT: i’m afraid I’m always on my mother’s mind, too, you h~ow? [Laughter.}
~.nyway, thanks for coming and thanks for representing the work force here. [Applause.) You
did good, really good,
I’m just curiuus -- anybody else got a 4Ol(k)? (Applause.} ! rest my case. I rest my case.
Are you watching your own money grow? Starting to make sense to have that money you’re
contributing to the -- through the payroll tax to be able to -- a part of that to be able
to do the same thing? Seems !ike it makes sense to me.
Finally, we’re going to and with DeLois Killen. Welcome.

MRS, KILLER: Thank you, Mr. ~[esident. It’s an honor.
THE PRESIDENT: Where are you from, OeLois?
MRS. KILLER: ~ ~m from Union, Mississippi.

THE £~BSIDENT: Union, Mississippi. {Applause.) And what do you do?
MRS, KISLEN: I live in Union. I’m 71 years old.
THE FRESIDENT: And you’re ~orkingo

MRS. K~LLEN: I ~m semi-retired. I work for the city of Union aZ the ~_O_~e]’~ Oepartment as
the dispatcher.
THE PRESIDENT: There you go. Whatever you do, don’t let her c~ll your car plates.
(Laughter.) Good, thanks for working.
MRS. KILLER: I need to work.
THE PRESIDENT: You’ve been working all your life,

MRS. EILLEN: ~ have been working all my llfe. And if ±t wasn’t for my Social Security
check, I really couldn’t make ends meet.
THE FRESIDENT: ~ight. But your Social Security check is not providing enough s,~ that you
can retire.
M~S. ~ILLEN: It is ~o~. If I had known what these younger people know ~cw, and had the
Opportunities that they have, I wo~/id have had something besides Social Security.
THE PRESIDENT: Yes, but that’s it for you.
MRS. KILLEN: It is.

THE PRESIDENT: Yes. That’s really important for ~ecple to understand, is that DeLois
CO~~£ts Cn tile SOCial Security chec~ she i~ --
MRS. KILLEN: Very defi~:ite!y.

YHE PRZSIPBNT: Yes, you’re over ~eti~’eme-nt age -- barely. {Laugnte~.’~ 5he has to keep
working. The system didn’t provide enough [or her to retire on.
Page 178
M~S, KILLEN: I’m just another desperate housewife, (Laughter and a:pplause.)
THE PRESIDENT: This has been my week to be around funny women, you know? .(Laughter,) Good
one, (Laughter,) Once a’gain I’m speechless. (Laughter.) Keep going. Now, you’re on a roll.
MRS, KILLEN: Well, I depend on my Social Security for half of my income at least.
THE Pg~SIDENT: Yes.
MRS. KILLEN: ~d I’m so grateful ~hat you think we are not going to lose it, because
intend to be here a long time yet.
THE PRESIDENT: That’s right.
MRS, KILLEN: And I ~ant co be se!f-sufficient. ! warm to take care of myself.
THE PRESIDENT: There you go.
M£S. KILLEN: And with Social Security benefit~ coming in regularly, I can plan fo~ [he
future.
THE PRESIDENT: That’s good. it’s really important for our ~eniors when they hear this
debate to have peace of mind, that we’re really talking about the youngsters, the young
workers, and not -- and ngt you, DeL~is. The debate is aimed at making sure the safety net
is good for m y~unger generation of k~eriz5ns. You’re fine. And people born prior to 1950
are fine. But if you’re young and working, think about this -- the system goes broke in
2041o It’s not all that long from now, really, when you think about it. And you work all
your life putting your money ante a system that’s going broke -- ~ little discouraginN.
we have an obligation and a duty to fix this, i’m going to continue traveling the country,
DeLois, talking about ~he ~roblem. People in Amsrica are beginning to understand ~e’ve go[
a problem. People are beginning to figure it out. A lot of younger Americans are now
beginning ~o pay attention to this issue. If I were you, I’d be paying attention to it,
too. You got a payroll ta×~ Nut your payroll tax in the system that’s going broke, I’~ be
out there wo~derlng what the hook is going to happen in Washington, O.C. to make sure the
money I’m pu~ting in is worthwhile.
I’m going to continue assu~ing our seniors ~hat they’re 9oin~ [o receive their checks. You
tell your Nrandm~ and 9randads and your mother mud dads, this government of yours will
keep its p[omise. And I’m going to continu~ talking to the younge~ p~ople of America and
say that we’re going to be wise about ho~ we fix the ~ystem. ~e’xe going to fix the safety
net~ an4 as we do, we’~e goi~lg to make it a better de~l for you. As we do, we’re going Co
let you take some of your ow~ money ~nd watcN it grow so you can build your own asset
base, so you can pass it on to whomever you chose.
We’ve got a great opportunity here co show the ~erican people that Washington isn’t all
politics, bhat Washing%on has got the capacicy to rise above parc[sa~ bickering and solve
and important problem once and for all. And when we do, ~hen we do, and ~.;hen we get it
done, we’ll all be able to say >~e have done our duty.
I want ~o thank you all for giving me a chance to come by. God bless you all, and God
hles~ our families. God bless .~nerica. (Applause.)
END i:II ~.M, CDT
’ Page 179
Dunn, David L
From: Dunn, David

To; $onya E. Medina (Sonya_E,_Medina@who.eop.gov)
Subject: FW: AP article: "Education agency’s public relations budget over $9 million in recent years"
never ends...

From; Aspey, Susan
Sent: Tuesdayr May 03, 2005 6:16 PM
To: Sullivan, Kevin; Dunn, David; Nordquist, DJ; Lampkin, Emily; Young, Tracy; Gilchrist,
Robin
Cc: Aspey, Susan
Subject: AP article: "Education agency’s public relations budget over $9 million in recent
years"
Tue Hay 3, 2005 17;47 EDT

Education agency’s public relations budget over $9 million in recent years
BEN FELLER
AP Education Writer
WASHINGTON (AP) -- The Education Department has hired private firms zo do more than $9.4
~illion in public relations work over the last few years, documents released Tuesday sho~{.
The largest share, $5.45 million, went to the Hager Sharp firm fez coordination of the
National Assessmenr of Educationa! Progress, the te$~ also known ~s the nauion’s report
card.
The documents~ released to The Associated Press on Tuesday in response he a Zreedom of
lnformatio~ request, come as the agency is under scrutiny fox how it promotes its agenda.
The total speeding includes a $i.3 million c:ontract with t_he Ketchum public relations firm
$240,000 of which went to conservative com~nentator Armstrong Williams for ads and other
~romotions of President Lust’s education law. The hiring of a media figure has proven
embarrassing for the administration and prompted investigations into charges of
propaganda.
Most of the ne~;ly released records cover spending during ?.002, 2003 and 2004, although at
least one significan~ contract, $io69 million with ZGS Cormr~unication~s, was for 1998-2002o
That contract went for audio, video and print materials about department programs.
Overall, ~ost of the money committed for public relations appeared to go toward routine
expenses, the documents indicate. Those expense, s include public service announcements,
materials abouY financial aid, and promotion of the department’s Web site.
?he intent is to get zhe word out about programs that help students, such as college aid
and fro9 tutoring, said department spokeswoman Susan Aspeyo
"’There’s no point in spending taxpayer money ~n th~se programs if we’r~ not going
provide parents with information that they e×/.st, ’’ she said~
The biggest commitment by far ,~ent to Hager Sharp. Yet more than half of t.he firm’s tots!
was spent on meetings concerning development of the national achievement zest. Those
tasks, handled by a subcontr£ctor, were bundled into the testing conqract and had nothing
to with public role<ions, said Hag~r Sharp Vice President Debts Silimeo.
The rest of the Hager Sharp money, roughly $2 2 million, went _o_ oublic relations, the
Educa-_ion Department records show, That includes the formal release of federa! test score
resu].qs ,and ore:notional boc,~hs about the voluntary test at education trade shows.
’’People need to ’~nderstand what it is and why it’s important, and people who parti~;ipate
in i.t deserve to know what the resu].ts are,’’ Silir:~eo s~id abo~l..-_ the ~’es~, given in such
Page 180
subjects as math, reading and science. ’’It’s an important way to evaluate ho~~ 3tudents
are doing.TM
The records reveal new detail about the Ketchum contract, outlining how money was
committed for aids for Leachers, promotion of a science summit and brochures on tutoring.
That contract has been better known as a source of conLroversy over the Williams hiri;~go
The department’s inspector general found that senior Bush administration officials showed
poor judgment and wasted money in hiring Willi~s, but violated no laws or ethics rules.
Beyond hiring Williams 5~rough Ketchum, the agency pa~d for a vid£o :hat looked like a
real ne~s story but ;~as not clear that it wasn’t, a tactic congressional investigators
have called "’covert propaganda’’ in at ieasL two other cases. The ~eLch~m deal also
included an analysis of coverage by education reporters, giving them points if they made
the Bush ach~inistra~ion and the Republican Party look good. The department has said the
raLings had no influence over h.ow it treats reporters.
Education Secretary Nargaret Spellings, who began her job in January, has pledged tighter
reviews of how her agency promotes Sts agenda. She also said she plans to try to recover
some of the ~etchum contract money. The department has spent about $940,00 on it so far.
The Education Department has co~mitted a~ least another $2.6 million over the last fe~
years toward ’’public into,mat±on’’ campaigns that were part of larger contracts, records
Some of that money went to groups, such as the Bla~k Alliance for Educational Options and
the Greater Educational Opportunities Foundation, that shaze the a~nlnistration’s support
of public-school choice and private-school vouchers.
Susan Aspey
Brass Secretary
400 Maryland Ave., SW
Room 7E203
Washington, DC 20202
(202) 205-4038
Pa~e 181
Dunn, ,,Da,,v,,!d
From; Dunn, David
Sent: Tuesday, May 17, 2005 11:32 AM
To: ’Moy, Edmund C.’
Subject’, RE: Windy Hill
Oghhhh. Thanks
From: Moy, Edmund C. [mailt0:£dmund C._Moy@who.aop.gov]

Sent: Tuesday, May iU, 2005 11:27 A~
To: Dunn, David; Allen, Claude A.
Co: Trent, Joshua
Subject: FW: Windy Hill
F¥I
From: NQy, Edmund C,

Sent: Tuesday, May 17, ~005 11:27 AH
To: Pcwe!l, Di~a
Subject: Windy Hill
Is currently the Associate Com.~,.issioner for Head Start Bureau (a non-career $E$). An IG
report will be released soon that. implicates her in a number ef unethical actions and even
some 5hat might be of a criminal nature. The IG has made a rsferral to DOJ, but DOJ has
declined to pursue the matter. HHS is inclined to let her go, and the WHCO opines that it
is a secretarial appointment and thersfore it’s their decision.
I’m lettin:g you hnow because the President knows who she is (as Governor, he lauded her
Head Start .agency in Texas}. She says she’s also friends ~ith Hargaret Spellings and
Claude Allen.
Page 182
Dunn, David
From: Dunn, David
Sent: Thursday, July 14, 2005 10:49 AM
To: Barry Jackson (Barry_S._Jackson@who.eop.gov); Krfsten Silverberg
(k~itverberg@v~ho.eop.gov)
Subject: FW: AP wire story - very good ~ no "cautious" line
Wel! at least the AP skipped the "caution"...

From: Nordquist, DJ
Sent: Thursday, July 14, 2005 10:33 AM
To: Dunn, David
Subject: FW: A? wire story - very good - no "caut±ous" line
sorry - forgot to send to you

From: Nordquist, DJ
Sent: Thursday, July 14, 2005 !0:16 AM
To: Lampkin, Emily; Williams, C_vnthia; Ri~otto, Andrea; KuzmLch, Holly; Aspey,
Susan; Banister, ;~hley; Co~by, Chad~ Sanchez, Sonya; Sauber, Sarah; S~ilivan, ~÷vin;
Young, Tracy~ Yudo~, Gamara; Herr, John; Horn, Jonathan; ?itts, Elizabeth
Subject: AP wire ~tory - very good - no "cautious" line
~apertance: Hig]i
Thu July 14, 2005 !0:04

Nine-year-oldS do best yet in math and readiag, =aport finds
DARLENE SU~ZRVILLE
Associated Press Writer
WASHINGTON (AP) The nation’s 9-year-olds are doing better ~hen it comes to reading
and math, but the same-can’t be said about 31der students.
The 2004 National Assessment of Education~l Progress, know~ as the nation’s report
c~rdt also shows that achievemen~ gaps between ~hite 9nd black and Hispanic studsnts
remain, but bare narrowed.
Education Secretary Margaret Spellings said the results, released Thursday, show
that the No Child !,eft Behind l~w, President Bush’s signature education policy, is hel~ing
raise achievement ]ev~is.
"’~e’=e focusing an p~licy and getting results and we’re getting results,’’ she said
in an interview. Among the law’s requirements are },early testing of students in reading
and math in grades three to eight, an./ public reporting of scores fez all major groups of
st~idents.
"’What we have today is some more data that says we’re getting bearer,’’ said Darvin
M. Winick, chairman of tha National Assessment Governing Board, which oversees the exam,
which is periodically given to 9-, 13- and 17-year-elms to measure what they know.
Last year, 9-year-olds earned their highest scores ever in both subjecl:s since the
tests were first given £n 1971 for reading and !973 for m~th. On a scale of 0-500, 9-
year-olds scored 208 in-reading in 19?l, compared with 212 in 1999 and 219 in 2004. In
math, they scored 219 in 1973, 232 in 1999 and 241 in 2004.
Host of their improvement came after !9~9~ the fast time this pair of ~:ests was
given hy the ~epartment of Edu.2ation’s Haticnai Center for Education Statistics.
Zducation officials attributed the strong showing ~mong 9-year-o].ds [o ~he emphasis
placed in recent years ~n elementary schools and getting children reading a:]4 learniRg
early as possible.
"’It’s easier to change things earlier on th.~n it is later on,’’ said
Whltehurst, acting CCnun±ssioner cf :he ~ational Center for Educatio~ Sta:is<ics.
Overa![ results were mixed for 13-year-aids, b~t were worse for 17-year-oid5.
Thirteen-}’ear-olds earned their highsst math scores ever, but did only a few poincs
better it, reading than in ].9~1. Their reading scores also were about the same as in 1999.
Their reading score in 197! was [55, rising to 259 i~, 1999 and staying the same,
259, in 2004. In math their score went up item 255 Jr, 1973 co 276 in 1999, anJ climbed
again %o 2BI in 2004.
Se~enteen-year-clds, meam~hile, continued a troubling, 30-year =rend of practica[!y
Page 183
flat scores even though more of them reported raking advanced math course~ in high school.
Their reading score of 285 was the same. in 1971 and 2004, while it was 282 in 1999,
Math scores increased from 304 in 1973 to 308 in 1999 before fall±ng back z0 307 in 2004,
Charles Smith, executive director of the assessment governing board, antributed
their performance to the traditional slacking off that comes with being a senior in high
school.
"’The problem with senioritis is alive and well,’’ Smith told AP Radio. ’’I think
people at the high school level across the nation would report the same thinq. The
question is how do you motivate students to do their best.’’
Spellings said the report shows, toot thmt m~condary education Needs more attention.
"’We need to go to work,’’ she said.
.~u-~ong the racial groups, most gaps in reading and math scores showed some narrowing.
Black and Hispanic students scored higher in reading than in the !970s, with 9-
year-o[ds in both groups posting their best scores yet. They were the only age group to do
significantly better than in 1999. Every age group, except for Mispanic !3-year-o!ds,
narrowed the achievement gap with ~hites siuce the 1970a.
In math, black and Hispanic students scored higher than in the 1970s, with 9- and
13-yea?~olds in both groups earning their highest marks in the history of the exam. Only
black and Hispanic 17-year-olds failed to improve on their performance from five years
earlier. All age groups, except for Hispanic 9-yeaz’-o!ds, have cut into the achievement
gap with their whise counterparts since zhe
Participation in Nasional Assessment of Educationa! Progress is voluntary among
schools and students. Some 28,000 students in public and private schools 14,000 for each
subgect sat for the exam during the 200~-2004 school year.
ThUrsday’s results we:e national only. State-by-s~ate test results will be released
in the fall.
DJ ~ordquist
Acting Director
Office of Public Affairs
481 Maryland Ave SW,
Washington, DC 20202
main line: (202) 401 1576
http:i!www.ed.qov
Page 184
Dunn, David
~rom; Dunn, David
Sent: Wednesday, September 14, 2005 1:49 PM
To: ’Clar~cy, Dean F.’
Stack, Kaf:hryn B.
Subject: RE: KBH Draft Katrina Education bill
(b)(5)
Page 190
Dunn,,, David
Frorrl; Dunn, David
Sent: Friday, October 21, 2005 9:44 AM
To: ’Smith, Heidi M.’
Subject: RE:
Attachments: image001.gif
(b)(5)

CREW v. Dept. of Education: Regarding Reading First: 9/5/2008 - Final Supplemental Production

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CREW v. Dept. of Education: Regarding Reading First: 9/5/2008 - Final Supplemental Production

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Page 1 Page 1 of 2

From: Whitney, Miriam

Hi~ all - FYI (House bill on NCLB reauthorization, Title I programs).

Title I, Part B - Student Reading and Literacy Skills Improvement Grants

Wrennt Jane; Wurman, Ze’ev; Yates, Amanda; Zaniewskil Marta

ATT53909.txt pic01389.pc:x pic28775.pcx Microsoft Word

(Embedded image moved to file: pic01389.pcx) Melanie Kad!ic

Record Type: Record

To: "Axt, Kathy" <Kathy.Axt@ed.gov>

Record Type: Record

To: Melanie Kadlic/OMB/EOP@EOP

(See attached file: El~g~b~lity A,doc)

NAME AND ADDRESS TYPE OF APPLICANT ELIGIBLE LEA IN WHICH

/orated ia an ea~ibk LEA t/,~t opera,s

.....Original Message .....

..... Original Message .....

..... Original Message .....

ACTIVE INFORMATION COLLECTIONS AS OF 04/30/2003

OMB NUMBER EXP. DATE

Adobe Portable Adobe Portable Adobe Portable Adobe Portable

..... Original Message .....

......Original Message .....

IAttached are two files containing text:

(See attached file: wia cmttee amendments. PDF)

LRM ID: CJBI6

DEADLINE: 2:00 p.m. Tuesday, April 8, 2003

(i) Committee /~mendment in the Nature of a Substitute[189 pages)

(See attached fi!e: wia cmttee amendments. PDF)

~)(~~J That site is:

TO: Constance J. Bowers Phone: 395-3803 Fax: 395-6148

March 25, 2003 ~4:41 PM)

March 2.5, 2003 (4:41 I’M)

Wh,!t, ne~/, Mir!am

...... Original Message ......

Mary Anne- (b)(5)

..... Origina! Message .....

Thanks for your help!

..... Original Message .....

NOTICE OF OFFICE OF MANAGEmeNT AND BUDGET ACTION

Joe Schubart 01123/2003

NOTICE OF OFFICE OF MANAGEMENT AND BUDGET ACTION

OMB Authorizing Official Title

Donald R. Arbuckle Deputy Administrator, Office of

~en and Marlene -!(b)(5)

..... Original Message .....

Thanks for your help!

..... Original Message .....

NOTICE OF OFFICE OF MANAGEMENT ~4D BUDGET ACTION

Joe Schubart 01123/2003

BURDEN: RESPONSES HOURS COSTS(S,000)

NOTICE OF OFFICE OF MANAGEMENT AND BUDGET ACTION

OMB Authorizing Official Title

..... Original Message .....

Thanks for your help!

We had a very successful implementation of this Initiative in your programs last

..... Original Message .....

..... Original Message

NOTICE OF OFFICE OF MANAGEmeNT AND BUDGET ACTION

Joe Schubart 0112312003

AGENCY FO~ NUMBEB(S): None

ACTION : APPROVED WITH CHANGE

NOTICE OF OFFICE O£ MANAGEMENT AND BUDGET ACTION

OMB Authorizing uff=c:al Title

Joe Schubart 01109/2002