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Cengage Previews Digital Growth in Fiscal 2021 Scholastic Offers Prek www.EducationalMarketer.net Cengage Previews Digital Scholastic Offers PreK On Volume 52, Number 12 | June 4, 2021 Growth in Fiscal 2021 My Way in Print and Digital CONTENTS The take-away from preliminary Scholastic (New York) in May 1 Cengage Previews Digital Growth in financial results for fiscal 2021, ended launched PreK On My Way, a com- Fiscal 2021 March 31, at Cengage (Boston) was prehensive PreK program, with print 1 Scholastic Offers PreK On My Way in improving revenue momentum and and digital resources available in both Print and Digital strong digital growth. English and Spanish. At the heart of 1 Pell Grant Increase Headlines Higher ed Budget Growth the program is the Mind Builder skill- Companywide preliminary adjusted 3 Test Proctoring Needs Humans to building methodology, developed Check AI cash revenue of $1.26 billion in fiscal with the Yale Child Study Center to 4 Ed Department Flexes Oversight 2021 was off -6% from $1.34 billion in support social-emotional learning, Muscles fiscal 2020. executive function skills, motivation, 7 Executive Additions at Scholastic and creativity. 7 In Schools, On Campus Digital net sales companywide of $917 EM DATABANK million increased 6% from $863 mil- PreK On My Way also incorporates lion in fiscal 2020. In fiscal 2021, digi- 3 Selected Higher Education Programs UTHealth’s Children’s Learning in President Biden’s Department of tal accounted for 72.7% of net sales Institute’s Developing Talkers/ Education Budget Request compared to 64.5% in fiscal 2020. Hablemos Juntos research model, 4 New Proctoring Implementation Trends by Enrollment Size specifically to expand children’s Overall, the company is seeing a tran- 6 Cengage U.S. Higher Education by receptive and expressive vocabulary sition to digital across all of its busi- the Numbers, FY 2021 skills. ness segments with a significant 10% uplift in weighting of digital sales in PreK On My Way supports social- international higher education and emotional learning and language EM Pulse See ‘Cengage’ on p. 5 See ‘Scholastic’ on p. 6 Work To Do in Science • 36% of 4th-graders scored at or above Pell Grant Increase Headlines Higher ed Budget Growth proficient, down 2 points from 2015; up 2 points from 2009; 27% scored below U.S. Senate leaders at the end of May reached agreement on a proposal to basic, up 3 points from 2015; no change expand Pell Grants to apply to cover short-term job training programs, or voca- from 2009. tional training programs as part of a package of last-minute revisions to the U.S. • 35% of 8th-graders scored at or above proficient, up 1 point from 2015; up Innovation and Competition Act. 4 points from 2009; one-third scored below basic, no change from 2015; The legislation, which would amend the act, would allow students enrolled lower than in 2009. in career training programs as short as eight weeks long to be eligible for Pell • 22% of 12th-graders scored at or above proficient, not measurably different Grants, which are currently generally limited to programs that run for at least from 2015 or 2009; 41% scored below 15 weeks. basic, also not different than in 2015 or 2009. Source: Nation’s Report Card; National The idea is not new, but it is newly hot. The proposal as it stands would expand Center for Education Statistics; May 25, 2021. Pell Grants to vocational training programs only at nonprofit and public insti- ©2021 Simba Information, Stamford, CT 06902 ■ www.simbainformation.com ■ 203-325-8193. Copying Prohibited. Federal copyright law prohibits unauthorized reproduction by any means and imposes fines of up to $10,000 for violations. Educational Marketer 2 June 4, 2021 tutions. For-profit colleges would be excluded. a $6 trillion budget for the federal government with significant increases in spending on infrastructure, As EM went to press June 3, the Senate had not passed public health and education. It comes with a proposed the measure. There has been some criticism of the Pell tax increased on corporations and the very wealthy. The Grant proposal from those that say it would shift the fiscal 2022 plan would fund programs in the fiscal year cost of training low-wage workers from companies to beginning October 1, 2021. taxpayers. Proposed Education Funding The Biden budget request includes a 28.9% increase in The Congressional deal-making comes as President the maximum Pell Grant to $8,370, up from $6,495 in Biden released his $6 trillion federal budget request for fiscal 2021. fiscal 2022 with significant increases in spending on Total proposed spending on Pell Grants is $40.7 billion infrastructure, public health and education. in fiscal 2022, up 40.1% from fiscal 2021. Overall, President Biden’s requested $102.8 billion for President Biden at the end of May officially proposed education spending is a 40.8% increase that is the great- est increase of any of the proposed departmental alloca- tions. The requested $102.8 billion budget is up from the $73.5 billion enacted spending plan for fiscal 2021 and up from the $72.7 billion budget in fiscal 2020. New Programs Tel: 203-325-8193 At the beginning of the education spectrum, Biden’s Website: www.simbainformation.com plan calls for providing universal preschool and ensur- https://twitter.com/SimbaInfo Follow us on Twitter: ing that preschool teachers would earn at least $15 per Find us on Facebook: https://www.facebook.com/SimbaInformation kc.marketresearch.com hour at a total cost of $3.5 billion in fiscal 2022. At the other end of the education spectrum, new pro- Educational Marketer: Senior Analyst/Editor:..................................Karen Meaney (240-747-3055) grams in the budget request include $2.4 billion for com- Managing Editor: ............................Kathy Mickey (203-325-8193 ext. 7410) munity college infrastructure and just under $19 billion Production Coordinator:...............Allison Carswell (240-747-3007 ext. 7132) to fund free community college for students. Customer Service: ................................................................888-297-4622; 240-747-3091 Postsecondary Funding ISSN#: 1013-1806. Subscriptions: $695 for 24 issues per year. US Domestic Shipping: $25, International Shipping: $50, Among the eight selected higher education programs Electronic Delivery: free; single copies: $50 that EM tracked, two were slated for no increase in spending: Supplemental Education Opportunity Grants Related Products and Services You Might Be Interested In: at $880 million and Federal Work-Study Grants at $1.2 Simba also publishes the newsletter Electronic Education Report and the research reports Publishing for the PreK-12 Market, College Publishing billion. Market Forecast and Academic Testing: PreK-12 Materials Market Analysis & Forecast. Call us or check our web site for information. Proposed CTE funding, which includes money that Important Legal Information You Should Know: would go to middle and high schools, would see a strong Educational Marketer is protected by U.S. copyright law (17USC101 et seq.). It is illegal to make copies or faxes of this newsletter without boost of 84% to $2.47 billion under the Biden proposal. permission—even for internal use. Violators risk criminal penalties and $100,000 damages per offense. Contact Jodi Marsh to report abuses. The funding supports grants to states to expand and Confidentiality assured. improve CTE in high schools, technical schools and If You Have a Special Request: If you would like information about bulk subscription discounts, electronic community colleges. site licenses or permission to use data reported in this newsletter, contact Sylvester Rochea at 212-807-2641. A new innovation would support competitive grants to © 2021 Simba Information local education agencies for establish innovative middle and high school CTE programs. ©2021 Simba Information, Stamford, CT 06902 ■ www.simbainformation.com ■ 203-325-8193. Copying Prohibited. Educational Marketer 3 June 4, 2021 Selected Higher Education Programs in President Biden’s Department of Education Budget Request, FY2022P vs. FY2021 ($ in 000 except for Max Pell Grant, which is actual; P=proposed) Department/Program FY2022P FY2021 % Chg. FY‘22/FY’21 Community College Infrastructure (New) $2,400,000 0 -- Free Community College (New) $18,953,225 0 -- Pell Grants $40,672,352 $29,029,352 40.1% Maximum Pell Grant $8,370 $6,495 28.9% Supplemental Ed. Opportunity Grants $880,000 $880,000 0.0% Federal Work-Study $1,190,000 $1,190,000 0.0% Student Assistance (TRIO, GEAR UP, child-care access) $1,800,761 $1,520,000 18.5% Perkins Career/Technical Education $2,470,269 $1,342,269 84.0% Source: Company financial reports. Notably absent from the budget is any cancellation of Biden proposed $177.55 million for the National student loan debt, which Biden had touted shortly after Endowment for the Humanities, a 6% increase over fis- winning the 2020 presidential election. cal 2021. Most of the funding, or $122.9 million, would support NEH grant programs for humanities projects. The Biden budget proposal also proposes increases for Funding is crucial for humanities professors. ■ science, technology and the humanities that would ben- efit students and educators. Test Proctoring Needs Humans to Check Biden proposed $52 billion for the National Institutes AI of Health for fiscal 2022, a 21% increase over what ProctorU (Hoover, AL), the academic division of Congress allocated for 2021. The agency would use the Meazure Learning and a provider of remote proctoring additional funding on its spending on research related and integrity safeguards for online testing and assess- to COVID-19. ments, in May said it no longer will offer services that do To aid in mental health recovery from the COVID-19 not include trained human test proctors. pandemic, $25 million is requested to increase research ProctorU will not offer test proctoring services that are on the impact of the pandemic on mental health.
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