Thursday, February 25, 2010

Secretary Duncan Testifies on Education Budget Request

February 25, 2010 — Today, Secretary of Education Arne Duncan testified before the House Budget Committee to outline the Department’s budget for FY 2011. The budget outlines $10.6 billion for the American Graduation Initiative. Secretary Duncan’s testimony can be found here: http://budget.house.gov/hearings/2010/02.25.2010_Duncan_Testimony.pdf

The Department of Education’s budget information can be found here: http://www2.ed.gov/about/overview/budget/budget11/summary/edlite-section1.html

Yesterday, the Senate Health, Education, Labor and Pensions Committee held a hearing on “A Stronger Workforce Investment System for a Stronger Economy.” Most notably, Chairman Tom Harkin (D-IA) stated that Congress would pass the reauthorization of the Workforce Investment Act (WIA) this year. Dr. Robert Templin, Jr., President of Northern Virginia Community College testified on behalf of community colleges and outlined the priorities of AACC and ACCT on WIA reauthorization.

The WIA priorities and background information can be found here: http://www.acct.org/advocacy/priorities/

To view the hearing, click here:
http://help.senate.gov/hearings/hearing/?id=99586896-5056-9502-5d82-cabe2d595170

On the Jobs legislation front, House Congressional leaders are now working to bring the Senate Jobs legislation to the House floor for consideration.

In other news, the White House earlier this week announced President Barack Obama’s intention to nominate Dr. Eduardo M. Ochoa as Assistant Secretary for Postsecondary Education, Department of Education. Dr. Ochoa is the Provost and Vice President for Academic Affairs at Sonoma State University. He is responsible for the University’s academic programs, strategic planning, and overall diversity initiative.
Read more!

Tuesday, February 23, 2010

Senate Invokes Cloture on Jobs Legislation

On Monday, the Senate invoked cloture (end debate or limit time for bill consideration) by a 62-30 vote on the Senate Jobs legislation introduced by Senate Majority Leader Harry Reid (D-NV). The Senate Jobs legislation would provide $15 billion in tax cuts, with the bulk of the funding intended to help employers hire new employees. The Senate is now expected to consider and pass its bill sometime this week. The legislation includes:
  1. Payroll Tax Exemption: offers an exemption from social security payroll taxes for every worker hired in 2010 who has been unemployed for at least 60 days. There would also be an additional $1,000 income tax credit for every new employee retained for 52 weeks to be taken on the employer’s 2011 income tax return. ($13 billion)
  2. Section 179 Expensing: helps small businesses grow by allowing them to write off more of their expenditures.
  3. Highway Trust Fund Extension: extends existing highway programs, which provides states and localities with the certainty they need to make decisions on projects.
  4. Expansion of Build America Bonds: allows state and local governments to borrow at lower costs to finance more infrastructure projects and put people to work. ($2 billion)
The Senate bill differs greatly from the House Jobs bill (see below) and it is unclear how they will proceed to conference a final bill. Majority Leader Reid did announce that he would introduce bills to cover a wide range of provisions that were included in the House bill.

Last year, the House of Representatives passed the “Jobs for Main Street Act of 2010” by a 217-212 vote. The act provides $154 billion for a number of programs. Most importantly, $23 billion will be available to states as part of an “Education Jobs Fund” over the next two years. 95% of the funds will be allocated by states to school districts and public institutions of higher education to retain or create jobs that provide educational services and to modernize, renovate, and repair public education facilities.

The bill provides $750 million in competitive grants to train workers for jobs in high-growth fields. The bill also provides $300 million for the Federal Work Study Program.

The summary of the bill can be found here: http://appropriations.house.gov/pdf/Jobs_for_Main_Street_Act_of_2010_Summary.pdf.

The bill can be found here: http://appropriations.house.gov/pdf/2010_Jobs_For_Main_Street_Bill_Text.pdf. Read more!

Friday, February 12, 2010

Senate Jobs Bill Update

Last week, the Senate Democratic leadership introduced a Jobs Bill Agenda (which can be read at http://democrats.senate.gov/newsroom/record.cfm?id=322107&) that covers a number of areas, including funds for states to shore up funding for education.

The Senate leadership indicated that the Senate will move individual bills that cover a number of areas as opposed to a single jobs bill such as the one passed by the House. Yesterday, Majority Leader Harry Reid (D-NV) introduced the first part of a series of bills. The introduced bill would provide $15 billion in tax cuts, with the bulk of the funding intended to help employers hire new employees. With the Congressional recess approaching next week, it is unclear when the Senate will move this bill and other bills that cover parts of the Jobs Bill Agenda. The bill can be viewed at: http://thomas.loc.gov/cgi-bin/query/C?r111:./temp/~r111kLYGMn

Last year, the House of Representatives passed the “Jobs for Main Street Act of 2010” by a 217-212 vote. The act provides $154 billion for a number of programs. Most importantly, $23 billion will be available to states as part of an “Education Jobs Fund” over the next two years. 95% of the funds will be allocated by states to school districts and public institutions of higher education to retain or create jobs that provide educational services and to modernize, renovate, and repair public education facilities.

The bill provides $750 million in competitive grants to train workers for jobs in high-growth fields. The bill also provides $300 million for the Federal Work Study Program.

The summary of the bill can be found here: http://appropriations.house.gov/pdf/Jobs_for_Main_Street_Act_of_2010_Summary.pdf.

The bill can be found here: http://appropriations.house.gov/pdf/2010_Jobs_For_Main_Street_Bill_Text.pdf. Read more!

Monday, February 1, 2010

Obama Administration Releases FY2011 Budget

Today, President Barack Obama formally released his FY2011 Budget Request. The budget request is a formal submission to Congress. The President’s budget provides $49.7 billion (7.5% increase over the FY2010 budget request) for the Department of Education, but this figure does not include the Pell Grant program. The Administration is seeking to move the Pell Grant into the mandatory side of the federal budget. If this switch was to occur, the Pell Grant program would not be subject to the annual discretionary appropriations process. The total budget request for Pell is $34.9 billion and would provide for a $5,710 Pell Grant maximum. It is estimated that there is a $18 billion Pell Grant shortfall.

The Department of Education FY2011 budget request also includes “$10.6 billion over 10 years for the President's American Graduation Initiative, to strengthen and support community colleges, focus on college completion, and graduate 5 million more students by 2020.” The House passed version of H.R. 3221, “Student Aid and Fiscal Responsibility Act,” provides $9.5 billion for AGI. The AGI funding amount is expected to increase in the Senate bill, which still has not been released.

Below are some other key other funding areas:

  • Carl Perkins Career and Technical Education State Grants: $1.26 billion, an increase of $103 million (the increase comes from the consolidation of Tech-Prep)
  • Tech-Prep State Grants: $0, a decrease of $103 million
  • Strengthening Institutions: $88.2 million, an increase of $4.2 million
  • Hispanic Serving Institutions: $123.3 million, an increase of $6 million
  • Predominantly Black Institutions: $11.3 million, an increase of $500 thousand
  • College Pathways and Accelerated Learning: $100 million (a new program, focused on early college initiatives and Advanced Placement/International Baccalaureate)
  • Work-study: $980.5 million, level funding
  • Supplemental Educational Opportunity Grants: $958.8 million, level funding
Click here for more information from the Department of Education.

Meanwhile, the Department of Labor also released its budget request, which includes $14 billion for its programs. Unfortunately, the Career Pathways program is slated to be consolidated because the Department believes that many of the programs would be eligible for funding under the American Graduation Initiative. The Department would provide $85 million for a program focused on Green Jobs and $261 million for two new innovation funds for job training. Additionally, language was inserted in the request for the Workforce Investment Act to allow local workforce boards to award contracts to institutions of higher education or other eligible training providers.

Click here for more information from the Department of Labor. Read more!