AACC Federal Legislative Update

July 31, 2012

AACC Office of Government Relations and ResearchDavid Baime, Senior Vice PresidentJim Hermes, Director Laurie Quarles, Legislative Associate

AACC Legislative Update

• Political Landscape• FY 2013 Spending Bills• WIA Reauthorization• ED’s Perkins Blueprint• Executive Order on Veteran Students• Transfer Legislation• ED Regulations• Your Actions That Can Make a Difference• Washington Advocacy Seminar

Political Landscape

• Decisions on Spending, Taxes and Other Critical Issues Deferred Until After Election

– Scheduled expiration of Bush tax cuts and sequestration driving agenda.

– Elections impact substance and timing of outcome.

– Few legislative days between now and Nov. 6.

– AOTC of great import for community colleges.

– Student loan interest rate fix for one year only.

Sequestration Looms

• Sequestration: Across-the-Board Cuts Of 8-9% on January 2, 2013

– Pell Grants (for one year) and many entitlement programs exempt.

– Huge blow to education and workforce training programs.

Sequestration Looms

• Bipartisan Agreement that Sequestration Must be Avoided

– No agreement yet on how to do so.– Defense cuts have driven issue,

domestic cuts gaining attention. – AACC has joined broad coalition on

domestic front.– Delay the most likely outcome?

FY 2013 Labor, HHS, ED Appropriations

• Legislation Passed by Senate Appropriations Committee (6/14) and House Subcommittee (7/18)

• House Provides $7 Billion Less Than Senate– Large reductions from “Obamacare” and

other politically-charged programs allowed numerous programs to receive level funding.

• Reconciliation of Bills Not Likely Until 2013

FY 2013 Appropriations

• Bills Level-Fund Several Key Education and Labor Programs

– Pell Grant maximum award will increase to $5,635 (due to $85 mandatory-funded increase).

– Some program-level data not yet available for House bill.

FY 2013 AppropriationsProgram FY 12 FY 13 Senate FY 13 House

Pell Grants Max. $5,550 $5,635 $5,635

Perkins CTE State Grants

$1,123,030,000 $1,123,030,000 $1,123,030,000*

Adult Ed. State Grants

$594,993,000 $594,993,000 $594,993,000*

Title III-A Strengthening Insts.

$80,623,000 $80,623,000 TBD

Title V HSIs $100,432,000 $100,432,000 TBD

TRIO $839,392,000 $839,392,000 TBD

DOL State Formula Programs

$2.63 billion $2.6 billion $2.6 billion

FY 2013 Appropriations

• Key Differences Between House and Senate

– Senate: Partial restoration of Title IV eligibility for ATB students in career pathway programs.

– Senate: Elimination of living and other expenses for Pell Grants for 100% online students.

– House: Prohibits ED from implementing several regulations (more on that to follow).

Pell Grant Program

• For FY 2013, Program Finances are in Good Shape—i.e., “No Shortfall”

• For FY 2014, Large Program Deficit Returns – Exact size depends on legislative

actions and enrollment behavior/broader economy.

– FY 2014 will witness return of debate on how to trim program; community college students remain vulnerable.

Workforce Investment Act

• House Education and Workforce Committee Approved WIA Reauthorization Bill, H.R. 4297, in June– Floor consideration not scheduled.– No signs of Senate activity.

• H.R. 4297:– Consolidates 26 job training programs

into one “Workforce Investment Fund”

WIA Reauthorization

– Allows governors to consolidate additional programs, including adult education, at state level.• Perkins CTE funds cannot be consolidated.

– Eliminates supportive services and priority for low-income individuals.

– Requires 2/3 business majorities on state and local WIBs.

– Streamlines eligible trainer reporting requirements.

WIA Reauthorization

– Allows more contracting between WIBs and institutions of higher education.

– Diverts Perkins and other program funds to pay for infrastructure.

• House Democrats’ WIA Bill: H.R. 4227– No consolidation.– Line item for infrastructure spending.– Automatic trainer eligibility for public

institutions.– Significant emphasis on career pathways,

industry sectors, regional cooperation.

Dept. of Education Perkins Act Blueprint

• ED Released With Fanfare in April• First Major Action in Perkins

Reauthorization • Congressional Focus Not Expected

Before 2013• Obama Loss Would Mean Short Shelf

Life• Presidential Administrations Usually

Want to Re-Engineer Program

ED Perkins Blueprint

• Proposals Divided into Four Major Categories– Alignment• CTE defined to span from secondary to

postsecondary.• Increased alignment with industry needs –

states identify key sectors.

– Collaboration• Competitive funding within states exclusively to

consortia of LEAs, postsecondary institutions (and others).• State-level private sector match requirement.

ED Perkins Blueprint

– Accountability• National definitions for participation and

performance measures.• Eventual use of performance-based

funding.

– Innovation• States need to show willingness to

transform CTE system to receive funds.• National-level CTE Innovation and

Transformation Fund.

Executive Order on Veteran Students

• President Obama Issued Executive Order Calling ED, VA and DOD to Establish Principles of Excellence for Institutions Serving Service Members and Veterans– Principles touch on academic planning,

marketing and recruiting practices, student outcome information, and other institutional practices.

– Departments working to further define principles.

Veterans Executive Order

– VA has communicated with institutions asking them to pledge to follow principles.• Deadline August 1, but institutions still able

to get on list after that date.• List of pledged institutions on VA site at

http://www.gibill.va.gov/resources/education_resources/Principles_of_excellence/poe_list_2012.html.• Departments developing further guidance

for institutions.

Department of Education Regulations

• Gainful Employment Regulations Largely Vacated by District Court (loan metrics portion); Disclosure Requirements Retained– Suit brought by APSCU (for-profit institutions).– House FY 2013 Labor-HHS-ED bill annuls

regulation.– Ball in ED’s court with next steps unclear.

• Upcoming Negotiated Rulemaking on Pell Grant Fraud, Debit Cards

• House Labor-HHS-ED Appropriations Blocks Implementation of State Authorization, Credit Hr.

Presidential Election -- Obama

• Massively Ambitious Higher Education Agenda

• Obama Administration Has Brought Huge Visibility for CCs

• Funding Has Generally Followed Rhetoric

• Emphasis Has Turned Somewhat To College Costs, Student Debt

Presidential Election -- Romney

• Simplify Workforce and Student Aid Programs

• Emphasize For-Profits (Repeal Gainful Employment)

• Return to Some Bank-Based Student Lending

• AACC Has Many Contacts With High Level Advisors and Will Be Prepared for Transition

AACC Membership Actions Needed

• FY 2013 Labor, HHS, Education Appropriations:--Adopt Senate Language on Ability-to-Benefit Students Enrolled in Career Pathways Programs.--Reject Senate Language Limiting Pell Grant budgets for 100% Online Students.

• Extend American Opportunity Tax Credit--Benefits More Than 10 Million College Students.

AACC Washington Advocacy Seminar

• Better Than National Political Conventions!

• Sept. 30 to October 2 in Washington, DC

• More Than 20 High Level Presenters From All Corners of Higher Education Policymaking – Congress, Administration, Media, Think Tanks

• Learn How DC Works, Gain Access to Officials, Network With Your Peers, Advocate

• See AACC Website for More Information

Contact Information

• David Baime– 202-416-4500, dbaime@aacc.nche.edu

• Jim Hermes– 202-416-4501, jhermes@aacc.nche.edu

• Laurie Quarles– 202-416-4503, lquarles@aacc.nche.edu