Reviewing the administration's fiscal year 1984 education budget, this statement outlines the proposals to reduce federal funding for education and lessen the federal government's involvement in education programs. The statement specifically addresses education programs for the disadvantaged, minorities, women, and the handicapped. Criticizing the budget for limiting educational opportunities for these groups, the report points out the inappropriate timing of these proposed budget cuts since three independent commission reports have recently expressed grave concerns about the state of the American educational system. Included in the report are three appendixes. Appendix A provides brief descriptions of existing elementary and secondary education programs that are earmarked for incorporation into block grants and/or budget cuts. These programs include Title I, Emergency School Aid, Bilingual Education, Training and Advisory Services, Indian Education, Education for All Handicapped Children, and Women's Educational Equity. Appendix B includes descriptions of 13 higher education programs also earmarked for budet cuts, replacement by new programs, or elimination. Appendix C includes tables of funding levels for selected programs. (MD)